Social Fund (Hansard, 28 March 1991)

§ Mr. Flynn
To ask the Secretary of State for Social Security what effect the £100 million cash limit on the social fund will have on the local and central administration of the fund; and what consideration he gave in fixing it at that level, to the risk of the fund running out of money before the end of the financial year.

§ Mr. Scott
The social fund has always operated nationally within a net budget, and the setting of a net cash limit now formalises this arrangement. This does not affect the local administration of the social fund where budgets will continue to operate on the basis of gross district budgets. We have no reason to believe that the £100 million net budget will not support the 1991–92 national gross budget of £227.7 million throughout the year.

§ Mr. Flynn
To ask the Secretary of State for Social Security whether he will publish in theOfficial Report a table showing district office social fund allocations for 1991–92 and the allocations to the local offices comprised in each district for 1990–91.

§ Mr. Scott
Details of the local office social fund allocations in 1990–91 and the district office allocations for 1991–92 are in the Library. I will write to the hon. Member with details of the local offices covered by each new district office, and a copy will be placed in the Library.

§ Mr. Flynn
To ask the Secretary of State for Social Security what proportion of social fund loans was estimated to be non-recoverable in fixing the fund's cash limit for 1991–92.

§ Mr. Scott
The expected level of loan recoveries does not affect the social fund's cash limit of £100 million.

§ Mr. Flynn
To ask the Secretary of State for Social Security what is the social fund's cash limit for 1991–92 and its estimated net expenditure on discretionary grants and loans for 1990–91, in cash terms and in real terms.

§ Mr. Scott
The social fund net cash limit for 1991–92 is £100 million. Estimated net expenditure on grants and loans in 1990–91 in cash terms and real terms at 1991–92 prices is as follows:
528W

Loans (At 1991–92 prices) Grants (At 1991–92 prices)

£ million £ million

31.4 (33.6 million) 67.1 (71.8 million)

Real terms figures have been calculated using the current GDP deflator and may alter. In any event the social fund budget is based on a number of factors, including the level of gross allocation permitted by expected loan recoveries and is not linked to inflation forecasts.

Loans	(At 1991–92 prices)	Grants	(At 1991–92 prices)
£ million		£ million
31.4	(33.6 million)	67.1	(71.8 million)