Everyone experiences periods of financial insecurity from time to time and most of us are just one emergency expense away from falling into debt. However, if you're in a situation where you need money or food immediately, it's important to know what your options are.
Whether you've recently lost your job and are worried you'll be evicted or the rising cost of living means you can't afford to feed your family, it's important to try not to panic. No matter the situation, there is always help available.
This guide will outline everything you need to know about emergency funding in the UK, from what to do if you're struggling to pay your mortgage to how to reduce your council tax payments.
If you need money now, there are various options available to you. It can be tempting to apply for a payday loan for immediate access to funds, but they often come with high interest rates and hidden fees, which can cause more harm to your finances in the long run and lead to a cycle of debt that's hard to break.
Instead, you might be able to get help from a local credit union, which is a member-owned financial provider that offers banking advice and services to its members. It works by members pooling their savings together to provide credit at lower interest rates than traditional lenders.
Most local councils also offer a welfare assistance scheme, which is a discretionary fund designed to help people who need a helping hand to maintain an independent life or are facing an immediate financial crisis. Through this, you can access small cash loans or grants, food vouchers, and used furniture.
Lastly, it's worth checking if you're eligible for any benefits, such as Universal Credit (UC), Employment and Support Allowance (ESA), or Jobseeker's Allowance (JSA). It can take up to five weeks to receive your first payment, but you can apply for an advance to get paid sooner if you can prove you're in urgent financial need. This must be repaid through deductions from future benefits payments.
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If you're worried you'll miss your next rent payment, your first step should be to contact your landlord or letting agency and explain that you are experiencing financial problems. This might sound daunting, but it can ensure they're kept in the loop and prevent them from taking legal action against you or evicting you.
When you contact your landlord, provide a budget showing your monthly income and expenses and offer a payment plan based on what you can afford. Showing a commitment to dealing with your rent arrears might convince your landlord to agree to lower monthly payments until you get back on your feet.
Receiving certain benefits (Housing Benefit or the housing element of Universal Credit) might also qualify you for a Discretionary Housing Payment (DHP). This is a short-term payment from your local council designed to help with rent or housing costs. Each local council has its own process and eligibility criteria for DHP.
If you can no longer afford your mortgage, contact your mortgage provider as soon as possible. They might be able to offer a payment holiday, payment break, change of payment date, payment reduction, or extend your mortgage term.
Before making any final decisions about your mortgage, it's recommended to talk to an independent financial advisor first. They will be able to assess your circumstances and provide free and impartial advice to help you know what your next steps should be.
Remember, the earlier you reach out for help with your mortgage payments, the more options that will be available to you. In any case, you should always contact your mortgage provider before you miss your first payment as missed payments can lead to your home being repossessed.
If you have no food and no money to buy food, there are several options available to you.
Firstly, a local food bank can provide food and essential household items to ensure you're able to maintain a reasonable standard of living for you and your family. The Trussell Trust is the largest provider of food banks in the UK with over 1,400 across the country.
To access a food bank, you'll need a referral voucher from a local organisation or community group. This can then be exchanged for an emergency food parcel (typically lasting three days). Some food banks also provide other essential items like toiletries, baby supplies, cleaning products, and credit top-ups, and can point you in the direction of free debt or housing advice to ensure you're accessing the full scope of help available to you.
If you receive benefits, your child might also qualify for free school meals to ensure they don't go without and to help you free up some of your daily costs. To enquire or apply for free school meals, contact your local council.
If you're struggling to afford your utility bill or are worried you could be in energy arrears, contact your supplier and them know as soon as possible. They might be willing to negotiate a payment plan with you where you make smaller payments based on what you can afford each month.
Because utility debt is classed as a priority debt, there can be serious consequences for continuous non-payment. The sooner you let your energy supplier know why you can't pay, the sooner you can find a solution and stop legal action in its tracks.
Some companies also offer social tariffs, which are special rates reserved for people who are struggling to pay their energy bills. They are usually cheaper than the cheapest advertised rate and can be the difference between you being able to pay your energy bills and your supply being disconnected.
If you have a pre-payment meter installed, some food banks might be able to provide vouchers for a small top-up to ensure you don't run out of credit. Renting your home from the council or a housing association might also qualify you for free energy-saving grants and initiatives, such as improved insulation and boiler repairs.
The government might be able to provide financial support in the event of an emergency. They no longer offer crisis loans, but you can apply for a budgeting loan (or budgeting advance) instead, which is a loan designed to cover an unexpected expense. To qualify for a budgeting loan, you must have been receiving certain benefits for at least six months.
Budgeting loans can go towards a wide range of everyday expenses, such as furniture, appliances, travel, clothing, rent, and maternity costs. The amount you'll qualify for depends on your situation and your repayments will be taken from future benefits payments.
As well as budgeting loans and advances, the government also provides hardship payments to people who can't pay their essential bills due to a benefits sanction. This is a loan that must be repaid through future benefits payments but can ensure you're still able to cover your household expenses, such as rent and bills, while your benefits are reduced.
Finally, the government provides emergency funding through the Emergency Assistance Payment (EAP). This is a grant - not a loan - which means it does not need to be paid back. It could be an option for you if you've suddenly lost your job, are waiting for your first benefits payment, or have no money or food.
“No fuss, just simple, honest advice. Communication is good and they make the process as easy as they can.”
Being chased by your creditors can be daunting - especially if you don't have any money to pay them. However, there are things you can do to stop them from pursuing you about the debt.
If you're being contacted about mortgage, credit card, loan, or hire purchase debt, you might be able to ask for a payment holiday where you take a break from making payments for a temporary period until you get back on your feet.
During a payment break, interest and charges may still be added to the debt and you'll have to make up for the money owed at a later date as it will be treated as arrears.
Breathing Space (also known as the Debt Respite Scheme) is another option if you're being chased for a debt that you can't afford to repay. This is a scheme that gives you temporary protection from creditor contact, enforcement action, and interest and charges for up to 60 days.
Remember, there can be serious legal consequences for not paying priority debts. If you're struggling with council tax, court fines, rent or mortgage, child maintenance, or income tax and VAT, it's crucial you reach out for help and advice as soon as possible.
If you rent or own your home and you're over 18, you'll usually have to pay council tax. However, there are some situations where you might be able to get a council tax reduction or exemption.
For example, if you're part of the majority of people in the UK who pay council tax over 10 months, you can ask your local council if you can spread it over 12 months instead, reducing your monthly payments.
Most local councils also provide council tax reductions for people on benefits on low incomes. This is known as council tax support and can be applied for by contacting your local council and explaining your circumstances.
The other situations where you can get a council tax reduction is if you're the only adult living in the property (25% single-person discount) or you are classed as a disregarded adult (50% if everyone is disregarded or 25% off if you're eligible but everyone else is disregarded).
It's important not to wait until after you've missed a council tax payment to do something about it. Council tax is considered a priority debt, which means there are serious consequences for missed payments and you could face legal action if you don't make up for the money owed within a certain time.
If you're overwhelmed about your finances and need someone to talk to, you're not alone. There are many places you can turn to for help, whether you just need to get something off your chest or are curious about the debt solutions available to you.
Here are some of the places you can access financial support:
Opening up about something as personal as money can be difficult - even with someone you know and trust, However, it can be a good first step towards dealing with your debt and improving your financial situation.
Almost everyone experiences debt at some point in their lives, so there's no need to feel ashamed or judged. They might have experienced a similar situation in the past and be able to offer you first-hand advice on how they handled it.
It can be difficult to talk about your finances with a friend or family member who knows you personally, but reaching out to a financial advisor can allow you to access impartial advice from a debt professional.
There's no correct formula for finding a financial advisor. The key is to do your research and ensure the financial advisor you choose offers the service you're looking for, whether you need advice with housing, bills, or general money worries.
There are various helplines available for people who are stressed or worried about money and need free advice from an expert. Here are some of your options:
Call: 0808 223 1133
Opening hours: Monday to Friday 9am-5pm
Call: 0808 808 4000
Opening hours: Monday to Friday 9am-8pm, Saturday 9:30am-1pm
Call: 0800 138 7777
Opening hours: Monday to Friday 8am-6pm
Depending on your circumstances, a debt solution might be the best option to help you deal with your debt and regain control of your finances. From an Individual Voluntary Arrangement (IVA) to a Debt Relief Order (DRO), a financial advisor should be able to review your situation and advise on the best course of action.
It's important to do your research before applying for a debt solution and not to proceed unless you're confident about what you agreeing to. From how it will impact your credit score to how much your monthly payments will be, the more information you know, the more prepared you will be.
From writing off a large portion of your debt, to readjusting your budget, we’ll find a solution that suits you.
In the UK, there are various ways to get emergency money or food if you're experiencing financial hardship or you're undergoing a life event that has significantly reduced your monthly income.
If you're not receiving any financial help and you don't know how long your financial situation will last (e.g. you've been laid off and are looking for work), you should apply for benefits as soon as possible. It can provide a regular income until you get back on your feet and might make you eligible for further financial help and support.
It can also be useful to seek emergency support from an independent financial advisor, organisation, or charity. Whether you need advice about saving, budgeting, debt, or benefits, they will be able to review your financial situation and provide impartial advice to help you know what your next steps should be.
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