1. Devolution of Community Care Grants and Crisis Loans for Living Expenses http://www.scotland.gov.uk/Publications/2 011/07/29104056/9

2. Outline of Presentation Background Issues with the current arrangements Consultation questions What next

3. Background June 2009 - Calman Commission recommends devolution of the discretionary Social Fund – Scottish Government agrees in principle March 2010 - UK Government consultation on Social Fund reform proposes devolution of community care grants only December 2010 – UK Government announces discretionary Social Fund will be abolished and replaced by local arrangements/incorporated into Universal Credit

4. Background Community care grants and crisis loans for living expenses to be devolved to local authorities in England and to the devolved administrations in Scotland and Wales Budgeting loans and crisis loans alignment payments to be incorporated into Universal Credit through payment on account facility Crisis loans for items (e.g. beds, cookers) ceased April 2011

5. Issues with the current system Review of literature Administration –Complexity of the application form –Difficulty contacting call centres –High rate of unsuccessful applications Loan repayment Users –Low take-up among older people –High frequency of repeat applicants –Creating long-term dependency

6. Issues with the current system Relationship to Scottish Government Policy Fits with responsibilities for wellbeing, social work and tackling homelessness but not with Early intervention Assets based approach

7. Consultation questions Grants vs loans Loans provide extra money for re-cycling –Level of loan recovery critical –Delivery partners lack experience –Up-front costs but Increase problems for those on low income, and likely to result in debt

8. Consultation questions Delivery Successor arrangements must operate Scotland-wide Could be centralised or delivered locally Various local partners Channels – on-line, telephone, face to face

9. Consultation questions Re-focus scheme eligibility Lack of clarity in current criteria –High level of appeals Eligible groups Trigger life events

10. Could make money go further Fits with SG environmental policy but Could reduce choice Consultation questions Provide goods

11. Budgeting advice Other advice Encouraging savings Consultation questions Include other support

12. Essential characteristics of an effective system Consultation questions Appeals

13. What next Consultation runs for 10 weeks (to 21 October) Series of consultation events including seeking views of clients Analysis of responses Decisions on successor arrangements Legislation

14. Contacts Community care grants and crisis loans Catriona.Mckay@scotland.gsi.gov.uk Telephone 0131 244 0615 Welfare Reform Beverley.Francis@scotland.gsi.gov.uk Telephone 0300 244 1327