Crisis Loans
Abolished on 1 April 2013. What replaced them, and what to do if you are still repaying one.
Written by the benefitmoney.co.uk editorial team · Last reviewed 9 September 2026
You cannot get a Crisis Loan. They were abolished on 1 April 2013.
If you need emergency help with essentials right now, the replacement is run by your council or your nation’s welfare fund — and in most cases it is a grant, not a loan, so there is nothing to repay.
If you are here because money is still coming off your benefits for an old Crisis Loan, that is normal: the loans stopped being issued, but the debts are still being collected. There is a section on that below.
What happened
Crisis Loans were part of the discretionary Social Fund — interest-free loans for people facing an emergency, for things like food, clothing or somewhere to stay after a fire or flood. Unlike a Budgeting Loan, you did not need six months on benefits to apply.
They were ended by section 70 of the Welfare Reform Act 2012, headed “Ending of discretionary payments”, which repealed the discretionary social fund power in section 138(1)(b) of the Social Security Contributions and Benefits Act 1992 and abolished the office of the Social Fund Commissioner. The section came into force on 1 April 2013.
The money was handed to councils and devolved governments to run their own local schemes instead. That is why there is no longer one national answer — what you can get now depends on where you live.
Crisis Loans are not available any more.
GOV.UK, Budgeting Loans guidance
Sources: legislation.gov.uk (Welfare Reform Act 2012, s.70); GOV.UK (Budgeting Loans). Checked 9 September 2026.
If you are still repaying a Crisis Loan
This catches people out, and it is the reason a lot of the searches happen.
Crisis Loans have not been issued since 2013, but the debts did not disappear. GOV.UK’s current guidance on money taken off your Universal Credit payment still lists “Budgeting and crisis loan repayment” as a type of deduction, alongside advances and overpayments.
Two things follow.
It counts against a Budgeting Loan
over £1,500 owed → no new Budgeting Loan
You cannot get a Budgeting Loan if you owe more than £1,500 in total for Crisis Loans and Budgeting Loans combined. An old Crisis Loan can be the reason a new application is refused.
You can ask for it to be reduced
A financial hardship decision can be considered where deductions are being taken for benefit debt, Budgeting Loan or Crisis Loan repayment, advances, or rent arrears above 10% of your standard allowance. If granted, it applies from your next assessment period. Ask through your Universal Credit journal, your work coach, or the helpline.
Deductions overall are normally capped at 15% of your Universal Credit standard allowance.
Sources: GOV.UK — Find out about money taken off your Universal Credit payment↗ (updated 10 June 2026); GOV.UK — Budgeting Loans: Check if you’re eligible. Checked 9 September 2026.
What replaced Crisis Loans where you live
| Nation | What it is called now | What it is |
|---|---|---|
| England | Crisis and Resilience Fund — run by your council | Help with energy and water bills, food, essential items and housing costs |
| Scotland | Scottish Welfare Fund — Crisis Grants and Community Care Grants | The closest direct successor. A Crisis Grant is a grant, not a loan |
| Wales | Discretionary Assistance Fund | Emergency Assistance Payments and Individual Assistance Payments |
| Northern Ireland | Discretionary Support, or a Short-term Benefit Advance | Separate system from Great Britain |
Two things GOV.UK says about the England scheme that surprise most people:
You do not have to be getting benefits to get help from your local council.
If you get benefits, they will not be affected if you get a payment from the Crisis and Resilience Fund.
That second point is the opposite of how borrowing works. Money you borrow counts as capital and can cut your Universal Credit; a payment from this fund does not.
Sources: GOV.UK — Get help with the cost of living from your local council↗; GOV.UK — Budgeting Loans: Other help you can get. Checked 9 September 2026.
How to get help now
- England — start from GOV.UK’s page Get help with the cost of living from your local council, and follow it to your council. On the council’s own site the scheme may be called crisis support, welfare assistance, household support or a local name of its own.
- Scotland — apply to the Scottish Welfare Fund for a Crisis Grant through your council.
- Wales — apply to the Discretionary Assistance Fund.
- Northern Ireland — Discretionary Support, or ask about a Short-term Benefit Advance.
Say clearly that it is an emergency and what the money is for. Expect to give details of your income, any benefits, and the situation. Councils run their schemes differently: some take applications directly, some work through local charities, and some limit households to one application a year.
Other help worth checking
- Crisis and Resilience Fund and grantsnot repaidUsually not repaid at all. Full detail
- Budgeting Advanceinterest-freeOn Universal Credit, for a one-off item. Repaid from your award. Full detail
- Budgeting Loaninterest-freeThe same on Income Support, income-based JSA, income-related ESA or Pension Credit. Remember the £1,500 combined limit if you have an old Crisis Loan. Full detail
- Credit union loansInterest capped by law, if you do need to borrow. Full detail
- Food banks and local community supportOften run separately from the council scheme, and worth asking about if the scheme has closed for the year.
What changed on this page
- Verified: abolition is s.70 Welfare Reform Act 2012, in force 1 April 2013. GOV.UK still lists “Budgeting and crisis loan repayment” as a live deduction type.
Frequently asked questions
Do Crisis Loans still exist anywhere in the UK?
No. Section 70 of the Welfare Reform Act 2012 ended discretionary social fund payments from 1 April 2013, and GOV.UK states that Crisis Loans are not available any more.
Why do people still search for them?
The name outlived the scheme by more than a decade, and older advice pages still use it. The need did not go away — only the national scheme did.
I am still paying one back. Is that right?
Yes, that happens. Old Crisis Loan debts are still collected through deductions from benefits, and GOV.UK’s current guidance lists them as a deduction type.
Can an old Crisis Loan stop me getting a Budgeting Loan?
Yes. You cannot get a Budgeting Loan if you owe more than £1,500 in total for Crisis Loans and Budgeting Loans.
Is the replacement a loan?
Usually not. In England, Scotland and Wales the replacement schemes mostly give grants, vouchers or direct payments that are not repaid.
Can I get help if I am not on benefits?
Yes. GOV.UK says you do not have to be getting benefits to get help from your local council.
Will it affect my benefits?
No. GOV.UK says a payment from the Crisis and Resilience Fund will not affect your benefits.
Where do I apply first?
Your council in England; the Scottish Welfare Fund, Discretionary Assistance Fund or Discretionary Support in Scotland, Wales and Northern Ireland.
Sources
- legislation.gov.uk — Welfare Reform Act 2012, section 70 (Ending of discretionary payments); in force 1 April 2013↗. Checked 9 September 2026.
- GOV.UK — Budgeting Loans (how they work; check if you’re eligible; other help you can get)↗. Checked 9 September 2026.
- GOV.UK — Find out about money taken off your Universal Credit payment↗. Updated 10 June 2026, checked 9 September 2026.
- GOV.UK — Get help with the cost of living from your local council↗. Checked 9 September 2026.
This page is independent. It is not run by the Department for Work and Pensions, any local council or GOV.UK.