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. 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. 2 Information Guide 12: DWP Social Fund 1.8.2019 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. Information Guide 12: DWP Social Fund 1.8.2019 3 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.