HC Deb 23 October 2000 vol 355 cc4-5W
Mr. Webb

To ask the Secretary of State for Social Security how many applications were made for a budgeting loan in 1999–2000; and how many were refused on the grounds of inability to meet the repayments. [133849]

Angela Eagle

Of the 1,680,000 applications made for budgeting loans in 1999–2000 only 255 were refused because of inability to repay.

Refusal on these grounds would arise where an applicant who would otherwise be eligible is already repaying a social fund loan at the maximum rate applicable in their circumstances.

In 1999–2000 the overall number of budgeting loan awards rose by 82,000 and the gross expenditure was £52 million higher than in 1998–99.

Mr. Webb

To ask the Secretary of State for Social Security for what reason the annexe, "Budgeting Loans Reasons for Refusal by Client Group", was omitted from his 1999–2000 Annual Report on the Social Fund. [133850]

Angela Eagle

A table showing budgeting loan reasons for refusal by client group was not included in the 1999–2000 Annual Report because under the new budgeting loan scheme most of the reasons for refusal have either been changed or abolished. There were previously seven main reasons for refusal and there are now three. Thus, individual reasons for refusal in 1999–2000 do not directly compare with those from previous years. For this reason it was decided that it was more appropriate to include details on the main reasons for refusals in the narrative of the report, paragraphs 7.5 to 7.7.

A copy of the Annual Report on the Social Fund 1999–2000 is in the Library.