§ Mr. HopeTo ask the Secretary of State for Social Security when the changes to the Social Fund Budgeting Loan Scheme will be introduced; and when details of the Discretionary Social Fund Budget for 1999–2000 will be announced. [75417]
§ Angela EagleThe changes to the Social Fund Budgeting Loan Scheme will be introduced on 5 April 1999. Applications for Social Fund budgeting loans will be decided according to a few simple set factual criteria, rather than the discretion of the officer deciding the application. This will mean that those on the lowest incomes who apply for a loan will no longer be asked detailed questions on what they intend to do with the money before a decision can be made. In keeping with the Government's aims for an active modern Social Security service, these changes will make the applications 889W process much simpler, and the decisions process quicker, fairer, less intrusive and easier to understand, while administration of the scheme will be more cost-effective. In connection with these changes, I am, today, placing in the House Library copies of the updated Social Fund Guide containing the revised Secretary of State Directions and Guidance to Social Fund officers on the new scheme.
We can also announce today that the total discretionary Social Fund budget for 1999–2000 will be £535.2 million, representing an increase of £34 million over the corresponding budget for 1998–99. Of this total, £98 million will be allocated to Community care Grants, £436.7 million to loans and £0.5 million will be set aside as a contingency reserve. To further improve the fairness of the Social Fund scheme we shall be allocating the loans budget to each Benefits Agency district with a view to achieving greater consistency in the level of successful applications across districts. Full details of budget allocations to individual Benefits Agency districts will be placed in the House Library on 24 March.