Social Fund (Hansard, 9 November 1988)

§ Mr. Peter Lloyd

The social fund has now been operating satisfactorily for over seven months. Social fund 223W loans have been steadily increased as more people have become aware of the flexible and effective help which is available through budgeting loans to enable them to spread the cost of large expenses which are difficult to meet from weekly benefit, and through crisis loans for those facing an extreme short-term financial difficulty. About 60 per cent. of all budgeting loan applications and almost 90 per cent. of crisis loan applications have resulted in a payment being made.

The take-up of community care grants has been slower, (in September it was 52 per cent. of profiled expenditure) though there has been a steady increase in applications over recent months as more people have become aware of the special contribution that these new grants provide, both to help people in vulnerable groups re-establish themselves in the community and to improve the living conditions of those already in the community and reducing the risk of their going into institutional or residential care. Awards have been made for about 45 per cent. of applications; unfortunately many people who have applied have not satisfied the basic criteria for community care grants (ie not on income support). We are currently considering what further steps might need to be taken to ensure that those people for whom the grants are intended are made aware of their availability and are encouraged to apply.

The review system is proving to be a quick and effective way of reconsidering disputed decisions on social fund applications. About 20 per cent. of people who are refused a payment have been exercising their right to ask for a review in the local office and about 29 per cent. of review decisions have resulted in the original decision being changed. Applicants who remain dissatisfied have the right to ask for a further review by a social fund inspector. The figures show that in about two-thirds of cases which have reached the social fund inspectors the decision on the review conducted in the local office has been confirmed. In about one-third of cases the social fund inspectors have referred the papers back to the local office for reconsideration or further action as appropriate.

I have arranged for national tables to be placed in the Library showing for the latest month available, and the year to date, the numbers of applications received, applications processed, the outcome of decisions and data on the review procedure. These will be updated monthly. Copies of this information are held at the Department's libraries where they may be viewed by appointment. Two copies are deposited with the British Library, one of which may be borrowed by other libraries for inquiries; the other

	July	August	September	October
Applications received	135,433	267,009	316,473	359,866
Enquiry forms issued to local authorities	91,364	222,127	310,227	355,887
Enquiry forms returned by local authorities	11,359	88,620	153,687	256,639
Transitional payments assessed	8,434	69,498	117,638	235,753
Applications refused	4,021	24,529	47,514	114,116
Declaration forms issued	4,413	44,969	69,104	112,578
Declaration forms returned	568	21,191	42,302	96,315
Payments issued	68	7,219	31,522	108,140
Total cash value £	285	32,555	132,820	439,921