§ Mr. Tony BanksTo ask the Secretary of Slate for Social Security (1) if Newham district Benefits Agency offices are paying all social fund claims falling into revised high priority groups for community care grants and budgeting loans;
(2) what items and circumstances previously eligible for community care grants and budgeting loans have been removed from high priority lists in Newham's benefit offices during the current year;
(3) what guidance was given to the Newham Benefits Agency social fund manager in respect of categories removed from the high priority list of items and circumstances for community care grants and budgeting loans between August and October; and if he will make a statement;
(4) what changes in the level of priority of items for community care grants and budgeting loans in the Newham district Benefits Agency social fund resulted from the budget overspend in June and July;
(5) if he will increase the budget allocation for community care grants and budgeting loans to Newham district Benefits Agency; and if he will make a statement.
§ Mr. ScottThe administration of the social fund is a matter for Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member and a copy will be placed in the Library.
Letter from Michael Bichard to Mr. Tony Banks, dated 3 December 1992:
As chief Executive of the Benefits Agency, it is my responsibility to answer questions about relevant operational matters. I am therefore replying to the points raised in your recent Parliamentary Questions to the Secretary of State for Social Security about Social Fund priorities and budget allocations in the Benefits Agency's Newham District.
Social Fund Officers (SFOs) must determine each application on its own merits in the light of all the relevant factors and circumstances. While SFOs are subject to the law and the Secretary of State's directions, they have discretion about whether to make a payment, having regard to the circumstances of an individual applicant.
SFOs must give priority to high priority needs while adopting as consistent an approach as possible throughout the year. To assist them in this, the Area SFO (District Manager) gives them guidance on priorities. It is for the Area SFO to give guidance on the order of priorities for his area, and which are to be classed as high, medium or low priority. It must be stressed that this is guidance and therefore not binding on the SFO, but it must be taken into account. There is therefore no question of eligibility for payment. All items and circumstances may be paid depending on the individual circumstances of the applicant.
Allocations are made annually to each District for loans and grants. In order for the Area SFO to manage the allocations effectively, monthly profiles of expenditure are planned. These serve as a guide only and it is not the case, therefore, that the Newham District allocation was overspent in June and July.
The Benefits Agency's Newham District is continuing to pay all Social Fund applications that fall into the high priority groups for grants and loans as suggested by the Area SFO.
The Secretary of State requires the Area SFO to monitor monthly expenditure on Social Fund and adjust the guidance to SFOs as required. No specific additional guidance has been given by the Secretary of State. Following the monthly review in August, the Area SFO decided that payment for some items and services could no longer be sustained consistently from the District allocation. She therefore issued amended guidance with effect from 1 September 1992. The effect of this 424W guidance was that some items and services which the previous guidance had indicated would normally attract high priority would now attract medium priority.
Social Fund budgets are closely monitored and Newham District received an increase of £49,525 to its loans budget in November. There are no plans to increase the grants budget of this District.
I hope you find this reply helpful. A copy of this letter will appear in the Official Report. Copies are also being placed in the Library.