Social Fund Reform and the introduction of local welfare provision in England

2 AGENDA Welcome and domestics Introduction and background ­Overview of reforms Third Party and Voluntary Organisations Discussion and Questions Moving forward

3 OBJECTIVE To provide a forum for representatives from Local Authorities to discuss with DWP officials aspects of implementing the new local welfare provision

4 Social Fund Overview Diverse set of payments, grants and loans with differing eligibility criteria Introduced in to replace discredited Single Payments scheme as part of the wider Fowler reforms of social security Designed to help people on low incomes manage large items of expenditure and cope with emergencies Delivered in-house by DWP delivery businesses Hasn’t been subject of a fundamental review since its introduction

5 Challenges facing current scheme Scheme is complex and expensive to administer Expectations within welfare state on people to find work have changed – no adaptation of the Social Fund to reflect this Jobcentre Plus business model has altered significantly – no longer supports delivery of discretionary schemes Grants scheme has not evolved to reflect wider social care agenda Introduction of Universal Credit makes reform essential – provides both an opportunity and a challenge

6 Government’s plans December 2010 White Paper February 2011 call for evidence June 2011 Government response to the call for evidence “support is tailored to local circumstances and targeted only at genuine need” “we do not expect local authorities to recreate CCGs and CLs locally” “develop and deliver services tailored to meet the needs of their most vulnerable members”

7 Social Fund Reform The Social Fund is not closing as payments for maternity, heating and funeral expenses continue. Some discretionary payments will be replaced by better targeted local provision in England and help provided under arrangements made by the Scottish and Welsh Governments. Universal Credit will provide a better service with payments on account, supporting many people in need of short and longer term credit facilities. Additionally, we are developing a package of financial capability support to help people to manage their finances more effectively.

8 Social Fund Reform English allocation to upper tier local authorities Allocation based on equivalent Social Fund spend for 2012 – 13 Any New Burdens will be funded ­Workshop to discuss

9 Web page - staff/social-fund-reform/ Local authority report – Met with over 50 local authorities Welfare Reform Bill – Considerable Lords interest. Concluded Parliamentary process 29 February Recent news

10 Next Steps Publication of new data – commitment to publish data every quarter until implementation in April 2013 Stakeholder meetings –national organisations and local authorities Welfare Reform Bill - Royal Assent

11 Next steps Communications strategy Data sharing regulations Settlement letter Review in

12 Provisions for implementation Planning assumptions are still: April 2013 – CCGs and CLs will be abolished from April 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.