Government announces changes to emergency loan scheme

Post by The Commander on 30th June 2011 in

Government announces changes to emergency loan scheme

Rules relating to emergency loans and grants which allow people to buy goods such as washing machines or cookers in an emergency are to be changed to prevent abuse.

A report by the Shropshire Star newspaper said people are currently able to apply for emergency cash through the government's Social Fund and then submit a second application for the same thing 28 days later.

The scheme was designed to help vulnerable people buy items such as a new cooker in situations where they were unable to have oven repairs carried out, for example. However, some are concerned the system has been abused by individuals successfully claiming for the same large appliances just months apart.

Individuals will now have to wait for 12 months, rather than one month, before making a repeat claim.

A spokesperson for the Department for Work and Pensions told the Star a common sense approach would be taken.

She said: "People will still be able to claim for the same items in exceptional circumstances, and will still be able to claim for different items if necessary."

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