15 March 2010 – Publication of DWP Research Report 625: The Social Fund: Customer experiences and perspectives: Qualitative research with Jobcentre Plus customers

A new report published today explores Jobcentre Plus customers’ understanding and experiences of the Social Fund, particularly the discretionary elements i.e. Crisis Loans, Budgeting Loans and Community Care Grants. Customers’ views were also sought on alternative ways in which the discretionary Social Fund might be administered.  The findings in this report are based on primary research using data from 100 Jobcentre Plus customers; 50 from depth interviews, and 50 from focus group participants.  Understanding more about our customer’s perspectives on the Social Fund will help inform any long term reform of the Social Fund.

Key findings were:

• Customers were in favour of a simpler Social Fund structure that is transparent and easier to understand and navigate;
•  Automatic deduction from benefit to repay loans  was popular with customers as it helped in the management of their Social Fund debt;
• Attitudes to borrowing and interest were shaped from a range of sources including: family upbringing and parental direction in budgeting/money management;
• Customers typically believed that there should be universal access to the Social Fund, with no difference in loan amounts available to individual customers on the basis of benefit income;
• Customers' perceptions were that Jobcentre Plus staff were generally not as forthcoming as they would have wished about informing them about the Social Fund as an additional source of financial assistance;
• Customers acknowledged that the current system was open to mis-use by some applicants;
• Customers thought  there should be higher loan amounts available to families with children;
• Telephone processes were preferred over internet application processes; customers' main issues with telephones were around being able to get through on Crisis Loan phone lines;
• Customers' views were mixed about third party delivery of some loan elements with concerns raised about the efficiency of an external service. Supporters believed an external organisation would be impartial and fair in their opinions of individual cases;
• Customers supporting the retention of the service with Jobcentre Plus primarily wanted to maintain the familiarity with the organisation, staff and systems and were unsure about the data security of using an external agency;
• Customers generally supported attendance at interview for all Social Fund applicants and believed it would ensure that requests were genuine;
• Interviews for repeat applicants, signposting to other support services, and conditionality were also popular concepts as customers believed assistance, support, and regulation should be in place for those customers with evident need;
• Customers were typically in agreement with the concept of the direct provision of  reduced priced new goods instead of cash through the Social Fund as long as they retained an element of choice;
• Customers were primarily concerned about money and budgeting in general (affording rent payments, utility bills and food) and debt worries were second to this as they accepted that they may fall into debt as a result of lack of funds;
• There was mixed use of money advice services in general which was dependent on customers' personal situations;  reasons for choosing particular advice providers included: word of mouth; familiarity with banks and existing banking facilities; family connections; previous experience with the Citizen’s Advice Bureau; referrals from other services;
• Customers were generally positive about the suggestion of money advice to all Social Fund applicants at the point of application to help people to get the most out of the money awarded;
• There was some concern that efficient budget management is only partially possible and in cases where small sums of money were awarded to Social Fund applicants, efficient budgeting would remain implausible;
• There was little agreement on which organisation should provide the money advice, with support expressed for both Jobcentre Plus and external providers – Citizen’s Advice Bureau in particular.

Notes to Editors

1. This research is published on 15 March 2010 as part of the DWP Research Report Series as Research Report number 625 'The Social Fund: Customer experiences and perspectives: qualitative research with Jobcentre Plus customers'.
2. The report was produced by Ecotec and written by Ashfa Slater.
3. The report draws on qualitative data from primary research with 100 Jobcentre Plus customers.
4. The DWP research report 625 can be found at: http://research.dwp.gov.uk/asd/asd5/rports2009-2010/rrep625.pdf

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