I am pleased to announce that the gross discretionary Social Fund Budget for 2011-12 will be £732 million.
With the net funding available, I have been able to allocate a gross national Social Fund Loans Budget of £590 million and a national Community Care Grants Budget of £141 million from l April 2011.
To provide help to Jobcentre Plus budgets facing unexpected and unplanned expenditure I will retain centrally £1 million as a contingency reserve.
I will allocate a gross national Social Fund Loans Budget in line with the provisions in the Welfare Reform Act 2007. The aim is to control and manage the national allocation whilst providing consistency of outcomes for budgeting loan applicants wherever they live. All loans budget expenditure will be made from the gross national loans budget of £590 million.
The Community Care Grant annual allocations to social fund budget areas are provisional and will be subject to in year adjustment once the current review of the funding allocation methodology has been completed. The overall national budget will remain at £141 million. The purpose of the review is to determine a fairer distribution of resources between areas and to move to the optimal funding position for the new locally based service from 2013.
Details of individual Community Care Grant allocations will be placed in the House Libraries.
Background note about the discretionary Social Fund Budget
The discretionary social fund budget is cash limited. Funding for Community Care Grants is allocated to each budget area for management by Jobcentre Plus Social Fund Benefit Delivery Centres on 1 April each year. The gross discretionary social fund budget allocated for 2011-12 is £732 million. This is made up of:
New money (net AME)
Forecast loan recovery
This is to be allocated as follows: