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Discretionary Social Fund

Volume 579: debated on Monday 7 April 2014

1. What representations he has received from local authorities on the local administration of the crisis loan and community care grant elements of the discretionary social fund. (903538)

Crisis loans and community care grants were abolished in the Welfare Reform Act 2012 because they were failing to help those most in need. The Department for Work and Pensions has passed the funding to councils to help provide assistance for vulnerable people in their area, and they have held numerous discussions about this.

Manchester city council has stated that the removal of local welfare allowance funding by the Government in 2015-16 will disproportionately impact on the most deprived. It will also break the new burdens principle for local authorities. What advice would the Minister give to struggling families who rely on this vital lifeline?

Some local authorities are in fact underspending this year. Centrepoint’s research, which is often referred to, shows that many authorities are spending less than half their allocations. The research does not say that anyone has suffered at any time as a result of the current situation.

The Minister rightly points out that many councils are underspending, but I am sure he is aware that in councils such as Blackpool, this measure has driven efficiency and innovation in the provision of services to the most vulnerable. Deleting this line from the local government settlement risks ending that innovation and harming the most vulnerable in my constituency. May I ask him to think again about this change, please?

My hon. Friend makes a good point about how councils are working efficiently to look at new ways of delivering. In doing that, they are transforming services to ensure that the most vulnerable are the most protected, through the wide range of support that is available through local authorities.

Trafford Council’s “Trafford Assist” programme has been very successful in bringing together sources of support and sources of advice, but the council is worried about how it will be able to sustain the service when the funding closes at the end of the year. Will the Minister have urgent conversations with the Department for Work and Pensions to ensure that the two Departments between them can make sure that this lifeline funding will continue?

I have met various local authorities through the consultation on this year’s settlement, and I will meet them again next year. The DWP has also spoken to local authorities. We must ensure that we do not replicate the previous, poorly targeted system. There is a whole range of support out there, and local authorities are doing very well in pulling together that support to ensure that the most vulnerable have the right care for them.