Social fund ‘failing to help the needy’
The government’s social fund is failing to help people in financial hardship, MPs warn today.
A new report from the public accounts select committee finds that the system is too complex, prone to error and that many of those it is designed to help know nothing about it.
“The Department for Work and Pensions (DWP) needs to get back to its original vision of a system of ad hoc financial help for very needy people which is both simple and responsive,” said committee chairman Edward Leigh.
The social fund was set up 17 years ago to provide a safety net for those on low incomes when an emergency arose, or when they found it hard to pay for important items.
It was introduced to allow exceptional or one-off payments – for example, for funeral expenses, to buy equipment for a new baby or items necessary for starting work – to be made without affecting eligibility for the main income support scheme.
However, today’s report finds that the social fund “epitomises what is wrong with so many benefit programmes” in that it fails to reach the people who need it the most. Mr Leigh notes that some Jobcentre staff do not even know it exists.
In addition, the over-complexity of the fund “gives rise to error, by both claimants and staff”, the committee finds.
“Delays in processing applications, caused by poor computer systems and the inability of front-line staff to access the information they need, mean that people can face lengthy waits for ’emergency’ funds,” Mr Leigh said.
“And while the Department for Work and Pensions is doing a better job collecting social fund debts, it still does not tell people with outstanding loans how much they owe and what impact this has on their eligibility.”
The Child Poverty Action Group (CPAG) said that reform is needed to meet the fund’s original vision, expressing particular concern about the lack of knowledge of the programme.
“CPAG agrees that administration of the fund can lead to a ‘postcode’ and ‘calendar’ lottery and needs to be improved,” said chief executive Kate Green.
“We are also concerned that too few benefit claimants – and in fact not enough frontline Jobcentre staff – know about the help that loans and grants from the social fund can give.”
Responding to the report, a DWP spokeswoman said the government was committed to the efficient administration of the social fund, as it “plays an important part in the government’s agenda for tackling poverty and social exclusion”.
Noting that three million grants payments were awarded last year, with a total value of £867 million, she admitted that “awareness and administration” of the fund could be better but said action was already being taken.
“We are revising the information provided to customers and increasing staff training. The work we are doing to standardise processes, procedures and to simplify policy will be helpful in the administration of the fund,” she said.
