§ Mr. JenkinsTo ask the Secretary of State for Social Security what plans she has to review the provision of interest-free loans for the disabled.[16655]
§ Mr. DenhamInterest-free loans are available within the Social Security programme through the Social Fund. Budgeting loans help people, including disabled people, on Income Support or income-based Jobseeker's Allowance, to meet intermittent expenses for which it may be difficult to budget. Crisis Loans help people, including disabled people, meet expenses in an emergency or as the consequence of a disaster where such help is the only means of avoiding serious damage or serious risk to the health or safety of the applicant or a member of his family. The percentage of budgeting loan expenditure going to disabled people has doubled since 1988–89.
292WThe Government are determined to modernise the Social Security system. The Social Security Bill currently before Parliament will help to achieve that,. It includes measures to modernise the application and decision processes for Social Fund budgeting loans by making the budgeting loan system simpler and easier for customers to understand and more cost-effective for staff to administer. Those changes will benefit all customers, including the disabled.