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Discretionary Social Fund

Answer

The nationally-run Community Care Grants and Loans were poorly targeted and failed to help those most in need. So, in April 2012 as part of wider welfare reform, the Department for Work and Pensions transferred responsibility to local authorities so councils could deliver and tailor new local support as part of their existing services to their communities.

Councils will continue to provide support to those in their community who face financial difficulties or who find themselves in unavoidable circumstances, but there is no requirement to replicate the previous approach adopted by central government.

In contrast to a centralised grant system that was poorly targeted, under the Department for Work and Pensions reforms, councils can now choose how best to support local welfare needs within their areas—what is right for, say, urban Camden may not be for rural Cumbria. Some councils have already chosen to wind down their dedicated schemes following underspends this year.

In the next Spending Round period, from April 2015, central government continues to provide support to local authorities through general funds as part of the Coalition Government’s commitment to reducing ring-fencing and ending top-down Whitehall control.

This decision was taken at the Spending Round 2013 by the Department for Work and Pensions, reflecting in part the ongoing need for welfare reform to help pay off the deficit left by the last Administration. The Government consulted widely with local authorities on service pressures and finances as part of the preparation for the Spending Round and this was laid out alongside December's Local Government Finance Settlement.

I would observe that those on benefits are able to apply for benefit advances. In addition, community-run credit unions can provide affordable, responsible credit, and the Government is supporting them with £150 million of investment over the current Spending Review period.

Secondary information

Type

Written question

Reference

HL4970; 752 c278WA

Session

2013-14

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Subjects

Community care grants Finance Social Fund Crisis loans Welfare assistance schemes

Link

View this Written question on www.publications.parliament.uk