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Social Fund Reform

The 2012 Welfare Reform Act includes changes to the discretionary Social Fund, which will occur after April 2013. In particular:
  • Community Care Grants, Crisis Loans and Budgeting Loans will be abolished.
  • Community Care Grants, and Crisis Loans (for items and general living expenses) will be replaced by a new localised service, from April 2013. In England this service will be delivered by Local Authorities. The arrangements for Scotland and Wales will be determined by the respective devolved Governments.
  • Crisis Loan alignment payments (and interim payments of benefit) will be replaced with a single system of Short Term Advances. Budgeting Loans will continue for people on income related benefits until they transfer to Universal Credit; and will then be abolished once Universal Credit is fully rolled out. Budgeting Advances will be available to eligible recipients of Universal Credit - these will be a payment on account of benefit. This will eventually be replicated in Pension Credit.
  • The role of the Social Fund Commissioner will be abolished at some point after April 2013.
The Social Fund Commissioner's responses to the following calls for evidence and consultations are available below:

Response from the Social Fund Commissioner to the Welsh Government's publication: Consultation on options to replace the Social Fund Community Care Grants and Crisis Loans for living expenses

IRS Report on the Experiences of Social Fund customers living in Scotland - October 2011

The response from the Social Fund Commissioner to the Scottish Government's publication: Devolution of Community Care Grants and Crisis Loans: Consultation on Successor Arrangements - October 2011

Social Fund Commissioner's response to call for evidence on local support to replace community care grants and crisis loans for living expenses

Social Fund Commissioner's response to the 21st Century Welfare consultation

Social Fund Commissioner's response to the White Paper on Universal Credit: welfare that works

IRS Report on the Experiences of Social Fund Customers
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