§ 11. Mr. David Heath (Somerton and Frome)What proportion of crisis loan payments were made in response to alignment claims in the last 12 months. [63395]
§ The Parliamentary Under-Secretary of State for Work and Pensions (Malcolm Wicks)Social fund alignment payments provide valuable help to people awaiting their first payment of wages on taking up work. They also help people with essential day-to-day living expenses in advance of their first payment of benefit. During 2001–02, just under half of crisis loans were made through alignment payments.
§ Mr. HeathIs not it extraordinary that the crisis loan fund, which is cash-limited and which is there to help the poorest of our constituents in the most extreme circumstances, is largely pre-empted by payments that, effectively, are made as a result of administrative delay? I am not denying that payments must be made in that instance, but I am not sure that they should be made from that fund. When the Minister wrote to me on 14 May, he said that he was considering this matter, and that new guidelines would be issued. He said that a review would be done on a region-by-region basis. Have those things yet been accomplished?
§ Malcolm WicksI do not accept that alignment payments are made predominantly because of delays. It may interest the House to know that. during 2001–02, income support claims were cleared, on average, within 9.7 days of all relevant information being received, which is less than our target of 12 days. Similarly, we are performing well in terms of incapacity benefit and jobseeker's allowance. Alignment payments are becoming better known by our claimants, which may be a factor, but there may be an issue in relation to our procedures. I can therefore confirm that we are currently considering the detailed guidance that we offer to our staff on this aspect of crisis loans. The guidance is expected to be with staff by mid-July.
§ Mr. James Clappison (Hertsmere)Is not the fact of the matter that alignment payments are made to compensate for other payments that recipients should have received from the Government, and that, in a way, part of the crisis fund is being spent on crises created by the Government? Has not the proportion of the crisis fund so allocated substantially increased since 1997, and does not it now stand at 40 per cent. of the crisis fund, as the Minister had to admit in a written answer that he gave to me correcting, properly, incorrect information—more incorrect information—that he had given in a previous written answer? Will the Government now take urgent action to ensure that funds are not diverted from vulnerable people in that way and that the Government act promptly and efficiently in their benefit payments?
§ Malcolm WicksI think that there is some misunderstanding about this issue. When people first apply for benefit, they may have to wait some days before 18 they receive it. If they are in urgent need, they will receive an alignment payment. Similarly—although in a smaller percentage of cases—if people have a job and are waiting for their first wage packet, one of the alignment payments may be made. I suspect that there is some confusion because the payments are paid through crisis loans. However, as I have said, although there are a number of factors behind the trend, we are looking at the matter carefully. We will issue the new guidance later this month.