§ Mr. PikeTo ask the Secretary of State for Social Security what criteria are used for determining the maximum deduction from income support to repay a loan from the social fund; what is the minimum level of benefit left payable; what changes he is considering to the criteria; and if he will make a statement.
§ Mr. ScottIn determining the rate at which social fund loans are repaid the applicant's commitments are taken into account. The normal repayment rate is 15 per cent. of the applicant's Income Support applicable amount, less housing costs. Where the applicant has existing commitments the rate may be set at 10 per cent., 5 per cent. or lower. In exceptional circumstances, with the applicant's agreement, the repayment rate may be set at 25 per cent., leaving a minimum 75 per cent. of the applicable amount, but only if it is clear that the applicant can afford to repay at this rate. All aspects of the social fund are closely monitored, including repayment rates for loans.