HC Deb 06 February 1989 vol 146 cc622-4
2. Ms. Quin

To ask the Secretary of State for Social Security if he will make a statement on the operation of the social fund to date.

The Secretary of State for Social Security (Mr. John Moore)

We have been closely monitoring the social fund, and the original fears which were expressed about the adequacy of its budget, the introduction of loans, the discretionary nature of the scheme and the review system, have proved to be unfounded. Loans have reached anticipated levels of expenditure and community care grants have steadily risen to 77 per cent. of anticipated monthly expenditure.

Over 600,000 interest-free loans have been made and more than 86,000 community care grants have been awarded. The review system is proving to be a speedy and effective means of handling disputed decisions. Reviews are completed in a matter of days rather than the weeks it took for an appeal to be completed.

Ms. Quin

Despite what the Minister has said. will he agree that urgent changes in the way that the social fund works are needed, especially if those who deserve grants are to be in a position to take them up? Will he agree that so far all the independent evidence shows that the social fund has failed to relieve the poverty which the Government said it was designed to tackle?

Mr. Moore

I had hoped that the hon. Lady would have listened to what I said before she read out her prepared question. I shall continue, as the Government must and should, to monitor the situation. I am not completely content because I believe that the officers have been applying the conditions for the community care grants too rigidly. I am determined to ensure that it is a success and that all of the fundamental objections raised when the social fund was first introduced are disproved.

Mr. McCrindle

I welcome a large part of my right hon. Friend's reply. Does that mean that the fears that have been expressed by some—dare I remind him, on both sides of the House—that the cash-limited arrangements may prove inadequate, are likely to be allayed? Is he satisfied that the money allocated will be adequate at least in this financial year? To put this matter in perspective, will my right hon. Friend remind the House what would happen if the amount allocated proved to be inadequate?

Mr. Moore

My hon. Friend is right to remind the House that we announced in the uprating statement the allocation for 1989–90, which was confirmed in the autumn statement and in the recent public expenditure White Paper. Despite a happy massive reduction in unemployment and therefore a major reduction in case load, those allocations have been maintained. Therefore there should be an increase per case in the funds available. I hope that that will reassure my hon. Friend. I know that he takes a serious interest in this and I know that he will have noted carefully what I said in my opening answer.

Miss Lestor

When the Minister reviews the social fund, will he consider particularly some of the problems that have arisen in Salford—I am sure similar problems have been encountered in other places—where people who have been in hospital a long time and those in residential care who cannot get other accommodation, have had to refuse private rented accommodation because the social fund does not cover deposits that are required in that sector? He also said that he would make some comment to the House on the Barnado's report on the problems of youngsters coming out of care and their accommodation difficulties. Will he do so now?

Mr. Moore

Obviously I will watch carefully how the social fund works because I am determined to ensure that this much more effective method of helping those in need is monitored and adjusted if necessary. Recently I met representatives of certain organisations who raised the difficulties that they believe are being faced by a particular group of 16 and 17-year-olds. Obviously I shall consider that matter with care.

I should stress to the hon. Lady that if one considers the different offices and the differential way in which the rules on community care grants in particular are applied, one realises that serious application by social workers, by local authorities and by diligent Members of Parliament—I know that the hon. Lady is such a Member—will ensure that community care grants are effectively spent.

Mrs. Roe

Can my right hon. Friend tell the House whether there are any items or expenses, previously excluded from the single payment expenses, which are now covered under the social fund?

Mr. Moore

My hon. Friend is right to remind me that, because it is a discretionary fund, there are many examples of local expenditure that all sides of the House would welcome. One office, for example, paid for a holiday for a family whose young daughter had been seriously sexually abused—not surprisingly all the family had been under considerable stress. In another case a £500 grant was given for a teletext television for a deaf elderly pensioner, living alone, who had become extremely isolated. I could give many other illustrations of payments which could not have been covered under the old single payments system.

Mr. Fearn

Is the Secretary of State aware that many offices are now reporting problems because people are having great difficulty in trying to fill in the 17-page form? Has he any ideas for changing that form, which is causing a great deal of trouble?

Mr. Moore

On a previous occasion my hon. Friend the Minister of State said that we were looking at the form and we shall continue to do so. When that form is filled out with the help of the staff at local offices, it is producing considerable success in terms of the numbers of applications for grants. I am constantly looking at all of our forms because I am anxious to ensure that those who are entitled to receive those benefits with the help of the form and our offices.