SCoWR Response: Devolution of Community Care Grants and Crisis Loans: Consultation on Successor Arrangements

Introduction 1. The Scottish Campaign on Welfare Reform (SCoWR) is a coalition of leading civil society organisationsi. Members work with people experiencing exclusion and poverty across Scotland. This response outlines the consensus of opinion which exists among SCoWR members over the devolution of Community Care Grants and Crisis Loans. Many of our members are also providing their own, detailed responses. This response is intended to complement those provided by individual members.

Our response 2. The SCoWR manifesto1 sets out the five reforms that our members believe are necessary for an adequate welfare state:

• Increase benefit rates to a level where no one is left in poverty and all have sufficient income to lead a dignified life • Make respect for human rights and dignity the cornerstone of a new approach to welfare • Radically simplify the welfare system • Invest in the support needed to enable everyone to participate fully in society • Make welfare benefits in Scotland, suitable for Scotland

Increase benefit rates to a level where no one is left in poverty and all have sufficient income to lead a dignified life

3. It is important that the Scottish Government appreciates that the need for the social fund arises because current welfare benefits do not meet the basic costs of living in the UK today. Many people fall into debt or are forced to apply for grants or loans purely because, without them, they could not achieve an acceptable standard of living for themselves and their families. Minimising poverty should be at the heart of any decisions with regards to community care grants and crisis loans.

4. The Scottish Government must not assume that those using the system do so simply because they are unable to manage their finances or because they are trying to take advantage or to cheat the system. In the vast majority of cases they just don’t have enough income to cover the basic and essential costs of living and they need help to avoid a personal or financial crisis.

1 A full copy of the SCoWR manifesto can be downloaded from the Poverty Alliance website here: http://www.povertyalliance.org/campaigns_detail.asp?camp_id=8 5. With the proposed devolution of parts of the Social Fund, the Scottish Government has an important opportunity to tackle both the shortfalls in the current system for claimants and the way in which the current welfare system undermines other aspects of Scottish Government policy.

6. The Scottish Government has repeatedly championed the benefit of taking an early intervention approach to poverty and hardship and we would urge it to remember this in its development of a devolved social fund. By taking an overly limited approach to eligibility, the Government would risk pushing people into further poverty, exclusion and ill-health. In many cases, the only alternatives to the Social Fund are high interest lenders, loan sharks or selling items from the home – all of which are likely to exacerbate rather than resolve financial problems and increase the likelihood of eventual reliance on pubic services.

7. In order to avoid some of these problems we believe that any new Social Fund system should have the following characteristics: i) Sufficient to meet demand The Scottish Government has it within their power to increase the funding that is allocated to the Social Fund replacement in order to operate an adequate scheme... This could play a major role in preventing people being subjected to insurmountable levels of high interest. Preventative investment in the Social Fund would have major benefit in cutting back and /or mitigating against the costs of increasing levels of poverty and indebtedness described above. A valid claim for help should never be rejected on the basis that there is no money left in the pot. The Government should also consider the increasing importance of Community Care Grants to disabled people who are increasingly being supported and encouraged to live independently in the community. This shift away from residential care models is extremely positive for many disabled people and they must be given the financial support required to set up their first home in the community. Community Care Grants often play an essential part in this process. ii) Not conditional on receiving financial guidance or advice It is essential that people have access to information and advice they need to manage their finances. However, it is also essential that financial assistance is never made conditional on them seeking advice or support. There are families across Scotland who need financial support to deal with unexpected and unforeseen costs and whose income is simply not adequate to provide a cushion against such shocks. This will not change as a result of advice about budgeting. Furthermore, the requirement that an individual seek advice and assistance before accessing social fund payments will cause delay to urgent applications.

Make respect for human rights and dignity the cornerstone of a new approach to welfare 8. There is concern that many of those seeking assistance under the social fund are not currently treated with the dignity and respect they deserve. Some complain that they are made to feel ashamed of the fact they are making a claim while others are denied assistance for items which are essential to the wellbeing and dignity of themselves and their family. In some cases this can be addressed through an adequate and flexible eligibility framework. However, it is also essential that staff administering the scheme are well trained in customer service, effective communication, disability awareness etc.

9. It is also essential that the scheme is equally accessible to all. Those with characteristics protected under equality legislation such as disability and race should be actively engaged at an early stage in the development of the scheme to ensure that it meets their needs. The Scottish Government should also be mindful of its duties under the Equality Act and ensure that it is promoting the needs of those with protected characteristics in relation to the scheme. This is relevant in relation to publicising the scheme, giving accurate and relevant advice, developing eligibility criteria and ensuring that those organisations delivering the scheme have in-depth knowledge of those using its service and their needs. Accessible communication and disability awareness training is also essential and any phone line should have access to translation services such as Type Talk and Language Line.

10. An adequate, effective and independent system of appeal is also crucial to ensuring the dignity and human rights of claimants. Currently, the Independent Review Service performs a vital function and is one of the only parts of the existing system that we would recommend replicating.

11. It is also essential to emphasise the role of independent advice in supporting access to justice. Whilst there may be an official view that tribunals are accessible and informal, this should not be accepted without conclusive evidence that the vulnerable people who will need to use the system agree that this is the case in practice. The barriers faced by vulnerable people are demonstrated by the increased success rates at appeal when there is a representative to assist the claimant in arguing their case.

12. Finally, we are concerned by the suggestion that applicants should be given goods rather than financial assistance, unless this is an active choice by the applicant. There is a risk that this type of service would remove choice and create stigma and undermine the dignity of the individual. It is also essential that applicants can buy goods which meet their need. Their disability, for instance, might dictate that they need a low sitting fridge freezer. Beds and other pieces of furniture must also be able to fit into the space available for them. There is also a concern that it may be a false economy to provide individuals with second hand goods which will not last long and will soon need to be replaced.

Radically simplify the welfare system 13. We believe that the simplest approach to a devolved social fund would be to develop a national framework for eligibility. This would ensure equality of access and entitlement across Scotland with individuals able to access help according to their needs, regardless of where they live. This does not mean that individual or local circumstances cannot be taken into account in determining eligibility, rather that these factors would be weighted in the same way regardless of the applicant’s location.

14. A national framework would also be the most efficient way to process telephone and online applications from people who can access the scheme without support to do so, leaving local agencies to focus their energies on supporting those who need their help face-to-face.

15. A framework of this nature would also free up resources to invest both in the grant fund itself, and in involving local partners in the face to face advice and support with applications to those for whom a national gateway (telephone/electronic) is not easily accessible.

16. It is also essential that as well as telephone and internet access, people are able to apply and get advice face to face from advisors trained in effective communication. This would overcome computer literacy issues, access to telephones and the expense of making calls from mobile phones. Having a range of ways in which to access the fund is particularly essential for people with disabilities including sensory impairments, learning difficulties and mental health problems.

17. Any phone line must be completely free to all – even those using mobile phones. In many cases individuals will low income will only have a pay as you go mobile as they cannot afford the line rental on a landline phone.

18. We would also urge the Government to investigate whether identity can be verified against DWP systems (as happens with social fund applications at present), in order to ensure that the need for providing the same information and evidence repeatedly is minimised. This is one of the key aims of UK-wide welfare reform, and will massively reduce administrative costs if it is achievable. The centralised model seems to support this kind of verification system better.

Invest in the support needed to enable everyone to participate fully in society

19. We believe that access to the devolved fund should not be limited to certain groups within society, but that it should be available to all those who need financial help in order to meet their basic needs and participate in society. People should not automatically be categorised as more or less deserving than others. For instance, while those who claim DWP benefits or who have children may be more likely to make an application to the fund, this does not mean they should be automatically prioritised. Rather, eligibility and prioritisation should be based on individual need and the immediacy and extent of any threat to the individual and their families’ health and wellbeing. We are concerned that categorising people and giving priority to certain groups over others leads to divisions and resentment within communities which should be avoided at all costs.

20. Having said this, it is essential that staff dealing with applicants and processing their applications have an in-depth understanding of how a person’s situation or characteristics will impact on their need for support. For instance, there should be a good understanding of the impact the following characteristics (amongst others) can have on poverty, health and wellbeing:

 Having a disability or having a disabled child.  Being workless or living in a work-poor households  Living in a households containing care leavers  Being a kinship carer  Being retired  Being a lone parent  Being a woman  Being from an ethnic minority community  Being a carer

21. The eligibility framework should also allow for the impact of the following circumstances (amongst others) to be taken into account:

 Pregnancy  Birth/adoption/looking after a relative (especially since the restrictions to eligibility criteria for UK maternity grants)  Transitions to nursery, primary and secondary school  Long term illness or accident  Family breakdown  Lack or failure of household goods  Moving (including from a care setting (or to avoid going into care), between homes in the community, after a period of homelessness or imprisonment)  Transport costs at times of crisis such as hospital admission, family member detention or bereavement

Make welfare benefits in Scotland, suitable for Scotland 22. It is essential that delivery makes the fund accessible to all those who might need it regardless of where they live and the community they belong to. The Government should ensure that those organisations assisting or involved in delivering the scheme locally have sufficient knowledge of the local area and its communities to ensure this. The scheme should also be sufficiently funded to reach everyone, regardless of their location or social isolation. 23. In developing the scheme and designing its delivery the Scottish Government must also continue to be aware of the changing context in which it will be operating. In particular, the Government must be aware of the impact the introduction of Universal Credit will have on households in Scotland. Universal Credit will replace a range of benefits such as housing benefit, income support and child benefit. This means that a mistake or delay on the part of the DWP or HMRC could result in people being deprived of all their benefit- not just one part of it. The Scottish Government must clarify with DWP how the fund’s decision making apparatus will be able to assist claimants in this situation. The devolution of the fund should be seen as an opportunity to work with the DWP in a better way than it currently works internally.

Further information For further information about this response, please contact Hanna McCulloch (Capability Scotland) [email protected] Tel: 0131 347 1025 If you want to learn more about SCoWR’s work, or join the campaign, please contact: Maggie Kelly The Poverty Alliance 162 Buchanan Street Glasgow G1 2LL 0141 353 0440 [email protected] i SCoWR members include: Action for Children Scotland, Archibald Foundation, Capability Scotland, Carr-Gomm Scotland, Choices - One Parent Families West of Scotland, Citizens Advice Scotland, CPAG in Scotland, ECAS, Energy Action Scotland, Faith in Community Scotland, Glasgow Disability Alliance, Headway UK, Inclusion Scotland, Margaret Blackwood Housing Association, Momentum, One Parent Families Scotland, Oxfam in Scotland, Public & Commercial Services Union Scotland, Quarriers, RNID Scotland, Scotland’s Commissioner for Children and Young People, Save the Children in Scotland, Scottish Association for Mental Health, Scottish Council for Voluntary Organisations, Scottish Drugs Forum, Scottish Federation of Housing Associations, Scottish Trade Union Congress, Scottish Women’s Convention, Sense Scotland, The Action Group, The Church and Society Council of the Church of Scotland, The Iona Community, The Poverty Alliance, The Salvation Army in Scotland, Turning Point Scotland and the Welfare Rights Officers’ Forum.