Updated 2 April 2012
Social Fund reform
The Government intends to introduce new local assistance to replace some of the discretionary elements of the Social Fund from April 2013. This page provides information and updates to English local authorities and the devolved administrations in Scotland and Wales:
- The reforms
- Background
- Useful documents
- Workshops (Spring 2012)
- Discretionary Social Fund: 2012/13 Budget Allocations
- Further information
This page will be updated regularly as we move towards implementation.
The reforms
Community Care Grants and Crisis Loans
Community Care Grants and Crisis Loans for general living expenses will be abolished from April 2013 and replaced by new local assistance. The new assistance will be administered by local authorities in England and the devolved administrations in Scotland and Wales.
Crisis Loan Alignment Payments
Also from April 2013 Crisis Loan alignment payments and other Crisis Loans paid due to issues with benefit, for example Tax Credit delays, will be replaced by a new national scheme of Short Term Advances. This will be administered by the Department for Work and Pensions.
Budgeting Loans
Budgeting Loans will continue to be available until Universal Credit is fully rolled out. As people migrate across to Universal Credit they will have access to a new system of Budgeting Advances that will replace Budgeting Loans for Universal Credit recipients.
Background
Social Fund reform, part of the wider welfare reforms, is at the heart of the Government’s plans for localism.
The reform proposals were set out in the Government’s Welfare Reform White Paper “Universal Credit: welfare that works”, published on the 11 November 2010.
The Welfare Reform Bill that is currently before Parliament includes powers to end the discretionary elements of the Social Fund.
- Welfare Reform Bill 2011 and supporting products (Parliament website)
Consultation and Government response
In February 2011 the Department for Work and Pensions and the Department for Communities and Local Government published a joint call for evidence on the design and delivery of Local Welfare Assistance in England:
The Government response, published on 23 June 2011, focused on three broad areas:
- a commentary on the key issues and themes that emerged from respondent’s contributions
- a range of suggested issues for local authorities to consider as they developed their plans
- previously unpublished local authority level information about the Social Fund scheme to provide local authorities with a better understanding of how the Social Fund operates in their local area.
- Government response to Local support to replace Community Care Grants and Crisis Loans for living expenses in England (525KB)
- Social Fund Reform Localisation Data
Useful documents
Local authority fieldwork
Following publication of the Government response to the call for evidence officials from the Department have visited around 50 local authorities to discuss progress on early planning. The summary report of the meetings may be a helpful source for authorities in their planning.
Local authorities may also find the following DWP research reports useful:
- Community Care Grants: A qualitative view of attitudes and behaviours (2011) (117KB)
- Social Fund use amongst older people (2002) (274KB)
- Experiences and consequences of being refuse a Community Care Grant (2004) (653KB)
Social Fund Guide
This guide contains the Secretary of State's directions and guidance. It is used by Jobcentre Plus Decision Makers and Independent Social Fund Inspectors.
- Social Fund Guide (1.52MB)
Social Fund Annual Reports
The Secretary of State produces an annual report on the Social Fund.
- 2010-2011 Social Fund Annual Report (1.74MB)
- 2009-2010 Social Fund Annual Report (148KB)
- 2008-2009 Social Fund Annual Report (361KB)
- 2007-2008 Social Fund Annual Report (239KB)
- 2006-2007 Social Fund Annual Report (625KB)
Workshops (Spring 2012)
Following on from the recent workshops, local authorities may find the following helpful to their planning.
Settlement Letter – Whilst work on the final text is still to be completed, on 17 January 2012 the Government spokesman Lord De Mauley said:
“The settlement letter will set out what the funding is to be used for, the underlying principles, and describe the outcome that must be achieved. It will say that the funding is to concentrate resources on those facing greatest difficulty in managing their income, and to enable a more flexible response to unavoidable need. The letter will make explicit that the funding is to provide a replacement provision for community care grants and general living expenses crisis loans.
The letter will go on to explain that community care grants were awarded for a range of expenses, including household equipment, and were intended to support vulnerable people to return to or remain in the community or to ease exceptional pressure on families. They were also intended to assist with certain travel expenses. It will also explain that crisis loans were made to meet immediate short-term needs in an emergency or as a consequence of a disaster when a person had insufficient resources to prevent a serious risk to the health and safety of themselves or their family.”
We are planning a mop-up workshop for those that were unable to get to those held recently. Details will appear here soon.
Discretionary Social Fund: 2012/13 Budget Allocations
On 26 March 2012 the Government announced the 2012 – 2013 Discretionary Social Fund Budget Allocations.
Following a review in 2011 into the funding allocations methodology, allocations to social fund budget areas have been adjusted to achieve a fairer distribution of the £141million national budget between areas and to move to the optimal funding position for the new locally based service from 2013. The following document, deposited by the Minister for Pensions in the Parliamentary libraries, provides details of the 2012 – 2013 allocations.
Further information
If you have any questions about local assistance or suggestions on how we could improve the information on this page please contact us at:
