1. Community Care Grants and Crisis Loans Haigh Hall 21 st March 2012 Pauline Wass

2. Introduction Background –Current Position –Position from 2013 & DWP Planning Assumptions –Financial and Administrative Implications Who? What? How?

3. Current Position Administered by JCP –Designed to help people with financial needs that they are unable to meet from normal income –Interest free loans, grants and payments through a regulated scheme & a cash limited discretionary scheme –Administration moved from local offices to remote processing and telephony centres –Costs spiralling out of control (£178m Nationally) –Criticised by National Audit Office and Public Accounts Committee for poor decision making and targeting of support

4. Position from 2013 Current Provision Regulated Scheme Provision from April 13Administration Cold Weather Payments Funeral Payments Sure Start Maternity Grants As now – Universal Credit will become a qualifying benefit. DWP Winter Fuel PaymentsAs nowDWP Discretionary Scheme Budgeting LoansReplaced in UC by Budgeting Advances DWP Community Care GrantsNew locally based provisionLA’s Crisis Loan Alignment Payments Replaced with Short Term Advances (replace interim payments as part of UC) DWP Crisis Loans for General Living Expenses New locally based provisionLA’s

5. DWP Planning assumptions April 2013 – CCGs and CLs will be abolished from April 2013. The replacement local welfare provision will be implemented at the same time. Alignment payments will be replaced by new system of Short Term Advances of benefit, part of the national benefit system October 2013 – the introduction of Universal Credit. Introduction of Budgeting Advances for eligible UC customers to replace Budgeting Loans 2013 – 17 – Budgeting Loans will remain for those receiving one of the current qualifying benefits until UC is fully rolled out. The eligible group for Budgeting Loans will diminish over time from October 2013 as customers migrate across to UC. Budgeting Advances will replace Budgeting Loans for Pension Credit customers during this time.

6. Financial and Administrative Implications Knowsley MBC 2009/10 –Total Spend £6,033,100 – 36,740 applications ApplicationsTotal spend Number of Awards Average Award CL Items4,030£750,1002,830£265 CL Living Expenses 9,720£482,9007,320£66 CL Alignment Payments 5,310£325,5004,680£70 CC Grants4,060£952,4002,230£427 Budgeting Loans 13,620£3,522,20010,100£349

7. Who? Create a new service? Align to existing services? Contract with new or existing external partners? Outsource? No legal requirement to provide a local service (but there will be expectations). Policy/Equality Impact Assessment?

8. What? Replicate the current provision? –Not supported by DWP –Difficult to administer & collect loans Political interest? Cash? Goods & Services? Longer term targeted support? Something else?

9. How? Funding –Limited pot and no ability to recycle loan repayments –Other LA discretionary funds? –Duplication with current service provision Entitlement –Data sharing with the DWP? –Complete new means test? –Accept referrals or require a claim form? Access & appeals Payment Media Interest

10. Further information & communication Web page - http://www.dwp.gov.uk/local- authority-staff/social-fund-reform/http://www.dwp.gov.uk/local- authority-staff/social-fund-reform/ Publication of new data – commitment to publish data every quarter until implementation in April 2013 Stakeholder meetings –national organisations and local authorities