§ Mr. W. Benyonasked the Secretary of State for Social Services if he proposes to extend the hostel grant scheme under circular 21/73, "Community Services for Alcoholics" or if he proposes to make other arrangements for those hostels where grants are due to end shortly.
§ Sir George YoungDepartmental funding of this kind to local bodies is ex-274W ceptional and must not be regarded as permanent; it would therefore be wrong to extend the scheme further. This means that no new grants will be payable after 31 March 1980, and grants due to end from that date onwards will not be renewed. I recognise, however, that the Department's pump-priming scheme is due to end at a time when local authorities, which were expected to provide financial support thereafter, are under severe pressure to limit their commitments. I propose, therefore, to offer limited transitional aid to any voluntary organisation whose grant is due to end between 31 March 1980 and 31 March 1981, and which has been unable to make alternative financial arrangements.
The transitional arrangements will be as follows:
- 1. Each voluntary body whose hostel grant is due to end on 31 March 1980 will receive a grant under section 64 of the Health Services and Public Health Act 1968, on the basis of the present DHSS scheme, until 31 May 1980.
- 2. As from that date, such grants will be continued temporarily only if the voluntary body can show it is taking substantial steps to arrange alternative sources of finance. This will normally involve the local authority. My right hon. Friend the Secretary of State for the Environment has agreed that, subject the normal requirements for hostel schemes, these hostels can qualify for hostel deficit grant (HDG) under the arrangements operated by his Department.
- 3. HDG would be related to accommodation costs only and eligibility depends on reliable assurances of the availability of finance from elsewhere for any costs of care and support of the residents (supportive costs). This is a matter for the local and, where appropriate, health authorities, but where personal social services expenditure is concerned joint finance monies may be used if the authorities agree.
- 4. To give time to finalise such arrangements, and where necessary to bridge the gap until April 1981, I shall be willing to continue grants under section 64 of the Health Services and Public Health Act 1968 to those voluntary organisations whose grants are due to end before 31 March 1981, until that date at the latest, subject to clear evidence of reasonable prospects of adequate sources of funds from 1 April 1981.
- 5. Where the health and local authorities concerned confirm that they wish to meet the supportive costs of the hostel from 1 April 1981 by the use of joint finance funds, an addition to the health authority's joint finance allocation will be authorised, if required on application to the Department.
I am seeking the views of the local authority and health authority associations on the details of these proposals. In the light of them, I hope early in the new 275W year to send advice to the voluntary organisations, local authorities and health authorities directly concerned.
Those voluntary organisations whose five-year period of grant is due to end after 31 March 1981 should have ample time to make alternative arrangements for continued funding without the need for extended central support.