Social Fund (Hansard, 6 March 1989)

§ 22. Mr. Yeo
To ask the Secretary of State for Social Security why applications for loans from the social fund are being turned down.
444W

§ Mr. Peter Lloyd
To the end of January 1989, 61 per cent. of applications for budgeting loans and 90 per cent. for crisis loans were successful.
My hon. Friend will no doubt be pleased to note that over 6,000 loan applications were refused because social fund officers awarded non-repayable grants instead. This is further evidence that social fund officers are properly considering whether individual needs can instead be met by a community care grant. This presents a rather different picture from that which opponents of the social fund would have us believe.
I have set out in the table details of the full reasons for refusal.

Reason for refusal as percentage of total applications processed

(11 April 1988—31 January 1989)

Reasons for Refusal Budgeting loans Crisis loans

Per cent. Per cent.

Savings over £500 sufficient to meet cost 0.10 0.01

Not in receipt of IS 4.29 —

Not in receipt of IS for 26 weeks 11.71 —

Excluded items 3.33 0.35

Excluded persons 0.08 0.08

Amount less than £30, not travelling expenses 1.06 —

Adjusted amount less than £30, not travelling expenses 0.36 —

Total debt of £1,000 0.02 —

Previous application and SFO decision for this item 1.63 0.36

No serious damage or risk to health or safety — 5.95

Inability to repay 1.32 0.76

Help available from another source 0.30 1.34

Insufficient priority 11.88 0.22

Suitable alternative available 0.26 0.43

Loan refused—CCG awarded 1.02 0.03

Other 2.30 1.50

Notes:
IS—Income Support
SFO—Social Fund Officer
SF—Social Fund
CCG—Community Care Grant

§ 26. Mr. Tom Clarke
To ask the Secretary of State for Social Security what has been the cost of loans from the social fund in Scotland, England, Wales and Northern Ireland; and if he will make a statement.

§ Mr. Peter Lloyd
Questions of expenditure from the social fund in respect of Northern Ireland are a matter for my right hon. Friend the Secretary of State for Northern Ireland.
Social fund gross expenditure to the end of January 1989 in respect of loans for offices in Great Britain is as follows:

£ million

Scotland 19.0

England 70.0

Wales 8.5

§ 37. Mr. Kennedy
To ask the Secretary of State for Social Security what assessment he has made of the correlation between the level of applications for support from the social fund and the percentage disposal of social fund total budgets from his Department's offices; and if he will make a statement.
445W

§ Mr. Peter Lloyd
We are closely monitoring the operation of the social fund. Information for each local office relating to the numbers and financial values of applications processed and awards made and the budgets remaining at the end of each month is placed in the Library at monthly intervals. A note explaining the basis on which the 1988–89 allocations were made is also in the Library.

Reason for refusal as percentage of total applications processed
(11 April 1988—31 January 1989)
Reasons for Refusal	Budgeting loans	Crisis loans
	Per cent.	Per cent.
Savings over £500 sufficient to meet cost	0.10	0.01
Not in receipt of IS	4.29	—
Not in receipt of IS for 26 weeks	11.71	—
Excluded items	3.33	0.35
Excluded persons	0.08	0.08
Amount less than £30, not travelling expenses	1.06	—
Adjusted amount less than £30, not travelling expenses	0.36	—
Total debt of £1,000	0.02	—
Previous application and SFO decision for this item	1.63	0.36
No serious damage or risk to health or safety	—	5.95
Inability to repay	1.32	0.76
Help available from another source	0.30	1.34
Insufficient priority	11.88	0.22
Suitable alternative available	0.26	0.43
Loan refused—CCG awarded	1.02	0.03
Other	2.30	1.50