§ Mrs. CaltonTo ask the Secretary of State for Work and Pensions (1) if he will ensure that regular statements are issued showing the outstanding balance on any budgeting loan; [79218]
(2) if he will amend the repayment formulae to allow the option of more modest repayment rates;[79219]
(3) if he will (a) increase the maximum possible budgeting loan and (b) review the treatment of outstanding loans. [79220]
§ Malcolm WicksWe have improved the standard of information given to applicants to explain Budgeting Loan decisions. In addition to the standard letter of678W notification, we now provide a calculation sheet which sets out, in clear stages, how the final decision has been reached.
The scheme already provides for anyone who finds the repayments terms offered unacceptable to opt for a lower size of loan and lower repayments. In addition, anyone who has difficulty maintaining repayments can ask for the repayment period to be extended so that weekly repayments are reduced to a more manageable level.
The £1000 limit on total debt to the Social Fund has been set to ensure access to a reasonable and manageable level of credit which recognises the possible needs of people on Income Support and income-based Jobseeker's Allowance. It means that debt owed to the Social Fund is kept to a manageable level. Keeping the limit at its present level means repayment deductions from benefit can be set at a reasonable level.
We continue to keep all elements of the Social Fund under review to see whether further improvements can be made to its operation and to ensure that the Fund supports our wider welfare reforms.