Midlands councils to act on social fund payments

Money Are certain council funds remaining untouched?

Just imagine you face a sudden, unexpected emergency which could plunge you into acute hardship and possibly even put you at risk of losing your home.

Where would you turn for help?

For many thousands of people every year this is a very real question: escaping domestic violence or a sudden flooding emergency can tip them over the proverbial financial cliff edge.

One of the answers used to come come in the form of the Social Fund paid out directly to claimants by the Department of Work and Pensions.

Officially it was deemed a "special welfare benefit for exceptional or intermittent needs".

'Poorly targeted'

That was until April of this year. But since then the money has been handed down not to the individuals themselves but to local authorities for them to distribute in the form of food parcels, fuel vouchers, furniture, clothes and shoes.

Under the Welfare Reform Act, it has become the councils' responsibility to administer the schemes as they see fit.

The Work and Pensions Department says: "We reformed the Social Fund because it was complex and poorly targeted.

"Local authorities are best placed to deliver this support and ensure that it goes to their residents in times of need.

"They are responsible for providing short-term, emergency help and funding has been provided to help them do so. We spent two years working with local authorities to prepare this change."

This certainly matches the government's vision of "Localism": democratically accountable authorities responding to the needs of their own communities.

Postcode funding

The result is that a single Social Fund has been replaced by a wide variety of very different sets of arrangements from one council to another.

In Staffordshire, for example, where they call it the Local Crisis Support Scheme, the county council has used less than 2% of its £1.4 million allocation from the government.

In a statement the council said it provided furniture, white goods, food packs and clothing. Those eligible for food parcels have received them within 12 hours and the other goods within three days, it said.

"The difference in the number of applications compared to the previous cash award scheme operated by the Department of Work and Pensions is reflected nationally and in Staffordshire we are working with partners to raise awareness of the new scheme to ensure those who are eligible for support apply and receive they help they need."

Money untouched

Staffordshire are certainly right that they are not a unique example.

Herefordshire has so far used even less: just over 1% of its available funding.

The first six months of the new scheme reveal a broadly similar picture right across the Midlands. On average, our local authorities have yet to touch around 87% of the money available to them.

Some local authorities report that the overwhelming majority of applications they receive are rejected. In Herefordshire, for example, all but 12% have been turned down and in Gloucestershire the figure is 30%.

Another possible explanation is the relatively low number of applications in places where you would expect much larger numbers. Despite widespread deprivation, in Stoke-on-Trent only 1,637 people have so far claimed £66,148 between them.

This leaves the council with over £1m of its allocation untouched.

Publicity campaign

Here at least the council is responding with the promise of a publicity campaign highlighting information and advice about how, where and in what circumstances people may be eligible for assistance.

These figures have come to light as the result of a request made under the Freedom of Information Act to 20 Midlands local authorities by our BBC Stoke Political Reporter Phil McCann.

Phil calculates that out of a total of £21m allocated to them by the government, almost £19m remains untouched.

See his report on this weekend's Sunday Politics programme, when I will be joined in the studio by two of the local authority leaders responsible for delivering this assistance

Councillor Sir Albert Bore is the Labour Leader of Birmingham City Council, and Councillor Izzi Seccombe is the Conservative Leader of Warwickshire County Council. Also with us will be Tim Nicholls from the campaigning charity the Child Poverty Action Group.

I hope you will join us too at the usual time of 11.00 on Sunday on BBC One Midlands

Patrick Burns Article written by Patrick Burns Patrick Burns Political editor, Midlands

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  • rate this

    Comment number 1.

    "those that are eligible for food parcels have received them within 12 hours and the other goods within three days"
    well there is the problem, when this was paid by DWP it was paid as cash to claimants, easy spend cash for whatever is wanted, most want cash NOT GOODS, you can`t spend goods on non essentials.

  • rate this

    Comment number 6.

    As someone who works in benefits (although not with the social fund) I see the problems firsthand. If councils don't spend their annual allocation central government reduces it for the next year. If they spend it too early there isn't anything left for the end of the year. The result is lots of money left by February and then given to everyone who asks to get rid of the money by April.

  • rate this

    Comment number 2.

    The money doesn't have to be 100% spent just because it's there.
    That sort of public sector ethos needs to be squashed. Shouldn't we be pleased it hasn't all been needed?
    There will also always be local variations in need and in provision by charities and family. Surely family should help if possible before tapping the neighbours, i.e. taxpayers?
    There isn't really a story here is there?

  • rate this

    Comment number 4.

    It was obvious when it was announced that the councils would get this money that they would hang onto it like grim death. I heard of a case with our local council of a woman who home had completely burnt down being given a cooker only and was refused a bed!!

  • rate this

    Comment number 5.

    Seems to run counter to ethos when the money is going to council bureaucracy rather than points of individual need. Then the government ethos only applies to the rich. Privatise profit and socialise debts. Take from the poor and give to the poor official applies lower down the food chain?


Comments 5 of 6



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