Crisis loans and community care grants were abolished in the Welfare Reform Act 2012 because they were failing to help those most in need. The Department for Work and Pensions has passed the funding to councils to help provide assistance for vulnerable people in their area, and they have held numerous discussions about this.

What representations he has received from local authorities on the local administration of the Crisis Loan and Community Care Grant elements of the Discretionary Social Fund.

Some local authorities are in fact underspending this year. Centrepoint’s research, which is often referred to, shows that many authorities are spending less than half their allocations. The research does not say that anyone has suffered at any time as a result of the current situation.

Manchester city council has stated that the removal of local welfare allowance funding by the Government in 2015-16 will disproportionately impact on the most deprived. It will also break the new burdens principle for local authorities. What advice would the Minister give to struggling families who rely on this vital lifeline?

My hon. Friend makes a good point about how councils are working efficiently to look at new ways of delivering. In doing that, they are transforming services to ensure that the most vulnerable are the most protected, through the wide range of support that is available through local authorities.

The Minister rightly points out that many councils are underspending, but I am sure he is aware that in councils such as Blackpool, this measure has driven efficiency and innovation in the provision of services to the most vulnerable. Deleting this line from the local government settlement risks ending that innovation and harming the most vulnerable in my constituency. May I ask him to think again about this change, please?

I have met various local authorities through the consultation on this year’s settlement, and I will met them again next year. The DWP has also spoken to local authorities. We must ensure that we do

not replicate the previous, poorly targeted system. There is a whole range of support out there, and local authorities are doing very well in pulling together that support to ensure that the most vulnerable have the right care for them.

Trafford Council’s “Trafford Assist” programme has been very successful in bringing together sources of support and sources of advice, but the council is worried about how it will be able to sustain the service when the funding closes at the end of the year. Will the Minister have urgent conversations with the Department for Work and Pensions to ensure that the two Departments between them can make sure that this lifeline funding will continue?

The coalition Government outlined the evidence in Local support to replace Community Care Grants and Crisis Loans for living expenses in England, Government response to the call for evidence June 2011. A copy was placed in the House library and it can be found online at:

https://www.gov.uk/government/consultations/local-support-to-replace-community-care-grants-and-crisis-loans-for-living-expenses-call-for-evidence

Nottinghamshire County Council have consulted on their plans to wind down their dedicated scheme and provide support by other means. Information on other authorities will be provided by the review my Department will shortly be carrying out about the way local authorities have used the funding provided following the abolition of the discretionary Social Fund. We are making arrangements with local authorities regarding this. A copy of the findings will be placed in the House Library.

There has never been a commitment to provide specific funding beyond 2014/15. On the basis of experience on the ground since support was localised, central government believes that it makes most sense for councils to choose how much funding to allocate to these services in their areas in future—according to local priorities and needs—and how to provide such support.

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.

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.

Funding has been provided for new, better targeted local provision through arrangements made by upper tier local authorities in England and the Welsh and Scottish Governments. It is for local authorities to decide how they advertise and operate schemes and it is for local authorities to satisfy themselves that the measures they are taking meet their statutory obligations. My Department has no role in how they are run.

However, so that claimants can get timely access to the support available from both the Department and the new provision in their communities we continue to promote awareness of the new arrangements. This includes messages on the Department's telephone enquiry lines, scripts for DWP staff to use in Jobcentres and call centres, messages on customer letters, and information on the benefits pages on the www.gov.uk website. At a local level Jobcentre Plus staff work very closely with local authorities and the devolved nations to support them in delivering their schemes.

Steps taken prior to the changes being introduced included holding many workshops around the country with local authorities and the devolved Administrations. At these we discussed how the funding could be put to the best use. Additionally, the settlement letter issued to each local authority with details of their funding provided further clarity on the purpose of the funding.

The new provision is not a replacement for the Social Fund. Some discretionary payments have been abolished from 1 April 2013 and funding has been provided for new, better targeted local provision through arrangements made by upper tier local authorities in England and the Welsh and Scottish Governments.

To help local authorities set up for their new provision we had dedicated web pages providing data on discretionary Social Fund demand and spend. We also held many workshops around the country in 2011 and 2012 with local authorities and the devolved administrations to discuss how the funding could be put to the best use. The settlement letter issued to each local authority with details of their funding provided further clarity on the purpose of the funding.

To promote awareness of the new arrangements we continue to work very closely with English local authorities and the devolved nations to support them in delivering their schemes so that claimants can get timely access to the support available from both the Department and the new provision in their communities. This includes messages on the Department's telephone enquiry lines, scripts for DWP staff to use in Jobcentres and call centres and messages on customer letters, and information on the benefits pages on the www.gov.uk website.

Table 1 provides the amount awarded under each Community Care Grant direction in Scotland in 2010-11,2011-12 and 2012-13.

Tables 2 and 3 provides the amount awarded under each Community Care Grant direction by local authority in Scotland in 2010-11 and 2011-12 respectively. This information is not yet available for 2012-13.

Community Care Grant expenditure figures are not available by parliamentary constituency.

Table 1 shows the expenditure on community care grants and crisis loans in the local authority of Tower Hamlets between May 2010 and March 2012.

We do not currently hold information on expenditure by local authority for 2012-13.

Notes:¹ The information provided is Management Information. Our preference is to answer all Parliamentary Questions using Official/National Statistics but in this case we only have Management Information available. It is not quality assured to the same extent as Official/National statistics and there are some issues with the data, for example, these amounts do not include expenditure on applications which were processed clerically and have not yet been entered on to the Social Fund Computer System.² Local Authority figures have been produced by linking Social Fund Computer System data with the National Benefits Database to obtain the local authority the person lived in at the time of application. There are up to 7% of cases where we cannot link the records in this way.³ All expenditure figures are rounded to the nearest £100.

Table 1 provides the expenditure by direction on Community Care Grants for residents in the Inverness Social Fund Budget Area in 2010-11 and 2011-12. This is the Social Fund Budget Area covering Kilmarnock and Loudon constituency. The information requested is not available at constituency level.