4. A reformed grant scheme
4.1 The criteria for being awarded a Community Care Grant have not changed significantly since the Social Fund was introduced to ‘support the Government’s objectives in the field of community care’[19]. The overarching Government agenda and the way that vulnerable individuals are supported has evolved, meaning that extra support is available combined with an expectation for people to lead independent lives.
4.2 Whilst a reformed loans scheme would remain a credit facility for those on low incomes, a reformed grants system should ensure that payments go to those who are experiencing the most exceptional need, and who cannot reasonably be expected to repay the award.
Discretionary grant scheme
A clearer pathway out of need
4.3 The eligibility criteria for grant applications would remain the same as at present. However, we recognise that those applying to the grants scheme may also benefit from the support and interventions on offer in a reformed loans scheme. We would like to explore how we can support those with sustained needs to get the right advice and help. For example, we could require customers who apply for a second discretionary grant to an interview to assess what further support they may need.
4.4 Whilst discretion would need to be applied concerning the degree of exceptional need, we envisage that a grant could be applied for where:
- it would support independent living;
- applicants could not feasibly meet such costs through a Social Fund loan; and
- applicants could not access a grant or other support from another source.
Question
What support is most needed by those applying for multiple discretionary grants?
Provision of goods and services instead of cash for grants
4.5 The Welfare Reform Act 2009 provides for a successful applicant for a Community Care Grant to be awarded goods or services in place of cash where the Secretary of State has entered into a contract with suppliers of the relevant goods or services.
4.6 As the clauses did not change entitlement to the scheme as it currently stands, it did not appear in the informal consultation document published last year. However, during the passage of the Act through Parliament we have engaged with stakeholders on the matter and from these discussions it was clear that many had an appetite to be involved in the design of the policy.
4.7 Entering into a contract with major suppliers for goods could make the budget go further by reducing the costs of individual items for customers. In that way we may be able to make more effective use of existing resources by supporting more customers than now. This legislation could provide a useful means of getting better value for customers from available funds and through effective contracting being able to stretch the budget further. We are proposing to provide some grants in the form of goods and services.
4.8 In terms of what we would be offering an individual, we would be looking to provide:
- a better deal than is currently available through the offer of a range of items, whilst retaining an element of choice for the customer;
- a choice of high quality goods, none of which will be identifiable as being from the Social Fund;
- a guarantee on the product for a limited period – meaning there would be a reduced need for repeat applications to grants; and
- an increase in the overall grants budget from the savings made.
4.9 We are interested in the experiences of others in the sector who are delivering their service in this way, namely the Family Fund, see Box 6. Their approach is sympathetic to customer choice and service and offers value to money for both the individual and the scheme as a whole. This is something that we would seek to ensure is included in any system we deliver.
Box 6: How the Family Fund supports lower income families
The Family Fund has been helping to ease the lives of lower income families with severely disabled children for 37 years. It is now the largest charitable sector grant-maker to families, making grants worth £30 million to 50,000 families a year across the UK, including £24 million to 39,000 families in England. The UK government and the devolved administrations supply nearly all its income.
Of the families it helps, 44 per cent live below the poverty line, 82 per cent have below median income and at least 15 per cent have a black or minority ethnic background. Others include disabled adults, refugees and asylum-seekers.
To ensure families get what they want, Family Fund Advisers visit most first-time applicants to talk through their needs. The most popular grants include washing machines, beds, bedding and clothing, computers, driving lessons, much-needed holidays and hospital visiting costs. By investing in new technology and working effectively with suppliers, the Fund distributes 91p in every pound to families.
Seventy per cent of grants are awarded by providing goods or services, using pre-paid cards with high street retailers, vouchers and direct payments to suppliers. Families have a wide choice of brands and styles.
Cards help confirm that families buy what they asked for and they extend the value and quality of awards. So for the same amount as a cash grant previously, families get a higher value washing machine with a five-year guarantee. Cash grants still cover exceptional requests, which have included garden safety fencing and a child’s headstone.
Parents and carers express great satisfaction with their dealings with the Family Fund. In the most recent survey, they scored it an average 9.32 out of 10, with 63 per cent scoring it 10.
Question
Do you have any views on possible issues in putting the legislation around the provision of goods and services into practice?
A resettlement grant – helping vulnerable people to set up or re-establish home
4.10 In 2008-09, 61,000 Community Care Grants[20] were awarded to vulnerable people and their families who were setting up home after leaving institutional or residential care, as part of a resettlement programme, or in other exceptional circumstances such as fleeing domestic violence.
4.11 There is recognition that people without a permanent address will experience disadvantage in the labour market for a variety of reasons, and recent research suggests that people living in temporary accommodation show higher levels of financial exclusion and poorer coping abilities[21]. We believe that the provision of grants will help support people in these particularly vulnerable groups towards increased financial capability.
4.12 In order to recognise the need for increased certainty and transparency we would then propose to focus the criteria under which an award could be made to a particular set of circumstances.
4.13 To achieve this, we are proposing to introduce a standardised resettlement grant to assist people in meeting the costs of setting up or re-establishing their home – those effectively starting from scratch. Subject to legislation, this could be delivered through the regulated part of the Social Fund, making it more automated, easier for applicants to understand, and more straightforward to administer, which could speed up payment times.
4.14 Such a grant would represent a first step towards helping people in these circumstances to live independently through providing the solid foundation which could help them over time to move towards full integration in the labour market. In addition it might also provide support for those for whom a move towards employment is a condition of receiving their benefit.
4.15 To deliver this degree of clarity about this part of the scheme, we would need to clearly identify the circumstances in which individuals would qualify for a resettlement grant.
4.16 We are proposing that all successful applications should be supported by evidence as to their need from a relevant professional who is working with the individual and their family, such as a social worker or a general practitioner. With this additional professional involvement, the grants provision could be linked to the more holistic service provided by them for those individuals with a range of needs.
4.17 For those customers who currently receive a grant when leaving prison, we will explore options for this group separately outside this document. We are working with relevant Departments and considering recent policy development and pilots for such customers.
4.18 We would also like to explore what extra provision could be offered to customers applying for a resettlement grant. We would like to hear views on the kind of support we could reasonably expect applicants to engage in as a condition of their award, in order to support them to access appropriate mainstream financial services in the future. We recognise the range of needs of those who are likely to apply for a resettlement grant, given our initial thinking on the circumstances under which people may be eligible, so the support provided would need to be flexible, personalised and varied enough to meet those needs.
Questions
In what circumstances do you think a resettlement grant should be given?
What additional support could be offered to resettlement grant customers to help them move towards increased financial independence?
