Dervish,

I pretty much did what Stressed is suggesting and it's a good plan. I took a year out between the MA and PhD and started working on it unofficially, so I wasn't paying fees and was able to do the paid work I had to do to make ends meet. I then applied for the AHRC for the following academic year. I was rejected last year, although I'm trying again this year. At least next year you will probably stand a better chance since the awards will be in the hands of your department. You have nothing to lose. But it's a reason to do the best dissertation you possibly can.