HC Deb 05 February 1990 vol 166 cc635-6
13. Mr. Corbyn

To ask the Secretary of State for Social Security if he will list the social fund payments by (a) grants and (b) loans for the current year in London and the comparative expenditure for the last full year of single payments.

Mr. Scott

Information on social fund grants and loans expenditure by local office and on single payment expenditure for 1987–88 is in the Library.

Mr. Corbyn

It is good of the Minister to tell us that the information is in the Library. Will he kindly explain it to those people who could formerly have received direct payments for furniture and cooking facilities in their new flats and now either cannot get them or can get only loans, which they must repay out of their benefit? Will the right hon. Gentleman take this opportunity to confirm that, through this change in the system, he has cut the money available for very poor people on moving into new flats? Will he announce proposals to end the iniquitous loan system, convert the loans into grants and return to the system of statutory grants payable to all people, rather than leaving payments to the discretion of local social security offices?

Mr. Scott

No. I believe that the social fund is working well, flexibly and fairly, and providing help in a number of ways that were not possible under the old single payments scheme. About 1.6 million interest-free loans and more than 318,000 community care grants have been made since the scheme began. The system was judged by the Social Services Select Committee to be good and, indeed, imaginative.

Mr. Dykes

As there are still too many stories of hard-pressed officials in offices all over the place acting oppressively, rather as they used to in the 1920s and 1930s, is the Minister satisfied that the new system is being operated properly and humanely to the benefit of claimants?

Mr. Scott

I certainly believe that it is. The staff in our social security offices have welcomed the discretion available to them in operating the social fund rather than being trapped by the precise nature of regulations under the old single payments scheme.

17. Mrs. Margaret Ewing

To ask the Secretary of State for Social Security when he last reviewed the working of the social fund loan scheme.

Mr. Scott

We continually monitor the working of the social fund. Since the scheme began, more than 1.5 million loans and more than 300,000 non-repayable grants have been awarded at a total cost of over £300 million to the end of December 1989.

The pattern of demands has varied between offices and some have experienced greater pressure on their budgets. We recently made available a further £3 million for the current financial year for offices facing the heaviest pressure, and 106 offices have received additional allocations.

Mrs. Ewing

Does the Minister accept that there is still concern that the social fund is operating according to financial criteria rather than the needs of the individuals concerned? In view of the comments today, will he review the need for single payments for those with the most severe financial problems and in any case review the six-month time bar for reapplication?

Mr. Scott

The provision of the extra £3 million shows that we are monitoring the position carefully. We have also commissioned the social policy research unit at York university to monitor the workings of the social fund to see whether it is achieving its aims. We look forward to receiving that unit's report in due course.