§ Mr. SimpsonTo ask the Secretary of State for Social Security (1) what percentage of budgeting loans in Nottinghamshire in 1992–93 were refused because the applicant has not received income support for 26 weeks;
(2) how many applications for (a) a local social fund review and (b) a social fund inspectorate review were made from claimants in North, West and East Nottinghamshire Benefit Agency offices during 1992–93; and what percentage in each case were successful;
(3) how many applicants (a) for a community care grant were offered a budgeting loan instead and (b) for a social fund loan were offered a community care grant, in Nottinghamshire in 1992–93;
(4) how many crisis loans and budgeting loans were allocated in Nottinghamshire during 1992–93.
§ 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. Alan Simpson, dated 20 April 1993:
As Chief Executive of the Benefits Agency, it is my responsibility to answer questions about relevant operational matters. I am therefore replying to four of your recent Parliamentary Questions to the Secretary of State for Social Security about the operation of the Social Fund in Nottinghamshire. All figures provided are for the period 1 April 1992 to 28 February 1993, the latest period for which information is available.The percentages of budgeting loan applications refused because the applicant had not been in receipt of Income Support for 26 weeks are 10.6% for East Nottinghamshire District, 13.9% for North Nottinghamshire District and 9.4% for West Nottinghamshire District.Figures relating to the number of applications for review and the percentage which resulted in an increased award are in Annex A.I am unable to answer the Question as to how many applicants for a community care grant were offered a budgeting loan as such information is not kept as a matter of course. However, I can advise you that 834 loan applications in the three Nottinghamshire Districts have resulted in the award of a grant.The total number of crisis loans awarded by the three Nottinghamshire Districts is 9,606 and that for budgeting loans is 12,737.I hope you find this reply helpful. A copy of this letter will appear in the Official Report. A copy will also be placed in the Library.140W
Annex A Data for the period 1 April 1992 to 28 February 1993 East Notts. North Notts. West Notts. 1. Applications for local review 1,216 654 1,256 Percentage where award increased at stage 1 14.1 12.1 28.5 Percentage where award increased at stage 2 16.0 11.0 8.4 2. Applications for SFI review 140 58 109 Percentage where award increased 22.9 19.0 37.6 Notes:
Stage 1. Review conducted in the office, usually by the officer who made the original decision.
Stage 2. Reviews which do not result wholly in the applicant's favour are referred automatically to a higher grade officer, who determines the application afresh.
§ Mr. SimpsonTo ask the Secretary of State for Social Security (1) which benefit agencies were able to pay crisis loans only towards the end of the 1992–93 financial year;
(2) what is the administrative cost of (a) a crisis loan allocation and (b) a budgeting loan allocation;
(3) what were the (a) percentage success rates for crisis loans and (b) average community care grants paid for (i) East Nottinghamshire benefit agency and (ii) North Nottinghamshire benefit agency for 1991–92; and what analysis has been made of the reasons underlying the differences;
(4) what were the percentage success rates for (a) community care grants and (b) budgeting loans for 1991–92 for Nottinghamshire benefit agency offices; and what are the reasons for the difference.
§ 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. Alan Simpson, dated 20 April 1993:
As Chief Executive of the Benefits Agency, it is my responsibility to answer questions about relevant operational matters. I am therefore replying to four of your recent Parliamentary Questions to the Secretary of State for Social Security about the Social Fund.Two of your questions relate to the national situation. Firstly, the latest available costings for processing applications for crisis loans and budgeting loans are £18.95 and £12.06 respectively. Applications include awards and refusals. You will appreciate that the costs of administering a discretionary scheme are high, as each application involves a comprehensive consideration of the applicant's individual circumstances.Secondly, you also asked about Benefits Agency Districts which were only paying crisis loans towards the end of the 1992–93 financial year. I can confirm that all Districts continued throughout the year to meet all the highest priority applications generally.Your other questions asked for information specific to Districts in Nottinghamshire. The average community care grant paid by East Nottinghamshire District in 1991–92 was £284. The figure for North Nottinghamshire was £255.Details of percentage success rates for crisis loans, community care grants and budgeting loans for the Nottinghamshire Districts during the 1991–92 financial year, are given in Annex A.It is inevitable that there will be some variation in numbers and amounts of awards in a discretionary scheme like the Social Fund. I should emphasise that the vast majority of community care grant refusals are because the application fails to meet the basic criteria for an award.I hope you find this reply helpful. A copy of this letter will appear in the Official Report and a copy will also be placed in the Library.141W
Annex A Percentage success rates for crisis loans, community care grants and budgeting loans for Nottinghamshire Districts in 1991–92 Percentage District CL CCG BL East Nottinghamshire 81 22 53 North Nottinghamshire 61 23 51 West Nottinghamshire 94 26 54 Notes:
CL—Crisis loan.
CCG—Community care grant.
BL—Budgeting loan.