The Social Fund: A Review of Selected Literature Poverty THE SOCIAL FUND: A REVIEW OF SELECTED LITERATURE Aimee Grant Communities Analytical Services Scottish Government Social Research 2011 This report is available on the Scottish Government Social Research website only www.scotland.gov.uk/socialresearch. The views expressed in this report are those of the researcher and do not necessarily represent those of the Scottish Government or Scottish Ministers. © Crown Copyright 2011 Limited extracts from the text may be produced provided the source is acknowledged. For more extensive reproduction, please contact the Queens Printers of Scotland, Admail, ADM 4058, Edinburgh EH1 1NG. Email: [email protected] Table of Contents EXECUTIVE SUMMARY ......................................................................................................................... I OVERVIEW ............................................................................................................................................. I FINDINGS ............................................................................................................................................... I CONCLUSIONS AND IMPLICATIONS .......................................................................................................... II 1 INTRODUCTION ............................................................................................................................ 1 INTRODUCTION ...................................................................................................................................... 1 AIMS, OBJECTIVES AND SCOPE .............................................................................................................. 1 METHODOLOGY ..................................................................................................................................... 1 CONTEXT .............................................................................................................................................. 2 Background to the Fund ................................................................................................................. 2 Legislation ...................................................................................................................................... 3 2 HOW DOES THE SOCIAL FUND FIT IN WITH CURRENT POLITICAL PRIORITIES? .............. 5 INTRODUCTION ...................................................................................................................................... 5 UK GOVERNMENT PRIORITIES ............................................................................................................... 5 Original aims ................................................................................................................................... 5 Care in the Community ................................................................................................................... 5 General Welfare State Agenda and Poverty .................................................................................. 5 Financial Inclusion Policy ............................................................................................................... 5 SCOTTISH GOVERNMENT PRIORITIES ..................................................................................................... 6 Wellbeing ........................................................................................................................................ 6 Social Work .................................................................................................................................... 6 Tackling Homelessness ................................................................................................................. 6 OTHER KEY PRIORITIES ......................................................................................................................... 7 Service Transformation: UK ........................................................................................................... 7 Early Intervention: Scottish Government ........................................................................................ 8 Fair, transparent benefit system: Scottish Government ................................................................. 8 Making Work Pay ........................................................................................................................... 9 CRITIQUE .............................................................................................................................................. 9 CONCLUSION ........................................................................................................................................ 9 3 RESEARCH EVIDENCE: HOW DOES THE SOCIAL FUND CURRENTLY OPERATE? ......... 11 INTRODUCTION .................................................................................................................................... 11 APPLICATION PROCESS ....................................................................................................................... 13 Paper based ................................................................................................................................. 13 Phone lines ................................................................................................................................... 14 Home visit ..................................................................................................................................... 15 Common Problems with Applications ........................................................................................... 15 ADMINISTRATION ................................................................................................................................. 15 Administration Costs..................................................................................................................... 16 A ‘SUCCESSFUL’ APPLICATION ............................................................................................................. 16 REFUSED APPLICATIONS ...................................................................................................................... 17 Community Care Grant ................................................................................................................ 17 Budgeting Loans ........................................................................................................................... 18 Crisis Loans .................................................................................................................................. 19 The Impact of refused Applications on Local Authorities ............................................................. 20 APPEALS (‘REVIEWS’) .......................................................................................................................... 20 REPAYMENT OF LOANS ........................................................................................................................ 23 CONCLUSION ...................................................................................................................................... 24 4 RESEARCH EVIDENCE: WHO BENEFITS FROM THE SOCIAL FUND? ................................ 25 INTRODUCTION .................................................................................................................................... 25 UK Demographics ........................................................................................................................ 25 Finances and life events ............................................................................................................... 26 Take up of awards ........................................................................................................................ 26 REPEAT USERS ................................................................................................................................... 27 SOCIAL FUND USE IN SCOTLAND .......................................................................................................... 28 HOW DO USERS BENEFIT FROM THE SOCIAL FUND? .............................................................................. 28 HOW DOES THE STATE BENEFIT FROM SOCIAL FUND USE? .................................................................... 28 CONCLUSION ...................................................................................................................................... 29 5 CONCLUSIONS AND IMPLICATIONS ....................................................................................... 30 INTRODUCTION .................................................................................................................................... 30 FINDINGS ............................................................................................................................................ 30 Application process and Administration ....................................................................................... 31 Refused applications .................................................................................................................... 32 Repayment of Loans .................................................................................................................... 32 Who are current users and what are the benefits of Social Fund use? 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