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Crisis Loans

Work and Pensions written question – answered on 29th November 2011.

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Photo of Kate Green Kate Green Shadow Minister (Equalities)

To ask the Secretary of State for Work and Pensions

(1) what assessment he has made of the potential effect of the April 2011 changes to crisis loans for general living expenses, excluding alignment payments, on annual expenditure on crisis loans for general living expenses, excluding alignment payments in 2011-12 and 2012-13;

(2) what assessment he has made of the potential effect of the April 2011 changes to crisis loans for items on annualised expenditure on crisis loans for items in 2011-12 and 2012-13.

Photo of Steve Webb Steve Webb The Minister of State, Department for Work and Pensions

The limit of three awards for general living expenses in a rolling 12 month period that was introduced in April 2011 will not have had full effect until after April 2012. Expenditure on general living expenses will therefore continue to reduce.

The forecast expenditure on awards for items or services following a disaster and general living expenses for the financial year 2011-12 is £60 million. At present we are not able to provide separate forecasts.

Detailed modelling for the next financial year has not been completed, but it is estimated that the total expenditure on general living expenses and items or services following a disaster will be under £36 million in 2012-13.

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