Priority or Non-Priority Debt: Social Fund Loans
Treat as non-priority debts unless you are receiving certain benefits
They can by default, become priority debts because repayments are deducted at source. If direct deductions are being made from the benefit, this may mean that there is not enough money to cover normal outgoings or priority debts. Internal referral to a debt adviser is required.
1. These payments are legally mandated, based on entitlement rather than available budget.
Sure Start Maternity Grants (SSMG): A £500 one-off, non-repayable grant to help with the costs of a new baby.
Criteria: Generally for the first child or for multiple births (twins/triplets), provided there are no other children under 16 in the household.
Requirements: You or your partner must be receiving a qualifying benefit (e.g., Universal Credit, Income Support, Pension Credit).
Funeral Expenses Payments (FEP): Helps with the cost of a funeral if you are on a low income and receiving qualifying benefits.
Coverage: Covers necessary burial/cremation fees, and up to £1,000 for other expenses (funeral director, flowers, etc.).
Repayment: If the deceased left money (an estate), the payment may need to be repaid.
Cold Weather Payments: £25 for each seven-day period of very cold weather (0°C or below) between 1 November and 31 March.
Criteria: Automatically paid to those on qualifying benefits (e.g., Pension Credit, specific Universal Credit criteria).
Winter Fuel Payments: Annual tax-free payment to help with heating costs for households with someone over State Pension age.
Update 2026: From winter 2025/26, payments are for households with at least one person over state pension age; those with income over £35,000 may have it recovered via tax.
2. Discretionary Social Fund (England & Wales)
Budgeting Loans: Interest-free loans for essential items (e.g., furniture, clothing, rent in advance).
Criteria: You must have been on a qualifying benefit (Income Support, Pension Credit, ESA, JSA) for at least 6 months.
Repayment: Must be repaid within two years.
Budgeting Advances (Universal Credit): Similar to budgeting loans, but for those on Universal Credit.
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