1. Local Welfare Schemes: what have we learnt so far?

2. Initial research (2012 – 2013) Review of existing literature; mapping of spend on Community Care Grants and Crisis Loans at the local authority level; online surveys and follow-up interviews with local authorities, credit unions and CDFIs; desk-based review of 25 local authority schemes; qualitative interviews with Social Fund recipients. Report: ‘Local welfare provision, low income households and third sector financial services provision’, April 2013

3. Key findings (1) Local schemes in England vary considerably, resulting in a ‘postcode lottery’ of support; Many local authorities are implementing tight eligibility criteria; Assistance is less likely to involve cash payments, with in-kind support such as food parcels and voucher schemes used in their place;

4. Key findings (2) Loan schemes could help maximise the use of the available budget; Third sector providers could also help with payment processing for local welfare schemes, and could link people to savings and budgeting accounts and debt advice; However, the capacity of third sector financial services providers varies between areas, and most local authorities are not proposing to put loan schemes in place.

5. Main recommendation DWP should link its investment in credit unions and CDFIs with the local Delivery Partnerships it is developing to support the personal budgeting needs of Universal Credit claimants. These local Delivery Partnerships should work with local authorities, credit unions and CDFIs to ensure ‘local welfare loan schemes’ and budgeting accounts are made available to Universal Credit claimants.

6. Where are we now? New research project to assess the effectiveness of different approaches; Steering group includes Children’s Society, Buttle UK, Glasspool Trust, and Cripplegate Foundation; Interested in how well local need is being met taking into account the work of charitable trusts and voluntary sector – has demand shifted from state to third sector provision?

7. Basic typology of approaches New ‘in-house’ teams created to take applications and make decisions concerning eligibility and awards (notably some County authorities) Using existing Revenues and Benefits teams for this purpose (notably Unitary authorities) Creating a voluntary sector ‘gateway’, to check whether or not other local provision could meet the needs that are presented prior to referring into the authority for the determination of an application for an award under the new scheme Commissioning private sector firms to take applications and determine these in line with the eligibility criteria and other policies that have been set for them.

8. Cross cutting issues How far local services are being used in fulfilment of offers made under the scheme; How far LWP applicants are being routed to service provision capable of meeting ‘underlying needs’; Whether or not loan schemes are being used; and where so, how variations in these impact on the overall budget and on applicants.

9. Key issues (1) Budget underspends: – Whether demand is reduced (elimination of ‘fraud’); marketing poor; application process bureaucratic; uncertainty of outcome; – Implications now (Nottinghamshire) as well as post 2014; – Some areas relaxing eligibility criteria or raising limits on values of maximum awards.

10. Key Issues (2) Residence requirements – Back to the Elizabethan Poor Law? Low paid working households – Eligibility requirements often focused on receipt of out of work benefits (but changing after UC roll out?) Fuel and Food – Limited support and not ongoing (e.g. restrictions on number of times assistance can be provided)

11. Key issues (3) Poor (initial?) relationship with DWP provision: – Short term budgeting advances; – Little discussion so far about how LWP applicants will be identified and considered for UC payment exceptions. Varying levels of integration with other provision to address underlying needs – Revenues and Benefits ‘approach’ – Third sector delivery No evaluation of impact on other local services – Is there a case for social investment post 2014?

12. What else could be done? ‘Seasonal’ or ‘flexible’ rents and Council Tax – Cashflow problems to be managed by organisations not individual households – Offer ‘good’ payers with opportunity to use the rent account like a low interest overdraft? Affordable loans for larger packages of support (e.g. new tenants) – Grants for crisis payments; loans for community care? Viewing local welfare funds as part of a wider ‘financial support’ strategy Sub-regional arrangements?