Social Fund Swamped
posted: 28/07/2009
The government-run emergency fund to help the most vulnerable in society is failing those who need it, according to the damning findings of an independent review.
The Social Fund, administered by Jobcentre Plus, provides lump sum payments, grants and loans to help the poorest in society meet needs such as basic household items and clothing. But according to the Social Fund commissioner's annual report, it is failing to cope with requests for help.
Sir Richard Tilt, the commissioner, said applications for loans had gone up from 1 million to 3m over the past couple of years and the system could not cope with demand. Fewer than half of those who phoned a crisis loan telephone line managed to get through to an adviser, the report found. In some places, such as Bristol, the success rate was less than 7%.
Tilt called for the £141m-a-year fund to be increased to £200m as a matter of urgency, given the current economic conditions. He warned that failures in the system would end up driving people into the arms of loan sharks. "The amount of money is not huge if you think about the money that has gone into financial problems," Tilt said.
Social Fund details from Department of Work and pensions
Social Fund advice from Citizens Advice Bureau
George House Trust runs a welfare fund for people living with HIV in NW England and also makes applications on behalf of people to other funds, such as Crusaid.
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