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.

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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. Budgeting Loan: 63 or over).

A ‘Budgeting Loan’ may be claimed when a An application for a Budgeting Loan may be person needs money for: made using claim form SF500. The form is available from the DWP (Telephone: 0800 169 ▪ furniture / household equipment 0140) or online - type ‘SF500’ into your

▪ clothing and footwear browser.

▪ home repairs and improvements The DWP will look to recover the loan through weekly deductions from benefit. The maximum ▪ rent in advance weekly repayment amount is 20% of the

▪ removal expenses person’s benefit. The expectation is that any loan must be repaid within 104 weeks. ▪ expenses relating to looking for work or

re-entering work B. Sure Start Maternity Grant (SSMG):

▪ travel expenses A Sure Start Maternity Grant may be claimed ▪ a funeral expense (but see also below) for maternity needs where the claimant or their partner (or a daughter for whom they receive In addition, a Budgeting Loan may also be Child Benefit) is pregnant or has given birth claimed to meet hire purchase arrangements within the last 6 months (prior to 18.10.2018 or debts relating to any of the above items. the test was given birth within the last 3 months, not 6 months) including still births The maximum Budgeting Loan amount is: after 24 weeks of pregnancy.

▪ £348.00 for a single person

▪ £464.00 for a couple without a child

▪ £812.00 for a lone parent / couple with a child

The minimum Budgeting Loan is £100. The amount of any SSMG is £500 for each expected child. An application for a Sure Start Maternity Grant may be made using claim form SF100. The form is available from the DWP (Telephone: 0800 169 0140) or online – type ‘SF100’ into your browser.

The actual claim may be made at any time from 11 weeks before the expected date of childbirth up until six months after the actual date of birth providing the claimant (or their partner) is getting a ‘qualifying benefit’ (see page 3) at the time of claim.

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When making a claim, the claimant will need A claim may also be made by a parent, son or to provide a MAT B1 if claiming before the daughter or another ‘close relative’ (or a ‘close birth or the birth certificate of the child if friend’) providing that it is accepted that it is applying after the birth of the child. ‘reasonable’ for them to be ‘responsible’ for the funeral expenses. In this situation, the The amount awarded is not affected by the rules can be complex so please do seek savings the claimant (and/or their partner) has. further information and advice.

An application for a Funeral Expenses Payment may be made using claim form SF200. The form is available from the DWP (Telephone: 0800 169 0140) or online - type ‘SF200’ into your browser.

A claim may be made any time from the date of death to six months from the date of the Note: New rules now mean that a person may funeral (Note: Not six months from the date of not qualify for a Sure Start Maternity Grant if death). A claim may only be made for certain they already have a child aged under 16. If items associated with the cost of a funeral or there is already a child under 16 and now cremation. There is a limit of £700 on the cost twins / triplets are expected or born, then an of the undertaker’s fees, cost of a coffin, award will be made for all the expected religious costs, flowers and transport. children less one. If a person is claiming for a young daughter for whom they receive Child The amount is intended to cover the cost of a Benefit, then a Sure Start Maternity Grant will simple funeral. It is frequently the case that the be payable providing the daughter does not amount allowed falls short of the actual cost of already have a child. People who are adopting the funeral - burial or cremation. a child aged under 12 months may also claim a Sure Start Maternity Grant in a similar way. Qualifying Benefit: A ‘qualifying benefit’ is

C. Funeral Expenses Payment: Universal Credit, Income Support, Income-

related ESA, Income-based JSA, Pension A ‘Funeral Expenses Payment’ may be Credit (Guarantee Credit) or Pension Credit claimed for expenses associated with a funeral (Savings Credit). In the case of a claim for a where the claimant (or their partner) may be Sure Start Maternity Grant, it also includes treated as being ‘eligible’ to claim and it is Child Tax Credit and Working Tax Credit ‘reasonable’ to treat them as being where the calculation includes an award of ‘responsible’ for the costs of the funeral. the ‘disability element’ or ‘severe disability element’. In the case of a Funeral Expenses Payment it includes all the aforementioned benefits plus Housing Benefit.

Universal Credit: Advance

Payments

A person may be treated as both ‘eligible’ and ‘responsible’ if they were: Those claiming Universal Credit are able to apply for an Advance Payment of Universal ▪ the partner of the deceased when s/he died, Credit if they have applied for Universal Credit but are waiting upon their first payment, or providing they may be considered to be in ▪ the deceased was a child for whom they (or ‘financial need’ (see below). their partner) were getting Child Benefit.

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The principle is that a claimant can get an There is no right of appeal against a decision advance equal to 100% of their Universal which refuses to award an Advance Payment. Credit entitlement (including housing costs) if Any payment made will be recovered from a they have no or little money to live on at that person’s future benefit payments. Anyone time. In such circumstances the DWP can give seeking an Advance Payment should contact them a loan which will then be recovered from the office responsible for the payment of the future payments of the Universal Credit. benefit involved.

As in The case of Universal Credit Advance Payments, ‘financial need’ means that there is a likelihood of a ‘serious risk of damage to the health or safety’ of the claimant or a member of their family because they have not received payment of a recently claimed benefit.

A person may apply for an Advance Payment Universal Credit: through their Work Coach or Universal Credit Journal. Alternatively, they can phone the Budgeting Advance Universal Credit Service Centre on FREEPHONE 0800 328 5644 to make an Those who have been getting Universal Credit application. for six months are able to claim a ‘Budgeting Advance’ which is a lump sum payment of Financial Need: Means that there is a Universal Credit that must be repaid from any likelihood of a ‘serious risk of damage to the future payments of Universal Credit. health or safety’ of the claimant or a member of their family because they have not received A Budgeting Advance can assist with payment of a recently claimed benefit. expenses relating to:

Other Benefits: Short- ▪ furniture/household equipment

term Advance Payments ▪ clothing and footwear

▪ essential home repairs and improvements

An Advance Payment (known as a ‘Short-term ▪ removal expenses Advance Payment’) is available where a person has made an application for a certain ▪ rent in advance benefit, but they have not yet been paid because of some delay and, in consequence, ▪ expenses relating to looking for work or re- they are in ‘financial need’. This provision only entering work

applies in respect of certain benefits. For ▪ travel to work costs example: ▪ help with maternity expenses ▪ Pension Credit ▪ Income Support ▪ help with funeral expenses ▪ Income Support ▪ New Style JSA

▪ Income-related ESA ▪ New Style ESA The minimum Budgeting Advance which can

▪ State Retirement ▪ Carer’s be awarded is £100. The maximum amount is: Pension Allowance ▪ £348.00 for a single person

The provision does not apply in respect of ▪ £464.00 for a couple without a child claims for Housing Benefit, Personal Independence Payment, Disability Living ▪ £812.00 for a lone parent / couple with a Allowance, Attendance Allowance, Child child Benefit and Statutory Sick Pay.

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The amount of any Budgeting Advance is ▪ receive Pension Credit (Guarantee Credit) reduced by the amount of savings/capital the or Pension Credit (Savings Credit) claimant (and/or their partner) has above £1,000. ▪ receive Universal Credit, Income-related ESA, Income Support or Income-based JSA and they have a child aged under 5

▪ do not work and receive Universal Credit which includes an award of the disabled child element or severely disabled child element

▪ do not work and receive Universal Credit and it is accepted that they have limited To qualify for a Budgeting Advance the capability for work or limited capability for claimant (or their partner) must (unless the work and work-related activity request is ‘necessarily related’ to employment) have been getting Universal Credit (or Income- ▪ receive Income Support or Income-based based JSA, Income-related ESA, Income JSA which includes the disability premium, Support or Pension Credit) for at least six severe disability premium or disabled child months. Further, premium

▪ not have earnings within the previous six ▪ receive Income-related ESA which includes months exceeding £2,600 (single) or £3,600 an award of the enhanced disability (couple); and premium, severe disability premium or it is accepted that they have limited capability ▪ not have an outstanding Budgeting for work or limited capability for work-related Advance which has not yet been recovered; activity and ▪ receive Income-related ESA, Income ▪ be able to repay the Budgeting Advance Support or Income-based JSA together with given their current financial situation taking Child Tax Credit which includes the into account any existing debts and other disabled child element or the severely liabilities. disabled child element.

The minimum Budgeting Advance which can The amount awarded is £25.00 per each be awarded is £100. period of cold weather expected or recorded.

An award of a Budgeting Advance is No claim should be necessary. The DWP discretionary. There is no right of appeal should automatically make payment. However, against a decision not to award a Budgeting if a person does not receive a payment when Advance. However, a person can ask for a one is due, they should contact the DWP. decision to be reconsidered. A revision of the decision should be requested where there is fresh evidence or information which it is understood was not considered at the time when the original decision was made.

Cold Weather and Winter

Fuel Payments The DWP will award a Winter Fuel Payment where the claimant is of ‘Pension Credit The DWP can award a Cold Weather Qualifying Age’ and not excluded because Payment where there has been a recognised they are in prison, have been in hospital for period of actual (or forecasted) cold weather in more than a year or are receiving Pension the claimant’s area and they: Credit and living in a residential care home.

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The maximum amount paid is subject to age - £200.00 where aged between ‘Pension Credit Qualifying Age’ and 79 and £300.00 where the claimant is aged 80 or over.

If the claimant does not get Pension Credit and they share their accommodation with another qualifying person (whether this is their partner or simply a friend) then a payment of only £100.00 is made or £150.00 if they are both aged 80 or over. If the claimant does get Pension Credit and they share their accommodation with another qualifying person (whether this is their partner or simply a friend) Local Welfare then a payment of only £200.00 is made or Assistance £300.00 if they are both aged 80 or over.

Payment is normally made automatically. As part of Local Welfare Assistance, ‘Crisis However, people can contact the Winter Fuel Loans’ and ‘Welfare Assistance Loans’ may Payment Helpline (FREEPHONE 0800 731 be able to be provided by Wolverhampton City 0160) if needed. Credit Union in partnership with City of

Wolverhampton Council to people living in Family Fund Wolverhampton.

The Family Fund is not part of the DWP. It can provide grants to families getting benefits and/or tax credits with a severely disabled child/young person aged under 18. The aim is to ease the stress on families which arises

from the day-to-day care of the child. Telephone: 01902 555939 The Family Fund can help with: Under the scheme, a Crisis Loan of £100.00 ▪ holidays (£200.00 if the claimant is a householder and

▪ leisure activities for the family they have applied for but not yet received Universal Credit) may be given where the ▪ a washing machine and/or tumbler drier if applicant does not have sufficient money to extra washing is needed due to the child’s meet an ‘urgent need’ that poses a substantial disability risk to their health or safety or the health or safety of a member of their family. ▪ bedding and clothing needed due to extra wear and tear Under the scheme, a Welfare Assistance

▪ a computer for the child Loan of between £100 and £400 may, for example, be given where the applicant does ▪ play equipment related to the child’s not have sufficient money to meet an urgent special needs. need which may pose a risk to health/safety or puts the applicant/ member of their family Claim forms are available from the Family under exceptional pressure. A loan may also Fund Trust - Unit 4, Alpha Court, Monks Cross be awarded to enable the applicant/member of Drive, York YO32 9WN - Telephone: 01904 their family to move into/set up home in the 550055. Applications may now also be made community after a period in institutional care. online: www.familyfund.org.uk.

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Please refer to our Fact Sheet 10: Local 7. Benefits and People from Abroad Welfare Assistance or contact Wolverhampton 8. The Bedroom Tax City Credit Union for more information. 9. The Benefit Cap

Information Guides and 10. Local Welfare Assistance

11. Private Tenants and Universal Credit Fact Sheets 12. Volunteering and Benefits

The City of Wolverhampton Council’s Welfare Copies of our Benefits Information Guides and Rights Service produces the following Benefits Benefits Fact Sheets may be obtained by Information Guides and Benefits Fact Sheets visiting our pages on the City of on benefits and welfare reform. Wolverhampton Council website at:

Benefits Information Guides: Benefits and Welfare Reform Information

1. Universal Credit

2. Universal Credit - Claims and Payments Benefits Bulletins:

3. Universal Credit - The Claimant Please also watch out for our Benefits Commitment Bulletins which provide news on the latest 4. Universal Credit - Sanctions and Hardship developments surrounding benefits and Payments welfare reform. These are also available on the website. 5. Universal Credit and Vulnerable People - Claims and Payments  Telephone: (01902) 555351 6. Universal Credit - Unable to Work Due to Ill-health or Disability  Email: [email protected]

7. Personal Independence Payment

8. Personal Independence Payment - Toolkit

9. Employment and Support Allowance

10. The Work Capability Assessment - Toolkit

11. Form Filling - PIP2 and ESA50/UC50

12. DWP Social Fund

13. Disputes and Appeals

14. Going to Appeal: First-tier Tribunals

Benefits Fact Sheets:

1. Benefits and Work

2. Benefits and Young People Note: The details provided in this and our other Information Guides and Fact Sheets are meant to provide an overview on important and topical issues relating to Social Security benefits and welfare reform. 3. Benefits and Older People The details should not be treated as an authoritative statement of the law. The details may be subject to change by new regulation and/or 4. Benefits for those who are Unable to Work case law. Do seek further information and advice as necessary. Due to Ill-health or Disability Welfare Rights Service 5. Benefits for those Affected by Cancer Specialist Support Team 6. Benefits and Carers City of Wolverhampton Council

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