§ Mr. CameronTo ask the Secretary of State for Work and Pensions what plans he has to reform the Social Fund; and if he will make a statement. [82078]
§ Malcolm WicksThe Social Fund plays an important role in our agenda for tackling poverty and social exclusion by providing people on low incomes with grants and interest-free loans to help them manage a wide range of unexpected or occasional costs.
We have introduced a number of important changes to the Social Fund since 1997, including a simpler and more transparent claims process. In the PBR, we announced that from April 2003, £90 million will be added to the discretionary Fund over the three years to 2005–06. Also from next April, a further £15 million will be available for the funeral payment scheme, increasing the amount allowed for unspecified funeral expenses from £600 to £700. This extra investment will bring the total amount of cash available through the Social Fund to around 900 £million and enhance the Fund's ability to help people on low incomes manage their finances.
We also aim to improve the administration of the Social Fund and have announced that further work on this will be taken forward in conjunction with the Treasury.