§ Mr. LoveTo ask the Secretary of State for Work and Pensions what assistance the Government is providing to lone parents who are living below benefit levels as a result of loan repayments to the Social Fund. [144486]
§ Mr. PondThe Social Fund is a vital source of support for people on low incomes, including lone parents.
The Budgeting Loan scheme provides interest-free loans, available to those receiving income support or income-based jobseeker's allowance for at least 26 weeks and who satisfy the qualifying conditions. In addition, Crisis Loans are made to people who are suffering an emergency or disaster where there is no other means of preventing a serious risk to the health of the applicant or a member of their family.
Repayment rates are set after taking account of deductions from benefit and all other debt repayment; where people find difficulty in meeting their loan repayments, they can apply to have their repayment terms reconsidered.
§ Mr. LoveTo ask the Secretary of State for Work and Pensions what plans the Government has to replace the system of Social Fund loans with a grant system. [144487]
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§ Mr. PondWe are considering the case for further reform of the Social Fund. However, interest-free loans allow efficient use of available resources to help large numbers of people, and have proven to be an effective way of enabling those on low incomes to cope with budgeting needs or short-term emergencies.
In certain circumstances, non-repayable grants are available from the Social Fund. Community Care Grants are available for vulnerable people in a variety of circumstances. In addition the Social Fund provides grants to assist people with the costs associated with life events such as childbirth and bereavement.