DOCSLIB.ORG

Social Fund Use Amongst Older People

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Social Fund Use Amongst Older People Department for Work and Pensions Research Report No 172 Social Fund use amongst older people Elaine Kempson, Sharon Collard and Sally Taylor A report of research carried out by the Personal Finance Research Centre, University of Bristol on behalf of the Department for Work and Pensions Corporate Document Services © Crown Copyright 2002. Published for the Department for Work and Pensions under licence from the Controller of Her Majesty’s Stationery Office by Corporate Document Services, Leeds. Application for reproduction should be made in writing to The Copyright Unit, Her Majesty’s Stationery Office, St Clements House, 2-16 Colegate, Norwich NR3 1BQ. First Published 2002. ISBN 1 84123 485 0 Views expressed in this report are not necessarily those of the Department for Work and Pensions or any other Government Department. Printed by The Charlesworth Group (Huddersfield, UK). Contents iii Contents Acknowledgements .............................................................................................................. vii The Authors ......................................................................................................................... viii Glossary ................................................................................................................................ix Summary ............................................................................................................................... 1 1 Introduction....................................................................................................................... 7 1.1 The Social Fund ........................................................................................................ 7 1.2 Objectives of research ............................................................................................... 8 1.3 Previous research ...................................................................................................... 9 1.3.1 Level of need, or perceived need................................................................... 9 1.3.2 Attitudes to borrowing in general ............................................................... 10 1.3.3 Attitudes to borrowing in general ............................................................... 11 1.4 About the research ................................................................................................. 13 1.5 This report .............................................................................................................. 14 2 Living standards ...............................................................................................................15 2.1 Why were people receiving MIG?............................................................................ 15 2.1.1 Health problems ......................................................................................... 16 2.1.2 Low-paid employment ................................................................................ 16 2.1.3 Better-off in the past but insufficient provision for old age .......................... 17 2.1.4 Better-off in past, but insufficient provision due to disruption ...................... 17 2.2 Living standards among people receiving MIG ......................................................... 18 2.3 What factors determined people’s ability to manage? ............................................. 18 2.3.1 Circumstances that led to receipt of MIG .................................................... 18 2.3.2 Additional financial assistance ..................................................................... 19 2.3.3 Additional expenditure ............................................................................... 19 2.3.4 Overview .................................................................................................... 20 2.4 High spending priorities .......................................................................................... 21 2.4.1 Food .......................................................................................................... 21 2.4.2 Heating ...................................................................................................... 22 2.4.3 Household bills ........................................................................................... 22 2.4.4 Other spending priorities ............................................................................ 22 iv Contents 2.5 Low spending priorities ........................................................................................... 23 2.5.1 Buying new clothes .................................................................................... 23 2.5.2 Going out socially ....................................................................................... 23 2.5.3 Holidays and days out ................................................................................. 24 2.5.4 Smoking..................................................................................................... 24 2.6 Lump sum payments............................................................................................... 25 2.7 Summary ................................................................................................................ 26 3 Saving and borrowing ...................................................................................................... 27 3.1 Saving .................................................................................................................... 27 3.1.1 Current savings........................................................................................... 28 3.1.2 Informal saving ........................................................................................... 29 3.1.3 Active savers .............................................................................................. 30 3.1.4 Changes in saving behaviour since retirement ............................................. 30 3.1.5 Could people have saved more over their life-time? .................................... 30 3.2 Borrowing .............................................................................................................. 31 3.2.1 Current credit use ....................................................................................... 32 3.2.2 Changes in commercial credit use ............................................................... 33 3.3 Overview of saving and borrowing .......................................................................... 33 3.4 Summary ................................................................................................................ 35 4 Social Fund needs ............................................................................................................ 37 4.1 Past needs and how met......................................................................................... 37 4.1.1 Meeting the costs of moving into sheltered housing .................................... 39 4.2 Current needs ........................................................................................................ 39 4.2.1 Unmet needs .............................................................................................. 40 4.3 Health and potential eligibility for Community Care Grants...................................... 41 4.3.1 Physical health ............................................................................................ 42 4.3.2 Mental health and learning disabilities ........................................................ 42 4.3.3 Potential eligibility for Community Care Grants............................................ 42 4.4 Deciding how best to meet needs ........................................................................... 43 4.4.1 A family emergency .................................................................................... 43 4.4.2 Moving into sheltered housing .................................................................... 44 4.4.3 Replacing a washing machine ..................................................................... 45 4.5 Summary ................................................................................................................ 46 5 Knowledge of, and attitudes to, the Social Fund............................................................... 47 5.1 Knowledge of the Social Fund................................................................................. 47 5.1.1 People with a high level of knowledge ........................................................ 48 5.1.2 People with only vague awareness .............................................................. 48 5.1.3 People with no knowledge at all ................................................................. 49 5.2 Explanations of levels of knowledge ........................................................................ 50 5.3 Sources of information ........................................................................................... 50 Contents v 5.4 Attitudes to the Social Fund .................................................................................... 51 5.4.1 Applicants’ views ........................................................................................ 51 5.4.2 Non-applicants’ views ................................................................................. 52 5.4.3 Non-applicants’ willingness to apply to the Social Fund ............................... 52 5.5 Summary ...............................................................................................................
Load more

Recommended publications
  • Grants and Loans
    Information and support Grants and loans f you have Parkinson’s, you Disabled facilities grants might be worried about how If you have a disability and have to make big changes I to your home to help with your needs, for example you'll manage financially. If you by adding an extension, hoist, stair lift or downstairs can’t work, or if you need help bathroom and shower unit, you might qualify for with your day-to-day needs, this a grant from your local council. can lead to extra costs. But there If a grant is available, your council may arrange for is some financial support available, an occupational therapist to assess what adaptations you need. so it’s important to find out what help you’re entitled to. Disabled facilities grants are usually means-tested, so how much you get depends on your income and savings. To find out more about what’s available This information explains what in your area, check with your council or visit www. grants and loans may be available gov.uk/disabled-facilities-grants to you to cover one-off costs or Access to Work help you if you're in financial need. The Department for Work and Pensions can pay part of the costs to help people access their workplace. What you get may be a single payment or a series of regular payments to meet ongoing costs. To qualify you must: y be over 16 years old y have a job based in England, Wales or Northern Ireland, and The information in this publication is correct as of April 2019, but is subject to change.
    [Show full text]
  • The Social Fund Commissioner's Annual Report
    The Social Fund Commissioner’s Annual Report 2011/2012 1112 The Social Fund Commissioner’s Annual Report 2011/2012 1112 The Social Fund Commissioner’s Annual Report 2011/2012 Rt. Hon. Iain Duncan Smith MP Secretary of State for Work and Pensions Caxton House, Tothill Street London SW1H 9DA Dear Secretary of State I am pleased to present my third Annual Report to you since my appointment as the Social Fund Commissioner for Great Britain. I report on the achievements of my staff in the Independent Review Service during the year ending March 2012. The calls on our service to provide an independent review have remained high. We have continued to resolve cases quickly and effectively within challenging timescales; maintained high quality standards in our decisions through innovation and adapting our approach; and retained high levels of satisfaction on the part of customers and those acting for them. I was pleased to note that both Chairmen of the Administrative Justice and Tribunals Council and the Ombudsman Association have commented in very positive terms about the quality and accessibility of our service. Our primary responsibility is to ensure that we deliver a high quality service to a poor and vulnerable section of the community. We are conscious that we are also accountable to the taxpayer in terms of securing value for money. I am pleased to report that our unit cost per case during this past year was £74, a reduction from £86 during the previous year, which we achieved without any decline in the quality of our decision making or service to the public.
    [Show full text]
  • Devolved Social Security Powers: Progress and Plans
    SPICe Briefing Pàipear-ullachaidh SPICe Devolved social security powers: progress and plans Camilla Kidner This briefing provides an update on the devolution of certain aspects of social security, primarily following the Scotland Act 2016. By 2024 Social Security Scotland is expected to be delivering a range of social security provision including carer's and disability benefits. A separate briefing will provide further detail on individual benefits. This paper focuses on the timeline, delivery agencies and funding. 10 May 2019 SB 19-27 Devolved social security powers: progress and plans, SB 19-27 Contents Executive Summary _____________________________________________________3 Introduction ____________________________________________________________4 Social security timeline: 'safe and secure transfer' ____________________________6 Devolved social security: 2013 to 2019 ______________________________________7 Devolved social security: 2020 to 2024 ______________________________________7 Legislative process from devolution to delivery _______________________________8 Organisational structure of devolved social security ____________________________9 Social security programme_____________________________________________10 Funding devolved social security _________________________________________12 Baseline _____________________________________________________________12 Ongoing funding for disability and carer benefits and winter payments_____________12 Ongoing funding for other benefits_________________________________________13 Setting the
    [Show full text]
  • The Scottish Welfare Fund and Changes to the DWP Discretionary Social Fund
    The Scottish welfare fund and changes to the DWP discretionary social fund Updated April 2014 In April 2013, a number of changes were made to the discretionary social fund. These are summarised in the table below. Element of the Social Fund Replacement from April 2013 Community care grant Scottish welfare fund community care grant Crisis loan for living costs and items Scottish welfare fund crisis grant Crisis loan alignment payment (whilst Short-term advance of benefit waiting for first payment of benefit) Budgeting loan Budgeting advance (introduced only as claimants are transferred to universal credit) There have been no changes made to the payments that make up the regulated social fund. This includes payments such as Sure Start maternity grants, cold weather payments and funeral payments. The Scottish welfare fund The Scottish Government has introduced a single scheme across Scotland to replace community care grants and crisis loans. The Scottish welfare fund (SWF) is delivered by local authorities, with the Scottish Government producing national guidance on eligibility and allocating ring-fenced funds to each area. There are two types of grant, crisis grants and community care grants. The eligibility criteria are broadly similar to the former social fund, although crisis grants do not need to be repaid. The scheme is a temporary arrangement until 2015, by which point the Scottish Government intends to have introduced legislation to underpin a permanent statutory scheme. Who can apply? To be eligible to apply to the SWF, you must be 16 or over and accepted as having a low income by the local authority.
    [Show full text]
  • Form SF500 Budgeting Loans from the Social Fund
    Notes sheet Budgeting Loans from the Social Fund Please read these notes carefully. They explain the We cannot help with any other types of items or services. circumstances when a loan can be paid. Different circumstances Budgeting Loans have to be paid back but they are interest free. apply to payments of Community Care Grants and Crisis Loans. You can have one of three rates of Budgeting Loan. The amount depends on whether you If you think you may be eligible for either of these types of are single, a couple without children or qualifying young persons or a one or two parent payments, read the section on the other side of this page. family with children or qualifying young persons. You will need to fill in the right application form for the type of The amount of Budgeting Loan you can have also depends on whether you have any other payment you need. These are: budgeting loans from the Social Fund. The amount of any Budgeting Loan we may pay ● form SF300 for a Community Care Grant together with the amount you still owe the Social Fund cannot be more than £1,500. ● form SF500 for a Budgeting Loan ● form SF401 for a Crisis Loan Savings ● form SF100 (Sure Start) for a Sure Start Maternity Grant ● If you and your partner are aged under 60, savings of more than £1,000 may affect the ● form SF200 for a Funeral Payment amount of money you can get. You must fill in a separate form for each one. ● If you or your partner are aged 60 or over, savings of more than £2,000 may affect the amount of money you can get.
    [Show full text]
  • Housing and Heating Costs Contents
    Housing and heating costs Contents 3 If you pay rent 6 If you are about to rent a new home 8 Can I get help with rent I have to pay upfront? 8 If you pay a mortgage 11 If you pay council tax 12 How to claim 16 Changes in your life 18 Other questions you may have 20 Help with your heating costs 25 What about other help with heating costs? 3 If you pay rent What help can I get if I pay rent? If you are on a low income, whether you are working or not, you may be able to get the following help: • Housing Benefit to help towards your rent. • Council Tax Benefit to help towards your council tax (see page 11). You do not have to get any other benefits to get Housing Benefit or Council Tax Benefit. They are paid by your local council. You can also ask the council for extra help with housing costs. This extra help is called a ‘Discretionary Housing Payment’. The council will decide whether or not to pay you a Discretionary Housing Payment. What is Housing Benefit? Housing Benefit is tax-free money to help pay some of your rent if you are on a low income. It is paid by your council, whether you pay rent to: • a private landlord • a housing association, or • a hostel or guest house. If you are a council tenant, your benefit will be used by the council towards paying your rent. To contact your local council go to: www.gov.uk or see their entry in the phone book 4 Housing and heating costs Can I get Housing Benefit? You may be able to get Housing Benefit if you: • are on a low income • do not have much money saved, and • have to pay rent.
    [Show full text]
  • Community Care Grants – Example Cases
    Orkney Islands Council Scottish Welfare Fund. Community Care Grants – example cases This guide provides some examples of possible Community Care Grant applications and whether the applicant may be eligible to receive a grant award or not. It does not cover all types of scenarios but should give you an example of the types of grants that people apply for and the type of decision that may be made. Please note that even if your circumstances may be the same as one of the examples it does not mean that the decision will be the same, as you may have slightly different needs or be considered as a different priority. It is aimed as a guide only. A Community Care Grant may be awarded To help people establish themselves in the community following a period of care where circumstances indicate that there is an identifiable risk of the person not being able to live independently without this help. • The person must have been in accommodation for 3 months or more where they received significant and substantial care, supervision or protection. For example hospital, care homes, hostels, prison or supported accommodation. • Example cases can be found at Annex 1 to this document. • To help people remain in the community rather than going into care where circumstances indicate that there is an identifiable risk of the person not being able to live independently without this help. • People most at risk of going into care may be those having difficulty dealing with life in the community, for example: dealing with personal and domestic tasks, needing basic household items, repairs to maintain or improve a home or help someone to move to provide care for someone.
    [Show full text]
  • Social Fund 2019-2020
    Social Fund Account 2019-20 HC 573 £10.00 Social Fund Account 2019-20 Presented to Parliament pursuant to Section 167(4) of the Social Security Administration Act 1992 Ordered by the House of Commons to be printed on 30 June 2020 30 June 2020 HC 573 £10.00 Social Fund Account 2019-20 Contents Page Foreword 2 Statement of Accounting Ofcer’s responsibilities 6 The Social Fund Governance Statement 7 The Certifcate and Report of the Comptroller and Auditor General 10 Receipts and Payments Account 13 Statement of Balances 14 Notes to the Account 15 Annex – Accounts Direction given by HM Treasury 18 1 Social Fund Account 2019-20 Foreword Background information The Social Fund was established in 1987 and continues under section 167 of the Social Security Administration Act 1992. n Section 138(1) of the Social Security Contributions and Benefts Act (SSCBA) 1992 enables payments of prescribed amounts to be made out of the Social Fund to meet, in defned circumstances, maternity and funeral expenses. n Payments of Budgeting Loans are paid in accordance with directions given or guidance issued by the Secretary of State, under the Social Security Act 1998. n Section 138(2) of the SSCBA provides for payments to enable people who satisfy prescribed qualifying conditions to meet expenses for heating incurred or likely to be incurred during periods of cold weather. Regulations provide for payments from the Social Fund to be made to certain customers following a period of cold weather or when cold weather is forecast. n Winter Fuel Payments were introduced in 1997-98 and currently paid under Social Fund Winter Fuel Payments Regulations 2000, to provide automatic help to pensioner households to assist with fuel bills.
    [Show full text]
  • The Social Fund and Local Government
    234 the Social Fund and local government January 2006 research LGA Foreword The Social Fund is probably the most researched contemporary area of social security policy, particularly in relation to the size of its budget. We make no apology for returning to it yet again for just as it is heavily researched, so it is heavily criticised. A series of administrative changes to it over the years since it was introduced in 1988 have not dispelled the major criticisms of it – its small budget, mysterious decision-making procedures, high refusal rates, and dependence on loans – criticisms which have come from all quarters, including politicians, benefit advisers, academics, the National Audit Office, the Auditor General, the Social Security Advisory Committee, the Social Fund Commissioner, the House of Commons Select Committee, local government, the voluntary sector, trades unions representing those administering the Fund, and, not least from benefit claimants themselves. Despite early political commitments to reform it thoroughly or even abolish it and replace it with a more acceptable way of providing cash help to claimants on the lowest incomes, the New Labour government has persisted with the Fund and these criticisms remain. This report was commissioned to explore one less well-researched area, the impact of the Social Fund on local government. The sometimes apocalyptic fears expressed by local government social workers and benefit advisers in the run-up to 1988 have not, in the event, been realised. Nevertheless, despite the difficulties of collecting systematic data, and the fact that applicants to the Social Fund whose applications are rejected rarely mention local government as an obvious source of financial help (Finch and Kemp 2004) it is clear that the Fund has negative effects on local government, most of all in the human and financial resources which are expended in supporting claimants whose legitimate claims for help have been rejected by the Social Fund, largely because of its capped budget and poor decision-making.
    [Show full text]
  • Social Fund Guide
    Social Fund Guide This guide contains the Secretary of State's directions and guidance. It is intended for use mainly by Decision Makers and independent Social Fund Inspectors. Amendment 1 of 2012 - April 2012 Amendment 2 of 2012 – May 2012 Amendment 3 of 2012 – October 2012 Contents Part 1 – Introduction Part 2 – Community Care Grants Part 3 – Crisis Loans Part 3A – Crisis Loans pre-April 2011 Part 4 – Budgeting Loans Part 5 – The Budget Part 6 – Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 – The Directions Part 8A – Transitional and revoked Directions Part 9 – Table of current year’s amendments Amendment 3 of 2012 2 Part 1 - Introduction Description of the Social Fund 1. The Social Fund (SF) is a scheme to help people with needs which are difficult to meet from regular income. It is made up of two distinct parts: • a regulated scheme which provides entitlement to maternity, funeral, cold weather and winter fuel payments for people who satisfy certain qualifying conditions • a discretionary scheme under which people may be eligible in certain circumstances for a: o Community Care Grant (CCG) - to meet, or help to meet, a need for community care o Budgeting Loan (BL) - to meet, or help to meet, an intermittent expense o Crisis Loan (CL) - to meet, or help to meet, an immediate short term need 2. This guide deals with discretionary payments only. Discretionary Scheme – appropriate officers 3. SF decisions on CCGs, BLs and CLs are discretionary. Decisions on such payments are made by officials who, acting under the authority of the Secretary of State, exercise functions of the Secretary of State in relation to discretionary social fund payments.
    [Show full text]
  • The Scottish Welfare Fund and Changes to the DWP Social Fund
    The Scottish welfare fund and changes to the DWP social fund This is one of a series of Child Poverty Action Group in Scotland factsheets giving guidance to advisers and those working with families in Scotland. Child Poverty Action Group promotes action for the prevention and relief of poverty among children and families with children. The Scottish welfare fund and changes to the DWP social fund Introduction In April 2013, a number of changes were made to the DWP discretionary social fund. These are summarised in the table below. Element of the Social Fund Replacement Community care grant Scottish welfare fund community care grant Crisis loan for living costs and items Scottish welfare fund crisis grant Crisis loan alignment payment (whilst waiting for Short-term advance of benefit first payment of benefit) Budgeting loan Budgeting advance (introduced only as claimants move to universal credit) This factsheet explains these changes. Future Changes There have been no changes made to the payments that make up the regulated social fund. This includes: • Sure Start maternity grants • funeral payments • cold weather payments • winter fuel payments However, it is planned that responsibility for the regulated social fund will be devolved to the Scottish Government, which will be able to change amounts or entitlement conditions. At the time of writing it is not clear exactly when this will happen. The following payments will remain the responsibility of the DWP: • budgeting loans • budgeting advances • short term benefit advances These payments are explained later in this factsheet. The Scottish welfare fund The Scottish welfare fund (SWF) is delivered by local authorities, with the Scottish Government allocating ring-fenced funds to each authority.
    [Show full text]
  • Information Guide 12: DWP Social Fund 1.8.2019 1
    WELFARE RIGHTS SERVICE DWP Social Fund Information Guide 12: For Residents and Advisers st www.wolverhampton.gov.uk 1 August 2019 Introduction When people are living on a low income or benefits, budgeting for large or unexpected items of expenditure can prove difficult. The Department for Work and Pensions (DWP) provides a number of different types of interest free loans and grants which are designed to help at times of specific need. This Information Guide explains what help is available. DWP Social Fund: ▪ Budgeting Loans ▪ Sure Start Maternity Grants ▪ Funeral Expenses Payments ▪ Short-term Advance Payments Universal Credit: ▪ Advance Payments ▪ Budgeting Loans It also provides information on Cold Weather Payments and Winter Fuel Payments, the Family Fund (a charity that can provide financial assistance to families with a disabled child or young person) and the Local Welfare Assistance scheme which can provide ‘crisis loans’ and ‘local welfare assistance loans’ to people living in Wolverhampton. Information Guide 12: DWP Social Fund 1.8.2019 1 To qualify for a Budgeting Loan the claimant DWP Social Fund (and/or their partner) must have been receiving a ‘qualifying benefit’ (see page 3) for The Social Fund provides a range of interest at least six months (gaps of 28 days are free loans, grants and lump sum payments ignored) prior to the date of claim. which can be applied for by some benefit claimants. Under the Social Fund a person Any eligible Budgeting Loan amount will be can make an application for: reduced by the amount of savings the claimant (and/or their partner) has above £1,000 (£2,000 if the claimant or their partner is aged A.
    [Show full text]