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jonah hart | 09:33 Thu 01st Jul 2010 | Business & Finance
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Can you apply for a social fund loan if your claiming job seekers allowance?
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Do not loan from the social fund if you can possibly avoid it. I did, and was in dire straits for 7 weeks repaying it from my benefit.
12:03 Thu 01st Jul 2010
If you are in receipt of Employment and Support Allowance (income related), Income Support or income based Jobseekers Allowance, you may have, or be thinking of applying for, a Social Fund Budgeting Loan.

This loan is payable only for essential items but is interest free.
Repayments are taken directly from benefit. This could result in you not being able to budget effectively.
Think carefully before obtaining a Social Fund loan, you may be entitled to a Community Care Grant instead. Seek advice. A Community Care Grant is not a loan and does not have to be repaid.
Do not loan from the social fund if you can possibly avoid it. I did, and was in dire straits for 7 weeks repaying it from my benefit.

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