HC Deb 03 February 1992 vol 203 cc8-10
9. Mr. Morgan

To ask the Secretary of State for Social Security what proposals he has to ensure a more equitable distribution of resources for the social fund.

Mr. Scott

Each annual allocation of funds to district budgets has been designed to redistribute resources in a progressively more equitable way. As part of our routine annual review of allocations, we shall continue to consider how best to ensure that funds are targeted where they are most needed.

Mr. Morgan

Does the Minister accept that the distribution of resources under the social fund is extremely inequitable and difficult to get right? Will he also accept the Opposition's view that, with the social fund, the Prime Minister first demonstrated on a national scale his dangerous incompetence? That incompetence later extended to the economy when he was promoted. Does the Minister agree that, in the present state of affairs, some parts of the country have too much money in the social fund and still have money over after meeting all claims, low and high priority, which are legitimate? Some areas can meet only high priority claims, whereas other areas can meet low and high priority claims but have no money over. Is not it an example of what is wrong with the country that the Prime Minister was promoted for trying to reinvent the Lady Bountiful in his first major act as Minister in 1988?

Mr. Scott

I do not claim—and I do not suppose that the Prime Minister would—that the social fund is perfect. I do claim that it is better than any of its predecessors in meeting exceptional need in exceptional circumstances. I recognise the local pressures which the hon. Gentleman perceives, but I reiterate that we endeavour to see that the resources allocated reflect the need in the localities. That is why South Glamorgan had an extra 10 per cent. allocated in August 1991 and another £50,000 in loans only a week or so ago. We try to ensure that any surplus resources are reallocated sensibly and flexibly.

Mr. Hind

Will my right hon. Friend confirm that if he were to convert all loans under the social fund to grants, as has been promised by the hon. Member for Oldham, West (Mr. Meacher), the cost would be about £130 million and would greatly prejudice the operation of the social fund as it now works?

Mr. Scott

I certainly understand my hon. Friend's point. I have heard suggestions that that will be Labour party policy, but I have not heard whether the shadow Chief Secretary to the Treasury agrees with such a policy.

Dr. Kumar

If the Minister genuinely believes in the equitable distribution of the social fund, may I invite him to review cold weather payments, because the senior citizens in my area of east Cleveland have lost out during the past week? In addition, how are cold weather benefits assessed in the first place?

Mr. Scott

I hope that the hon. Gentleman will take the trouble both to read my announcement about the improvements in cold weather payments this year and to go to the Library to see how those allocations are made. All the information is there for him to find. In one of our coldest winters for the past 20 years, the system has been operating successfully and flexibly. I believe that the linkages to the meteorological stations have operated more effectively than hitherto. If the hon. Gentleman wishes to make a particular point about his locality, he should write to me about it and I shall ensure that account is taken of his views.