We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Bye bye to the Social Fund

The Social Fund ... crisis loans, budgeting loans & community care grants ... is being abolished in April. It's being replaced by schemes run instead by the local councils.

I phoned our local council on friday to find out how their new scheme will work. The welfare rights officer said they don't know what their budget will be, which department will administer the scheme (social services or the council benefits staff), they don't know whether they'll be paying grants or loans, they have no idea what the qualifying conditions will be, which client groups will be covered, who & what circumstances won't be covered, they don't know how it will be paid (cash or vouchers) or which of their premises will be used to take the applications, house the staff & make the payments.

They have no idea how the decision making will work, what rights of appeal there will be ... they really haven't the faintest clue how the Social Fund will be replaced in our town.

So the purpose of this thread is to find out if you've heard how the changes will affect your own area, if you've any news about how the various schemes are going to work.

Personally, I think the Social Fund (for all it's faults ... and for all the abuse the scheme has suffered) has proven to be one of the more civilising aspects of the social security system. The interest free loans & grants have helped so many people escape the clutches of money lenders, extortionate HP companies & pricey high street shops of the "Brighthouse" variety. It's just a terrible shame that so many people have made a career out of screwing the system so much that it's being scrapped altogether.

Thoughts ?
«1

Comments

  • princessdon
    princessdon Posts: 6,902 Forumite
    We were told in a recent meeting that many of the loans won't be "financial" if possible.

    Eg if they need a new fridge, they are looking at a recycling scheme for 2nd hand goods and you will be allocated a one from there (as opposed to being able to choose your own).

    Food parcels and vouchers for supermarkets etc.

    Will be some financial aid obviously - but they are looking at none financial.

    They are also looking to tie it in with current council services - I wasn't 100% sure what they meant but interpreted it as information sharing. Eg if a family with children are saying they can't feed their children then social services may be informed for example.

    So to answer your question - It's all very hazy indeed
  • mikey_bach
    mikey_bach Posts: 912 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Our local LA staff are having to apply for their jobs again ready for their new role..
    They have been offered early retirement or redundancy if they want..
    So job loses are expected..
    Have heard of the freecycle thing and food vouchers for supermarkets...
    Also bit of subject Jobgrants etc are going as well.
  • allen35
    allen35 Posts: 1,516 Forumite
    The Social Fund ... crisis loans, budgeting loans & community care grants ... is being abolished in April. It's being replaced by schemes run instead by the local councils.


    Personally, I think the Social Fund (for all it's faults ... and for all the abuse the scheme has suffered) has proven to be one of the more civilising aspects of the social security system. The interest free loans & grants have helped so many people escape the clutches of money lenders, extortionate HP companies & pricey high street shops of the "Brighthouse" variety. It's just a terrible shame that so many people have made a career out of screwing the system so much that it's being scrapped altogether.

    Thoughts ?

    Nice post, unfortunately i don't think the reason for transferring the SF is down to your reasons. It is about Government departments such as DWP passing the expense to Local Authorities so they can reduce the workforce.

    They will be administering Housing benefit and developing a new system for Council tax benefit which is being scrapped.

    This will have a great affect on low income families, especially those not on the Social Services radar as i expect this dept to manage the fund although the directive states an LA can do what they want with the money......

    SF loans whether budgeting (criteria of 26 weeks on means tested benefits) or crisis (when a crisis arises and tend to pay £7 per day until next benefit payday) need to be paid back.

    A CCG is a grant and at the discretion of a decision maker so would it not be the role of the decision maker to filter out the scams through a little research. More recently DWP officials are calling to the household of the applicant to check they're genuine claims.
    Forums can be/are a good guide to entitlement and it is good practice to back it up with clarification from the relevant department/specialist with written confirmation to safeguard yourself.
  • I think the re-cycling of things like fridges, etc is a good idea, there is nothing wrong with second-hand stuff, regardless of what some may think. I still am happy to have second-hand, after over forty years of marriage and having the wherewithall to buy new.

    I jsut hope though that people won't be going without essentials.

    Talking of foodbanks, I was talking to the administrator of ours the other day and she told me that the main recipients are asylum seekers. Presumably under this scheme there will be more poor resident families receiving stuff. More strain on the charity then, and more need for us more fortunate people to keep donating.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • Spamfree_2
    Spamfree_2 Posts: 584 Forumite
    I think the re-cycling of things like fridges, etc is a good idea, there is nothing wrong with second-hand stuff, regardless of what some may think. I still am happy to have second-hand, after over forty years of marriage and having the wherewithall to buy new.

    I jsut hope though that people won't be going without essentials.

    Talking of foodbanks, I was talking to the administrator of ours the other day and she told me that the main recipients are asylum seekers. Presumably under this scheme there will be more poor resident families receiving stuff. More strain on the charity then, and more need for us more fortunate people to keep donating.
    Do the asylum seekers get any money from anywhere, and are they living somewhere where the rent is paid do you know?
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    Spamfree wrote: »
    Do the asylum seekers get any money from anywhere, and are they living somewhere where the rent is paid do you know?

    This isn't quite as simple - assylum seekers can't work.
    Due to delays in the system, this is made worse.
    Extra resources put into deciding claims promptly may actually save money!
    http://www.redcar-cleveland.gov.uk/rcbcweb.nsf/web+full+list/5df00a83d3cd982480256f39004ba384 has some interesting info.
    Some of it is arguable, much isn't really.
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 23 July 2012 am31 10:20AM
    Spamfree wrote: »
    Do the asylum seekers get any money from anywhere, and are they living somewhere where the rent is paid do you know?


    Don't know, don't think so, the lady I was talking to says the ones who get referred to the foodbank have nothing but the clothes they stand up in.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • allen35 wrote: »
    Nice post, unfortunately i don't think the reason for transferring the SF is down to your reasons. It is about Government departments such as DWP passing the expense to Local Authorities so they can reduce the workforce.

    DWP are not reducing headcount except in back office functions and through natural wastage. They've just recruited again at the grade at which a Social Fund Decision Maker would work and have made previously temporary staff permanent

    Social Fund is being devolved to local governments as part of the Welfare Reform agenda (although a few functions will remain with DWP). It is felt that local authorities will be better placed to help people in need or crisis as they are closer to that individual and can better aid them to get the assistance they need, rather than just doling out money.

    The majority of Crisis Loans paid are for alignment to benefit. DWP will retain this function in the form of short term advances of benefit.

    Local authorities were told about the devolution well over a year ago, and very few have done anything about it.
  • john539
    john539 Posts: 16,968 Forumite
    Part of the Furniture 10,000 Posts
    Expect chaos.

    But then that's what the government wants, make it more difficult & confusing to claim.

    Will inevitably backfire.
  • Spamfree_2
    Spamfree_2 Posts: 584 Forumite
    rogerblack wrote: »
    This isn't quite as simple - assylum seekers can't work.
    Due to delays in the system, this is made worse.
    Extra resources put into deciding claims promptly may actually save money!
    http://www.redcar-cleveland.gov.uk/rcbcweb.nsf/web+full+list/5df00a83d3cd982480256f39004ba384 has some interesting info.
    Some of it is arguable, much isn't really.
    Today's news said there is something along the lines of 275,000 of failed asylum seekers, illegal immigrants and foreign criminals in a backlog of cases. That is equivalent to the population of Newcastle Upon Tyne.

    How many have been granted asylum I wonder if there are that many in a backlog.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.4K Banking & Borrowing
  • 252.2K Reduce Debt & Boost Income
  • 452.5K Spending & Discounts
  • 241K Work, Benefits & Business
  • 617.4K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.