Rochdale £323 Discretionary Crisis Fund grants take 25 minutes by phone

Rochdale Borough Council has offered its Discretionary Crisis Fund as an emergency housing measure when tenants are falling behind on rent. While Council prefers for residents to undergo budget advice first, the crisis fund serves to avert tragedy when there is little time to seek formal advice.

How much is available?

The amount of approved crisis fund grants depends on the applicant and their circumstances. The average award has been £323, which can go a long way towards helping to plug a budget hole.

Some clients receive less funds while other have been given far more. What is of particular importance is whether the grant would actually help to solve a problem created by an emergency crisis situation or if it would simply delay the inevitable. The preference is on a solution that would solve the problem for the least amount of money.

How to apply

Residents may apply by phone. The average call takes less than 25 minutes. Council outsources this emergency rental and financial assistance programme to Northgate Public Services. To request emergency rental aid and help with living costs, Rochdale residents may call 01706 532222.

Northgate supplies software which helps to determine whether an applicant needs the help. The final authorisation rests with a senior decision maker who may approve a grant award. Any approved grant will depend on ID checks and a review of current benefits received. Eligibility usually depends on an applicant already receiving some sort of benefit, whether that be housing benefit or job seeker credit.

Purpose of the fund

The purpose of the Discretionary Crisis Fund is to give residents access to emergency cash necessary to avert a crisis. While a cash payment can be made, it is not paid directly to an applicant. Instead aid is directed towards the expected expense. A common recipient of this payment is an applicant’s landlord. The payment could be used to pay this month’s rent, or it could be directed towards arrears. A stated goal of the fund is to prevent unnecessary evictions in Rochdale borough.

Government is keenly aware that many poor households will turn to loan sharks and payday lenders in emergency situations. Those types of desperate measures only make things worse. Many tenants who face eviction will agree to some pretty horrible terms just to have access to immediate cash. Since those loans are so unaffordable, borrowers tend to roll the loans into new ones. New rules introduced by the Financial Conduct Authority (FCA) have reduced that problem through licensed lenders. Unfortunately those rules don’t really apply to loan sharks who are already operating illegally.

While residents must call to initiate the request, it is possible to be referred to the fund from a community organisation. There are several agencies that provide money advice that can provide a referral to the Discretionary Crisis Fund. These advisers recognise common situations where a funding request could be approved, and they will make a referral as a part of an overall action plan.

Funding for the fund used to come from the Department of Work and Pensions (DWP). However DWP announced it would no longer support the fund beginning in April 2015. Rochdale Borough Council is responsible for allocating enough capital to the programme so that a reasonable proportion of aid requests can be filled.

Some government MPs have expressed displeasure of the denial rate, which has averaged about 45 per cent. Northgate acknowledges the rate of denials which it blames on the ineligibility of applicants. Many of them are not approved for or currently receiving benefit payments. Someone not receiving benefit payments should not automatically assume they are ineligible though. A thorough screening through a money advice service could help to determine what types of aid might be possible.