Community Care Grant (Hansard, 19 December 2002)

§ Mrs. Calton
To ask the Secretary of State for Work and Pensions what change in real terms spending power was provided by the cash rise in the community care grant budget from 1997–1998 to 2002–03; and if he will make a statement. [85157]

§ Malcolm Wicks
The community care grant budget, previously frozen since 1994, has been increased four times since 1997. In 1997–98 the community care grant budget was £97² million, which in 2002–03 prices is equivalent to £109.2¹ million. The 2002–03 community care grant budget is £108² million, a drop of £1.2 million, or 1.1 per cent.
At the same time there has been a drop in the number of people receiving income-related benefits which give access to community care grants (Income Support, the Minimum Income Guarantee and income-based Jobseeker's Allowance. Between 1997–98 and 2000–01 the reduction was 9.9 per cent.³ and a further fall in the numbers is forecast with an expected drop of 10.8 per cent. between 1997–98 and 2002–03³. As a result, the per capita amount available to people eligible for community care grants has risen by 10.8 per cent. in real terms. ¹ Real terms' refers to 2002–03 prices, calculated using HM Treasury's GDP deflator series, published on 27 November 2002. The GDP deflator for 2002–03 is a working assumption.
Sources: ² Secretary of State's Annual Reports on the Social Fund 1997–98 and 2001–02. ³ Benefit Forecasting and Model Development Division's latest expenditure and case load tables.

§ Mrs. Calton
To ask the Secretary of State for Work and Pensions what assessment he has made of the standard of decision-making on community care grant applications. [85164]

§ Malcolm Wicks
We announced in the PBR that we will be working with the Treasury to improve Social Fund administration and delivery. We already have procedures in place which aim to drive though a continuous programme of improvement in all benefit decision making.
As part of the Department's national Decision Making and Appeals quality checking programme, a specialist Social Fund team monitors the quality of decision making on all elements of the Social Fund. The programme is complemented by local quality checks. The primary function of these procedures is to identify trends in decision making which require remedial action and inform staff training and guidance needs.
The Independent Review Service for the Social Fund (IRS) provides an impartial review for customers who are dissatisfied with the outcome of their application to the discretionary Social Fund, following an internal review by a DWP reviewing officer. Around 1 per cent. of decisions are referred to the IRS for review. In November 2001, the IRS published a report "Grants Budgets and Decision Making" which sought to explain the relatively high number of community care grant decisions which it was substituting. In response to the report, the Department has made further improvements to the Social Fund guidance for decision makers on 1003W prioritisation and budgetary control. The IRS also provides valuable feedback to local offices on the standard of decision making in every case it sees.

§ Mrs. Calton
To ask the Secretary of State for Work and Pensions if he will change the rules and guidance for community care grants and crisis loans to ensure that applicants without(a) a cooker and (b) a bed are given a grant or loan. [85167]

§ Malcolm Wicks
The discretionary Social Fund provides people on low incomes with grants and loans to help them manage a wide range of unexpected or occasional costs, including the purchase of beds and cookers, depending on their individual circumstances.
On 27 November, we announced that from April 2003, £90 million will be added to the discretionary fund over the three years to 2005–06. This extra investment will enhance the fund's ability to help those on low incomes manage their finances.
We have already introduced a number of important changes to the Social Fund. We have simplified the budgeting loan scheme so that all applicants who satisfy the qualifying conditions, and have no outstanding Social Fund debt, will be offered a loan. We have also extended the qualifying conditions for community care grants to help people setting up home in the community who have been without a settled way of life.

§ Mrs. Calton
To ask the Secretary of State for Work and Pensions if he will extend the eligibility for community care grants and budgeting loans from the Social Fund to people(a) whose sole income is (i) incapacity benefit and (ii) contribution based jobseekers allowance and (b) who are receiving the maximum child tax credit. [85168]

§ Malcolm Wicks
The discretionary Social Fund provides grants and loans to help some of the neediest people in our society manage a wide range of unexpected or occasional costs. Around 1.5 million community care grants and budgeting loans were made last year to people with the lowest incomes, receiving Income Support or income-based Jobseekers Allowance. We have taken the view that access to the discretionary Fund should not be extended to people with higher incomes as such help would be poorly targeted and potentially very costly.
We continue to keep all aspects of the Fund under review.