HC Deb 18 March 1996 vol 274 c19W
Mr. David Martin

To ask the Secretary of State for Social Security what gross budget will be set for the discretionary social fund in 1996–97. [21641]

Mr. Roger Evans

I am pleased to announce that the social fund gross discretionary budget for 1996–97 will be £419.5 million-£97 million will be allocated to grants, £321.5 million to loans and the remaining £1 million will be set aside as a contingency reserve. The new allocations represent an increase of £13.5 million, or 3.3 per cent. over the total gross budget for 1995–96.

This represents a prudent increase, especially at a time when it is essential that every aspect of public expenditure is looked at very carefully. I am pleased that we have once again sustained our record in increasing the social fund budget each year since it began.

The recycling of loans means that we are able to give more help to more people and the loans system is being widely used. For example, between 1 April 1995 and 29 February 1996, over 1.8 million non-repayable grants and interest-free loans were made.

The increase from April 1996 will allow even more people to be helped.

Details of individual district budget allocations have been placed in the Library.