§ Mr. BattleTo ask the Secretary of State for Social Security what was(a) the projected and (b) the actual value of loans repayments to the social fund in 1989–90; and whether he will make a statement on the practice in many social fund offices of setting repayments rates at or about the maximum recommended level of 15 per cent. of applicable benefit levels.
§ Mr. ScottLoan repayments to the social fund in 1989–90 totalled £108 million against the forecast of £104 million. The rate of repayment of a loan depends on the individual's circumstances. Where there are no existing commitments, it may be as high as 15 per cent. of the income support applicable amount. But it could be set at 10 per cent., 5 per cent. or less than 5 per cent. An applicant's ability to repay a loan is taken into account before an offer is made. In appropriate cases, rescheduling is considered and money advice is offered.
§ Mr. BattleTo ask the Secretary of State for Social Security whether the extra funds allocated to the social fund by recycling from loan repayments to loans and grants budgets between December 1989 and March 1990, are regarded for expenditure purposes as a call on 1984–90 social fund expenditure or on some other budget head; and if he will make a statement on the implications of this for future social fund budgets.
§ Mr. ScottExpenditure arising from the additional allocations made to local offices in 1989–90 has been treated as expenditure from the social fund in that year. Account was taken of the additional allocations in December 1989 and January 1990 in calculating the allocations for 1990–91 which I announced on 26 March. Decisions on the allocation of social fund budgets for future years will be taken nearer the time.