SOCIAL FUND “UNFAIR AND UNDERFUNDED” SAYS CITIZENS ADVICE BUREAU

In a report recently published the Jospeh Rowntree Foundation the lack of knowledge of the Social Fund scheme was raised as a concern.

The Social Fund is designed to meet the needs of those on benefits that need help to cope with unexpected life events.

Extremely poor people in very vulnerable circumstances, such as leaving institutional care or fleeing domestic violence have to go without basic and essential items such as beds, warm clothing, fridge’s or cookers, or have to turn to a charity or benevolent fund, or expensive credit because the Social Fund does not meet their needs. It is a scheme in urgent need of reform.

The scheme is discretionary and the CAB dealt with over 65,000 enquiries on this in the year 2004-2005, an increase on the previous year.

The payments that the Social Fund makes are:

Community Care Grants to provide help with household items, certain travel costs, or to deal with an emergency of a disaster. They are restricted to certain groups, including people leaving, or needing help to stay out of residential or institutional care; people needing to move home because of disability, disaster or for personal safety; and for families under exceptional pressure. The grants do not have to be repaid. If claimants have savings over £500 (£1,000 for people over 60) are not eligible for a grant unless the amount sought is over £500, when the excess may be granted.

Evidence shows that homeless people or families moving into permanent accommodation will need help to buy the basics in order to have an adequate standard of living, we find that many are refused a grant or a loan only to receive an award if a revision request s made.

Grants should be made rather than loans to families moving from temporary to permanent accommodation says the CAB.

Budgeting Loans are interest free loans to help people spread the costs of “lumpy” expenditure items, such as furniture, household equipment, clothing and footwear. Applicants must have been in receipt of Income Support or Income Based Jobseekers Allowance for 26 weeks. The amimum loan is £1,000.

Crisis loans are only made if the applicant can show that they are faces a serious risk to health and safety if the crisis loan is not made.

Sure Start Maternity Grant provides a £500 grant to pregnant women dependant on Income Support, Income Based Jobseekers Allowance, Working Families Tax Credit, or Disabled Persons Tax Credit, providing they can show they are receiving health advice during the pregnancy. These were introduced at £200 in April 2000 and have been increased to £500.

Funeral Payments area one-off payment towards the cost of a funeral.

As with all benefits there is a 28 day time limit for requesting a revision of a decision claimants are not happy with and we would advise them to seek help as soon as a decision is made.

“50% of decisions on community Care Grants are changed on review, according to the Audit Office, the deadline for requesting a review is 28 days from the date of the decision and it is important to meet that” said Gary.

We would encourage claimants to put as much information on their circumstances in the application, and they should not be put off from claiming by advice from staff in their local office.

Gary Martin of Walthamstow CAB said “people on benefits will typically have no access to mainstream credit (Unless they live in an area with a Credit Union) and some are forced to take out expensive credit with percentage rates often as high as 60% depending on the source of the credit.

He added “Many claimants apply for a loan where a grant would be more appropriate, we would urge anyone in financial difficulty to make use of the Social Fund rather than get themselves into debt.

Walthamstow CAB, 167 Hoe Street, E17 3AL.

Website: www.walthamforestcab.org.uk

Personal callers, opening times, Monday, Wednesday, Thursday and Friday 10.00am till last appointment is given out, it is advisable to arrive early as there are always queues.

Leytonstone CAB, 547-551 High Road, Leytonstone, E11 3DH

Opening Hours, Monday 10.00am to 12.30pm, Wednesday 10.00am to 12 noon, Thursday 10.00am to 12.30pm.