dwp - the social fund - technical guide for decision makers - amendment 2 of 2011, july 2011

Social Fund Guide This guide contains the Secretary of State's directions and guidance. It is intended for use mainly by Decision Makers and independent Social Fund Inspectors. Revised April 2011 Amendment 1 of 2011 - April 2011 Amendment 2 of 2011 – July 2011

Contents Part 1 – Introduction Part 2 – Community Care Grants Part 3 – Crisis Loans Part 3A – Crisis Loans pre-April 2011 Part 4 – Budgeting Loans Part 5 – The Budget Part 6 – Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 – The Directions Part 8A – Transitional and revoked Directions Part 9 – Table of current year’s amendments

Amendment 2 of 2011 2

Part 1 - Introduction

Description of the Social Fund 1. The Social Fund (SF) is a scheme to help people with needs which are difficult to meet from regular income. It is made up of two distinct parts:

• a regulated scheme which provides entitlement to maternity, funeral, cold weather and winter fuel payments for people who satisfy certain qualifying conditions

• a discretionary scheme under which people may be eligible in certain circumstances for a:

o Community Care Grant (CCG) - to meet, or help to meet, a need for community care

o Budgeting Loan (BL) - to meet, or help to meet, an intermittent expense

o Crisis Loan (CL) - to meet, or help to meet, an immediate short term need

2. This guide deals with discretionary payments only.

Discretionary Scheme – appropriate officers 3. SF decisions on CCGs, BLs and CLs are discretionary. Decisions on such payments are made by officials who, acting under the authority of the Secretary of State, exercise functions of the Secretary of State in relation to discretionary social fund payments. These officials are referred to in this guidance as Decision Makers (DMs). SF DMs are referred to in the Social Security Acts as “appropriate officers” and in this capacity they do not make decisions on the setting of repayment terms. 4. However, decisions on repayment terms are made by officers on behalf of the Secretary of State, and the same officer may be authorised to act in both of those capacities. 5. Dissatisfied applicants may ask for a review of a determination by a Decision Maker in relation to an application for a discretionary social fund payment. This does not extend to decisions on the setting of repayment terms. 6. The Social Security Act 1998 also allows the Secretary of State to nominate an appropriate officer to issue guidance to other appropriate officers in the area. 7. The nominated appropriate officer is the SF BDC Manager who issues guidance which specifies the level of priority that can be met from the community care grant budget. 8. Section 38 of that Act provides for reviews of social fund decisions to be conducted by an "appropriate officer". 9. The terminology for staff making discretionary social fund decisions, to be found throughout this Guide, is as follows:

• "decision maker" (DM) means an appropriate officer acting under the Secretary of State's authority (as described in section 139(1) of the Social Security Contributions and Benefits Act 1992 and section 36(1) of the Social Security Act 1998) who is making


determinations under sections 139 and 140 of the Social Security Contributions and Benefits Act 1992 ;

• "area decision maker" (ADM) means a decision maker who has been nominated to issue guidance in respect of an area in accordance with section 36(2) of the Social Security Act 1998; and

• "reviewing officer" (RO) means a decision maker who is authorised to review social fund determinations under section 38 of the Social Security Act 1998.

10. Only DMs are authorised to make decisions about discretionary payments from the social fund on behalf of the Secretary of State. Social Fund Inspectors (SFIs) are appointed by the Social Fund Commissioner to review decisions made by a RO if an application is made to them in the time and manner set out in the Social Fund (Application for Review) Regulations 1998. They are independent of DMs and ROs. 11. DMs must act in accordance with the law including the Secretary of State's directions. 12. DMs are required to determine any question in accordance with the directions and guidance issued under sections 138(1)(b) and (5) and 140(1A), (2), (3) and (4) of the Social Security Contributions and Benefits Act 1992, as amended by the Social Security Act 1998; sections 36(2) and 38 of the Social Security Act 1998; and section 168(5) of the Social Security Administration Act 1992 as amended by paragraph 103(2) of Schedule 7 to the Social Security Act 1998. The Welfare Reform Act 2007 made changes to section 140 of the Contributions and Benefits Act 1992, section 168 of the Social Security Administration Act 1992 and section 38(7) of the Social Security Act 1998. 13. DMs must also take account of local guidance issued by the ADM (section 140(5) of the Contributions and Benefits Act 1992 and section 36(2) and 38(11) of the Social Security Act 1998; and Direction 40). 14. DMs must take particular care to ensure that their decisions are not in any way affected by bias or prejudice on such grounds as colour, ethnic or national origin, sexual orientation, sex, religion, or disability. 15. The DM and RO should ensure that they have all the relevant information to determine the application/review. Where a relevant issue is raised in connection with an application, the DM or RO should seek more information where this is necessary to ensure the relevant issue is fully taken into account in determining the application or review.

Deciding on discretionary payments

Secretary of State's directions and guidance 16. The directions issued by the Secretary of State are shown in full in part 8 of this guide. Directions specific to each type of Social Fund (SF) award appear in the relevant Parts. DMs must follow directions. 17. The guidance cannot be expected to cover every contingency that will arise and the absence of guidance on a particular situation does not mean that help must be refused. DMs do not have to follow guidance but they must have regard to it in making their decision and must provide good documented reasons if minded to depart from it.


Applications to the discretionary fund 18. Applicants are normally expected to apply for the specific discretionary payment which they consider best relates to their circumstances (but see paragraph 22 below).

BL applications 19. BL applications must be made in writing and sent or delivered to an office of DWP. A budgeting loan application can only lead to a BL decision. It will not be possible to consider an application for a BL but award another type of payment. Applications must generally be made on a form approved by the Secretary of State (SF500) or, exceptionally, by other acceptable means in writing.

CCG applications 20. Community care grant applications must be made in writing and sent or delivered to an office of DWP. Applications must generally be made on a form approved by the Secretary of State (SF300) or, exceptionally, by other acceptable means in writing.

CL applications 21. Crisis Loan applications may, like CCGs and BLs, be made in writing and sent or delivered to an office of DWP. Applications in writing will be

• on form SF401R for rent in advance, board and lodging accommodation and residential charges for hostels

• on form SF300 for applications made as a consequence of a disaster only (this will generally only apply to items and services)

22. Crisis loan applications for immediate needs such as daily living expenses do not have to be made in writing. In general they are to be made by telephone, with the requirement in certain cases for the application to be made by a face to face interview at Jobcentre Plus. In exceptional circumstances an application for rent in advance may be taken over the telephone.

CCG application treated as CL and vice versa 23. Although CCGs and CLs may be applied for in their own right, because applications for both are determined on similar discretionary bases, directions provide that an application for a CL should in some circumstances be considered first as an application for a CCG. 24. Directions 3 and 49 provide for when Decision Makers should consider a CCG in the case of a CL application or vice versa. Such consideration is appropriate where a payment to meet expenses referred to in Direction 3(2)(b) is applied for; or in other circumstances the information declared by the applicant in support of a CL application alerts the DM to the possibility of a CCG being appropriate, see guidance on Direction 49 in Part 3 of this Social Fund Guide.


Requirement for a crisis loan application for living expenses to be made by interview 25. Where a customer:

• expresses a wish to apply for a crisis loan for living expenses; and • has made two or more applications for a crisis loan for living

expenses in 12 months, the application is to be made at an interview at an office of the Department for Work and Pensions in accordance with the Social Fund (Applications and Miscellaneous Provisions) Regulations 2008 26. The requirement does not apply to customers wishing to apply for a crisis loan for living expenses for alignment purposes (“alignment loans”). Also, applications for alignment loans do not count in establishing whether there have been two or more crisis loan applications for living expenses in 12 months. 27. The definition of an alignment loan is one where:

• an income replacement benefit has been claimed but full benefit entitlement is not yet in payment, or

• employment has begun but first payment of earnings as an employee after being on an income-replacement benefit has not yet been received

and as a consequence, the customer needs help with living expenses until such time as full benefit entitlement or remuneration is received. 28. The 12 month period includes the date the customer expresses a wish to apply. For example, if the customer expresses a wish to apply on 12th May, any past crisis loan applications for living expenses made on or after 13th May of the previous year will be counted. 29. Whether or not there is a requirement to make the application by interview at Jobcentre Plus will be decided by an officer on behalf of the Secretary of State. This will normally be a SF DM dealing with telephone CL applications or exceptionally a SFDM in the BDC where a written application is submitted. Note that the decision is not taken in the SFDM’s capacity as an “appropriate officer” who is making a determination under section 139 or 140 of the Social Security Contributions and Benefits Act 1992. 30. Where there is a requirement for the application to be made by interview at a Jobcentre Plus office, the aim is to arrange this as soon as possible. Where the customer wishing to apply has an appointee or an authorised representative, the appointee or representative must attend the interview to make the application. 31. However, the customer wishing to apply may accompany them if he/she wishes (or may be required to do so in an appropriate case). The authorised representative must bring written consent from the customer to the application being made on his behalf. 32. The customer (or where relevant, the appointee or authorised representative) must be given reasonable notice of the date, time and place at which the interview is to take place. If the customer is unable to make the date or time first suggested, an alternative must be offered.


Waiving the requirement to interview 33. In most cases, it will be reasonable to require the application to be made by interview. However, in certain circumstances, the requirement to make the application by interview may be waived. The basic test to be applied is whether or not, in all the circumstances, it is reasonable that the customer attends the designated Jobcentre Plus office to make the application to an officer face to face. 34. Key factors to consider are:

• the length of time of the journey from home to the designated Jobcentre Plus office: note that the requirement should not necessarily be waived because of distance alone. Consider the mode(s) of transport available and how suitable and economical it is. For example sheer distance to the designated office may be a problem by public transport, but may not be an issue if the customer has access to a lift by car. The length of time it would take to travel is the key.

• the practicality of attending an interview: in exceptional cases, it may not be practical for the customer to attend the designated Jobcentre Plus office because of the impact of the crisis itself. For example, the aftermath of a serious incident requires the customer’s engagement with Police, Local Authority, hospital, tradesman etc. However, consider whether attendance for interview at the designated Jobcentre Plus office is significantly more impractical for the customer than collecting a payment as a result of a successful telephone application. If it is not, waiving the requirement is not appropriate. Also check whether the customer is minded to authorise a representative to make the application on their behalf.

• the time of the arranged interview: in certain circumstances there may be an unreasonable time gap between the time of the original contact and the time when the interview can be arranged. Bearing in mind the nature of crisis loans, it may be appropriate to waive the requirement to make the application by interview and take the application by telephone instead. In particular this might be where it appears to the Decision maker that the customer is in urgent need of a decision, and would if successful, be able to get their payment significantly earlier.

35. Where the requirement is waived an application is to be made by telephone or in writing and sent by post or delivered to a DWP office and dealt with by a DM in the usual way.

The interview 36. During the interview:

• the applicant must provide any information in connection with the application that the Interviewing Officer reasonably asks for;

• the application will be made; and • the applicant will be signposted to organisations providing advice

on managing money.


Unless the applicant attends the interview an application will not be made.

Date the application is to be treated as made 37. The date the application is made is the date it is received. The date it is received is the date of the interview.

Disclosure of information 38. Staff are reminded of the Data Protection Act 1998 and that personal information about individuals is held in strict confidence. Staff with access to such information are usually prohibited from disclosing personal information unless:

• the person concerned has consented • a court order has been obtained, or • legislation allows for the disclosure

39. Guidance about managing and disclosure of personal information is provided by DWP Legal Group and can be found on their intranet site under heading Data Protection. This contains information about the very limited circumstances in which information can be disclosed in circumstances other than those set out in paragraph 36 above.

Civil Partnership 40. From 05/12/2005 the Civil Partnership Act allows same-sex couples to make a formal, legal commitment to each other by entering into a Civil Partnership (CP) through a statutory civil registration procedure. This means that same-sex couples can notify their intention to form a CP from this date and be treated in the same way as married couples. 41. It is Government policy, however, to maintain a distinction between CP and marriage – the term “spouse” should not be used in respect of civil partners (“spouse” relates to a person’s partner in marriage) and the term “marriage” should not be used to cover civil partnerships. 42. In order to comply with this, a provision has been introduced which defined how “partner” should be interpreted in directions and guidance. This provision can be found at the beginning of the Secretary of State’s directions in part 8.


Part 2 - Community Care Grants Purpose of Community Care Grants 1. Community Care Grants (CCGs) are primarily intended to help vulnerable people live as independent a life as possible in the community. Although Local Authorities (LAs) have the major responsibility for community care, there are many different ways in which CCGs can complement care provided by LAs and by other Government and voluntary agencies 2. The aim in considering applications for CCGs should be to ensure that CCGs:

• do not take over the role of other agencies • are used in ways which contribute to the overall aims of care in the

community 3. The prime objectives of CCGs are to:

• help people to establish themselves in the community • help people remain in the community • help with the care of a prisoner or young offender on release on

temporary licence • ease exceptional pressures on families • help people setting up home as a part of a resettlement programme • assist with certain travelling expenses

4. The objectives of CCGs differ from those of loans. CCGs are intended to assist people on Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)), or payment on account of such benefits facing difficulty arising from special circumstances, and in particular to support the policy of care in the community. 5. A flexible approach is most important when deciding an application for a CCG. The discretionary nature of the scheme gives considerable scope to consider individual needs within the broad objectives of the scheme. 6. It is important to consider carefully all the circumstances of an application before deciding whether or not to award a CCG. No two cases will be the same. The flexibility of the social fund and the wide variety of individual circumstances covered mean that a decision in one case does not constitute a precedent for others.

The Decision Makers power to award CCGs 7. Although CCGs and Crisis Loans (CLs) may be applied for in their own right, because applications for both are determined on similar discretionary bases, directions provide that, in certain circumstances, an application for a CCG may be treated as an application for a CL and vice versa. This involves treating the CL application as though it was an application for a CCG. It will not be possible to consider a Budgeting Loan (BL) application and award either a CCG or a CL. 8. In deciding whether to award a CCG, you:

• are bound by the law including the Secretary of State's directions


• must take account of the guidance issued by the Secretary of State and the Area Decision Maker (ADM)

Principles of Community Care Grant decision making

The law, directions and guidance 9. You are bound by law to have regard to all the circumstances of each case, in particular:

• the nature, extent and urgency of the need • the existence of resources from which the need may be met • the possibility that some other person or body may wholly or

partly meet the need • the District social fund community care grant allocation

Secretary of State's directions 10. The Secretary of State has issued directions which qualify your power to make CCGs by reference to:

• the eligibility of the applicant • repeat applications • exclusions • the effect of capital • the minimum amount to be awarded • the budget allocation to the District

These directions are binding.

Secretary of State's guidance and Area Decision Makers guidance 11. In reaching a decision take account of the guidance issued by the Secretary of State. This guidance is intended to give an indication of:

• the circumstances in which a Community Care Grant (CCG) may be awarded

• the items and services for which a CCG may be payable • the way in which priority of need should be assessed

12. Also take account of the Area Decision Maker’s guidance. This guidance is intended to specify the level of priority which may currently be met from the District grants budget, taking into account local factors

Decision Makers discretion 13. The guidance should help you to reach a decision, but you should:

• clearly and fully document the reasons for your decision • always use discretion • use discretion sensitively and with imagination to ensure that the

objective of community care is promoted • avoid a rigid interpretation of the guidance • consider circumstances which appear to be outside the scope of

the guidance • remember that for CCGs the absence of guidance applying to a

particular circumstance, item or service does not mean help should be refused


• consider all the circumstances of a case when you determine an application

14. Guidance on the circumstances in which CCGs may be awarded is divided into the following main areas:

• people moving out of institutional or residential care • helping people to remain in the community. This includes people

moving to more suitable accommodation and improving living conditions of vulnerable groups

• easing exceptional pressures on families • caring for a prisoner or young offender on release on temporary

licence • people setting up home as a part of a resettlement programme • travelling expenses

15. In order to decide whether to make an award of a CCG or the amount to be awarded the questions, in order, which you should consider are:

• eligibility criteria: − does the application meet the qualifying benefit conditions?

- Direction 25 and 26 − is it a repeat application? - Direction 7 − do any of the exclusions apply? - Direction 29

• qualifying conditions: − does the applicant satisfy the requirements of Direction 4?

• priority of need - what is the priority of each item or service included in the application? Consider Secretary of State guidance and all the circumstances of the case, including:

− the nature, extent and urgency of need − the possibility that some other person or body may wholly or

partly meet the need • budget - in addition to taking account of ADM guidance on levels of

priority you are bound by: − section 140(1)(e) of the Social Security Contributions and

Benefits Act 1992 to have regard to the budget allocation − Direction 42 to give priority to high priority needs throughout

the period of the allocation and not exceed the relevant allocation

• having decided whether to make an award and if so the amount to be awarded go on to consider the following:

− does the applicant's capital affect the amount of the award? - Direction 27

− can the award be made or the minimum award that can be made? - Direction 28

16. Guidance on all these questions is given in this section of the guide covering CCGs.

Showing how the decision is reached 17. Ensure that all the evidence used in your decision is documented on the clerical decision sheet or clearly available from Social Fund Computer System (SFCS) records where appropriate. Document clearly how you have used or weighed the evidence to decide the questions above. The basis of the decision should always be available for future scrutiny if necessary.


18. When you have obtained all the necessary information, make the decision without delay. Never deliberately delay a decision until the need has passed.

Applications 19. The Social Fund (Applications and Miscellaneous Provisions) Regulations 2008 prescribe the form and manner in which applications are to be made, and the time at which an application is to be treated as made, for discretionary payments from the Social Fund. 20. The date of a written application to the Social Fund is the date it is received in an office of the department, provided the application is in writing and:

• on a form approved by the Secretary of State and completed in accordance with instructions on the form or

• is acceptable as sufficient in the circumstances of the case, eg there is sufficient information in a letter and

• if an application is made on behalf of a person, by someone other than an appointee, that person must give their consent in writing to the application being made on their behalf

21. An application which does not meet the requirements of the above regulations as described in paragraph 20 above is termed defective. However, you can treat the application as made on the date it was originally received, provided the applicant complies with a request to supply information in writing or at an interview or by another reasonable method. 22. Normally allow an applicant up to one month to correct a defect in an application, but extend this period if it seems reasonable to do so. 23. Although Community Care Grants (CCGs) and Crisis Loans (CLs) may be applied for in their own right, because applications for both are determined on similar discretionary bases, directions provide that, in certain circumstances, an application for a CCG may be treated as an application for a CL and vice versa. An application for a CL should in some circumstances be considered first as an application for a CCG. Further guidance on this subject can be found at the end of this Part. 24. Directions 3 and 49 provide for when Decision Makers (DMs) are to consider a CCG in the case of a CL application or vice versa. See guidance on Direction 49 at paragraph 400 et seq.

Investigating the application 25. You will normally be able to decide whether to make an award from the information on the application form. But further investigation may be necessary if:

• there is insufficient information • there is any reason to doubt the validity of the application • the application is for a new item and it is likely that there is already

an item which might be repaired at less cost

Supporting evidence 26. It is the applicant's responsibility to provide all the evidence necessary to determine an application.


27. Sometimes it may be necessary to seek further information or clarify an aspect of the application. You can usually resolve this by either:

• contacting the applicant or • checking Departmental records

28. Where the applicant provides third party details and further enquiries are needed as mentioned in paragraph 27 above, it would be appropriate to contact the third party, particularly a social worker or probation officer, if they are likely to be able to provide more detail. 29. If the applicant or third party gives any information over the telephone, this is acceptable as corroborating evidence. 30. Exceptionally, it may be appropriate to ask the applicant for any corroborating evidence they may have, such as:

• estimate of cost of repair • estimate of cost of replacement • relevant evidence of a medical condition, eg an existing doctor's

note, a letter from a hospital. 31. You should ask for as much supporting evidence from the applicant for corroboration as is reasonable and necessary to substantiate the application, but do not:

• ask for evidence which would incur any expense to the applicant • insist that the applicant provides supporting evidence, particularly

from a third party 32. If the applicant does not produce the evidence, make a decision based on the completed application and any other evidence you already hold. 33. Do not ask for further evidence if it is unlikely that the application will succeed. 34. Any information on which you base your decision must be made available to the applicant either on request or at the review stage. If necessary, you may take reasonable steps to protect the identity of the source, see disclosure of information and paras 37 and 38 below. 35. With this in mind you should investigate the validity of any information provided either anonymously or in confidence and which casts doubt on other evidence held. 36. You may be able to obtain evidence from another source or clarify the matter by obtaining further evidence from the applicant thus avoiding the need to use the confidential information as evidence. Corroboration will not generally be necessary where information is from a professional source which is not in question. 37. If corroboration of confidential information is necessary but not reasonably obtainable you should seek the consent of the third party source to use the information as evidence. You should however make it clear that, if they agree, the source of the evidence may be made known to the applicant. 38. If exceptionally you nevertheless use as evidence any information provided in confidence without the consent of the person who has provided the information you may take reasonable steps to protect the identity of the source, eg by:

• deleting the name and any references from which the source might be traced or

• summarising the content of the information


39. You must fully document the evidence used and the weight you have given to such evidence bearing in mind the need to ensure the facts on which you base your decision are correct. 40. Investigate in the normal way any allegations of fraud which may suggest that:

• entitlement to benefit is in doubt or • misrepresentation has occurred

Joint claims for Jobseeker's Allowance 41. Certain childless couples making new or repeat claims for Jobseekers Allowance (JSA) are required to make their claim jointly. The group of claimants who are affected by this requirement are defined by age: at least one of the couple ("joint-claim couple") must be over 18 and born on or after 28th October 1957. 42. Under the Jobseeker's Act and associated Regulations both members of a joint claim couple will be required to meet the JSA entitlement conditions and will each have equal rights and responsibilities. In effect, they will both be claimants. Where one member of the couple does not meet the JSA conditions the "innocent" member of the couple will be able to get JSA at the single person's rate. If the entitlement conditions are met, the couple will receive joint claim JSA (which is income based jobseekers allowance JSA(IB)). 43. The couple will have to nominate which of them will receive JSA for them both. In the event of the nominated person being sanctioned, then payment of joint claim JSA will be automatically paid to the member of the couple who is not subject to sanction. 44. In order to ensure that only the person who is being paid joint claim JSA is eligible for a CCG, a provision has been introduced which defines how "in receipt of" should be interpreted in directions. This provision can be found at the beginning of the Secretary of State's directions in Part 8. This means that the member of a joint claim couple who is being paid JSA on behalf of the couple is the only member who can be eligible to apply for a CCG. 45. DMs must therefore ensure that when dealing with applications from a member of a joint claim couple that they identify that the applicant is the member of the couple who is being paid JSA(IB).

Direction 25 - Qualifying benefit condition Direction 25

Eligibility 46. Where benefit is paid in arrears the applicant should be treated as having been in receipt of Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR), for the period covered by the payment. Sub - para 3 of Direction 25 refers. 47. If an applicant is no longer in receipt of IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits at the date you make the decision this may be a relevant factor when considering priority, although it does not preclude an award.


48. Applications for Community Care Grants (CCGs) from people leaving institutional or residential care can be considered before IS, JSA(IB), PC or ESA(IR) has been awarded. 49. A CCG can be awarded up to six weeks before discharge to help the applicant set up home, if it appears likely that the applicant will be entitled to IS, JSA(IB), PC or ESA(IR), on discharge. The six week period should be calculated from the day following the date the application is treated as made. 50. It is recommended that the ‘place of care’ eg Care Home/Prison should be contacted to confirm the date of discharge. This is to verify that the applicant will be discharged on the date quoted and that this date will be within the 6-week time scale.

JSA disallowances and sanctions 51. CCGs are dependant upon receipt of a qualifying benefit. JSA disallowances and sanctions are different in their effects:

• disallowances - These occur where the jobseeker has not satisfied a basic condition of entitlement

• sanctions - These occur where, for example, jobseekers have left their previous work voluntarily or have neglected to avail themselves of a reasonable opportunity to participate in a training scheme. Sanctions are of a discretionary or fixed length, depending upon the offence

52. Under a disallowance or sanction, normal JSA is not payable for the length of the disallowance or sanction, although the jobseeker can apply for JSA at the hardship rate. 53. JSA at hardship rate is classed as JSA(IB). 54. For people who do not fall within the prescribed vulnerable group (normally single, healthy, childless people and healthy, childless couples with no caring responsibilities) no JSA (even at hardship rate) will be payable:

• so long as a disallowance applies or • for the first two weeks of the sanction

Direction 7 – Circumstances in which repeat applications are not to be determined Direction 7

Repeat applications 55. For the purposes of Direction 7, do not refuse to determine an application for the same expenses in those cases where:

• the previous application was withdrawn before a decision or an offer was made

• the applicant declined the previous offer on the previous application • the applicant did not respond to the offer on the previous

application or • the Secretary of State decided that the previous application was

incomplete See the Social Fund (Applications and Miscellaneous Provisions) Regulations 2008.


Direction 7 (3) 56. A crisis loan or grant application made after 12 months from the date of a previous application for the same expense is not subject to the provisions of direction 7 (3). 57. In considering direction 7(3), a relevant change of circumstances might be, for example, a change in the:

• applicant’s circumstances • budgetary position • law

58. With regard to the applicant’s circumstances and whether there has been a relevant change, consider the following example. 59. A repeat application for a bed is made by 2 different applicants who have already been awarded a payment for a bed. Applicant A did not buy a bed, but a different household item instead. Applicant B did buy a bed, but the bed has been subsequently destroyed by a house fire. 60. In the above example, there is no relevant change in Applicant A’s circumstances. There may however, be a relevant change in Applicant B’s circumstances.

Direction 29 - Exclusions Direction 29

Exclusions 61. Consider if the item or service requested is among the exclusions. If you are considering a Community Care Grant (CCG) for one of the expenses listed in Direction 23 (1)(a)(i) to (xiii), the exclusion will be under Direction 29 not Direction 23. 62. Direction 23 is in the sections on:

• Crisis Loans • The Directions

Maternity and Funeral expenses 63. There are two distinct parts to the Social Fund:

• a regulated scheme, providing some maternity and funeral expenses under regulations made in accordance with section 138(1)(a) of the Social Security Contributions and Benefits Act 1992 ('the Act') and for cold weather and winter fuel payments under section 138(2)

• a discretionary scheme to meet payments of community care grants, crisis loans or budgeting loans in accordance with directions and guidance issued under section 138(1)(b) of the Act. Such payments are defined in section 138(5) of the Act.

64. It therefore follows that you cannot award a CCG, Crisis Loan (CL) or Budgeting Loan (BL) from the discretionary fund for an explicit maternity or funeral expense, whether referred to in regulations or not. 65. The regulations do not define the terms 'maternity expenses' and 'funeral expenses'. You should interpret these terms in relation to their ordinary common sense meaning, but have some regard to their use in Social Security legislation.


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66. You must therefore decide if you should regard a particular item as a maternity or funeral expense according to the individual circumstances of each application. 67. If you receive an application for maternity or funeral expenses, check to see if the applicant or their partner has made a claim for a Sure Start Maternity Grant or Funeral Payment under the regulated scheme. If the applicant or partner has not made a claim invite them to do so if appropriate, as well as dealing with the application to the discretionary fund. Maternity expenses 68. While the term 'maternity expenses' has its ordinary meaning there is no one accepted meaning of the term. You must use your judgement in deciding whether to consider an item to be a maternity expense. 69. The effect of the legislation referred to in para 63 above is to exclude awards from the discretionary fund for items such as the initial clothing needs of a newborn baby. You may consider items which a child needs later in its development, such as larger size clothing, as the needs of a growing child rather than maternity expenses. 70. You may consider clothing for a pregnant woman, often referred to as 'maternity clothing' as a personal need of the expectant mother rather than an immediate need of a newborn baby. 71. Consider whether the help requested is for:

• maternity needs before the birth or • new items for a growing child which you may not consider to be

maternity expenses 72. A person can make a claim for a Sure Start Maternity Grant from the regulated fund 11 weeks before the expected date of confinement and up to 3 months after the birth. Baby items requested within this period may often fall within the category of maternity expenses. 73. In making your decision you should take into account:

• the items applied for and the circumstances surrounding the need • the timing of the application, ie before, around the time of or after

the birth • whether it is reasonable to class the need as a maternity expense

Funeral expenses 74. Normally, interpret 'funeral expenses' to be the expenses of burial or cremation. 75. All items referred to in the specification in the Funeral Payment Regulations are funeral expenses, even though there may be a limit on the amounts payable for some items. 76. If an applicant requests other items, consider if these are actual expenses of burial or cremation. Some items may be connected with a death but may not be expenses of burial or cremation.

Rent in advance for people leaving care 77. For guidance on help with rent in advance for people leaving institutional or residential care, see Crisis Loans.


Expenses which the local authority has a statutory duty to meet 78. You should not award a CCG for any expenses which the local authority has a statutory duty to meet. Local authorities can meet expenses under various legislative powers, some mandatory and some discretionary. A statutory duty means that the local authority is obliged to meet an expense under mandatory powers by operation of a statutory provision which obliges it to meet that expense. 79. If the local authority has a duty to meet an expense, eg a Disabled Facilities Grant under section 24(1)(a) of the Housing Grants, Construction and Regeneration Act 1996, any expenses which fall within that duty should be excluded from a CCG award. In practice, it is likely that a person will already have applied to the local authority for any help which is available and it would be unusual for an application to the Fund to include a request to meet this sort of expense. 80. If it is possible that the local authority may use discretionary powers to provide assistance, eg to a young person leaving care to whom a local authority has a duty or a power to advise and befriend under the Children Act 1989, you should have regard to this possibility when dealing with the application, ie the possibility that some other person or body may wholly or partly meet the applicant's need (section 140(1)(c) of the Social Security Contributions and Benefits Act 1992). 81. If necessary, contact the local authority, observing the rules of confidentiality, to check:

• what help is being given or would be given on application and • whether that help is under mandatory or discretionary powers

Housing costs, repairs and improvements 82. The Secretary of State has directed that grants or loans cannot be made for those repairs and improvements to the dwelling occupied as the home, including any garage, garden and outbuildings, other than minor repairs and improvements. 83. The use of the term “repairs and improvements” includes the cost of both materials and labour. A repair will generally put right something that is defective. An improvement will generally upgrade something, or add something to the property that was not there before. 84. It is difficult to precisely define the term “minor”. The following considerations, however, will be relevant when deciding whether a repair or improvement is “minor” or not:

• the nature and extent of the work • the time needed to complete the work • the cost of the work

85. Exclude from the Social Fund any repairs or improvements which are not minor. These are more appropriately financed through:

• house insurance • DETR grants, • a commercial loan

86. The IS, JSA(IB), PC or ESA(IR) assessment may include an amount for interest on a loan taken out for some repairs and improvements. The IS (General) Regulations 1987 Schedule 3 para 16(2), the Jobseeker’s Allowance Regulations 1996 Schedule 2 para 15(2), the Pension Credit


87. For people under 60 IS, JSA(IB) or ESA(IR), help for interest on loans taken out for these costs will not generally be payable until they have received IS, JSA(IB) or ESA(IR) for a specific period, this period is to be found in the above regulations. 88. Before making a decision, ensure you have all the necessary information, including any supporting evidence or estimates which the applicant may have. Consider:

• the extent of any damage • the effect of the problem • breakdown of cost if more than one item is involved • an indication of the time it will take for the repairs to be carried out

If an estimate appears unusually expensive, consider asking for a second estimate. Do not insist that the applicant provides an estimate or ask for an estimate where this would involve any expense - see section on supporting evidence

Daily living expenses 89. You cannot award a CCG for daily living expenses such as food or groceries (as described in Direction 3(4)(a)), except in the two circumstances set out in Direction 29(f). These are when:

• an award is appropriate under 4 (a)(iv) • a CL is appropriate but cannot be awarded because the applicant

has reached their £1,500 loan limit (and any of the other conditions in Direction 4(a) are met)

90. The £30 minimum amount and disentitlement to awards for an expense or expenses in aggregate of less than £30 does not apply for living expenses.

Direction 4 - The qualifying conditions Direction 4

Local Authority provision for community care 91. Local Authorities (LAs) have the lead role in community care. They liaise with other local agencies, eg Health Authorities (HAs), to secure its effective delivery. Community Care Grants (CCGs) complement LA and other agencies' provision. 92. The Chronically Sick and Disabled Persons Act 1970 enables LAs to provide a range of practical help for frail elderly and disabled people with a substantial and permanent disability. 93. There may be some shared areas of responsibility with the Social Fund. If appropriate, you should liaise with the relevant Social Services Department (SSD) (Social Work Department [SWD] in Scotland). 94. The nature of CCGs means that liaison with local agencies is desirable. SSDs/SWDs provide a range of community care services to help people live independently in their own homes.


95. Not all people who require help will be receiving it from SSDs/SWDs. They may, for example, receive it from other Government agencies, voluntary organisations, relatives, friends or neighbours instead. 96. If they are in contact, social services authorities may be providing meals-on-wheels, help in the home or special equipment. A CCG may add to this 'package of care' in order to give people further help in retaining their independence in the community. In some cases SSD/ SWD staff or other key workers may help people apply for a CCG. 97. It is important that you liaise with SSDs/SWDs or key workers of other appropriate organisations if:

• they are already in contact with the applicant or • there is any uncertainty about boundaries of responsibilities

98. You must also remember the need for confidentiality and the need to obtain the applicant's consent before approaching any outside body.

Direction 4 (a)(i) - People moving out of institutional or residential care Direction 4

General 99. One of the major aims of the community care element of the Social Fund is to help people establish themselves in the community following a stay in institutional or residential care. 100. 'Institutional or residential care' means care received in accommodation similar to that described below where the applicant is a resident and receives a significant and substantial amount of care, supervision or protection because they:

• are unable to live independently in the community or • might be a danger to others in the community if they were to do so

101. In considering the level of care, take into account the length of time, frequency and type of care provided. The following examples are of groups of people who may have needed a high level of care, supervision or protection:

• frail elderly people, particularly those: o with restricted mobility or o who have difficulty in performing personal care tasks

• people with learning difficulties • people with mental health problems • people with a physical impairment, including those with sensory

impairment • chronically sick people • terminally ill people • people who have misused alcohol, drugs or other substances • ex-offenders • people without a settled way of life undergoing resettlement, other than

those in the categories above • young people leaving:

o Local Authority (LA) care or o special residential schools

This list is not exhaustive.


Length of time 102. The length of time the applicant has received care should normally either be:

• a period of three months or more or • a pattern of frequent or regular admission to institutional or

residential care clearly linked to the nature of the applicant's disability or circumstances

Frequency of care 103. Care or supervision will often be given 24 hours a day but may be for less.

Type of care provided 104. The care provided should be significant and substantial, ie the applicant would be unable to live independently in the community without such help or might be a danger to others in the community if they were to do so. This may include help with washing, providing meals, supervision or protection. 105. In assessing the level of care provided, consider the applicant's care history, not just the existing level of care provided. Some applicants may be following a planned programme of rehabilitation into the community, where the level of care received reduces over time. See para 132. 106. Exceptionally, you may find a situation where an applicant is in accommodation not normally regarded as institutional or residential care, eg a hostel, but the applicant is personally in receipt of a high level of care. If an applicant applies for help with setting up home costs, consider whether help may be available under Direction 4 (a)(ii) or Direction 4 (a)(v). 107. Examples of accommodation which might provide care are:

• hospitals, • care homes, • homes and hostels, • prisons and youth centres, • foster care,

These examples are not exhaustive but there should have been a substantial element of care for Direction 4 to be satisfied. Guidance on Decision Makers (DMs) discretion should be borne in mind. 108. Not all the needs of an applicant who qualifies for a Community Care Grant (CCG) may have equal priority, nor the overall circumstances of the application compared to those of other applicants. Consider how important it may be to meet a particular expense to help someone to be established in the community but:

• it is important to take into account all the circumstances of a case which might affect the priority of a particular expense

• consider whether a crisis loan may be appropriate if the applicant's needs are not met, or fully met, by a CCG.

Setting up home 109. Consider whether the applicant will be:

• living permanently in their new home


• staying in a 'halfway house' prior to eventual permanent resettlement in the community

• staying in some form of board and lodging establishment 110. If the applicant will be living in a board and lodging establishment, eg hotel, hostel or guest house:

• it will not normally be appropriate to award a CCG for furniture, furnishings or connection charges but

• CCGs may be payable for clothing, particularly where the applicant has had a long stay in institutional care

111. CCGs may be payable to applicants who either: • are going to live permanently with family or close friends • will be paying rent for their individual accommodation or shared

accommodation, eg an unstaffed group home for former psychiatric patients, although the applicant may still need significant and substantial amounts of care or supervision

112. Applicants who are to stay in a 'halfway house' or temporary board and lodging accommodation prior to permanent resettlement, could be told that a CCG for furniture, furnishings and connection charges will be considered if they move into permanent accommodation, ie if their programme of resettlement is further advanced. 113. A CCG may be payable while the applicant is in temporary accommodation for:

• clothing, particularly where the applicant has had a long stay in institutional care

• items such as bedding and crockery, if they are not provided 114. CCGs should not be awarded where an applicant has moved from one kind of institutional or residential care to another, eg from hospital to a care home. 115. If an application is received from a couple being resettled into the community the amount of the CCG may be increased as appropriate. 116. It will not normally be appropriate to make a CCG more than once to enable a person to set up home under Direction 4(a)(i), since setting up their own home would mark the point at which a person finally ceases to be in institutional or residential care. 117. However, rehabilitation is a difficult process and readmission to institutional or residential care may take place before an individual is successfully settled into the community. Any further application should be considered on its merits. 118. Enquiries should be made with the authority responsible for the rehabilitation, if necessary.

Liaison with appropriate authorities before discharge from hospital/institution 119. To find out if any other statutory authority or voluntary organisation is to provide help when the applicant leaves:

• hospital, liaise with the hospital social worker/ multidisciplinary team leader/project worker

• a LA managed hostel into independent accommodation, liaise with the resettlement team


• non-statutory projects into independent accommodation, liaise with the project worker

• prisons or youth centres, liaise with the prison authorities or probation service.

Contacting any of the above would also provide you with the opportunity to verify the date of discharge when considering Direction 25(2)(b).

What types of need may be considered 120. If the applicant has only asked for one item, consider if the CCG should include any other item that will be needed in connection with the move from institutional or residential care.

Furniture, household equipment, connection charges 121. You may either:

• award a CCG for specific items of furniture, furnishings, bedding, connection charges, household equipment, which the applicant needs

• pay an amount sufficient to meet the need where the application cannot be itemised accurately

122. When deciding how much to award, consider: • if the home is partly furnished • if several people are moving out of institutional care and sharing the

same accommodation • if they already have the item

Clothing and footwear 123. A CCG may be awarded for clothing if the applicant has very few suitable clothes. As a general rule the applicant should have at least one change of clothing and enough protective clothing. Applicants coming out of LA Part III accommodation, Part IV accommodation in Scotland, will normally already have sufficient stocks of clothing and footwear. 124. You may either:

• award a CCG for specific items of clothing which the applicant needs

• pay an amount sufficient to meet the need where the application cannot be itemised accurately

Take into account if the discharging authority has any responsibility to provide clothing before discharge.

Removal expenses 125. You will normally be able to decide whether to make an award for removal expenses from the information on or supplied with the application. If you need to clarify the evidence or need further information, ask for, but do not insist on, as much supporting evidence from the applicant as is reasonable and necessary to substantiate the application, eg a removal estimate, without incurring any expense to the applicant. See section on supporting evidence 126. Many people hire self drive vans as an economical method of moving and a refundable deposit is often charged. A CCG would not be appropriate


for this part of the cost, but a budgeting loan may be considered. A self drive van will not be suitable for many applicants and should not be considered on grounds of economy only.

Storage charges 127. If the applicant has furniture in storage and it is needed in the new home, a CCG may be awarded for storage charges.

Fares when moving home 128. A CCG may be awarded to an applicant or partner who incurs fares when travelling to take up tenancy of their new home.

Rent in advance 129. Help with rent in advance may be given by way of a CL for people coming out of institutional and residential care. The normal health and safety rule does not apply to such cases if a CCG is awarded. For guidance, see Crisis Loans.

Discharge from hospital or other NHS establishments or care homes What types of need may be considered 130. Consideration may be given to one or more of the following. This list is not exhaustive:

• furniture, household equipment, connection charges or an amount sufficient to meet the need where the application cannot be itemised accurately

• clothing • removal expenses and storage charges • fares when moving home

People leaving homes and hostels 131. The following paragraphs deal with people being resettled in the community by an organisation as part of a planned programme of rehabilitation or resettlement and leaving:

• staffed group homes • care homes • hostels for homeless people, alcohol misusers or drug misusers • hostels or other forms of accommodation for refugees • supported lodgings, eg landlady schemes used by social services,

health or voluntary organisations as part of a programme of rehabilitation

• staff intensive sheltered housing providing a major level of personal care

These examples are not exhaustive but there must have been a substantial element of care or supervision, even within these examples, for the conditions in Direction 4(a)(i) to be satisfied. 132. The DM should investigate exactly what care is provided in each particular case as the term 'hostel' has many different meanings. Even within the same hostel different residents may receive different levels of care. In


assessing the level of care provided, consider the applicant's care history, not just the existing level of care provided. Some applicants may be following a planned programme of rehabilitation into the community, where the level of care received reduces over time. Contacting the hostel would also provide you with the opportunity to verify the date of discharge when considering Direction 25(2)(b). Single, unsettled, homeless people 133. Section 30 of the Jobseekers Act 1995 provides for funding of non-profit making registered charities or LAs, who operate schemes providing hostel accommodation for single, unsettled, homeless people. 134. The Housing Corporation are responsible for payment of grants and monitoring arrangements. 135. The scheme must:

• help single, unsettled, homeless persons • provide temporary accommodation • provide an active resettlement service

136. There is no definition of 'temporary' accommodation. The length of time resettlement takes will vary according to the difficulties faced. The Housing Corporation will not provide funding for any permanent accommodation. 137. The Jobseekers Act 1995 defines 'resettlement places' as 'places at which persons without a settled way of life are afforded temporary accommodation with a view to assisting them to lead a more settled way of life'. Different organisations will approach the task with varying methods and principles. 138. Resettlement is a process. Although an individual when applying for a CCG may live in semi-independent accommodation, you should consider how they reached that level. This may encompass several different stages from direct access facilities to semi-independent accommodation and from high to low levels of care and support. What types of need may be considered 139. Consideration may be given to one or more of the following. This list is not exhaustive:


• clothing, applicants should normally have a change of clothing and sufficient protective clothing. Applicants coming out of LA Part III homes, Part IV homes in Scotland, should normally have sufficient stocks of clothing and footwear

• removal expenses and storage charges • fares when moving home

People discharged from prison and youth centres 140. The following paragraphs deal with people being resettled in the community after being discharged from:

• prison • youth custody or detention centres • youth treatment centres • other centres where custodial sentences may be served


• hostels for ex-offenders run by the probation services or, in Scotland, equivalent accommodation provided by local authorities for the purpose of assisting persons released from prison

141. CCG applications for discharged prisoners should be treated with particular urgency and sensitivity. Bear in mind the additional pressures and risks that prisoners face on returning to the community, for example the risk of re-offending if a prisoner is destitute. What types of need may be considered 142. Consideration may be given to one or more of the following. This list is not exhaustive:


• clothing • removal expenses and storage charges • fares when moving home

Clothing on discharge 143. DMs should bear in mind that under the Prison Services' Manual V (Prisons and Young Offenders Institutions (Scotland) Rules 1994 in Scotland), governors are responsible for ensuring that discharged prisoners should be suitably and adequately clothed. Convicted prisoners should have a clothing board to assess their needs. The prison may issue remand prisoners with clothing if their own is not fit to wear. 144. It is recommended that you check with the prison that the clothing board offered a convicted prisoner clothing and if they accepted or declined the offer. You could also establish what clothing stocks were available to the prisoner upon his release. This would also provide you with the opportunity to verify the date of discharge when considering Direction 25(2)(b). The reasons for which an applicant has accepted or declined an offer of clothing may be taken into account when deciding the priority of the applicant's need for clothing (but see para 145 below). You should not contact the prison without the applicant's permission. 145. You should be aware of what clothing has been issued to the applicant by the prison, bearing in mind that:

• prisons issue clothing to meet just the immediate needs of prisoners on discharge

• what prisoners actually receive in practice may vary from one prison to another

• the amount of clothing issued by the prison may not be sufficient to meet the applicant's long term needs in the community

146. When considering what to award for clothing needs, as a general guideline ensure that the applicant has at least one change of clothing and appropriate protective clothing for the time of year.

Young people (aged 16 or more) leaving LA care (including those the LA have placed with voluntary organisations) 147. It is important that young people who are leaving, or who have recently left, institutional or residential care, including foster care, are able to establish themselves in the community in safe, secure accommodation where they:


• have access to: − counselling and support services − advice on employment opportunities

• are able to get a good start in adult life 148. Young people who lack suitable accommodation may be

• at risk of homelessness • vulnerable to exploitation

149. It is reasonable to consider an award for a CCG for young people immediately on leaving care who are:

• returning to their families and they are eligible for a CCG in their own right or

• establishing in the household of someone who may be eligible for a CCG to provide for their needs or

• setting up their own home 150. It will also be reasonable to award CCGs for young people who:

• have left care in the last 12 months and • have not returned to their families and • are now setting up home

151. This might include for example: • young women who have been in LA care and who are now leaving

mother and baby homes and now need to establish a home for the family

• young people who have been in board and lodge accommodation or supported lodgings which are no longer available or no longer suitable

• young people who have become homeless or lack secure accommodation

152. Bear in mind that not all young people in these circumstances will be receiving IS, JSA(IB), or ESA(IR), or payments on account of such a benefit when they make their application. They may:

• be unfamiliar with the process of claiming benefits • lack confidence, life skills and budgeting experience

153. Liaise with colleagues on the IS, JSA or ESA, sections as necessary, to establish the circumstances. This is particularly important if a 16/17 year old may qualify for IS severe hardship payments, income-based JSA for young persons or income-related ESA for young persons. 154. Under Section 24 of the Children Act 1989 LAs have discretionary powers to give help to a young person between 16 and 21 who the LA has looked after (in care or accommodated), for whom they have a duty or power to advise and befriend. Similar but mandatory powers, apply to young people between 16 and 18 in Scotland under Sections 29 and 30 of the Children (Scotland) Act 1995. 155. This help could take the form of a leaving care grant to set up home. Contact SSDs/SWDs to check what:

• help they have provided • items the young person has purchased with the leaving care grant

156. Normally contact SSDs/SWDs or voluntary organisations, observing rules of confidentiality, to check:

• the date on which the applicant is to be discharged from care when considering Direction 25(2)(b)


• what help, if any, is available from the LA 157. Normally give high priority to young people who have been in care and are unable to live with their parents:

• due to moral or physical danger • because relationships with them have irrevocably broken down • because parental accommodation is unsuitable • because circumstances render it impossible for them to be reunited

with their parents What types of need may be considered 158. Consideration may be given to one or more of the following. This list is not exhaustive:


• the needs of a dependent child or children • fares when moving home

Applicants moving house in order to look after a person moving from institutional or residential care 159. A CCG may be awarded if an applicant moves to larger or more suitable accommodation, so that they, or a member of their family, can care for a person discharged from institutional or residential care who will be living in the same household and is unable to live freely in the community without the provision of some care. 160. The applicant will normally be a relative of the person who needs care, although awards may be made to a close friend or former neighbour of the person. 161. An award may be appropriate when care is being provided for people in the following circumstance:

• frail elderly people, particularly those: − with restricted mobility or − who have difficulty in performing personal care tasks

• people with physical or mental impairment which affects their ability to live independently

• chronically sick people • terminally ill people • young people who have no parents or are unable to live with their

parents because of: − moral or physical danger − estrangement − unavoidable separation or − unsuitable accommodation

• people without a settled way of life undergoing a planned programme of resettlement

This list is not exhaustive. Consider the individual circumstances and needs of the applicant. What types of need may be considered 162. Consideration may be given to one or more of the following. This list is not exhaustive:


• removal expenses • fares when moving home • furniture and household equipment in exceptional circumstances,

eg if the applicant moves from furnished or partly furnished accommodation

163. If the applicant seeks a CCG for furniture/furnishings for the person needing care, this should not be made if, for this move, the person needing care has already received a grant for these items. If the move includes installing domestic appliances, a CCG may be given for connection charges.

Child or young person rejoining the household after a period in care or in a special residential school 164. Consider an award if a child or young person has been in LA care or in a special residential school and is now rejoining the household. What types of need may be considered 165. CCGs may be awarded for:

• essential furniture and household equipment • clothing, for those not in LA care who are returning from residential

school 166. Decide the amount of the payment and what it is intended to cover. As a general rule the child or young person should have at least one change of clothing and enough protective clothing.

Direction 4 (a)(ii) - Helping people to stay in the community Direction 4

General 167. This section deals with payments for items and services that will help an applicant or a member of his family remain in the community rather than enter institutional or residential care. 168. Community Care Grants (CCGs) are intended primarily to help people live as independent a life as possible in the community. There does not have to be an immediate threat of being taken into care for a payment to be made, but consider giving a higher priority to an application if:

• the threat of care is immediate or imminent and/or • there is a direct link between the threat of care and the need in

question. For example, if an applicant is unable to live independently without the informal help of a relative who moves away, the applicant will need to move as well

169. The lack of any one item alone is unlikely to cause someone to have to go into care. A CCG may:

• help to improve an applicant's existing living conditions • enable them to move to accommodation which is more suitable • move nearer to someone who can offer them support

170. An elderly or disabled person suffering from a deteriorating medical condition or whose home circumstances are deteriorating, may at some stage have to go into residential care. A CCG may delay such an admission and should therefore be considered.


171. Always consider if a CCG for a particular item or service would improve the applicant's independent life in the community and therefore lessen the risk of admission into residential care. 172. Consider giving a higher priority to a newly required item, which is needed as a direct result of a sudden deterioration in the person's ability to live independently, eg a microwave oven for a person no longer able to use their conventional cooker. 173. There are specialist firms which are able to supply robust items of furniture and equipment, eg beds, which you could consider to remove the need for regular replacement. 174. It is important to liaise with Social Services Department (SSD) (Social Work Department [SWD] in Scotland or other key workers if they are already in contact with the applicant. Take into account the rules of confidentiality of both agencies.

Improving living conditions 175. This section deals with payments for items and services that will help:

• an applicant or a member of his family to remain in their own home in the community

• lessen the risk of going into institutional or residential care 176. The following groups of people may qualify for awards under this section:


• people with physical or mental impairment • chronically sick people • terminally ill people • people who have misused alcohol, drugs or other substances

This list is not exhaustive. Minor structural repairs, maintenance costs and improvements 177. A CCG may be awarded where:

• the applicant or his partner is responsible for the repairs and improvements

• the home is not Local Authority (LA) or similar property and • the LA does not have a duty to carry out the work, eg under the

Housing Grants, Construction and Regeneration Act 1996 178. If necessary, you may ask applicants if they possess an estimate for the work when considering whether a repair or improvement is minor. See paras 179 -180 below as well as see section on supporting evidence 179. The Secretary of State has directed that CCGs cannot be made for repairs and improvements to the dwelling occupied as the home, including any garage, garden and outbuildings, other than minor repairs and improvements. 180. The use of the term “repairs and improvements” includes the cost of both materials and labour. A repair will generally put right something that is defective. An improvement will generally upgrade something, or add something to the property that was not there before.


181. It is difficult to precisely define the term “minor”. The following considerations, however, will be relevant when deciding whether a repair or improvement is “minor” or not:


182. If the applicant asks for a CCG to pay for repairs and improvement which are not minor, advise the applicant that:

• an allowance towards the interest payable on a mortgage or loan taken out to finance some repairs or improvements may be included in the Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)). The IS (General) Regulations 1987 Schedule 3 para 16(2), the Jobseeker’s Allowance Regulations 1996 Schedule 2 para 15(2), the Pension Credit Regulations 2002, Schedule 2, para 12(2) and the Employment and Support Allowance Regulations 2008 Schedule 6, para 17(2), specify the repairs and improvements for which interest may be included in IS, JSA(IB), PC and ESA(IR) respectively. Ask the relevant officer who made the benefit decision on behalf of the Secretary of State what help may be available from the IS/JSA/PC/ESA section for each individual case. For people under 60, IS, JSA or ESA(IR) help for interest will not generally be payable until they have received IS, JSA(IB) or ESA(IR), for a specific period, such period being defined in the above regulations.

• a CCG may be awarded for a survey fee charged which cannot be included in a mortgage or loan for which IS, JSA(IB), PC or ESA(IR), would be payable

• DETR grants for home improvement and repair may be available under the Housing Grants, Construction and Regeneration Act 1996 in England and Wales. A separate system operates in Scotland under Part 13 of the Housing (Scotland) Act 1987. LAs administer the scheme

DETR grants for home improvement 183. The current framework was introduced in 1996, in England and Wales. A separate system operates in Scotland 184. The main forms of help are:

• renovation grants • disabled facilities grants • common parts grants • HMO (house in multiple occupation) grants • home repair assistance

Renovation grants 185. Renovation grants are for:

necessary works of improvement and/or repair to a dwelling provision of one or more dwellings by conversion

186. Renovation grants are discretionary.


Common parts grants 187. A common parts grant may be available if at least three quarters of tenants of a building containing flats have joint responsibility for repair and maintenance and participate in the application. Common parts grants are discretionary. HMO (house in multiple occupation) grants 188. An HMO grant may be available for improvement or repair to a house in multiple occupation. 189. HMO grants are discretionary. Disabled facilities grants 190. These are applicable where works are necessary and appropriate to meet the adaptation needs of a disabled person. Housing authorities seek the advice of SSDs before approving an application. SSDs have responsibilities for seeing that the needs of disabled people are met and may sometimes give help with minor works, eg the installation of equipment such as handrails, under Section 2 of the Chronically Sick and Disabled Persons Act 1970. Disabled facilities grants are:

• mandatory, if the home requires work to facilitate access into and around the home, and provide or adapt essential amenities and heating and lighting controls

• discretionary, if work would make a dwelling or building suitable for a disabled person's accommodation, welfare or employment in any other respect

Home repair assistance 191. This is discretionary and may be linked to a Housing Agency Service. Assistance may be given for any minor works to repair, improve or adapt a dwelling, including houseboats and mobile homes. Help is:

• subject to a maximum of £2,000 per application or £4,000 in relation to any property over a three year period

• available to people receiving income related benefits or those who are elderly, infirm or disabled and

• in the form of a grant or provision of materials 192. The Energy Action Grants Agency also provides help through the Home Energy Efficiency Scheme. Internal redecoration and refurbishment 193. If the applicant or partner is responsible for internal redecoration, a CCG may be awarded, as long as the payment acts to promote community care, for either:

• redecoration • refurbishment to improve the home, including furnishings, eg floor

coverings, that have worn out through many years of use 194. CCGs may also be awarded if the applicant or a member of his family has damaged the home or its contents through behavioural disturbance as a result of their particular condition. Para 279 also refers. 195. CCGs should not normally be awarded to redecorate a single room if the rest of the home is adequately decorated, unless the applicant or partner is mainly confined to that room during the day. Decide if the standard of


decoration is adequate but bear in mind that although furnishings may be serviceable they might still need replacing. 196. Decide the amount of the CCG and award the amount considered reasonable. The award:

• should normally only cover the cost of materials • may also include labour costs if the work cannot be done by:

− relatives − friends − neighbours − charitable or voluntary organisations − employment training

Bedding 197. A CCG should normally only be awarded if the applicant has an exceptional need for bedding, ie because the applicant or a member of his family is either:

• bedridden or incontinent and the bedding has to be changed regularly

• confined to bed for a prolonged period or is housebound and needs extra warmth

Fuel Board charges 198. CCGs may be awarded for:

• reconnection charges if the applicant's fuel supply has been disconnected and Third Party Deductions (TPD) action is being taken

• re-siting meters to allow a disabled person easier access • installation of prepayment meters if the applicant has difficulty

budgeting for quarterly bills. The cost of any additional wiring or piping should be allowed if the site of the new meter is different from that of the old meter

199. The Secretary of State has directed that CCGs should not be awarded for fuel bills. If the applicant has difficulty budgeting for fuel, refer the case to the TPD liaison officer to consider TPD. Extra warmth 200. A CCG may be made for heaters where this would help the applicant or a member of his family to stay in the community. Be aware of schemes to increase energy efficiency, eg Home Insulation Grants from the LA, help with draught proofing provided by community insulation projects. Laundry needs 201. If the applicant or a member of his family is bedridden or incontinent:

• a CCG may be considered for a washing machine. The award should cover the cost of either:

− a new machine including any connection charge − repairs to a washing machine

• and if there are no suitable drying facilities, eg outdoor drying area, drying cupboard, a CCG may be awarded for a tumble dryer, or if appropriate a dual function washing machine/ tumble dryer. The cost of connection may be met. Applicants should be advised that


tumble dryers are expensive to run. Some applicants may prefer alternative drying facilities, eg spin dryers

202. Help with laundry needs may also be considered if: • an applicant is unable to wash by hand due to disability and • there is no one who can help with the laundry

Moving to more suitable accommodation 203. A CCG may be awarded to help a person to move to more suitable accommodation. This may be particularly important if the move will help the applicant or their family to lead an independent life in the community. 204. Consider the extent to which existing accommodation is not suited to the needs of the applicant or members of their family. 205. Amongst the factors to consider are:

• steep stairs or living space on different levels • a bathroom that can only be reached with difficulty • inadequate toilet, bathing and washing facilities • insanitary conditions • structural defects • the size of the accommodation • the housing costs of the present accommodation are not being met

in full and therefore the applicant has reasonable grounds for moving

If in doubt, discuss the matter with other interested parties. 206. The following groups of people may benefit from awards under this section:



This list is not exhaustive. Removal expenses 207. You will normally be able to decide whether to make an award for removal expenses from the information on or supplied with the application. If you need to clarify the evidence or need further information, ask for, but do not insist on, as much supporting evidence from the applicant as is reasonable and necessary to substantiate the application, eg a removal estimate, without incurring any expense to the applicant. See section on supporting evidence. 208. Many people hire self drive vans as an economical method of moving and a refundable deposit is often charged. A CCG would not be appropriate for this part of the cost. A self drive van will not be suitable for many applicants and should not be considered on grounds of economy only. 209. Do not award a CCG for removal expenses when:

• the LA has a duty to protect a homeless person's property against loss or damage where it accommodates such a person under its


homelessness duties under the Housing Act 1996, or Part II of the Housing (Scotland) Act 1987

• there is a compulsory exchange of LA tenancies • the applicant is rehoused after a compulsory purchase, closing or

redevelopment order See Direction 29(b). Fares when moving home 210. A CCG may be awarded to an applicant or partner who incurs fares when travelling to take up tenancy of their new home. Furniture, household equipment and connection charges 211. People moving home will normally already have most of the furniture they need. Consider awarding a CCG only in certain circumstances, eg when:

• an applicant moves from furnished to unfurnished or partly furnished accommodation

• items have been damaged because of the conditions in the old accommodation, eg bedding ruined by damp

• items from the old accommodation are not suitable for the new, eg carpets and curtains which cannot be adapted to fit, or which need alteration

212. If the move involves moving or installing domestic appliances, the cost of disconnection and connection may be met.

Applicants moving nearer relatives/close friends who will provide support (including applicants moving into another household) 213. Try to check that the new care arrangement is meant to be permanent by talking informally to a member of the household who will be looking after the applicant. If this is not possible contact other interested parties, eg Social Services Department (SSD) (Social Work Department [SWD] in Scotland). The following groups of people may benefit from awards under this section:



This list is not exhaustive. What types of need may be considered 214. Consideration may be given to one or more of the following. This list is not exhaustive:


eg if the applicant moves from furnished or partly furnished accommodation. If the move involves moving or installing domestic appliances, the cost of disconnection and connection may be met


Applicants moving nearer to or into the house of vulnerable groups to provide greater support 215. CCGs may be awarded to applicants who will provide attention or supervision on a daily basis to a vulnerable person who would normally be a relative or close friend. The vulnerable person may or may not be in receipt of IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits. 216. If an applicant moves to support someone who is not in receipt of IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits the DM must apply the principles of determination set out in the Social Security Contributions and Benefits Act 1992. Have particular regard to the:

• nature, extent and urgency of the need • existence of resources from which the need may be met and • possibility that some other person or body may wholly or partly

meet the need 217. If in doubt about the arrangements to provide support, contact the SSD/SWD in the area into which the applicant is to move. 218. The following groups of people may benefit from awards under this section:



This list is not exhaustive What types of need may be considered 219. Consideration may be given to one or more of the following. This list is not exhaustive:


eg if the applicant moves from furnished or partly furnished accommodation. If the move involves moving or installing domestic appliances, the cost of disconnection and connection may be met

Applicants moving within the community to set up home for the first time 220. Give particular consideration to vulnerable homeless or recently homeless people, eg young people, rough sleepers and people with a history of medical problems, eg alcohol or drug abuse, if there is a danger that they may otherwise go into institutional or residential care. See Part 3 Crisis Loans for details of some of the risks to persons without accommodation. 221. If a young person has left LA care in the last 12 months consider an award under Direction 4(a)(i). See section on young people leaving care. 222. If necessary, consult a named contact, eg hostel or voluntary worker to see if they have additional information about the applicant's health or other circumstances which will assist in determining the application. Take care to observe the rules of confidentiality.


223. The following groups of people may qualify for awards under this section: • frail elderly people, particularly those:

− with restricted mobility or − who have difficulty in performing personal care tasks


This list is not exhaustive. What types of need may be considered 224. Consideration may be given to one or more of the following. This list is not exhaustive:

• furniture, household equipment, connection charges • removal expenses and storage charges • fares when moving home

Other circumstances 225. Awards under other circumstances may be made if the purpose of community care is satisfied. You should take account of the individual circumstances of such an application when deciding the priority of it. 226. A CCG may still be appropriate if the particular circumstances merit it. Use discretion sensitively and with imagination when considering other circumstances.

Direction 4 (a)(iii) - Families under exceptional pressure Direction 4

General 227. All families, especially those on low income, face pressure at various times, so that in itself is not a reason to award a Community Care Grant (CCG). However, CCGs may be awarded to ease exceptional pressures on a family, ie circumstances which put a family under greater pressure than might normally be associated with low income. Consider the degree of this pressure in terms of its effect on the individual family as well as the type of pressure or how common it is. 228. It is important to recognise that what constitutes "exceptional pressure" covers a very wide range of personal circumstances. It may be the result of acute domestic difficulties which can be described as specific to the family, such as:

• the breakdown of a relationship (especially where domestic violence is involved); or

• the onset of, or deterioration in, a disability of a member of the family

229. Alternatively, exceptional pressure on a family unit may be due to a sudden domestic upheaval imposed by an unforeseen calamity, for example:

• a house fire; or • a natural disaster such as flooding; or


• where a disaster has resulted in the evacuation of all or part of a community to a different area, which may also include evacuation to the United Kingdom (UK) from overseas.

230. Exceptional pressure on a family unit may also be due to the longer term consequences of displacement from a country outside the UK for political or religious reasons. A CCG may be considered where a family whose application for asylum in this country has been successful is moving into the community from temporary accommodation provided by the Home Office. 231. In the types of circumstances indicated in paragraphs 229 and 230 above, consider carefully, having regard to all the facts of the case, whether it is appropriate to award a Crisis Loan (CL) or a CCG (see para 24). 232. The specific circumstances giving rise to a need may be important in deciding the priority of an application. Consider giving a higher priority to a new type of expense which has arisen as a direct result of special circumstances, particularly if these were unforeseeable. For example:

• a mother with young children needs household items following the violent breakdown of a relationship; or

• the sudden deterioration in the condition of a disabled child justifies an award for a washing-machine; or

• a family is experiencing hardship as the result of a localised disaster and urgently needs the replacement of essential household items damaged or destroyed as a result of this disaster.

233. If the applicant applies for a CCG as a result of being refused either a Budgeting Loan (BL) or CL on the grounds of inability to repay, consider whether this lack of access to a loan to alleviate the need concerned has contributed to the pressure on the applicant and his or her family 234. Always ensure that the consideration of "exceptional pressure" is fully documented on the SF902. If a Decision Maker (DM) considers that the pressure is not exceptional, the reason(s) should be clearly indicated, referring to the salient facts of the case. 235. "Family" in this section should generally be taken to mean couples, including those with children, people caring for children or pregnant women over 24 weeks. DMs can use discretion in defining a family, though the definition in Social Fund Maternity and Funeral Expenses Regulations 3(1) is a useful reference. 236. When considering the meaning of "family", however, DMs must consider all the circumstances of each particular case and are at liberty to be flexible in their interpretation, bearing in mind the overall intention of CCGs. 237. There may be circumstances, for instance, when it may be appropriate to extend the definition of family beyond the conventional "nuclear" family scope to include siblings. For example, two elderly sisters living in the same house would be as vulnerable as conventional families to a variety of stressful circumstances, particularly those resulting from unforeseen calamities such as flooding. 238. An award of a CCG should normally be to help members of a family to stay together. In addition, the guidance in paras 235 - 237 should be borne in mind when considering what is meant by "family" and a rigid interpretation of the guidance should be avoided. 239. When dealing with families under exceptional pressure:


• close links with the Local Authority (LA) Social Services Department (SSD) (Social Work Department [SWD] in Scotland are very important

• you need to know how the LA carries out its responsibility under Part Ill of the Children Act 1989, or the equivalent provision in section 22 of the Children (Scotland) Act 1995

240. The financial contribution of LAs varies considerably. Unless there is local agreement on the type of circumstances in which the LA provides help, do not expect families under exceptional pressure who apply for CCGs to look to the LA in the first instance. 241. District liaison links with LAs will provide information on how your local LAs operate.

Family Fund 242. The Family Fund:

• Is an independent Government funded organisation registered as a charity

• Gives discretionary grants • Considers applications from families caring for a severely disabled

child/children aged 17 or under. 243. The Family Fund considers applications related to the care needs of a severely disabled child. Applications can be considered where a family meet the Fund’s eligibility criteria and the child meets the Fund’s criteria for a child with a severe disability. Applications can be considered for any item related to a child’s care needs, where there is no statutory provision. All grants are discretionary and subject to available funding.. 244. The Family Fund cannot help where an item is the responsibility of a statutory agency such as the health authority, local government, social services, housing or education department. Examples of such items include:

• medical services; equipment and continence supplies including nappies, buggies and wheelchairs – responsibility of health trusts or authorities

• equipment for daily living such as ramps, hoists and bath aids – responsibility of social services or social work department

• educational equipment – responsibility of education department • The fund also cannot help with general household items which are

needed by all families and do not relate to the disabled child; arrears of rent; fuel bills or general debts.

245. Be aware of the Family Fund when dealing with applications from families with a severely disabled child. The possibility for help from the Family Fund should not be used in isolation as justification for refusing a CCG. The Family Fund support is discretionary. Families and children must meet Family Fund eligibility criteria. New applications to the Family Fund can take several months to process. The Family Fund can only consider a further application from a family after 12 months from their previous grant award is made 246. But ensure that such families know how to access additional help from the Family Fund, to supplement any help that might be available through the CCG scheme. All applications to the Family Fund must be submitted on a Family Fund application form. Application forms can obtained by telephoning: 0845 130 45 42, minicom 01904 658085 or by writing to: The


Family Fund 4 Alpha Court , Monks Cross Drive, Huntington, York, YO32 9WN, Email: [email protected] 247. The child's parents must agree to an application being made to the Fund. 248. The following paragraphs contain guidance on some circumstances in which CCGs may be appropriate. Use discretion sensitively and with imagination when considering other circumstances.

Breakdown of a relationship 249. A CCG may be awarded to help an applicant move to different accommodation where the applicant was formerly part of a couple with or without children and where the relationship has recently ended. In these circumstances, remember that any award must ease the pressures on both the applicant and his family. 250. When deciding if a relationship has ended recently, take account of what has happened since the relationship broke down, eg the applicant may have spent some time in a refuge or other temporary accommodation until permanent accommodation could be found. In such cases it may be reasonable to award a CCG even if the relationship has not recently ended. 251. Some applicants may remain in the same accommodation but need certain items because, following the end of the relationship, their partner left with the items. 252. Check the facts of the case as far as possible from IS/JSA/PC/ESA records and other Departmental records. If additional information is required to reach a decision, consult any social worker, local counsellor or community worker involved in the case. In domestic violence cases information may also be available from a women's refuge or police liaison officer. 253. Do not consult outside agencies without the applicant's consent. 254. Consider giving higher priority to cases where there has been domestic violence and a CCG will help protect the applicant and/or any children from risk, eg if a family needs travelling expenses to move to a refuge in another area where they are less likely to be traced by a violent partner. 255. If possible it will be desirable to verify circumstances with a responsible third party. However, absence of such verification should not automatically preclude a payment. 256. You should be particularly careful to avoid making any enquiry which may put the applicant at further risk. 257. When dealing with claims arising from domestic violence, you should alert SSDs/SWDs if you suspect that a child is at risk of harm. 258. Tell the applicant that it will not normally be appropriate to make CCGs more than once for the breakdown of the same relationship. What types of need may be considered 259. Consideration may be given to one or more of the following. This list is not exhaustive:

• removal expenses and storage charges • furniture, household equipment, connection charges • clothing • fares when moving home


Removal expenses 260. You will normally be able to decide whether to make an award for removal expenses from the information on or supplied with the application. If you need to clarify the evidence or need further information, ask for, but do not insist on, as much supporting evidence from the applicant as is reasonable and necessary to substantiate the application, eg a removal estimate, without incurring any expense to the applicant. See section on supporting evidence. 261. Many people hire self drive vans as an economical method of moving and a refundable deposit is often charged. A CCG would not be appropriate for this part of the cost, but a budgeting loan may be considered. A self drive van will not be suitable for many applicants and should not be considered on grounds of economy only. Storage charges 262. If the applicant has furniture in storage and it is needed in the new home, a CCG may be awarded for storage charges. Furniture, household equipment, connection charges and start up grants 263. You may either:

• award a CCG for, eg specific items of furniture, furnishings, bedding, connection charges and household equipment which the applicant needs

• pay an amount sufficient to meet the need which can be increased according to the number of children the applicant has

264. When deciding how much to award, the DM should consider whether the home is partly furnished and whether the applicant already has the item. Clothing and footwear 265. A CCG may be awarded for clothes and/or footwear in cases of domestic violence where either:

• an applicant is unable to recover clothes from the shared home • clothes have been damaged as a result of the breakdown

As a general rule the applicant and their children should have at least one change of clothing and enough protective clothing.

Reconciliation of a relationship 266. You should normally consider awarding a CCG if an applicant returns to the shared home after a period of separation due to the breakdown of the relationship, if, prior to the separation either:

• the couple had been living together for about three months or more in the case of couples with children

• the couple had been living together for about two years or more in the case of couples without children

Use the periods given as guides to indicate if there is an established relationship. Apply your discretion to the individual circumstances of each case. 267. Check the facts of the case as far as possible from IS/JSA/PC/ESA records and other Departmental records. If additional information is required


to reach a decision, consult any social worker, local counsellor or community worker involved in the case but only with the applicant's consent. What to award 268. CCGs may be awarded for removal expenses. It will not normally be appropriate to make a CCG for household items. CCGs should not normally be available on reconciliation within three months of the award of a grant for the same purpose.

Families needing to move house 269. A CCG may be awarded to help someone to move to a new home, eg the applicant's home is particularly overcrowded. The family should, as a result of its individual circumstances, be under exceptional pressure, see Direction 4(a)(iii). 270. If the applicant or a member of the family will be caring for someone coming out of institutional or residential care or someone who wishes to stay in the community, refer to the guidance on Direction 4(a)(i) and 4(a)(ii). 271. Consider if another authority, such as the LA, may help a family with a disabled child. What types of need may be considered 272. Consideration may be given to one or more of the following. This list is not exhaustive:

• removal expenses, except where the LA has a duty to rehouse the applicant, see Direction 23(1)(a)(vii)

• essential items of furniture • fares to take up the tenancy of the new home

Essential items of furniture, household equipment and connection charges 273. People moving home will normally already have most of the furniture they need. Consider awarding a CCG if, eg the move is from furnished to unfurnished accommodation or items from the old home are not suitable. 274. If the move involves moving or installing domestic appliances, the cost of disconnection and connection may be met.

High washing costs because of a disabled child 275. If the family contains a disabled child, decide whether a CCG for a washing machine would relieve pressure on the family. What to award 276. A CCG may be considered for a washing machine. The award should cover the cost of either:

• a new machine including any connection charges • repairs to a washing machine

277. If there are no suitable drying facilities, eg outdoor drying area, drying cupboard, you may award a CCG for a tumble dryer, or if appropriate a dual function washing machine/tumble dryer. The cost of connection may be met. Applicants should be advised that tumble dryers are expensive to run. Some applicants may prefer alternative drying facilities, eg spin dryers.


Repair/replacement of items damaged by behavioural problems within the family 278. You may wish to give a higher priority to an application from a family with a child suffering from learning difficulties or a mental health problem, whose particular condition results in behavioural problems. If further information is required in order to reach a decision, check the nature of the child's condition with, eg SSD/SWD, doctor, district nurse, but only with the applicant's consent. 279. CCGs are not intended to meet regular items of expenditure or the regular replacement of items, eg clothing, bedding and even major household items such as cookers, beds and mattresses. 280. If an item has recently been replaced with the help of a grant, consider if a loan would be more appropriate. Take into account any other resources, including IS, JSA(IB), PC or ESA(IR) premiums (but not mobility payments). 281. There are specialist firms which are able to supply robust items of furniture and equipment, eg beds, which you could consider to remove the need for regular replacement. What types of need may be considered 282. Consideration may be given to one or more of the following. This list is not exhaustive:

• essential household items • clothing • redecoration • security items

Essential household items 283. Decide what items are needed and award a CCG as appropriate. Redecoration 284. An award for redecoration:

• should normally only cover the cost of materials • may also include labour costs if the work cannot be done by:

− the applicant − relatives − friends − neighbours − charitable or voluntary organisations − employment training

Security items 285. A CCG may be given for an item which would give added security for a disabled child, eg barriers on stairs.

Minor structural repair to keep home habitable or for safety of child 286. Priority should be given to families with a disabled child. 287. A CCG may be awarded if:

• the applicant is responsible for the repairs and • the home is not LA or similar property and


• the work is not an adaptation which the LA has a duty to carry out under the Housing Grants, Construction and Regeneration Act 1996 (in Scotland, the Housing (Scotland) Act 1987)

If necessary, you may ask applicants if they possess an estimate for the work when considering whether a repair or improvement is minor. See paras 288-290 below as well as the section on supporting evidence. 288. The Secretary of State has directed that grants or loans cannot be made for repairs and improvements to the dwelling occupied as the home, including any garage, garden and outbuildings, other than minor repairs and improvements. IS ,JSA(IB), PC or ESA(IR), may be payable for the interest on a loan taken out for these costs but the exclusion applies whether or not additional IS, JSA(IB), PC or ESA(IR) is actually awarded. 289. The use of the term “repairs and improvements” includes the cost of both materials and labour. A repair will generally put right something that is defective. An improvement will generally upgrade something, or add something to the property that was not there before. 290. It is difficult to precisely define the term “minor”. The following considerations, however, will be relevant when deciding whether a repair or improvement is “minor” or not:


What to award 291. If the applicant asks for a CCG to pay for repairs and improvements which are not minor, advise the applicant that:

• an allowance towards the interest payable on a mortgage or loan taken out to finance some repairs or improvements may be included in the IS assessment, income-based JSA assessment, the Pension Credit assessment or income-related ESA assessment. The IS (General) Regulations 1987 Schedule 3 para 16(2),the Jobseeker's Allowance Regulations 1996 Schedule 2 para 15(2), the Pension Credit Regulations 2002, Schedule 2, para 12(2) and the Employment and Support Allowance Regulations 2008 Schedule 6, para 17(2) specify the repairs and improvements for which interest may be included. Ask the relevant officer who made the benefit decision on behalf of the Secretary of State what help may be available from the IS/JSA/PC/ESA section for each individual case. For people under 60, IS, JSA or ESA(IR), help for interest will not generally be payable until they have received IS, income-based JSA or income-related ESA(IR), for a specific period, such period being defined in the above regulations.

• DETR grants for home improvement and repair may be available under the Housing Grants, Construction and Regeneration Act 1996 in England and Wales. A separate system operates in Scotland under Part 13 of the Housing (Scotland) Act 1987. LAs administer the scheme - see para 183 - 195.

292. A CCG may be awarded for a survey fee charged which cannot be included in a mortgage or loan for which IS, JSA(IB) or ESA(IR), would be payable.


Clothing (including footwear) for disabled children 293. A CCG for clothing should normally only be awarded if the particular disability or condition of the child causes either:

• excessive wear and tear on clothing to such an extent that it would be unreasonable for the applicant to meet the cost from weekly IS, JSA(IB) or ESA(IR), or payments on account of such a benefit, even with a family premium and the disabled child's premium

• rapid weight gain or loss What to award 294. Decide the amount of the payment and what it covers. The child should have at least one change of clothing and sufficient protective and warm clothing.

Fuel board charges 295. A CCG may be awarded for certain fuel board charges to families with a disabled child or a child under five. What to award 296. A CCG may be awarded for:

• installation of prepayment meters if the applicant has difficulty budgeting for quarterly bills. Allow the cost of any additional wiring or piping if the new meter is sited in a different place from the old one

• reconnection charges if: − the applicant's gas or electricity supply has been

disconnected and − the debt is to be met by Third Party Deductions (TPD)

297. The Secretary of State has directed that CCGs should not be awarded for fuel bills. If the applicant has difficulty budgeting, they should be advised about TPD arrangements, and the case referred to the TPD liaison officer.

Short term boarding out prior to adoption 298. A CCG may be awarded if the applicant's child:

• is being placed for a short limited period with specialist foster parents while adoption is arranged

• is not in LA care and boarded out by them 299. If the arrangement is being made by a voluntary organisation, a lump sum may be paid to them if the applicant requests this, but the applicant or someone acting on behalf of the applicant should make the application. What to award 300. A CCG could be given for up to eight weeks to cover boarding out fees. Review the situation after eight weeks but continue payment if necessary. CCGs for short term boarding out prior to adoption should be given a high priority.

Direction 4 (a)(iv) - Prisoner or young offender on release on temporary licence Direction 4


Prisoner or young offender on release on temporary licence 301. Certain prisoners and young offenders are granted short periods of leave, normally two or five clear days at home, in order to help them readjust to life outside prison, see Direction 4(a)(iv). 302. A Community Care Grant (CCG) may be awarded towards living expenses, if the prisoner or young offender spends the leave with a person who receives Income Support (IS), income-based Jobseekers Allowance (JSA(IB)),Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR) or payment on account of such benefits and will provide care. 303. It would normally be reasonable, where the prisoner or young offender joins their partner, to give the person who receives IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits for each day, one seventh of the difference between the partner's benefit payment or payment on account of such benefit and the appropriate amount for a couple. 304. In cases, where the prisoner or young offender joins someone other than their partner, to give the person who receives IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits for each day, one seventh of the appropriate personal allowance.

Direction 4(a)(v) - People setting up home as part of a planned programme of resettlement Direction 4

General 304. This section deals with payments to help the applicant to set up home in the community as a part of a planned resettlement programme following a period during which he has been without a settled way of life. 305. Community Care Grants (CCGs) are intended primarily to help people live as independent a life as possible in the community. If a person is leaving care or a young person who has left care in the last 12 months, consider an award under Direction 4(a)(i). If there is a threat of care then consider an award under Direction 4(a)(ii). 306. If a person is setting up home as a part of a planned resettlement programme following an unsettled way of life, and they are leaving accommodation that does not provide a sufficient level of care to be considered under Direction 4(a)(i) and there is not a threat of care to be considered under Direction 4(a)(ii) then consider an award under Direction 4(a)(v). 307. A CCG may be awarded to applicants who:

• have been living in the community in accommodation which does not provide a sufficient level of care or supervision to be treated as institutional or residential care for the purposes of Direction 4(a)(i) and

• are being housed in permanent accommodation (or temporary accommodation which will lead to permanent accommodation) as a part of a planned programme of resettlement


Unsettled way of life 308. People who have been without a settled way of life may have been:

• using a night shelter • staying in a hostel • sleeping on the streets or in a make-shift shelter on the streets • using an emergency winter shelter • using a temporary supported lodging scheme • staying in temporary accommodation provided by the Home Office

pending a decision on their application for asylum in this country • using a combination of these

309. The above list is not exhaustive. Be aware of the: • type of housing provision for the homeless within your area, and • organisations which are active locally, including LA led consortiums

or homelessness forums, and • possibility of temporary reception centres for refugees or evacuees

from outside the UK 310. Districts where homelessness is a significant problem may have a Homeless Customers Liaison Officer.

Planned resettlement programmes 311. Planned programmes of resettlement may be run by Local Authorities (LAs), voluntary organisations, housing associations and registered charities. Organisations providing resettlement support can be funded by:

• DETR, which uses powers under Section 180 of the Housing Act 1996 to pay grants to voluntary sector organisations and housing associations for the prevention and relief of homelessness, eg the 'Rough Sleeper's Initiative' in London and other local authority areas which have demonstrated they have a major problem of people sleeping rough

• the Housing Corporation, which funds a Special Needs Management Allowance for special needs groups

• DH, which funds some hostels under the 'Homeless Mentally Ill Initiative'

• the Housing Corporation under Section 30 of the Jobseekers Act 1995, which authorises the awarding of grants to non-profit making registered charities or LAs operating schemes that are similar to those of the former resettlement units

• the Home Office, which has the powers to fund voluntary bodies (eg: the Refugee Council) to provide temporary accommodation for asylum seekers, refugees or evacuees from countries outside the UK

• charitable and private sources 312. Non-publicly funded programmes providing resettlement should normally be a registered charity whose aims include the resettlement of homeless people. 313. You may need to check that:

• a programme of resettlement exists at the accommodation that the person is moving from; and

• the person is on such a programme.


Check with the organisation arranging the programme if necessary, observing rules of confidentiality. 314. A resettlement programme can include transition from hostel or reception centre accommodation to independent living in the community (eg: allocated local authority housing). For example, where both the temporary accommodation the applicant is vacating and the permanent accommodation he is moving to, were provided or obtained as part of an organised reception and placement programme administered by organisations such as the Refugee Council for asylum seekers, refugees or evacuees from countries outside the UK. 315. Some people may need intensive, long-term support owing to multiple needs resulting from physical or mental health problems. This may involve frequent visits and specialist help over a longer period. In these cases it may be more appropriate to consider making an award under Direction 4(a)(ii). 316. Consider if it might be appropriate to make an award under another part of Direction 4 in some circumstances. What types of need may be considered 317. Consideration may be given to one or more of the following. This list is not exhaustive:

• furniture and household equipment • connection charges, if the move involves installing domestic

appliances • removal expenses and storage charges • fares on moving home

Third party payments 318. The award should normally be payable to the applicant. However, Decision Makers (DMs) also have power to make payment to a third party who can provide, or arrange for the provision of, the items covered by the award. See Sections 138(3) and 139(5) of the Social Security Contributions and Benefits Act 1992. 319. This power should only be used exceptionally - for example, where there is firm evidence that the award may not be used for its intended purpose. If you do decide to make such a payment, document the reasons fully, since a DM's determination to make payments to a third party can be reviewed like any other determination.

Direction 4 (b) - Travelling expenses Direction 4

Fares to visit patients in hospital or residential care 320. A Community Care Grant (CCG) may be awarded to help the applicant and/or other members of their family to visit a patient in:

• hospital • a care home • Part III accommodation, Part IV accommodation in Scotland • staff intensive sheltered housing providing a major level of personal

care 321. The patient being visited may be:


• a close relative, relative or partner of the visitor • a close friend who has no relatives or whose relatives have lost

touch Use your discretion when deciding on the relationship between the person being visited, and the applicant.

Hospital visits and home savings 322. ‘Home savings’ is the label used to describe the amount of money a family may be saving out of benefit/allowance/tax credit payments because a member of that family is being cared for free of charge in hospital. You should consider whether it is appropriate to offset any home savings against the cost of hospital visits when an applicant seeks a grant to meet, in whole or in part, the costs of visiting a family member in hospital for whom they claim benefit. 323. Any benefit/allowance/tax credit payments (but not the mobility component of DLA) paid to the family for the patient should be considered. Premiums should be ignored. The principle is that if a benefit/allowance/tax credit is being paid in respect of someone in hospital, a significant proportion of that money is not being spent on normal day to day expenses for that person, subject to paras 324 and 325 below. 324. When determining the award amount, you must decide whether and to what extent home savings are actually available as a resource to be offset against the cost of hospital visiting. In making this decision, you must consider all the facts and assess whether or not the money is available to help partially or fully meet the cost of fares. 325. In the cases where the existence of home savings may affect the award, you should remember that the applicant may incur additional expenses arising from hospital admission. For example, they may have to purchase food when visiting hospital. 326. Attendance Allowance (AA), Disability Living Allowance (DLA), Carer's Allowance (CA) and Constant Attendance Allowance (CAA) will continue to be suspended after the customer has been in hospital for 4 weeks. Home savings cannot be taken into account after AA, DLA, CA or CAA have been suspended. 327. CCGs for visits to a child in hospital would normally be given a high priority.

Fares to visit ill people 328. A CCG may be awarded to help the applicant and/or other members of their family to visit someone who is ill but is not in hospital or residential care. The person being visited should normally be either:

• a relative or partner of the visitor • someone who has no relatives or whose relatives have lost touch

Use your discretion when deciding on the relationship between the person being visited and the applicant.

Fares to attend funerals 329. A CCG may be awarded to help towards reasonable travel costs, within the UK, which may be incurred by an applicant and/or other members of their family to attend a relative's funeral which is to take place in the United Kingdom (UK) or elsewhere within the European Economic Area. If the


applicant is responsible for arranging the funeral, advise them to apply for a SF Funeral Payment. The Funeral Payment Regulations provide that a Funeral Payment may be made in respect of the reasonable expenses of one return journey for the responsible person to either arrange or attend the funeral. 330. If a Funeral Payment includes travel expenses to arrange the funeral, you may award a CCG if the applicant has to make a separate journey to attend the funeral.

Domestic crises 331. A CCG may be awarded for single or return fares arising from a domestic crisis, eg a parent on IS, JSA(IB) or ESA(IR), or payments on account of such a benefit is visiting their child who is in the care of a relative or close friend. A CCG should not normally be awarded for a visit to a child who is in the care of a Local Authority (LA), as LAs have the power to help in such cases. 332. Give priority to those whose needs are most acute, eg a lone parent who is going into hospital or who is too ill to look after the child or children. 333. A holiday or short break would not normally be regarded as a domestic crisis.

Proceedings under the Children Act 1989 (Children (Scotland) Act 1995) 334. A CCG may be awarded if a parent is visiting a child:

• who is in the care of the estranged partner; and • where a question regarding a child's upbringing has not yet been

determined by the court This should ensure that neither parent is seen by the court to be in a less advantageous position simply because he or she cannot afford the fares. The term 'parent' may include a person who has parental rights. 335. If the child is in LA care and the LA has determined that the child is in need, you may wish to liaise with the LA who may exceptionally provide payment of travelling expenses. 336. It would not be appropriate to make a grant once the responsibility has been decided by the court, eg to allow a parent to exercise their right of access to the child, or if responsibility proceedings are not being undertaken. You may award a CCG if an appeal against the court's decision is pending.

Fares when moving to suitable accommodation 337. A CCG may be awarded to help an applicant move to suitable accommodation. The circumstances of such payments will be those not covered by the provisions of Direction 4(a), and might include either a move from one home to another, or where someone receiving IS, JSA(IB) ,PC or ESA(IR) or payment on account of such benefits and currently without accommodation has been offered suitable accommodation and intends to accept it.

What to award 338. The £30 minimum amount and disentitlement to awards for expenses of less than £30 does not apply to awards for travelling expenses.


339. The amount should normally be the cost, single or return as appropriate, of:

• 'standard' rate public transport, excluding air fares, or • the cost of petrol either:

− up to the cost of public transport, if this is available − in full, if public transport is unavailable or the applicant/

partner cannot use public transport because of physical disability or because they are frail and elderly, or

• taxi fares, only if either: − the applicant/partner cannot use public transport because of

physical disability or because they are frail and elderly and there is no access to private transport

− public transport is unavailable and there is no access to private transport

340. The cost of an escort's fare may be met where the person concerned is incapable of travelling alone, eg because of youth, age, illness or disability. Charges for overnight accommodation 341. The cost of reasonable accommodation may be met if:

• it is essential for the applicant to stay overnight, eg they cannot reasonably make a return journey in one day

• there are no other suitable alternatives, eg staying with relatives or in hospital accommodation for relatives of a patient

Establishing priorities

General 342. Community care means helping individuals and families to:

• establish themselves in the community • maintain themselves in the community • continue their links with family, friends and local life

343. Community Care Grants (CCGs) are intended to contribute towards these objectives. Secretary of State's guidance describes the types of groups and circumstances which CCGs are intended to help.

Guidance on priorities for CCGs 344. National guidance on priority of need and local guidance on budgetary planning are important factors to consider when reaching decisions. See section 140(2) and (5) of the Social Security Contributions and Benefits Act 1992 and section 38(7) and (11) of the Social Security Act 1998. 345. Remember that SF payments are discretionary and the absence of guidance applying to a particular item, service or expense requested in a given application does not mean that help should be refused.

Classifying needs as high, medium and low priority 346. When deciding the priority category consider the nature, extent and urgency of the need, and whether the need can be met in any other way. In particular, consider:

• the general circumstances of the applicant and/or their family • the urgency of the need and its relevance to Direction 4


347. Consider where the applicant's need fits, within three broad categories: high priority, medium priority and low priority. 348. It will normally be appropriate to give high priority to a need, if:

• an award for the item requested will have a substantial and immediate effect in resolving or improving the circumstances of the applicant and in meeting the aims of the qualifying part of Direction 4.

349. It will normally be appropriate to give medium priority to a need, if: • an award for the item requested will have a noticeable effect,

although not substantial and immediate, in resolving or improving the applicant's circumstances and in meeting the aims of the qualifying part of Direction 4.

350. It will normally be appropriate to give low priority to a need, if: • an award for the item requested will have only a minor effect in

resolving or improving the applicant's circumstances or in meeting the aims of the qualifying part of the direction.

351. In the above guidance, the word 'immediate' can be taken to mean 'in the immediately forseeable future', where, for example, an applicant is about to move into a new home, or an application is made in advance of discharge from institutional or residential care (Direction 25(2)(b)).

General circumstances which may affect priority 352. Consider the significance of individual circumstances in deciding the priority of an application. The following examples are not exhaustive and should be used only as a guide:

• a person's ability to cope with independent living may be particularly difficult because of:

− restricted mobility − learning difficulties − mental health problems − physical disability − mental or chronic physical illness

• experiences of physical or social abuse or neglect may leave someone especially vulnerable and lacking in confidence, for example young people:

− from broken homes or − who have never had a home

• returning to the community after a long period of residential or institutional care may leave someone very insecure and vulnerable, especially if they are setting up a new home on their own

• a long period of sleeping rough may leave someone with little or no concept of how to:

− live in a settled way or − cope with the problems of budgeting on a low income

• unstable family circumstances may put the well being of children at risk and increase the chances that they may have to be taken into care, for example:

− a parent behaves irrationally or − relationships within the family are at breaking point


• behavioural problems often associated with drug or alcohol abuse, are likely to:

− add to the difficulties of a vulnerable person trying to live independently, and

− increase the need for a stable environment

The urgency of the need 353. When determining the priority of the need and its relevance to Direction 4, you should refer to the specific paragraphs in Part 2 of this Guide, which refer to the appropriate part of Direction 4. You should give higher priority to an application which will have a substantial and immediate effect in improving the applicant's circumstances and on meeting the aims of the qualifying part of Direction 4, for example:

• where there is a substantial and immediate risk of the applicant being taken into care, and an award of certain items would significantly reduce that risk;

• where the lack of a certain item would seriously undermine the possibility of a person being established in the community;

• where the provision of a grant would alleviate immediately in a very noticeable and substantial way the exceptional pressure being faced by a family.

Consideration of budgetary position 354. Decision Makers (DMs) must always complete the process of determining the priority of the CCG before considering the budgetary position. 355. When establishing the priority of the need taking account of paras 344-352 above is only part of the process of deciding whether an award can be made, and if so how much can be awarded. Section 140 (1) (e) of the Social Security Contributions and Benefits Act 1992 states that DMs must also have regard to the budget. 356. The Area Decision Maker (ADM) has a role to play in this, see ADM guidance in Part 5 - The Budget. 357. Direction 42 imposes a duty upon DMs to control and manage the CCG budget so that:

• high priority needs are met first throughout the whole of the allocation period;

• the allocation is not exhausted before year end 358. The ADM will monitor demand on the budget and issue/re-issue guidance to DMs about the level of priority that can be met (Direction 40). This guidance is intended to help DMs to meet the requirements of Direction 42 by indicating the level of priority that can be met from the budget. It focuses on whether the budget can meet CCG applications within all three levels of priority, within two levels or just one (see 348 - 350 and ADM guidance mentioned in para 356 above). 359. DMs must take account of ADM guidance. However, they must also take account of the budgetary position. This means looking at evidence about the state of the budget for all decisions. In most cases, routine evidence about actual and forecast spend to date will be sufficient evidence of the budgetary position. But there will be times when more evidence is needed and it will need to be considered in more detail in the decision.


Evidence of budgetary position 360. DMs may need to focus more on the budgetary position when the ADM guidance does not have enough of an impact on the control of expenditure in times of increased/decreased demand levels. 361. For example, there is heavy demand on the budget and the ADM guidance already reflects this by indicating that only needs assessed as high priority to the extent that the budgetary position allows can be met. But forecast spend is still higher than it should be. In such cases, DMs should look for further information to help them to decide the budgetary position and how it affects the consideration of an individual case. 362. Further information might be:

• comparison of current demand with previous years • whether significant work is outstanding and its potential impact on

the budget • the ADM summary of how the current budgetary position has been

arrived at (See ADM guidance mentioned in para 356 above).

Summary of priority and budgetary considerations 363. DMs must in law have regard to:

• nature, extent and urgency of the need (see para 346); and • the local budget

364. The priority of an application is determined by reference to the particular circumstances of the applicant and the need. 365. The budget is not a factor in determining the priority of an application. 366. The budget is a factor in determining whether to make an award and if so, how much.

How much to award When to award the lowest price 367. A CCG award may be for a single item or expense or a number of items and expenses added together. There are no Directions restricting the total amount that may be awarded as a CCG. However, Decision Makers should bear in mind that the scheme is cash (budget) limited. Paying a grant at an amount greater than is required by the customer in order to purchase what they need means that there is less funding for other high priority CCG applications. 368. Therefore irrespective of the amount requested by the applicant, Decision Makers are advised to:

• use national high street chain retailers and/or national catalogue outlets that are available locally to determine the amount to be awarded;

• make best use of CCG funding by awarding the lowest price where that will still meet applicants needs;

• consider the cost of delivery and fitting charges, for example, although a retailer, especially in the case of white goods, may not offer the lowest price, if the price includes free delivery and/or fitting, it may be better value for money than awarding these separately


• remember that A-rated energy efficient goods, if more expensive, may not always be appropriate. This is because we are trying to help as many people as we possibly can with the limited funds available.

When the lowest price may not be appropriate 369. Decision Makers should bear in mind that the lowest price may not always be enough to meet an individual’s needs. This may be, for example, where an item has to be of a particular type or to be specially adapted; or a higher specification is required in order to meet the individual needs of the applicant or their family. For example, an award of a higher amount may be appropriate where:

• a disabled person needs a cooker with special adaptations • the size of the family means that their needs will be better met by

goods of a higher specification • delivery and/or fitting is included in the price and this would be

cheaper than providing for these separately. 370. In these circumstances whilst a higher amount may be awarded, best value for money should still be a consideration. For example, if specially adapted items or items of a particular type can be bought locally, use local price comparisons to determine the lowest price. If the item is only available from an out of area specialist supplier and the applicant’s request is based on this, DMs should consider awarding the amount requested. Exceptionally, it may be appropriate to ask the applicant if they have written estimates (see section on supporting evidence) or to consider making a payment to the third party supplier (see section on third party payments). Where the applicant doesn’t ask for enough to purchase the item requested 371. If the applicant has asked for an amount that appears to be too little to meet their need, consider awarding a higher amount unless the Decision Maker is satisfied that a guaranteed serviceable item can be obtained for the lesser amount. If necessary, contact the applicant to confirm who is providing the item, and to establish its age, and condition. 372. Although used (second hand) white goods generally do not offer long term value for money, for other household items and furniture it may be appropriate to award the amount requested by the applicant to buy used items providing there is no reason to doubt their serviceability. Sometimes, further enquiries (e.g. as above) will be needed and Decision Makers must always take account of individual circumstances. Exceptionally, it may be appropriate to ask the applicant if they have written estimates, (see section on supporting evidence). 373. If, based on the information obtained, the Decision Maker decides to award the low amount requested, he/she should warn the applicant that it is their responsibility to ensure that the goods are of a reasonable quality and are safe. If the Decision Maker makes a higher or lower award than that applied for, the reasons for this decision must be fully documented. Restricting award amount solely for budgetary reasons 374. It will be rare to make an award below the lowest price for a standard basic item as provided by the national catalogue outlets and national high


street retailers. Exceptionally, the Decision Maker may consider doing so in appropriate circumstances, if the item is of guaranteed serviceable quality, such as where the evidence indicates that the budget is under extreme pressure to meet all high priority needs and the applicants need is extremely compelling. The main source of evidence about the state of the budget is information provided by the ADM (see Direction 40 and Part 5 – The Budget, paragraph 44). 375. The lower amount awarded must be justifiable from the budgetary evidence. Also, it must be sufficient both to cover the cost of the item/service needed and to fulfil the aims of Direction 4. 376. You must fully document the reasons for the lower award, highlighting the budgetary evidence. 377. Below is an example of how the guidance at paragraphs 368 to 376 might apply.

For example: The applicant is 75 and has been discharged from care after 6 months. The application is for an electric cooker £275 and a high quality single bed £550. The applicant has severe back problems, which mean that he will be bedridden during some days. The hospital consultant has recommended a bed of particularly high quality because of the amount of time he is likely to spend in bed and his back problems. The applicant’s son, who is a qualified electrician, will connect the cooker.

The decision maker finds that the conditions of Direction 4(a)(i) are met and that help to meet the applicant’s need is not available from elsewhere.

Given the applicant's health problems, age and vulnerability he decides that an award for a cooker and bed is urgent and it will have a substantial and immediate effect in helping him establish back in the community and in resolving or improving the circumstances of the applicant. He accords them both a high priority.

At the time of the decision, the ADM's guidance states that high priorities can be met “to the extent the budget allows”. Although the budget is being spent roughly as planned, the budgetary information provided by the ADM indicates that decision makers have been awarding the lowest amounts possible solely for budgetary reasons. Demand for CCGs shows no sign of falling off. Therefore it is clear that if spend it is to continue as planned, all awards must be made with budgetary constraints in mind.

The decision maker finds the budget can meet this applicant's particular high priority needs and decides the amounts to award as follows:

The decision maker finds that the need for the cooker can be fully met by a basic standard item and considers the amount of £275 requested


for the cooker is currently among the lowest prices for a basic standard item in the high street. Normally the decision maker would award this amount but, because of the pressure on the budget, he decides to restrict the award to £225 which is the price one local reputable dealer is currently offering on a basic electric cooker. He decides that this will fully meet the applicant’s needs under direction 4. The justification for this is fully documented.

The decision maker then goes on to consider the amount to be awarded for the bed. The amount requested is not for a standard basic item but for one of a higher specification. The decision maker concludes that the bed needed is of a higher specification and quality as recommended by the hospital. The specification is of key importance in meeting the aims of Direction 4. The decision maker accepts that £550 is an appropriate amount in this particular case for the additional serviceability that is required in respect of the item. A lesser amount to provide only for a standard basic item would not fully meet the aims of Direction 4.

378. The above example is to illustrate the points in paragraph 368 et seq only. It is not to be taken as guidance on what actual amounts should be awarded.

Direction 40 - Responsibilities of the Area Decision Maker Direction 40 379. The Area Decision Maker’s (ADMs) role is to help Decision Makers (DMs) to control and manage the budget. Part of this role includes issuing guidance to DMs on the level of priority that can be met from the Community Care Grant (CCG) budget. See section 36(2) of the Social Security Act 1998 and the Instrument of Authorisation and Nomination. 380. The ADM:

• identifies the level of priority which may currently be met from the budget, taking into account profiled expenditure

• reviews and, if necessary, revises the guidance monthly 381. The ADM's functions under Direction 40 are set out in Part 5 – The Budget. In exercising these functions, the ADM will also ensure that information on the budgetary position is available to the DM. See Part 5 – The Budget (para 16 et seq) for a full explanation of the ADMs role and responsibilities.

Direction 27 - Treatment of capital Direction 27

Treatment of capital 382. Any capital held by the applicant and partner of or below £500, or £1000 if the applicant or partner is aged 60 or over will not affect the amount awarded as a Community Care Grant (CCG). 383. If the applicant or partner have capital of more than £500, or £1000 if the applicant or partner is aged 60 or over, a CCG is reduced by the amount of any capital over £500, or £1000 if the applicant or partner is aged 60 or over.


384. Any capital held by the applicant's children should be disregarded. 385. Check the amount of capital stated on the Social Fund (SF) application against information available in the Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR) documents. Further enquiries will be needed only if:

• there is a significant change in the amount of capital stated • the decision on the application might be affected

386. For the purposes of the social fund, the definition of what constitutes capital is the same as that for IS, JSA(IB), PC or ESA(IR), except that any payments from the Family Fund and integration loans under The Integration Loans for Refugees and Others Regulations 2007 should also be disregarded. Any payment of Back to Work Bonus should be treated as capital. 387. The main types of capital are:

• current accounts • savings accounts • national savings certificates • fixed term investments • life insurance or endowment policies • friendly societies personal deposit accounts • trust funds • property other than the applicant's home

388. This list is not exhaustive. Refer to the Decision Makers Guide (DMG) for:

• a complete list of types of capital • the procedures for assessing the capital available to the applicant

389. The IS, JSA(IB), PC or ESA(IR), rules for disregarding capital apply to CCGs, except that any payments from the Family Fund and integration loans under The Integration Loans for Refugees and Others Regulations 2007 should also be disregarded. Disregard arrears of, and concessionary payments made to compensate for arrears due to the non-payment of, the following benefits, payments and allowances:

• mobility allowance, • mobility supplement, • the mobility component of DLA, AA, • the care component of DLA, • IS, • Working Families Tax Credit, • Child Tax Credit at a rate higher than the appropriate maximum

family element, and/or Working Tax Credit where a disabled worker is included in the assessment,

• Disabled Person's Tax Credit, • Housing Benefit, • Council Tax Benefit, • income-based JSA (and, where a claimant is receiving JSA,

contribution-based JSA), • income-related Employment and Support Allowance • Pension Credit • any allowance paid under the Earnings Top-up Scheme 1996,


• any discretionary housing payment paid pursuant to regulation 2(1) of the Discretionary Financial Assistance Regulations 2001, and, where a claimant is receiving income support,

• supplementary benefit, • family income supplement under the Family Income Supplements

Act 1970 and housing benefit under Part II of the Social Security and Housing Benefits Act 1982, but only for 52 weeks from the date of receipt of the arrears, subject to para 391 below.

390. From 14 October 2002 the disregard that applies to arrears and concessionary payments referred to in para 390 above will be extended from 52 weeks to the remainder of the benefit award of IS, JSA(IB) or ESA(IR), if that is a longer period, in cases where there has been an official error and the total of arrears plus any concessionary payment is £5000 or more. This will apply to payments received in full on or after 14 October 2001. The extended disregard can be continued across benefit awards where a claimant transfers from claiming either IS, income-based JSA or income-related ESA, to the other benefit, or there is a change of claimant from one partner to another, but only where the new benefit award follows on immediately after the previous one.

Direction 28 - Minimum award Direction 28

Direction 6 – Repayability Direction 6

Repayability 391. Community Care Grants (CCGs) are not repayable. Regard a CCG awarded prior to discharge from care on the expectation that Income Support (IS), income-based Jobseekers Allowance (JSA(IB)),Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)), is likely to be payable as correctly made even if IS, JSA(IB), PC or ESA(IR), does not subsequently become payable. 392. If it is discovered that there has been a misrepresentation of facts, refer to the guidance on overpayments from the social fund.

Direction 26 - Trade Disputes Direction 26

General 393. Community Care Grants (CCGs) for the cost of fares incurred by people affected by trade disputes, their partners and dependants may be awarded only where they either:

• are in receipt of Income Support (IS), income-based Jobseekers Allowance (JSA(IB)) or income-related Employment and Support Allowance (ESA(IR)),

• would be in receipt of IS, JSA(IB) or ESA(IR), but for the trade dispute


http://intralink/1/jcp/guidance/bus_del/topic/social fund/social fund guide/DWP_T448260-29.asp#P351_35593

394. If a CCG is being awarded for a partner or dependant who is not affected by a trade dispute, an escort's expenses can be awarded if the visitor cannot travel alone. The escort may be the person affected by a trade dispute 395. If the visit is made by a person who is affected by a trade dispute, expenses for an escort should not normally be met.

What to award 396. The amount to be allowed should normally be the cost of:

• 'standard' rate public transport, excluding air fares, or • the cost of petrol, either:

− up to the cost of public transport, if this is available - in full, if public transport is unavailable or the visitor cannot use public transport because of physical disability or because they are frail and elderly, or

• taxi fares, only if either: − public transport is unavailable and there is no access to

private transport − the visitor cannot use public transport because of physical

disability or because they are frail and elderly and there is no access to private transport

Hospital visits and home savings 397. ‘Home savings’ is the label used to describe the amount of money a family may be saving out of benefit/allowance/tax credit payments because a member of that family is being cared for free of charge in hospital. You should consider whether it is appropriate to offset any home savings against the cost of hospital visits when an applicant seeks a grant to meet, in whole or in part, the costs of visiting a family member in hospital for whom they claim benefit. 398. Any benefit/allowance/tax credit payments (but not the mobility component of DLA) paid to the family for the patient should be considered. Premiums should be ignored. 399. For further guidance, please see section on home savings. 400. The cost of overnight accommodation, and breakfast if included in the charge, may be met when either:

• the return journey cannot be completed in one day because of distance or transport difficulties

• the visitor needs an extended visit, eg to see a child through a crisis

Direction 49 – Crisis Loan applications treated as Community Care Grant applications and vice versa Direction 49

Applications 401. It is possible for a Decision Maker (DM) to receive a CL application and decide to award a CCG or vice versa, since both are subject to the same discretionary basis of decision making. This involves treating the CL application as though it was an application for a CCG.


402. Please see paragraph 404 about direction 3(6) to (9) which provides how a CCG should be considered in respect of expenses referred to in Direction 3(2)(b). 403. In addition, DMs should consider an award of a CCG where the information declared by the applicant in support of a CL application alerts the DM to the possibility of a CCG being appropriate, and where:

• an application for a CL or CCG to meet the same need is not being considered by an DM or Social Fund Inspector (SFI) at the date of application; and

• the DM considers that a CCG may be awarded in respect of the need specified in the application.

Similarly, an application for a CCG may be treated as an application for a CL where the reverse circumstances apply. 404. Where a CL application is made for expenses as a consequence of a disaster, referred to in Direction 3(2)(b), consideration should first be given to whether the applicant satisfies the conditions for a CCG under Direction 4(a)(i) to (iii). 405. Where nothing on the application has prompted the DM to consider using the power in Direction 49 to convert the application to a CCG and the application is not made in a disaster for expenses referred to in Direction 3(2)(b), there is no need to refer to the direction in the decision record. However, where evidence has prompted such consideration but the DM has ultimately decided to determine the application as a CL, the thought-process leading to that conclusion should be documented. 406. Directions and guidance on how to decide CCG and CL applications are in the respective parts of the Guide dealing with CCGs and CLs.

Budgeting Loans 407. A Budgeting Loan (BL) should be applied for on the appropriate application form, or in such other manner, in writing, as the Secretary of State accepts is sufficient in a particular case, and can only be awarded on the basis of such an application. If a BL application form contains information which would suggest that an application for a CL or a CCG might succeed, the applicant should be invited to apply on the appropriate form. 408. The BL application should then be processed in the normal way (see Applications section in Part 4 Budgeting Loans).


Policy

Secretary of State’s Directions

Direction 4

Direction 6

Direction 7

Direction 25

Direction 26

Direction 27

Direction 28

Direction 29

Direction 41

Direction 49


Part 3 - Crisis Loans

Introduction

Purpose of Crisis Loans 1. Crisis Loans (CLs) are intended for applicants who are unable to meet

their immediate short term needs • either in an emergency in relation to some expenses or • as a consequence of a disaster

2. Expenses that can be considered whether the need arises from an emergency or a disaster are:

• living expenses • rent in advance payable to secure fresh accommodation where the

landlord is not a local authority (a crisis loan may also be paid for rent in advance referred to in paragraph 7 below in an emergency or disaster but see also that paragraph about the health or safety conditions)

• charges for board and lodging accommodation and residential charges for hostels

• emergency travel expenses where the applicant is stranded away from home or

• to meet the cost of repaying emergency credit on a pre-payment meter so the supply of fuel can be restored.

3. The need for help in an emergency will generally be for day to day living expenses for a short period not normally exceeding 14 days but other expenses listed in paragraph 2 above can also be considered. 4. Expenses other than those listed at paragraph 2 above can only be considered if the application is as a consequence of a disaster. 5. The need for help as a consequence of a disaster will generally be for a specific item or service but it could also include day to day living expenses or other expenses referred to in paragraph 2. 6. The CL should be the only means of avoiding serious damage or serious risk to the health or safety of the applicant or a member of the family. 7. However if the application is for rent in advance for a person leaving institutional or residential care and a CCG is being awarded to enable the person to return to the community, Direction 3(3) applies . The damage and health or safety criteria do not apply to this type of application.

The DM's powers to award CLs 8. In deciding whether to make a CL, you:

• are bound by the law including the Secretary of State's directions • must take account of the guidance issued by the Secretary of State and

the Area Decision Maker (ADM).


Principles of CL decision making


• the nature, extent and urgency of the need • the existence of resources from which the need may be met • the possibility that some other person or body may wholly or partly meet

the need • the likelihood of repayment and the time within which repayment is likely • the relevant SF loans budget .

Secretary of State's directions 10. The Secretary of State has issued directions which qualify the power to make CLs by reference to:

• the eligibility of the applicant • exclusions • the maximum amount to be awarded • the loans budget.


Secretary of State's guidance 11. Guidance referred to in paragraph 8 which the Secretary of State has issued or may issue – and which must be taken into account - includes guidance:

• issued by the Secretary of State about priorities for loans budget in general

• the Secretary of State may issue about constraints on the award of CLs.

Decision Maker’s (DM) discretion 12. The guidance should help you to reach a decision, but you should:

• always use discretion • avoid a rigid interpretation of the guidance • consider circumstances which appear to be outside the scope of the

guidance • remember that SF payments are discretionary and the absence of

directions or guidance applying to a particular circumstance, item or service does not mean that help should be refused

• make sure that you consider all the circumstances of a case when you determine an application

• consider the consequences of refusing the award • consider the circumstances in which the need arose and whether

payment to a third party might be appropriate. 13. The questions, in order, which you should consider are:

• eligibility criteria: is the applicant eligible? - Direction 14, 14C, 15, 16 and 17 is it a repeat application? - Direction 7 do any of the exclusions apply? - Direction 23


• qualifying conditions: does the applicant satisfy the requirements of Direction 3?

• priority of need - what is the priority of each item or service which satisfies the conditions in Direction 3? In practice, expenses which will prevent serious damage or serious risk to health or safety will, by their nature, be of high priority. Consider Secretary of State guidance and all the circumstances of the case, including:

the nature, extent and urgency of need the existence of resources from which the need may be met the possibility that some other person or body may wholly or partly meet

the need • budget - you are bound by:

section 140(1)(e) of the Social Security Contributions and Benefits Act 1992 to have regard to the relevant allocation (i.e.the loans budget)

Direction 41 to take account of the guidance issued by the Secretary of State about priorities for the loans budget in general and any guidance about constraints on the award of CLs as the Secretary of State may issue

• award: how much should you award? - Direction 18, 20 and 21 consider the applicant's ability to repay - Directions 5 and 22. NB

although the DM determines that an award is repayable it is the officer acting on behalf of the Secretary of State who decides the terms and conditions of repayment.

14. Ensure the reasons for your decision are fully supported by the evidence and are recorded in your decision or supported by computer system records where appropriate. The evidence should always be available for future scrutiny if necessary. 15. When you have obtained all the necessary information, make the decision without delay. Never deliberately delay a decision until the need has passed.

Applications 16. The Social Fund (Applications and Miscellaneous Provisions) Regulations 2008 prescribe the form and manner in which applications are to be made, and the time at which an application is to be treated as made, for discretionary payments from the Social Fund. 17. The date of a written application to the Social Fund is the date it is received in an office of the department, provided the application is in writing and:

• on a form approved by the Secretary of State and completed in accordance with instructions on the form or

• is acceptable as sufficient in the circumstances of the case, e.g. there is sufficient information in a letter and

• if an application is made on behalf of a person, by someone other than an appointee, that person must give their consent in writing to the application being made on their behalf

18. An application which does not meet the requirements of the above regulations as described in paragraph 17 is termed defective. However, you can treat the application as made on the date it was originally received


provided the applicant complies with a request to supply information in writing or at an interview or by another reasonable method. 19. CL applications should, where possible, be dealt with on the date that the need arises. 20. Although Community Care Grants (CCGs) and CLs may be applied for in their own right, because applications for both are determined on similar discretionary bases, directions provide that in certain circumstances, an application for a CCG may be treated as an application for a CL and vice versa. An application for a CL should in some circumstances be considered first as an application for a CCG, Further guidance on this subject can be found at the end of this Part. 21. Directions 3 and 49 provide for when Decision Makers (DMs) are to consider a CCG in the case of a CL application or vice versa. See guidance on Direction 49 at paragraph 353 et seq.

Applications made over the telephone 22. Where a customer makes an application for living expenses by telephone and a payment is to be made they must agree the terms and conditions but will not need to do so in writing. 23. If the decision is negative, the customer will receive that decision by telephone avoiding unnecessary journeys to the office and will also receive by post full written confirmation of the decision and notification of the right to a review. 24. Remember that this service is intended for customers who make their initial contact to the office by telephone: customers who are already in the office must never be told to go home and telephone. 25. Customers who have difficulty making themselves understood on the telephone must be offered an immediate office interview instead. 26. When a customer contacts the office about a CL by telephone, confirm that he/she:

• understands what will happen i.e.: if the decision is negative they will receive it by telephone, with full

written confirmation by post; if the decision is positive and they require an immediate payment they

will be required to attend the office with satisfactory evidence of their identity to confirm their statement and they must also agree repayment terms and conditions before payment is made;

• is happy to make the application by phone. 27. While it is a legal requirement that the loan offer and repayment terms must be agreed by the customer before the payment is due, this will not always necessitate attendance at the office. For example the documents could be sent to the customer and returned by post and if the application is by telephone the agreement may also be by telephone.

Investigating the Application 28. You will normally be able to decide whether to make a loan from the information on the application form. But further investigation may be necessary if:

• there is insufficient information


• there is any reason to doubt the validity of the application or the identity of the applicant is unclear.

Supporting Evidence 29. It is the applicant's responsibility to provide all the evidence necessary to determine an application. 30. Sometimes it may be necessary to seek further information or clarify an aspect of the application. You can usually resolve this by either:

• contacting the applicant; or • checking Departmental records.

31. Where the applicant provides third party details and further enquiries are needed as per above paragraph, it would be appropriate to contact the third party (particularly a social worker or probation officer) if they are likely to be able to provide more detail. 32. If the applicant or third party gives any information over the telephone, this is acceptable as corroborative evidence. 33. Exceptionally, it may be appropriate to ask the applicant for any corroborating evidence they may have, such as:

• estimate of cost of repair • estimate of cost of replacement • relevant evidence of a medical condition, e.g. an existing doctor's note, a

letter from a hospital or prescription counterfoil. 34. You should ask for as much supporting evidence from the applicant for corroboration as is reasonable and necessary to substantiate the application, but do not:

• ask for evidence which would incur any expense to the applicant • insist that the applicant provides supporting evidence, particularly from a

third party. 35. If the applicant does not produce the evidence, make a decision based on the completed application and any other evidence you already hold. Do not ask for further evidence if it is unlikely that the application will succeed. 36. Any information on which you base your decision must be made available to the applicant either on request or at the review stage. If necessary, you may take reasonable steps to protect the identity of the source, see Disclosure of Information (Part 1) and paragraph 40 below. 37. With this in mind you should investigate the validity of any information provided either anonymously or in confidence and which casts doubt on other evidence held. 38. You may be able to obtain evidence from another source or clarify the matter by obtaining further evidence from the applicant thus avoiding the need to use the confidential information as evidence. Corroboration will not generally be necessary where information is from a professional source which is not in question. 39. If corroboration of confidential information is necessary but not reasonably obtainable you should seek the consent of the third party source to use the information as evidence. You should however make it clear that, if they agree, the source of the evidence may be made known to the applicant. 40. If exceptionally you nevertheless use as evidence any information provided in confidence without the consent of the person who has provided


the information you may take reasonable steps to protect the identity of the source, e.g. by:


• summarising the content of the information 41. You must fully document the evidence used and the weight you have given to such evidence bearing in mind the need to ensure the facts on which you base your decision are correct. 42. Investigate in the normal way any allegations of fraud which may suggest that:

• entitlement to benefit is in doubt or • misrepresentation has occurred.

Applications for rent in advance 43. The following information is needed to support an application for rent in advance and will be gathered on completion of SF401R application form:

• the reason for the change of address • whether they have been given notice to quit (landlords usually have to

give between 2 weeks and 2 months notice, depending on the circumstances in which notice is given)

• the date by which they have to leave their current address • the new address they are moving to • how and when they found out about the new address • the name, address and telephone number of the landlord or letting agent • a breakdown of the costs – i.e details of the rent in advance and any

deposit or bond • whether they have a copy of the tenancy agreement (a tenancy

agreement can be verbal, but normal practice is for a written agreement to be made)

• how they will meet the cost of any deposit/bond 44. Decision makers must also consider whether the applicant has had a crisis loan for rent in advance in the last 6 months, as most private tenancies for rented accommodation cover a period of at least 6 months. 45. Additional evidence may be needed where a crisis loan has been paid for rent in advance in the last 6 months as follows:

• did the customer move to the accommodation in respect of which rent in advance was previously paid? If not, why didn’t the customer move? If they moved to a different address did they have to pay rent in advance and if so how much?

• what were the terms of that tenancy agreement? Did it cover a period of less than 6 months?

• where the customer is moving before the end of the period covered by the earlier tenancy, what are their reasons for leaving the property early?

• when was notice served on the customer to leave the property and how much notice was given?

Evidence not provided 46. If the customer does not provide the above information the DM should consider whether the customer has shown that they are in urgent need.


47. Where a customer has made arrangements to move into new accommodation and is expected to pay an amount for rent in advance, they should be in a position to provide contact details for either the landlord or letting agent. 48. The decision must be fully documented and clearly explain:

• which qualifying condition has/has not been met and • the evidence they have considered. With full reasoning as to why

evidence has been accepted/rejected. Previous application for rent in advance 49. Information about previous applications may be relevant to the current application. DMs should check SFCS records to establish if the customer has had a crisis loan for rent in advance in the last 6 months. 50. There may be good reasons for a landlord to bring a tenancy to an end before the end of the period for which it was granted. For example there may be rent arrears of 8 weeks or more or the property may have been repossessed by the landlord’s mortgage lender. 51. DMs should consider the circumstances in which the previous tenancy ended. If a further rent in advance award is made consideration should be given to making the rent in advance payable to the landlord.

Direction 14 - Eligibility

Treatment of resources 52. Generally have regard to all income and capital resources of the family, without any disregard, subject to paragraph 55 below. 53. Any resources which are actually available to the applicant or could be obtained in time to meet the need if application were made should, subject to paragraph 66, be taken into account. Resources include:

• Job Grant • capital assets • earnings • any other income • cash in hand • funds in bank or building society accounts, including Post Office and

Credit Union accounts, which may be obtained by means of a cash card or a cheque and cheque guarantee card

• credit facilities but see paragraph 54 • money available through any existing loan or overdraft facility but see

paragraph 54. 54. Resources available on credit should only be taken into account if the applicant is not in receipt of Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)) and is likely to be able to afford the required repayments.


Disregards 55. Disregard any resources if you consider it reasonable to do so in the circumstances of the case. You should not routinely disregard any resource; you should establish that the resource has been specifically earmarked for a purpose. 56. Such disregards will normally be applied to:

• housing benefit • other SF payments • the value of the applicant's home or premises acquired for occupation by

the applicant within 6 months • the value of any premises occupied by a relative or former partner of the

applicant • the value of any reversionary interest • the assets of any business owned by the applicant • any sum paid to the applicant in consequence of damage to or loss of

the home or any personal possessions and intended for its repair or replacement

• any sum acquired on the express condition that it is used for effecting essential repairs or improvements to the home

• any personal possessions, except those acquired for the purpose of securing eligibility for a CL

• any payment made under section 17 of the Children Act 1989 or section 22 of the Children (Scotland) Act 1995 unless the payment was made for the same need as the CL application

• any run-on payment of council tax or housing benefit • any compensation award set aside for the replacement of lost livelihood • any integration loan granted under The Integration Loans for Refugees

and Others Regulations 2007. 57. Section 73(14) of the Social Security Contributions and Benefits Act 1992 requires that the mobility component of Disability Living Allowance should be disregarded in full when considering the resources of a person who has applied for a CL.

Payments from the Independent Living (Extension) Fund/Independent Living (1993) Fund 58. Fully disregard payments from the Independent Living (Extension) Fund/Independent Living (1993) Fund. The Independent Living (Extension) Fund and Independent Living (1993) Fund are discretionary trust funds which will make payments to enable a severely disabled person to continue to live in the community. 59. Primarily payments will be made to enable the disabled person to employ domestic assistance or personal care. However, trustees are able, exceptionally, to make lump sum payments for items which will prevent the applicant from entering residential care.

Payments from the MacFarlane Trust 60. Fully disregard payments made from the MacFarlane Trust. This is a charitable trust established partly out of funds provided by the Secretary of


61. Payments made from the trust do not have to be disclosed by SF applicants or social security claimants.

Payments from variant Creutzfeldt Jakob Disease (vCJD) trusts 62. The vCJD trusts make payments to people who have contracted vCJD and their immediate families. The payments are made in recognition of the pain and suffering of victims and their families. 63. Fully disregard vCJD trust payments.

Payments from the Skipton Fund 64. The Skipton Fund makes payments to those people infected with Hepatitis C from NHS blood or blood products. These payments are made on compassionate grounds and will help alleviate some of the problems people, affected in this way, are experiencing. 65. You should fully disregard Skipton Fund payments.

Other disregards 66. Temporarily disregard any other resources if it is considered reasonable to do so in the circumstances, e.g. you may consider it reasonable to disregard capital assets such as savings certificates for a few days provided the applicant is urgently arranging to cash them. 67. If the CL application is for an item or service, some of the applicant's resources may be required for immediate day to day living expenses.

Help from another person or body 68. Take into account any help which might be available from any other source to meet or partly meet the need, if there is a realistic expectation that help would be available in time. Possible sources of help might be charities and benevolent funds which are known to be likely to provide the required assistance. 69. Do not routinely refer applicants to employers, relatives or close friends unless there is reason to believe that an offer of help will be forthcoming.

Local authorities 70. The Social Services Department (SSD) (Social Work Department (SWD) in Scotland), do not normally meet financial needs. If there is an indication that help may have been sought or provided by them, check with the SSD/SWD to avoid duplication of help.

Interview on 3rd application for a living expenses CL 71. The Social Fund Applications and Miscellaneous Provisions Regulations 2008 as amended have the effect that when some-one wishes to make a third or subsequent application for a CL in 12 months, the Secretary of State may require that application to be made at a face to face interview. 72. The decision whether to require an interview is made under the regulations by an official exercising the functions of the Secretary of State. It is not subject


Direction 14C – Eligibility – 3 or more living expense awards in the specified period 73. An applicant will usually be restricted to a total of three relevant awards within a 12 month rolling period, but see paragraph 81 below for the exceptions to this restriction. This Direction only applies to applications made on or after 4 April 2011. Relevant Awards 74. A relevant award is an award made on or after 4 April 2011 under Direction 3 for assistance with the following expenses: • living expenses under Direction 3(4)(a) but not those paid for alignment purposes, (see paragraph 77 below); or • travel expenses under Direction 3(4)(d); or • fuel expenses under Direction 3(4)(e).

75. In addition, if an award, on an application where the primary purpose is alignment to benefit or wages, includes an amount paid for travel and/or fuel expenses, under Direction 3(4)(d) or (e), then the award will count towards the 3 in 12 restriction as a relevant award. However an award which includes payment for more than one category of expenses (living, travel and fuel) is one award when counting the number of relevant awards in twelve months. 76. An award made under the exceptions described at paragraph 81 will count as a relevant award when considering subsequent CL applications. For example, Application 1 - May 2011; Application 2 - July 2011; Application 3 - December 2011; Application 4 - Feb 2012 awarded because falls within the exception at Direction 14C(3); Application 5 - June 2012 not awarded because there have been 3 relevant awards within 12 months. 77. An alignment living expenses award is: • an award made where an income replacement benefit has been claimed

but full benefit entitlement is not yet in payment or • an award made where an applicant is awaiting first payment of earnings

as an employee after being on an income-replacement benefit where the applicant needs help with living expenses until full benefit entitlement or remuneration is received i.e. alignment payments. Alignment living expenses awards are not limited to three in 12 months and, except as described in paragraph 75, do not count as a relevant award. 78. The relevant award relates only to applications made on or after 4 April 2011 for assistance with expenses as described in paragraph 74 above. Where a decision is changed on review there is only one relevant award on an application. Eg, if a paid award subsequently increases on review, the first award is the relevant award. But if the original decision was a NIL and this is changed on review to a paid award, the review award is the relevant award. 79. To establish whether there have already been 3 relevant awards in a 12 month period, DMs must identify relevant awards made in the 12 months ending on the date of the current application. For example, if the application


being considered is made on 10 May 2012, the 12 month period begins 11 May 2011 and ends 10 May 2012. 80. For applications received in the first 12 month period following the introduction of the change on 4 April 2011 only awards on applications made on or after that date are counted. For example, an application is made on 5 July 2011. The 12 month period begins on 6 July 2010 and ends on 5 July 2011. The claimant has had a previous CL award on 15 November 2010 however since that was prior to 4th April 2011 it will not count towards the 3 in 12 restriction.

Exceptions 81. A 4th or subsequent award in 12 months may still be considered for non alignment living expenses, or expenses in Direction 3(4)(d) or (e) if the DM is satisfied that the application is :

• as a consequence of a disaster (see paragraph 248 et seq) ;or • in an emergency which:

is not a consequence of an act or omission for which the applicant or his partner is responsible and,

the applicant or his partner could not have taken reasonable steps to avoid (see paragraph 82 et seq below).

Emergency 82. In order to determine whether the exception applies, the SF DM must be satisfied that the emergency is not the result of an act or omission for which the applicant or partner is responsible. And that they could not have taken reasonable steps to avoid the emergency. 83. This means considering:

• whether the applicant or partner caused the emergency by a direct act or omission (failure to act); and if not

• whether the applicant or partner could have taken reasonable steps to avoid it.

84. Examples of causing the emergency by a direct act are gambling or misspending. 85. Where the applicant or partner did not directly cause the emergency, the DM should ascertain whether reasonable steps were taken avoid it. 86. For example, if the home is burgled, confirm that steps were taken to secure the home in the first place by locking all doors and windows etc. Whilst it may be understandable that the applicant or partner forgot to lock a door leaving cash easily accessible to an opportunist thief, in most cases it could not be considered that they have taken reasonable steps to avoid an emergency. 87. Similarly, if the applicant or partner chose to carry all their available cash and this is lost or stolen, there may have been several steps that could have been taken to avoid the emergency. For example, some cash could be left in the bank or secure at home; or more securely carried around by a person in an inside pocket or money belt. 88. In considering the responsibility of the applicant or partner, the DM should take account of their individual circumstances. For example, it may be relevant that the person whose act gives rise to the emergency is suffering from a mental illness or disability.


89. However, where that person is a member of a couple, the DM should still consider whether the other member of that couple could have taken reasonable steps to avoid the emergency. 90. Those who are the innocent victims of crimes such as serious physical assault which results in the loss or theft of money are not likely to have caused the emergency, or have been able to take steps to avoid it. There will generally be corroborative evidence available for such incidents, such as a police report and an ongoing investigation. 91. However, where the applicant or partner is a victim of crime, the DM must still be satisfied that the emergency could not reasonably have been avoided. For example, the DM should seek further explanation where it is not apparent why it was necessary to be in a known high crime area late at night carrying more than a small amount of money. 92. If satisfied that neither the applicant nor partner caused the emergency and could not have taken reasonable steps to avoid it, the exception in paragraph 81 (Direction 14C(3)(b)) applies; the DM can go on and determine the application under Direction 3.

Out of Hours Payments 93. Two relevant awards are to be treated as a single award for the purposes of the restriction to 3 awards in a rolling 12 month period where;

• an application is determined by a DM in the Out of Hours Service (OOHS) of the DWP and a payment is awarded to cover only the period until a DWP office is next open; and

• the applicant has been advised to immediately reapply when the office is next open; and

• a subsequent application is made on that day and an award is made which runs consecutively with the award made in OOHS.

Direction 15 - Excluded persons Direction 15 94. This Direction sets out some groups of people excluded from a CL (CL) and they are listed below:

• care home residents and hospital in-patients unless it is planned that they will be discharged within the following 2 weeks.

• persons who are members of and fully maintained by a religious order • those receiving education and thus not entitled to Income Support,

income-based Jobseeker’s Allowance or income-related Employment and Support Allowance

95. Prisoners who are in prison or released on temporary licence are excluded from receiving a CL. 96. Release on temporary licence in England and Wales is governed by rule 9 of the Prison Rules 1999. It was formerly referred to as home leave or temporary release.


97. The corresponding arrangement in Scotland is known as temporary release and is governed by Part XIV of the Prisons and Young Offenders Institutions (Scotland) Rules 1994. 98. The exclusion in direction 15(b) does not apply to people who are:

• released from prison on parole • released from prison on permanent licence • on bail pending a court hearing.

99. Also a Community Care Grant (CCG) can be considered for a person receiving Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)) or payment on account of such benefits who needs help with the extra expense of caring for a prisoner or young offender on release on temporary licence (see Part 2 of SF Guide).

Direction 16 - Students and persons from abroad

Direction 16 100. Students who receive Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)) or payment on account of such benefits are eligible for CLs in the normal way. 101. There is no exclusion from PC for students aged 60 or over who are in:

• full time advanced education • part time advanced education • full time non-advanced education • part time non-advanced education.

102. Student top-up loans and Access Funds are available in addition to any education grant. Most full time students are excluded from receiving IS, JSA or ESA or payments on account of such a benefit throughout the period of their course including the long vacation where this occurs during but not at the end of a course. 103. Full time students who are not in receipt of IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits are eligible for CLs during term time or in any vacation only to alleviate the consequences of a disaster. 104. Discretionary payments from the Access Funds, administered by the appropriate educational institution, are intended to provide help in cases of financial hardship. In determining an application you should check the availability of such funds. 105. A person who is or would be treated as a person from abroad and is consequently in a category not entitled to IS, JSA(IB) or ESA(IR) or payments on account of such a benefit, may receive a CL only to alleviate the consequences of a disaster. Treat their application in the normal way. 106. Particular attention should be given to the clothing needs of refugees. Persons from abroad who are eligible for urgent case payments will also be eligible for IS, JSA(IB) or ESA(IR) premiums. Take account of this when considering SF applications.


Direction 17 – Sanctions and disallowances

Direction 17 107. Direction 17 restricts the CL awards which may be made in specified circumstances described in paragraph 110 below to expenses that arise as a consequence of disaster. 108. Essentially it limits access to help with living expenses or for most goods or services where that applicant’s benefit has been disallowed or sanctioned. 109. The aim of the direction is to ensure that the applicant cannot undermine the financial impact of such a disallowance or sanction by receiving a CL instead. 110. The circumstances are that the DM finds that the application is made wholly or partly because the applicant is (or for the purposes of sub-paragraphs (b), (c) and (d) only, has been) the subject of one or more of the following, a: (a) trade dispute (b) disallowance (c) sanction or (d) work-focused interview sanction.

Decision making process 111. In determining whether Direction 17 applies, a DM must look at all the circumstances that led to the CL application being made. Identifying that the applicant is subject to a disallowance or sanction is only the first step. 112. Consideration must be given to the reasons why the CL application has been made. It is for the DM to discover the reasons and make a finding as to whether the application is wholly or partly due to the disallowance or sanction. 113. It is possible that even though an applicant is subject to a disallowance or sanction, their CL application was not as a result of one of these. An applicant may have had sufficient resources in spite of a reduction in their benefit, however intervening events have resulted in a loss of those resources and the necessity for a CL has arisen. 114. There is no definitive list of events that result in the applicant not having enough to cover living expenses. Such events might include:

• loss of money; • theft of money; • spending resources on an unexpected emergency situation.

115. If the DM finds that the application was as a result of one of the specified circumstances in paragraph 110, (Direction 17(2)), whether wholly or partly, CLs should be restricted according to paragraph 107 (Direction 17(1)).


Example A jobseeker has refused to follow a jobseeker’s direction and has his benefit sanctioned for 2 weeks. Despite the sanction, the jobseeker has sufficient money to meet his living expenses. Five days before he will receive his first payment of JSA since being sanctioned, the jobseeker loses his wallet containing his last £50. His application for a CL for living expenses is awarded as the DM finds the application was due to his wallet being lost and not because of the sanction.

Trade disputes (Direction 17(3)(a)) 116. A claimant will not be entitled to Jobseekers Allowance (JSA) for any week which includes at least one day where the claimant is involved in a trade dispute (as per Jobseekers Act, section 14). 117. When such a claimant makes an application for a CL, and it is determined that the application was due wholly or partly to the disentitlement, their access to CLs will be restricted under Direction 17. 118. If an application is made as the consequence of a disaster, consider the application in the same way as other CL applications. 119. If the application arises other than as a consequence of a disaster a CL cannot be considered. 120. There is no provision for hardship payments in relation to customers who are involved in a trade dispute, and as such irrespective of whether the customer may be a member of a perceived vulnerable group or not, their access to CLs will be restricted under Direction 17 in the circumstances described above.

Jobseekers Allowance Disallowances (Direction 17(3)(b)) 121. Disallowances occur where the jobseeker has not satisfied a basic condition of entitlement to Jobseekers Allowance (JSA), for example availability for employment. 122. Under a disallowance, JSA is not payable for the length of the disallowance. Where that jobseeker falls within a prescribed vulnerable group (see paragraph 171), they can apply for JSA(IB) hardship payments immediately. If an applicant for a CL who is subject to a JSA disallowance and appears to fall within a vulnerable group has not applied for JSA(IB) hardship payments they should be advised to do so. 123. An applicant who is in a prescribed vulnerable group (see paragraph 171 below) and already in receipt of JSA(IB) hardship payments, may apply for a CL under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for this group, see Direction 17(4)(a). 124. JSA will not be payable, even JSA(IB) hardship payments, to applicants who are not in a prescribed vulnerable group (see paragraph 172 below) until such time as the jobseeker modifies his behaviour and satisfies the JSA basic conditions of entitlement. 125. For these cases, if JSA is not payable due to a disallowance and the DM finds that the application for a CL is wholly or partly due to that disallowance, a CL for living expenses cannot be awarded. In these circumstances a CL can only be considered as a consequence of a disaster.


Example 1 A jobseeker has refused to enter into a Jobseeker’s agreement and as a result his JSA has been disallowed. He is a single man with no health problems and he is not eligible to receive JSA(IB) hardship payments. As his JSA has been stopped he has no money, so makes an application for a CL for living expenses. The DM considers that Direction 17(2)(b) applies, i.e., the application is made because the applicant is the subject of a disallowance. As the jobseeker is not receiving JSA(IB) hardship payments for being a member of a vulnerable group, a CL for living expenses is not allowed under Direction 17(1).

Example 2 A jobseeker states that she is not available for employment and as a result her JSA is disallowed. She applies for a CL as her handbag containing £100 is stolen and as a result she has no money for food. The DM considers that the CL application is as a result of her money being stolen not due to the fact that her JSA is disallowed. Consequently Direction 17(2)(b) does not apply and a CL for living expenses can be considered.

126. If a jobseeker changes their behaviour after the original disallowance by making a new claim to JSA and satisfies the officer who made the JSA decision on behalf of the Secretary of State of their eligibility to JSA, the original disallowance and thus the restriction on availability for CLs, will no longer apply from the date the new claim to JSA is allowed.

Jobseekers Allowance – employment sanctions (Direction 17(3)(c)(i) & (ii)) 127. Employment sanctions occur if, for example, jobseekers have left their previous work voluntarily or through misconduct. 128. The length of employment sanctions are discretionary, to be set by the DM up to a maximum of 26 weeks. During the period of a sanction JSA is not payable, however for those who fall within a prescribed vulnerable group (see paragraph 171 below) the jobseeker can apply for JSA(IB) hardship payments. 129. If a sanctioned applicant who comes within a prescribed vulnerable group is not receiving JSA(IB) hardship payments they should be advised to apply immediately. Until such time as they actually receive JSA(IB) hardship payments their access to a CL will be restricted under Direction 17. 130. For people who do not fall into a prescribed vulnerable group (see paragraph 172 below) JSA, including JSA(IB) hardship payments, will not be payable, for the first two weeks of the sanction. After this time they can then apply for hardship payments. Irrespective of whether they receive hardship


payments or not, as they are not a member of a vulnerable group they will not be eligible under Direction 17 for a CL for living expenses. Example 1 A jobseeker has resigned from his job and as a result his JSA has been sanctioned for 12 weeks from 19/4/10 to 11/7/10. He falls within a vulnerable group as his wife is pregnant and he has applied for and is receiving JSA(IB)hardship payments. In this case Direction 17(3)(c)(i) does not apply as he falls within the exception at 17(4)(a) so a CL for living expenses can be considered under the normal rules.

Example 2 A jobseeker has been dismissed from his job due to misconduct and as a result his JSA has been sanctioned for 7 weeks from 3/5/10 to 20/6/10. He is a single, healthy man and does not fall within a vulnerable group for the purposes of JSA(IB) hardship payments. On 17/5/10 he applies for a CL for living expenses as he has no money to buy food. The DM determines that his application for a CL is due to the fact that his JSA is sanctioned so Direction 17(3)(c)(i) applies and a CL for living expenses is refused under Direction 17(1). In this case the applicant should be directed to apply for JSA(IB) hardship payments as jobseekers who are not in a vulnerable group are entitled to make such an application from the 15th day that JSA is not payable because of the sanction. Irrespective of whether the jobseeker ultimately receives JSA(IB) hardship payments, he would still be ineligible for a CL for living expenses as the reason he may be receiving hardship payments is not because he is a member of a vulnerable group.

Jobseekers Allowance – Jobseekers direction (Direction 17(3)(c)(i) & (ii) 131. A claimant’s JSA can be sanctioned where they have refused or failed to carry out a jobseeker’s direction (JSD sanction) and cannot show good cause for the refusal or failure. A JSD sanction is a fixed period sanction lasting for one week. 132. During the period of a sanction JSA is not payable, however those who fall within a prescribed vulnerable group (see paragraph 171) can apply for JSA(IB) hardship payments. If a sanctioned applicant who comes within a prescribed vulnerable group is not receiving JSA(IB) hardship payments, they should be advised to apply immediately. Until such time as they actually receive JSA(IB) hardship payments their access to a CL will be restricted under Direction 17. 133. Claimants who are not part of a vulnerable group are eligible to apply for JSA(IB) hardship payments from the 15th day that benefit is not payable due to a JSD sanction, however this is subject to a number of exceptions. Irrespective of whether a claimant who is not part of a vulnerable group receives hardship payments or not, any applications they make for a CL will be subject to Direction 17.


Jobseekers Allowance – Training and New Deal sanctions (Direction 17(3)(c)(i) & (ii)) 134. These types of sanction occur if, for example, jobseekers have failed to attend or neglected to avail themselves of a place on a New Deal option, the Flexible New Deal or a mandatory training scheme. 135. New Deal (including the Flexible New Deal) sanctions are for a fixed period of 2, 4 or 26 weeks and can be applied consecutively. Those in a prescribed vulnerable group (see paragraph 171) can apply for JSA(IB) hardship payments immediately. However, in the case of claimants who are not in a vulnerable group, JSA is not payable for the whole of the period of the sanction. In the case of the Flexible New Deal, a 26 week sanction can be brought to an end after a minimum of 4 weeks where the claimant agrees in writing to comply with his or her action plan. 136. An applicant who is in a prescribed vulnerable group and already in receipt of JSA(IB) hardship payments, may apply for a CL under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for this group. 137. For those who are not in a vulnerable group whose JSA is not payable because of a sanction, an application for a CL for living expenses cannot be considered if the application is made as a result of that sanction. In these cases a CL can only be considered to alleviate the consequence of a disaster.. Example 1 A jobseeker has refused to attend her place on a FND programme and as a result her JSA is sanctioned for 2 weeks. She is a single person with no children or health problems so is not in a vulnerable group and not entitled to JSA(IB) hardship payments. As she has no money she makes an application for a CL for living expenses but the DM determines that her CL application is as a result of the sanction so Direction 17(3)(c)(i) applies and a CL for living expenses is not allowed under Direction 17(1).

Example 2 A jobseeker is in receipt of JSA(C). He has lost his place on an employment programme through misconduct and as a result his JSA is sanctioned for 2 weeks. The jobseeker is married with 2 children, and therefore a member of a vulnerable group and asks for hardship payments. The DM is satisfied that unless JSA is paid the children will suffer hardship. The jobseekers entitlement to JSA(IB) is established and as he is part of a vulnerable group JSA(IB) hardship payments commence. The jobseeker applies for a CL and is entitled to have it considered under the normal rules without the Direction 17 restriction as he is receiving JSA(IB) hardship payments as part of a vulnerable group.


Two Strikes sanctions (Direction 17(3)(c)(iii) & (iv) 138. The Loss of Benefit provisions contained in section 7 of the Social Security Fraud Act 2001 (known as a “Two Strikes” sanction) are designed to be a deterrent against continued abuse of the benefit system. They provide for a sanction for those convicted of benefit offences whereby payment of certain benefits is either stopped entirely or reduced, if a person would otherwise be entitled to those benefits, during a fixed 13 week disqualification period. 139. A Two Strikes sanction is triggered when a person is convicted in two separate proceedings of one or more benefit offences committed on or after 1st April 2002 relating to disqualifying benefits. The second or subsequent offence must have been committed within five years of the previous conviction. A Two Strikes sanction can be applied to all sanctionable benefits in payment during the disqualification period, regardless of whether the offence was committed in relation to that benefit. 140. While the Two Strike sanction can be applied to a range of benefits, restricted access to CLs under Direction 17(2)(c) only applies if the benefit sanctioned is income support, employment and support allowance, jobseekers allowance or state pension credit. The exceptions to this, as with other Direction 17(3)(c) sanctions, are vulnerable groups in receipt of hardship payments (see Direction 17(4)). 141. For jobseeker’s allowance, those in a prescribed vulnerable group (see paragraph 171) and already in receipt of JSA(IB) hardship payments may apply for a CL without reference to Direction 17. Claimants who are not part of a vulnerable group, can apply for JSA(IB) hardship payments on the 15th day that benefit is not payable as a result of the Two Strikes sanction, but will still be subject to Direction 17. 142. For income support, employment and support allowance and state pension credit, the prescribed vulnerable groups are customers who are pregnant or seriously ill or have a family member who is pregnant or seriously ill. 143. If they are receiving their sanctioned benefit subject to a 20% reduction only (as per regulation 3(1)(a) or 3A(1)(a) of the Social Security (Loss of Benefit) Regulations 2001), they can apply under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for these groups (see Direction 17(4)(c) and (d)). 144. All other IS, ESA(IR) and SPC customers who have been sanctioned under the Two Strikes provisions will receive their benefit but it will be reduced by 40%, however any CL applications will still be subject to Direction 17.

One Strike sanction (Direction 17 (3)(c)(iii) & (iv))) 145. The Loss of Benefit provisions in the Social Security Fraud Act 2001 have been amended from 1st April 2010 to introduce section 6B; a loss of benefit sanction for all first offences of benefit fraud (a “One Strike” sanction). The new sanction will apply not only to cases which are prosecuted and result in a criminal conviction for benefit fraud but also to those cases which result in an administrative penalty or a caution. 146. The aim is to increase the deterrent effect of the existing sanctions regime by extending the provision on loss of the right to continuing benefit to cover those committing a first benefit fraud offence.


147. Where a benefit is subject to a One Strike sanction it could be reduced or not payable in its entirety, depending on the benefit and prescribed circumstances. All One Strike sanctions, irrespective of whether benefit is reduced or not payable, are for a fixed four week disqualification period. 148. A One Strike sanction is triggered if a relevant offence was committed after 1st April 2010. If the individual is convicted of a benefit fraud offence after 1st April 2010 (or accepts an administrative penalty or caution) but the offence was committed prior to that date, then One Strike sanctions will not apply. 149. As with Two Strike sanctions, One Strike sanctions can be imposed against numerous benefits, however the Direction 17 restriction only applies to income support, employment and support allowance, jobseekers allowance and state pension credit subject to those exceptions for vulnerable groups detailed in paragraphs 150 to 153 below (see Direction 17(4)). 150. For jobseekers allowance those in a prescribed vulnerable group and already in receipt of JSA(IB) hardship payments may apply for a CL without reference to Direction 17. Claimants who are not part of a vulnerable group, can apply for JSA(IB) hardship payments on the 15th day that benefit is not payable as a result of the One Strikes sanction, but will still be subject to Direction 17. 151. For income support, employment and support allowance and state pension credit, the prescribed vulnerable groups are customers who are pregnant or seriously ill or have a family member who is pregnant or seriously ill. 152. If they are receiving their sanctioned benefit subject to a 20% reduction only (as per regulation 3 (1) (a) or 3A (1) (a) of the Social Security (Loss of Benefit) Regulations 2001), they can apply under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for these groups (see Direction 17 (4)(c) and (d)). 153. All other IS, ESA(IR) and SPC customers who have been sanctioned under the One Strikes provisions will receive their benefit but it will be reduced by 40%, however any CL applications will still be subject to Direction 17.

Jobseekers Allowance – Fail to show good cause sanctions (Direction 17 (3)(c)(v)) 154. From 6th April 2010 the Jobseekers Allowance Regulations have been amended to introduce a new sanction for jobseekers who fail to attend mandatory interviews. 155. The change introduces a new one week sanction for jobseekers who fail to attend a mandatory interview, and although they contact Jobcentre Plus within five working days are unable to show good cause for the failure. Entitlement to JSA will continue but benefit will not be payable. A second or subsequent failure to attend without showing good cause within the same jobseeking period will result in a further two week sanction. 156. If an applicant for a CL who is the subject of a sanction, as they did not show good cause for failing to attend an interview, has not applied for JSA(IB) hardship payments they should be advised to do so. 157. Those in a prescribed vulnerable group (see paragraph 171) who are already in receipt of JSA(IB) hardship payments may apply for a CL under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for this group.


158. However for applicants who are not in a vulnerable group where the DM determines that the CL application is wholly or partly as a result of the sanction a CL can only be considered to alleviate the consequences of a disaster. Example 1 A jobseeker has failed to attend his fortnightly jobsearch review interview and has not shown good cause for missing the appointment. As a result his JSA is sanctioned for one week. The jobseeker is not a member of a prescribed vulnerable group and is unable to receive JSA(IB) hardship payments. He makes an application for a CL as he has no money and the DM determines that his application is as a result of the sanction imposed on his JSA claim. As the jobseeker is not in receipt of JSA(IB) hardship payments for being a member of a prescribed vulnerable group, Direction 17(2)(c) applies and a CL is refused under Direction 17(1).

Example 2 A jobseeker has failed to attend her 13 week mandatory interview at the Jobcentre. This is the second interview she has failed to attend in the same jobseeking period so a two week sanction has been imposed. The jobseeker is pregnant so falls into a prescribed vulnerable group and is receiving JSA(IB) hardship payments. She makes an application for a CL as she has no money. The DM determines that even though she would be subject to Direction 17 (3)(c)(v), the exception in Direction 17(4) applies as she is receiving JSA(IB) hardship payments for being in a vulnerable group. Therefore the CL application can be considered in the normal way.

Work-focused interview or work-focused health-related assessment sanctions – ESA (Direction 17(3)(c)(iv)) 159. In relation to ESA, customers may be required to attend either a work- focused interview (WFI) or a work-focused health-related assessment (WFHRA). If they fail to take part in a required interview a sanction may be imposed and ESA will be paid at a reduced rate. The reduction is applied to the work related activity component of ESA. 160. SF applicants who have received a decision that they have failed to take part in a WFI or WFHRA and as a result their ESA has been sanctioned, will have their access to CLs restricted to expenses in consequence of a disaster under Direction 17. 161. There are no hardship payments to vulnerable groups under this sanction and accordingly the Direction 17 restriction to CLs will apply to all applicants who are subject to this sanction whether or not they may fall into a vulnerable group.


Work-focused interview sanction – IS, IB and SDA (Direction 17(3)(d)) 162. Several initiatives are in force which in prescribed circumstances require people of working age to take part in a WFI when making a new and repeat claim. A WFI sanction may be imposed if a customer fails to take part in a required WFI. This may result in the payment of income support, incapacity benefit or severe disablement allowance being disallowed or reduced due to this failure. 163. SF applicants who have received a decision that they have failed to take part in a WFI will have their access to CLs restricted to expenses in consequence of a disaster under Direction 17. 164. However this restriction does not apply to those in a prescribed vulnerable group, which is currently limited to lone parents (see Direction 17(4)(e)). Example A lone parent has failed to attend her WFI and as a result her IS is sanctioned and paid at a reduced rate. She makes an application for a CL as she finds it difficult to manage on her reduced benefit. The DM determines that although the CL application is as a result of the sanction, it is not appropriate to apply the restricted access to a CL under Direction 17 as the applicant falls within the exception at 17(4)(e). The DM considers a CL in the normal way.

Applicants whose partners are subject to a sanction, disallowance or WFI penalty 165. Where it is the applicant’s partner who has a claim to benefit that is subject to the above sanctions/penalties, the applicant has normal access to a CL. 166. However where the CL application is for living expenses, the maximum living expenses payable must be calculated in accordance with Direction 18(2B), i.e. no amount is payable for the partner who has been sanctioned. Note that this only applies when, had the sanctioned partner applied for the CL instead, the restrictions in Direction 17 would apply.

Joint Claims for Jobseekers Allowance 167. Certain childless couples making new or repeat claims for JSA are required to make their claim jointly. Both members of the couple will have to satisfy JSA entitlement conditions to get JSA and both will be claimants with equal rights and responsibilities in relation to the claim. 168. The same principles governing CL restrictions for applicants subject to a benefit penalty will apply via Directions 17 and 18 to either member of a JSA joint claim couple as to other sanctioned jobseekers. 169. These are that:

• where a benefit penalty is imposed on a jobseeker their access to CLs is restricted to specified expenses as laid down in paragraph 107; and

• their partner who is not the subject of the benefit penalty will have normal access to CLs; but


• any award for living expenses will be limited under Direction 18(2B).

Prescribed vulnerable/non vulnerable groups 170. Direction 17(4) provides an exception to the general restriction imposed by Direction 17(1). This exception is essentially for vulnerable groups, however it may depend on whether they are entitled to, and receiving, a hardship payment for being a member of a vulnerable group under the rules of the specific benefit being sanctioned. 171. For the purposes of JSA disallowances and sanctions, the following customers are considered to be a member of a vulnerable group:

• a single pregnant woman; • members of couples or polygamous marriages where at least one

member of the couple or marriage is pregnant; • a single person responsible for children or young people; • members of couples or polygamous marriages responsible for children or

young people; • a person who qualifies for Disability Premium; • a person with long-term medical conditions; • a person who provides care for disabled people; • certain 16 or 17 year olds; and • certain persons under the age of 21

172. Customers who do not fall within a vulnerable group are generally healthy, childless people with no caring responsibilities. 173. There is no provision for hardship payments for vulnerable groups that are the subject of a trade dispute. 174. When a customer’s IS, ESA or SPC is the subject of a One or Two Strike sanction, they will only be considered part of a vulnerable group when they or any member of their family is pregnant or seriously ill. In these cases the reduction in benefit is smaller than for other sanctioned customers. 175. When a vulnerable group customer is subject to a JSA disallowance or sanction, or an IS, ESA and SPC One or Two Strike sanction, they may be entitled to have their benefit paid at hardship rate immediately. If such a hardship payment is in payment, when an applicant applies for a CL they are not restricted by Direction 17 and their application should be considered in the normal way. 176. It should be noted that non-vulnerable group customers may be entitled to hardship payments as well, but usually a number of weeks after the sanction is imposed. Despite receiving a hardship payment, these customers are not excluded from the Direction 17 restriction on CLs. 177. The amount of benefit paid when on hardship can vary even between vulnerable customers, so this should not be used as the key factor in deciding if the customer falls within Direction 17 (4). 178. In relation to WFI sanctions imposed on IS, IB or SDA, vulnerable customers are limited to lone parents as per Direction 17(4)(e). 179. DMs may find the following table and flowchart useful when determining whether or not the restriction in Direction 17 applies.


Direction 17 – table showing when to consider restricted access to Crisis Loans

WHEN TO CONSIDER DIRECTION 17 RESTRICTIONS

Circumstances Benefit – Group

(to which D17 applies)

Hardship/Benefit in payment Restricted

access under D171

17(3)(a) Trade Disputes (no changes)

JSA – Non vulnerable group JSA – Vulnerable group2

No benefit payable or hardship considered No benefit payable or hardship considered

Yes

Yes

17(3)(b) Disallowances

JSA – Non vulnerable group JSA – Vulnerable group

No benefit payable until availability resolved, no hardship considered Hardship considered immediately

Yes

No 17(4)(a) & (b)

17(3)(c) Sanctions 17(3)(c)(i) & (ii)

s19 or s20A JS Act Sanctions (including New Deal and training sanctions)


Hardship considered after 2 weeks3

Hardship considered immediately

Yes

No 17(4)(a) & (b)


Hardship considered after 2 weeks Hardship considered immediately

Yes

No 17(4)(a) & (b)

ESA(C) – Non vulnerable group ESA(C) – Vulnerable group

No benefit payable, however can apply for ESA(IR) at reduced rate No benefit payable, however can apply for ESA(IR) at reduced rate

Yes

Yes6

17(3)(c)(iii)4

s6B Fraud Act 20015

Benefit fraud offences – One strike (effective from 01/04/2010) 17(3)(c)(iii)4

s7 Fraud Act 20015

Benefit fraud offences – Two strikes (D17 extended to IS/ESA/SPC) IS/ESA(IR)/SPC –

Non vulnerable group IS/ESA(IR)/SPC – Vulnerable group

Benefit only subject to 40% reduction, no hardship considered Benefit only subject to 20% reduction, no hardship considered

Yes

No 17(4)(c) & (d)

17(3)(c)(iv) s8 Fraud Act 2001 Benefit fraud offences – One & Two strikes

JSA joint-claim – Non vulnerable group JSA joint-claim – Vulnerable group


Yes

No 17(4)(a) & (b)

17(3)(c)(v) Reg. 27A JSA Regs No good cause sanction (effective from 06/04/2010)


No benefit for 1 week for 1st offence then no benefit for 2 weeks for later offences Hardship considered immediately

Yes

No 17(4)(a) & (b)

17(3)(c)(vi) Reg. 63 ESA Regs Failure to take part in WFI or WFHRA for ESA

ESA – Non vulnerable group ESA – Vulnerable group

Work-related activity component only to be reduced, no hardship considered Work-related activity component only to be reduced, no hardship considered

Yes

Yes

17(3)(d) Failure to take part in WFIs

IS/IB/SDA – Non vulnerable group IS/IB/SDA – Vulnerable group

Dependent on specific regulations Dependent on specific regulations

Yes

No 17(4)(e)


Note 1: A CL may be awarded but only in respect of expenses as a consequence of a disaster Note 2: Claimants considered to fall within a vulnerable group vary according to the relevant benefit. Refer to SF Guide for further detailed information. Note 3: Hardship payments to non-vulnerable groups are not available in some cases. Examples include claimants who are required to participate in a New Deal option, the Flexible New Deal and where the claimant failed to participate in a Back to Work session. Note: all sanctioned claimants considered part of a non-vulnerable group, whether they are receiving hardship payments or not, will have their access to CLs restricted in accordance with D17. Note 4: 17(3)(c)(iii) does not apply to joint-claim JSA which is provided for in 17(3)(c)(iv). Note 5: ss6B & 7 Fraud Act sanctions can be imposed on a larger range of benefits than D17 applies to. Please note that D17 is only relevant where the benefit sanctioned under ss6B or 7 is JSA, IS, ESA or SPC. For all other benefits that may be sanctioned under ss6B or 7 (including IB & SDA) access to CLs is NOT restricted under D17. Note 6: Unless receiving ESA(IR) at reduced rate.


Direction 17 Consideration Flowchart

Is CL application for expenses as a consequence of disaster

YES

Subject to a sanction/disallowance/WFI sanction or has recently been so?

Is CL application wholly or partly due to disallowance/sanction?

Does sanctioned benefit fall within Direction 17(3) definitions?

Applicant in receipt of hardship payment as per Direction 17(4)(a) to (d) or a Lone Parent as in Direction 17(4)(e)?

Restriction under Direction 17 applies.

NO

NO

NO

YES

NORMAL RULES APPLY

NO

YES

YES

YES

NO


Direction 17 Consideration Step Action Table

Step Action 1 Is CL application for expenses as a consequence of disaster ?

Yes – Normal rules apply No – Go to Step 2

2 Is customer/partner currently, or has recently been, subject to a sanction/disallowance/WFI? Yes – Go to Step 3 No – Normal rules apply

3 Is CL application wholly or partly due to disallowance/sanction? Yes – Go to Step 4 No – Normal rules apply

4 Does sanctioned benefit fall within Direction 17(3) definitions? Yes – Go to Step 5 No – Normal rules apply

5 Is customer in receipt of hardship payment as per Direction 17(4)(a)(e)? Yes – Normal rules apply No – Restriction under Direction 17 applies.

Direction 7 – Circumstances in which repeat applications are not to be determined

Direction 7 180. For the purposes of Direction 7, do not refuse to determine an application for the same expenses in those cases where:

• the previous application was withdrawn before an offer was made • the applicant declined the offer on the previous application • the applicant did not respond to the offer on the previous application • the Secretary of State decided that the previous application was

incomplete. See the Social Fund (Applications and Miscellaneous) Regulations 2008.

Direction 7(2) 181. This provision applies where the CL application is for living expenses and an award has already been made to that person or their partner for the same period on a previous application. 182. The Secretary of State envisages very limited circumstances in which, where an award for living expenses has been made, it would be appropriate to determine a further application for living expenses for the same period. 183. The decision maker should refuse to determine the repeat application unless satisfied that the expenses are for help:

• as a consequence of a disaster which has occurred since the previous award; or

• in an emergency which:


has arisen since the previous award, is not a consequence of an act or omission for which the applicant or

partner is responsible, and the applicant or partner could not have taken reasonable steps to avoid.

184. Where the repeat application is for living expenses as a result of something an applicant or partner has done, or failed to do, the application will not be determined unless one of the exceptions above applies.

Disaster since the previous award 185. If there has been a disaster since the previous award and the Decision Maker is satisfied that help with living expenses is needed as a consequence of this, the Decision Maker can go on and determine the repeat application under Direction 3. See paragraphs 252 to 255 for definition of disaster.

Emergency since the previous award 186. In order to determine the application, the SF Decision Maker must be satisfied that the emergency is not the result of an act or omission on the part of the applicant or partner for which they are responsible. And that they could not have taken reasonable steps to avoid the emergency. 187. This means considering:



188. Examples of causing the emergency by a direct act are gambling or misspending. 189. Where the applicant or partner did not directly cause the emergency, the Decision Maker should ascertain whether reasonable steps were taken avoid it. 190. For example, if the home is burgled, confirm that steps were taken to secure the home in the first place by locking all doors and windows etc. Whilst it may be understandable that the applicant or partner forgot to lock a door leaving cash easily accessible to an opportunist thief, in most cases it could not be considered that they have taken reasonable steps to avoid an emergency. 191. Similarly, if the applicant or partner chose to carry all their available cash and this is lost or stolen, there may have been several steps that could have been taken to avoid the emergency. For example, some cash could be left in the bank or secure at home; or more securely carried around on a person in an inside pocket or money belt.

Exceptions 192. In considering the responsibility of the applicant or partner, the Decision Maker should take account of their individual circumstances. For example, it may be relevant that the person whose act gives rise to the emergency is suffering from a mental illness or disability. 193. However, where that person is a member of a couple, the Decision Maker should still consider whether the other member of that couple could have taken reasonable steps to avoid the emergency.


194. Those who are the innocent victims of crimes such as serious physical assault which results in the loss or theft of money are not likely to have caused the emergency, or have been able to take steps to avoid it. There will generally be corroborative evidence available for such incidents, such as a police report and an ongoing investigation. 195. However, where the applicant or partner is a victim of crime, the Decision Maker must still be satisfied that the emergency could not reasonably have been avoided. For example, the Decision Maker should seek further explanation where it is not apparent why it was necessary to be in a known high crime area late at night carrying more than a small amount of money. 196. If satisfied that neither the applicant nor partner caused the emergency and could not have taken reasonable steps to avoid it, the exception in Direction 7(2)(b) applies; the Decision Maker can go on and determine the repeat application under Direction 3.

Direction 7(3) 197. A CL or grant application made after 12 months from the date of a previous application for the same expense is not subject to the provisions of direction 7(3). 198. In considering direction 7(3), a relevant change of circumstances might be, for example, a change in the:

• applicant's circumstances • budgetary position • law.

199. With regard to the applicant’s circumstances and whether there has been a relevant change, consider the following example. 200. A repeat application for a bed is made by 2 different applicants who have already been awarded a payment for a bed. Applicant A did not buy a bed, but a different household item instead. Applicant B did buy a bed, but the bed has been subsequently destroyed by a house fire. 201. In the above example, there is no relevant change in Applicant A’s circumstances. There may however, be a relevant change in Applicant B’s circumstances. 202. In terms of the budgetary position, a new budget allocation at the beginning of the year or the normal budget fluctuations throughout the year would not in themselves represent a relevant change of circumstances. However where there has been a change in the budget that allows greater award amounts this may constitute a relevant change. 203. The main focus, in deciding whether a change is relevant, will be on whether it relates to the reasons for refusing or awarding a payment.

Direction 23 – Exclusions

Direction 23 204. Consider if the item or service requested is among the exclusions.


Removal or storage charges where a housing authority has a duty to re-house a person 205. Where a housing authority accommodates a person under its homelessness duties (Part VII of the Housing Act 1996 or Part ll of the Housing (Scotland) Act 1987), it has a duty to protect their property against loss or damage. Authorities usually discharge this duty by arranging for the removal or storage of the applicant's property, for which they may make a reasonable charge. 206. Authorities also have a duty to protect a person's property where an applicant is re-housed following the imposition of a compulsory purchase order, or a redevelopment or closing order, or a compulsory exchange of tenancies. 207. Authorities in England and Wales have a duty under homelessness legislation to secure accommodation for eligible homeless applicants in priority need, where there is no suitable alternative accommodation available. For unintentionally homeless applicants, this duty applies for a period of two years, after which it can be reviewed. 208. While an applicant is accommodated by an authority under homelessness legislation they can also apply through the housing register for a longer-term council or housing association tenancy. The authority's homelessness duty ceases with the allocation of such a tenancy under its housing allocation scheme. At that point, it has no further duty to protect that person's property, e.g. by arranging for its removal to the applicant's new address. Similar duties apply in Scotland, with the exception of the two year period and that no suitable alternative accommodation should be available. 209. You should exclude removal or storage charges where the housing authority is discharging a duty to accommodate a person under the homelessness legislation (Part VII of the Housing Act 1996 or Part II of the Housing (Scotland) Act 1987) or following the imposition of a compulsory purchase order, or a redevelopment or closing order, or a compulsory exchange of tenancies. 210. You should consider an award, subject to the priority of the application, for removal or storage charges, where the housing authority is re-housing a person under its housing allocation powers. 211. If the housing authority is not under a duty to protect a person's property but there is a possibility that it may use discretionary powers to arrange or meet the cost of removing or storing that property, you should have regard to this in dealing with the application, i.e. the possibility that some other person or body may wholly or partly meet the applicant's need (section 140(1)(c) of the Social Security Contributions and Benefits Act 1992). 212. If necessary, contact the housing authority, observing rules of confidentiality, to check:

• what help is being given or would be given on application, and • whether that help is under mandatory or discretionary powers.

Domestic assistance and respite care 213. This covers a range of situations allowing assistance or respite care, for either:

• someone looking after a person in need of care


• a disabled or elderly person who lives alone and needs a rest from their tasks for a week or two.

214. Respite care includes the following situations: • arrangements made for someone else to come into the home and

provide care, either for a set period or on a regular basis for, say, a few hours each week. LAs may provide such services but the provision may vary from one LA to another. Voluntary organisations can also help

• a person normally cared for in their own home who is being taken into short term residential care

• a person living independently who is being given a short term break in residential care.

Repair to property of public sector housing bodies 215. The term 'public sector housing bodies' covers Local Authority (LA) or analogous property, i.e. a property provided by:

• new towns • Urban Development Corporations • most housing associations • housing co-operatives • housing trusts • the Development Board for Rural Wales • Scottish Homes • Scottish Fire and police authorities.

Housing costs, repairs and improvements 216. The Secretary of State has directed that grants or loans cannot be made to meet, or help to meet, the cost of repairs and improvements to the dwelling occupied as the home, including any garage, garden and outbuildings, other than minor repairs and improvements. 217. The use of the term “repairs and improvements” includes the cost of both materials and labour. A repair will generally put right something that is defective. An improvement will generally upgrade something, or add something to the property that was not there before. 218. It is difficult to precisely define the term “minor”. The following considerations, however, will be relevant when deciding whether a repair or improvement is “minor” or not:

• the nature and extent of the work • the time needed to complete the work • the cost of the work.

219. Assistance from the SF is not appropriate to meet, or help to meet, the cost of repairs or improvements which are not minor. These are more appropriately financed through:

• house insurance • Local Authority grants, • a commercial loan.

220. The Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), the Pension Credit or income-related Employment and Support Allowance (ESA(IR) assessment may include an amount in respect of interest


on a loan taken out for some repairs and improvements. The IS (General) Regulations 1987 Schedule 3 paragraph 16(2) Jobseeker’s Allowance Regulations 1996 Schedule 2 para 15(2), the Pension Credit Regulations 2002 Schedule 2, para 12(2) and Employment and Support Allowance Regulations 2008, Schedule 6, para 17(2) specify the repairs and improvements for which interest may be included in IS, JSA(IB), PC and ESA(IR) respectively. 221. For people under 60, IS, JSA(IB) and ESA(IR) help for interest on loans taken out for these costs will not generally be payable until they have received IS, JSA(IB) or ESA(IR) for 39 weeks.

Medical, surgical, optical, aural or dental item or service 222. Such items or services should normally be provided through the health service but those items or services for which a charge is made are:

• free for people on IS, JSA(IB) or ESA(IR) • free or at reduced cost for certain other groups.

223. There is no specific definition of medical items in Social Security or NHS legislation. You should use a common sense approach and take account of the circumstances of the individual application. 224. Refer people asking for help from the SF for any such item or service to their GP, dentist, optician, health or local authority, as appropriate. 225. Applicants may ask for items in everyday use, although the need may have arisen from a medical or other condition, e.g. someone with an allergy may need cotton sheets. Payments for such items from the SF are not specifically excluded. 226. If such help is requested, first find out whether aid is available from other relevant agencies, e.g. GPs and hospital doctors can prescribe 'borderline substances' in specific circumstances, e.g. sunscreen for people with particular skin ailments. 227. If help cannot be provided from other agencies, consider the application:

• on its merits • assessing its priority in relation to:

the other applications the budget.

Work related expenses 228. This term covers expenses related to seeking and obtaining employment, e.g. fares when seeking work, new clothes on starting work. Some employers will consider an advance of earnings to help a new employee with such expenses. 229. Help may also be available from the Employment Service in the form of discretionary Jobfinders’ Grants and Jobseekers’ Grants or in the form of a Budgeting Loan (BL).

Debts to government departments and local authorities 230. These include:

• National Insurance arrears • income tax liabilities


• customs charges • rent arrears • council tax arrears.

This list is not exhaustive.

Accommodation charges including meals and services 231. If a CL application is received for a payment in advance to secure accommodation in a hotel, lodging house or similar establishment, any award should meet the accommodation charge only. 232. If the charge includes meals and/or services and the accommodation charge is not known, you may deduct a reasonable amount for meals and/or services that are known to be provided, before making a loan offer.

Application for excluded item 233. If another body might be able to meet the need, refer the applicant to them. If in doubt that the agency can help, seek the agency's advice before referring the applicant to them. Record all action clerically and on the decision form.

Maternity and Funeral expenses 234. There are two distinct parts to the SF:


• a discretionary scheme to meet payments of community care grants, CLs or budgeting loans in accordance with directions and guidance issued under section 138(1)(b) of the Act. Such payments are defined in section 138(5) of the Act.

235. It therefore follows that you cannot make payments for CCGs, CLs or BLs from the discretionary fund under section 138(1)(b) for any form of maternity or funeral expense, whether referred to in regulations or not. 236. The regulations do not define the terms 'maternity expenses' and 'funeral expenses'. You should interpret these terms in relation to their ordinary common sense meaning, but have some regard to their use in Social Security legislation. 237. You must therefore decide if you should regard a particular item as a maternity or funeral expense according to the individual circumstances of each application. 238. If you receive an application for maternity or funeral expenses, check to see if the applicant or their partner has made a claim for a Sure Start Maternity Grant or Funeral Payment under the regulated scheme. If the applicant or partner has not made a claim invite them to do so if appropriate, as well as dealing with the application to the discretionary fund. Maternity expenses 239. While the term 'maternity expenses' has its ordinary meaning there is no one accepted meaning of the term. You must use your judgement in deciding whether to consider an item to be a maternity expense.


240. The effect of the legislation referred to in para 234 above is to exclude awards from the discretionary fund for items such as the initial clothing needs of a newborn baby. You may consider items which a child needs later in its development, such as larger size clothing, as the needs of a growing child rather than maternity expenses. 241. You may consider clothing for a pregnant woman, often referred to as 'maternity clothing' as a personal need of the expectant mother rather than an immediate need of a newborn baby. 242. Consider whether the help requested is for:


maternity expenses. 243. A person can make a claim for a Sure Start Maternity Grant from the regulated fund 11 weeks before the expected date of confinement and up to 3 months after the birth. Baby items requested within this period may often fall within the category of maternity expenses. 244. In making your decision you should take into account:

• the items applied for and the circumstances surrounding the need • the timing of the application, i.e. before, around the time of or after the

birth • whether it is reasonable to class the need as a maternity expense.

Funeral expenses 245. Normally, interpret 'funeral expenses' to be the expenses of burial or cremation. All items referred to in the specification in the Funeral Payment Regulations are funeral expenses, even though there may be a limit on the amounts payable for some items. 246. If an applicant requests other items, consider if these are actual expenses of burial or cremation. Some items may be connected with a death but may not be expenses of burial or cremation. For example, you may consider:

• a headstone to be a memorial • clothing to attend a funeral to be a personal need of the applicant.

247. Advise the applicant if another body might be able to meet the need. Contact the other body if you are not sure that they would be able to help.

Direction 3 - The qualifying conditions Direction 3 248. For the purpose of Direction 3 it is necessary to distinguish between the 2 types of situation: emergency and disaster. 249. This is because a CL can only be considered for certain expenses in an emergency as well as a consequence of a disaster, see paragraph 2. 250. All other expenses for items and services can only be considered if the application is made as a consequence of a disaster, see Direction 3(2)(b) and (5). Where a crisis loan application for these expenses is made, the DM is obliged to first consider whether a community care grant is appropriate under Direction 4(a)(i) to (iii). See Direction 3(6) to (9).


Definition of terms 251. An emergency generally means a situation causing the applicant to have a pressing need or an unforeseen circumstance either of which requires immediate remedy or action. 252. A disaster generally means a sudden calamitous event or great misfortune causing loss of, or damage to possessions or property Disasters 253. A crisis loan can be considered for immediate short term needs as a consequence of a disaster. The need for help will generally be for a specific item or service, but all types of assistance can be considered – including day to day living expenses – as long as they are not excluded by direction 23. 254. Disasters are events of great or sudden misfortune. The result will normally be significant damage to, destruction or loss of, possessions or property. However, where there is no effect on property, there will at least be an extreme situation causing severe disruption to the day to day life of the applicant and others. An example of this is an evacuation due to a chemical leak. 255. The effects of a disaster are generally felt by a whole community (eg street or larger geographical area). Examples of disasters are:

• flooding • gas explosion • chemical leak • fire

256. The list is not exhaustive, and can cover many other calamitous events. Bear in mind that some needs may be covered by insurance, the Local Authority or charitable organisations.

257. The DM should consider the individual circumstances and merits of the case carefully. The event does not necessarily have to impact on other homes and families. However, the event must have very significant consequences.

258. In most cases there will be no doubt that a disaster has occurred within the area covered by the Benefit Delivery Centre. For example severe flooding or gas explosions.

259. Large scale tragedies require a particularly sensitive response. Be aware that victims are especially vulnerable to emotional and psychological disturbance.

Incident affects applicant only 260. Some of these may require more careful examination of the evidence and fine judgment by the DM. 261. For example, an incident involving a runaway vehicle crashing into a single property may or may not be considered a disaster. It may be a relatively minor incident, with damage to a boundary wall. Or a more significant event resulting in significant structural damage to the house and temporary homelessness for the occupier. 262. Similarly a fire within the applicant’s home caused by an overheating chip pan may or may not be considered a disaster. The severity of the event


and the impact on the applicant and family must be considered. For example, minor smoke damage in the kitchen area and a cooker that no longer works may be the result of a domestic mishap, not a disaster. 263. A disaster puts the applicant and/or family into an extreme situation. It is an event of sudden or great misfortune with significant consequences. The DM should take into account the degree of misfortune and damage, and the overall impact on the applicant and/or family. Inquisitorial role 264. If it is not clear from all the information provided on form SF300 that the expenses have arisen as a consequence of a disaster then further information should be requested to support the application. 265. The DM may find the following details useful:

• Were the emergency services called out, if so which services? • Who/what has been affected and in what way? • Has landlord/building society been informed of any damage? • Is the accommodation still habitable • Were any other support services involved, if so which?

This list is not exhaustive. Stranded away from home in a disaster 266. Consider help with needs such as travel and overnight accommodation where an applicant is stranded away from home due to being caught up in a major incident Disaster imminent but not yet occurred 267. Consider the needs of individuals who need help to alleviate the likely consequences of an imminent disaster. For example flooding is officially forecast to severely affect the home of a vulnerable applicant. The applicant seeks help with travel expenses to take him to relatives outside the area who can care for him. 268. These expenses can be considered as a consequence of a disaster even though the event has not yet occurred. 269. Consider if, as a consequence of a disaster, the need has to be met immediately to avoid serious damage or serious risk to health and safety. If the need does not have to be met immediately, a community care grant or a budgeting loan may be appropriate. 270. Local Authorities (LAs) are responsible for co-ordinating emergency and disaster planning within their area for both relatively localised disasters, eg gas explosion damaging a single house, and large scale disasters , eg widespread flooding, chemical leak into atmosphere. 271. Liaise closely with the LA and charitable organizations to avoid duplication of help. Managers hold guidance on this.

Examples of Crisis Loan situations 272. You must have regard to all the circumstances of each case. The examples below (see paragraphs 274 et seq) illustrate some situations where help may be appropriate.


273. Bear in mind the purpose of CLs. In particular that they should be the only means of avoiding serious damage or serious risk to the health or safety of the applicant or member of the family, unless the need is for rent in advance when the applicant is leaving institutional or residential care and a CCG award is being made under Direction 4(a)(i). Day to day living expenses 274. Day to day living expenses can be paid in an emergency or as a consequence of a disaster. Applicants do not have to provide a detailed breakdown of needs. This guidance does not specify what day to day living expenses cover but they will be mainly for food and groceries. Other needs that may come within the ambit of day to day living expenses are for example:

• nappies • toiletries • cleaning/hygiene products • money for pay as you go fuel meters

275. Remember that all living expenses are subject to the maximum award amounts in Directions 18 and 20. Direction 22 must also be applied.

Emergency travel expenses 276. If someone is stranded away from home without access to their regular means of support a CL may be made for travel expenses in an emergency or as a consequence of a disaster. Consider if it is cheaper for the applicant to return home or continue the journey.

Loss of money etc 277. Loss of money may result from a variety of different circumstances. Any amount to be awarded for living expenses will be subject to the maximum in Direction 18 or 20. 278. If a benefit cheque is not received or is lost before encashment this should be dealt with under the normal replacement rules. These provide for full replacement in most cases. The need to consider a CL should only arise in a minority of cases where full replacement is not made because of strong doubts about the circumstances of the non-receipt or loss.

Living expenses for more than 14 days 279. A need may arise through loss of money which would have been expected to cover expenses until the next payment of regular income. This might include situations where, because of misfortune or management difficulties, the resources which are taken into account in the IS, JSA(IB), Pension Credit (PC) or ESA(IR) assessment are all spent leaving the applicant without funds to live on. 280. A CL should normally only be made for living expenses for longer than 14 days where the indications are that the crisis will not come to an end within that period.


Hardship due to payment of regular income in arrears 281. Most IS, JSA, ESA and other benefit claimants will have resources from their previous source of income, e.g. last wages, to cover the period until the first benefit payday. 282. Similarly, for most people starting work the benefit payment arrangements will be such as to provide resources to cover the period up to their first pay day. 283. Some people may not have sufficient resources to meet their needs during these periods and a CL may be appropriate in such circumstances. Payment will not normally be necessary for living expenses for more than 14 days.

Hardship due to compulsory unpaid holidays 284. Hardship may be caused exceptionally due to employers imposing compulsory unpaid holidays. A CL may be appropriate in these circumstances.

Capital not immediately realisable 285. Occasionally someone might be without regular income but because of capital assets worth over £16,000, e.g. property, there is no entitlement to IS, JSA(IB) or ESA(IR). A person in this situation who is not able to realise those assets immediately will be expected to raise money against them. 286. A CL for living expenses is likely to be appropriate in these circumstances only for a short period until the applicant arranges credit facilities. If no attempts are being made to realise the asset or arrange alternative credit facilities, a CL will not be appropriate.

Fuel Expenses 287. Sometimes as part of an application for living expenses, applicants state that they need to charge a fuel powercard or buy a token for a pre-payment meter which includes an amount to:

• make up for having used emergency credit on a pre-payment meter, and • cover forward/future consumption.

288. Fuel expenses to make up for having used emergency credit as in the first bullet above are, can in these situations, be considered in an emergency or as a consequence of a disaster but only to restore the fuel supply not to cover future consumption. They are specifically provided for in Direction 3(4)(e). These fuel expenses can be considered and awarded in addition to any CL award for living expenses. The cost of restoring a customer’s emergency credit supply can be paid in addition to the 60% maximum amount, see Direction 18 (4). 289. Thus where an applicant applies for an amount in respect of living expenses and indicates that this includes charging a fuel card or buying a token for a pre-payment meter in an application for living expenses, you must identify as far as possible the amount needed to restore a customer’s emergency credit.


Payments for board and lodge expenses 290. The homeless may be at particular risk if they have to sleep rough. This risk is often greater for the elderly or those who are not in good health. For all people, the risk increases when the weather is bad or a period of sleeping rough is prolonged. 291. Physical disorders, most frequently including acute respiratory infections, such as bronchitis and tuberculosis (TB), and hypothermia and even a form of 'trench foot' can result from prolonged exposure to the cold and the damp. 292. Psychiatric disorders, often found in ex-psychiatric hospital patients and ex-prisoners, are also frequently made worse by prolonged homelessness. 293. The possibility of assault is common to all people sleeping rough but young people are also especially vulnerable to the risk of drug dependency, alcohol misuse and exploitation, e.g. prostitution. In addition, for young people, prolonged homelessness increases the risk of offending. 294. Take all of these factors into account when considering the question of serious risk to health or safety in relation to CL applications for money to secure accommodation or living expenses made by homeless people or those threatened with homelessness.

Rent in advance and living expenses on leaving institutional or residential care 295. There is only one circumstance where a CL may be awarded other than on health/safety grounds. If a Community Care Grant (CCG) is made to help a person return to the community after a period of institutional or residential care, a CL may be made to cover rent in advance. 296. Do not award weekly amounts in excess of the amount of housing benefit likely to be awarded, seek advice from the LA, if necessary. In such cases the CCG and any capital should be disregarded when considering the applicant's resources in calculating the amount payable. 297. Living expenses may also be covered up to the first payment of IS, ESA(IR), SPC or JSA(IB) in such cases but only where the health/safety criterion is met. Staying in, or returning to, institutional or residential care should not be considered a means of preventing serious risk or serious damage to the applicant's health or safety but other resources should be taken into account. The disregard of any capital does not apply in the calculation of the amount awarded for living expenses.

People discharged from prison 298. CL applications for discharged prisoners should be treated with particular urgency and sensitivity. Bear in mind the additional pressures and risks that prisoners face on returning to the community, for example the risk of re-offending if a prisoner is destitute. 299. Some people released from prison will not have sufficient resources to meet their needs until their first benefit payday. Where an application for living expenses is made immediately on release, establish whether the applicant already has sufficient resources from any discharge grant paid by the prison service. Do not automatically assume that an applicant has been issued with a


300. If paid, a discharge grant covers the period immediately after release. It is not a substitute benefit payment covering a specific period. Therefore people released from prison may still apply, and qualify, for a CL at any time from the date of discharge to their first pay day. 301. If an applicant applies for a CL for items other than the expenses listed at paragraph 2 a CL can only be considered if the application is as a consequence of a disaster. .

16/17 year olds claiming Jobseekers Allowance 302. 16/17 year olds who have established entitlement to JSA or payments on account of such a benefit may wish to apply for a CL to cover the period until their benefit is paid. 303. Details of the application will be taken by the Claims Specialist at the Jobcentre and then faxed to the Social Fund section. The Decision Makers (DMs) determination should then be faxed to the Jobcentre who will arrange for the issue of any payment.

Deciding if a Crisis Loan is appropriate 304. CLs are not restricted to people receiving IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits or any other social security benefit 305. A person receiving IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits may be able to get help with some expenses through CCGs or BLs. 306. A CL may be made in the circumstances described in para 274 et seq. The list is not definitive, but illustrates some of the situations in which CLs are likely to be made. 307. Consider the individual circumstances of each application and decide whether or not the need requires immediate relief. 308. When an applicant moves into your office's area, it is important to establish if there is continuing entitlement to any benefits when considering a CL. If there is a continuing entitlement the applicant should be referred to the appropriate benefit section for payment of that benefit. These payments should normally be treated as a resource for the purposes of Direction 14. 309. There are restrictions on the number of CLs which may be awarded in respect of living expenses (see paragraph 73 et seq).

Third party payments 310. The award should normally be payable to the applicant. However, DMs also have power to make payment to a third party who can provide, or arrange for the provision of, the items or expenses covered by the award. See Sections 138(3) and 139(5) of the Social Security Contributions and Benefits Act 1992. 311. This power should only be used exceptionally, for example, where there is firm evidence that the award may not be used for its intended purpose. If you do decide to make such a payment, document the reasons


fully, since a DM's determination to make payments to a third party can be reviewed like any other determination.

Establishing Priorities

General 312. The discretionary aspect of the SF scheme exists to use available resources:

• flexibly, and • targeted on those whose needs are greatest.

313. Look at each application to see if a Crisis Loan (CL) is appropriate to meet the identified need. 314. A CL should not be made unless either:

• it is the only means of avoiding serious damage or serious risk to the health or safety of the applicant or a member of the family

• the need is for rent in advance when someone is leaving institutional or residential care and a Community Care Grant (CCG) is being awarded to enable them to return to the community.

315. If an award of a CL is the only means of preventing serious damage or a serious risk to the health or safety of the applicant or a member of his family the application will by its nature be of high priority. 316. CL needs have first claim on the loans budget, above that of Budgeting Loan (BL) applications.

Direction 40 - Responsibilities of the Area Decision Maker

Direction 40 317. The Area Decision Maker (ADM) notifies relevant CL DMs of any national guidance issued by the Secretary of State about constraints on the loans budget for CLs. See section 36 (2) of the Social Security Act 1998 and the Instrument of Authorisation and Nomination. See Part 5 – The Budget.

Budget consideration 318. When deciding whether to make a loan:

• first take into account all the circumstances of that particular application and the extent of the need

• take into account of guidance issued by the Secretary of State about priorities for the national loans budget in general and any guidance about constraints on the award of CLs as the Secretary of State may issue (Direction 41)

• record all action on SFCS and on the decision form, taking particular care to document the reasons for decisions thoroughly.

319. Higher priority applications should be met first. Lower priority applications may need to be refused.

Direction 18 - Amount to be awarded Direction 18


General 320. If you consider that a Crisis Loan (CL) is appropriate, determine the amount to be awarded. This will vary from case to case depending on the individual circumstances. 321. A CL will not necessarily compensate for the full consequences of the emergency, e.g. lost money will not necessarily be replaced in full. The amount of the CL will be the smallest sum needed to tide the applicant over the period of need or to remove the crisis. 322. CLs are likely to fall into two broad categories:

• immediate needs for living expenses • immediate needs for other items or services.

Minimum amount 323. There is no Secretary of State direction on the minimum amount of a CL. If the amount being considered is small be certain that:

• the absence of this small amount would cause serious damage or serious risk to the health and safety of the applicant or a member of the family

• there is no other means available to the applicant to prevent the risk

Amount to be awarded 324. The maximum rate of CL for immediate living expenses under Direction 3(4)(a) for any period is:

• 60% of the appropriate Income Support (IS) personal allowance for the applicant and partner plus

• for each child, the IS personal allowance applicable to dependent children

325. Consider if a smaller payment than the maximum set out in Directions 18 to 20 is appropriate. 326. You may round maximum amounts down to the nearest multiple of £0.50, if the rounded amount is sufficient to tide the applicant over the period of need or remove the crisis. If the amount is rounded down, give an explanation on the decision form. 327. A CL for immediate living expenses as calculated above may not be increased because IS, JSA(IB), PC or ESA(IR) premiums are or would be payable. 328. Special rules apply for:

• those receiving income-based JSA at hardship rate, see Direction 20 • those whose partners are disallowed/sanctioned jobseekers, • those whose partners have not taken part in a Work Focused Interview

(WFI).

Maximum amount – board and lodging and hostel charges including meals and services 329. The maximum rate of a CL for immediate living expenses is:

• 60% of the appropriate IS personal allowance for the applicant and partner plus

• for each child, the IS personal allowance applicable to dependent children.


330. Consider if the accommodation charge requested is reasonable, and remember that the CL should be the smallest sum needed to remove the crisis during the period of need. As Local Authorities (LAs) are legally bound to make an interim payment of housing benefit within 14 days of receipt of a claim, long term payments for housing costs should not be necessary. The charges for board and lodging accommodation and residential charges for hostels can be paid in addition to the 60% maximum amount, see Direction 18(4). 331. The DM should check what is included in the board and lodging or hostel charge as the full 60% maximum amount living expense award may not be required, for example if the board and lodging charge includes all meals.

Direction 20 - Calculation of amounts for living expenses Jobseekers Allowance hardship cases

Jobseekers Allowance hardship cases 332. This Direction sets out the maximum which may be awarded to an applicant being paid income-based Jobseekers Allowance (JSA(IB)) at hardship rate. 333. Consider if a smaller payment is appropriate and enter the total on the decision form. 334. 16 and 17 year olds who have to live independently may be eligible for a higher rate of JSA(IB). Check with the JSA section to see which rate of income-based JSA is appropriate before deciding:

• the amount of any CL • the applicant's ability to repay.

335. The applicant may be receiving an urgent case payment simultaneously with the operation of a higher rate deduction. If this is the case, the CL should not exceed the amount of JSA(IB) that is, or would be, payable excluding premiums and housing costs.

Direction 21 - Maximum amounts

Maximum amount - items or services 336. The amount of the loan will be the smallest sum needed for the provision or repair of any item or service which you consider should be met as a CL. 337. The maximum sum will be the lowest of the:

• cost of repair to the item if the item can be repaired • reasonable cost of purchasing the item or service, including delivery and

installation where appropriate. 338. Consider an award for the minimum deposit and any repayment instalment which has to be paid during the crisis period if the applicant:

• is not on Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit PC) or income-related Employment and Support Allowance (ESA(IR), and


• can get the item on hire purchase, credit sale or other commercial repayment terms, and

• is able to meet the required repayments.

Is the amount requested appropriate? 339. You are not expected to check the amounts requested against a price list detailing the amounts to be paid for certain items or in specific circumstances. However, if the amount requested appears to be inappropriate, this should be queried. Exceptionally it may be appropriate to ask the applicant if they have written estimates, see section on supporting evidence (paragraph 29).

Direction 5 - Repayability

Repayability considerations 340. Guidance on repayability is given under Direction 22.

Direction 22 - Ability to repay

Direction 22 341. The likelihood of repayment is to be judged solely on the applicant's ability to repay. An applicant's ability to repay will depend on:

• their total debt to the SF • any other continuing commitments they may have.

342. Take account of the following, which are determined by officers acting on behalf of the Secretary of State:

• the recommended maximum repayment period • the likely rate of repayment • all the circumstances of the application, in particular the consequences

for the applicant if you refuse the payment • the level of multiple debt.

343. If an applicant plainly cannot afford a further loan, e.g. because an existing debt has recently been rescheduled and the applicant is already repaying his loans over a period of 130 weeks, you are advised to consider carefully whether to refuse or make a lesser award. 344. If as a result of a refusal of a loan on the grounds of inability to repay, the applicant applies for a Community Care Grant (CCG), the Decision Maker must take account of this fact when considering the CCG application. 345. If an applicant has requested an amount that is more than s/he can afford, offer the amount the applicant can afford to repay.

Total Debt 346. Total debt means the total amount that an applicant and/or partner where appropriate owes to the SF at any one time. Under no circumstances award a loan which takes the amount over £1500. 347. An applicant’s total debt at any one time will depend on whether they already have a loan from the SF and, if so, how much of any outstanding loans they have repaid. Social Fund Computer System (SFCS) will show the total amount of debt outstanding.


348. Before awarding any further loans consider any additional off-system debts. The total debt to the SF will reduce as repayments are made. 349. In each case:

• you are advised normally not to allow an applicant more than they could be expected to repay within a repayment period which is most appropriate to the applicant's individual circumstances but

• you must not allow an applicant more than £1,500 total debt to the SF. 350. Consider carefully all the circumstances before offering a loan which would require repayment either:

• at a rate approaching the recommended maximum deduction • over a period approaching the recommended maximum for repayment.

351. In particular, consider the applicant's: • ability to meet other demands on their income • likely future need for, and ability to repay, a further loan for essential

items. 352. Remember that daily living expenses are not excluded for CCGs where a CL cannot be awarded for such expenses due to the £1,500 loan limit. Consider inviting a CCG application (unless there is sufficient information to convert to a CCG).

Direction 49 - Crisis Loan applications treated as Community Care Grant applications and vice versa

Applications 353. It is possible for a Decision Maker (DM) to receive a CL application and decide to award a CCG or vice versa, since both are subject to the same discretionary basis of decision making. This involves treating the CL application as though it was an application for a CCG. 354. Where a CL application is made for expenses as a consequence of a disaster, referred to in Direction 3(2)(b), consideration should always be given to whether the applicant satisfies the conditions for a CCG under Direction 4(a)(i) to (iii) and this is provided for in Direction 3(6) to (9). 355. In addition in the circumstances described in paragraph 356 below, DMs should consider an award of a CCG where the information declared by the applicant in support of a CL application alerts the DM to the possibility of a CCG being appropriate, and where:

• an application for a CL or CCG to meet the same need is not being considered by a DM or Social Fund Inspector (SFI) at the date of application; and


356. The circumstances where a CCG may be considered in place of a CL, are when the application is for:

• living expenses where Direction 3(2) is met but a crisis loan cannot be awarded for such expenses because the maximum amount referred to in Direction 18 has already been reached; or

• living expenses where such expenses are incurred in caring for a prisoner or young offender on release or on temporary licence under Rule 9 of the Prison Rules 1999 or, in Scotland on temporary release


• travel expenses where the applicant, or a member of his family, or someone that the applicant or a member of his family has care for, is stranded away from home.

357. Where nothing on the application has prompted the DM to consider using the power in Direction 49 to convert the application to a CCG there is no need to refer to the direction in the decision record. However, where evidence has prompted such consideration but the DM has ultimately decided to determine the application as a CL, the thought-process leading to that conclusion should be documented. 358. Directions and guidance on how to decide CCG and CL applications are in the respective parts of the Guide dealing with CCGs and CLs.

Budgeting Loans 359. A BL should be applied for on the appropriate application form, or in such other manner, in writing as the Secretary of State accepts is sufficient in a particular case, and can only be awarded on the basis of such an application. 360. If a BL application form contains information which would suggest that an application for a CL or a CCG might succeed, the applicant should be invited to apply on the appropriate application form. The BL application form should then be processed in the normal way (see Applications section in Part 4 Budgeting Loans).


Policy


Direction 3

Direction 5

Direction 7

Direction 14

Direction 14C

Direction 15

Direction 16

Direction 17

Direction 18

Direction 20

Direction 21

Direction 22

Direction 23

Direction 41

Direction 49


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Part 3 A - Crisis Loans (applications prior to 4 April 2011)

Introduction

Purpose of Crisis Loans 1. Crisis Loans (CLs) are intended for applicants who are unable to meet

their immediate short term needs either: • in an emergency • as a consequence of a disaster

2. These payments are: • referred to as CLs • interest free

3. The need for help will generally be for: • a specific item or service • immediate living expenses for a short period not normally exceeding 14

days • rent in advance when a Community Care Grant (CCG) has been

awarded under Direction 4(a)(i) 4. The CL should be the only means of avoiding serious damage or risk to the health or safety of the applicant or a member of the family, unless Direction 3(1)(b) applies. 5. Rent in advance can be met if a person is leaving institutional or residential care and a CCG is being awarded to enable the person to return to the community. The health and safety criteria do not apply to this type of application. 6. Rent in advance in other circumstances can be met under Direction 3(1)(a). The health and safety criteria apply to these cases.

The DM's powers to award CLs 7. In deciding whether to make a CL, you:

• are bound by the law and the Secretary of State's directions • must take account of the guidance issued by the Secretary of State and

the Area Decision Maker (ADM).

Principles of CL decision making


• the nature, extent and urgency of the need • the existence of resources from which the need may be met • the possibility that some other person or body may wholly or partly meet

the need • the likelihood of repayment and the time within which repayment is likely • the relevant allocations for the SF loans budget.


Secretary of State's directions 9. The Secretary of State has issued directions which qualify the power to make CLs by reference to:

• the eligibility of the applicant • exclusions • the maximum amount to be awarded • the budget allocation.


Secretary of State's guidance 10. In reaching a decision take account of the guidance:

• issued by the Secretary of State about priorities for loans budget in general

• as the Secretary of State may issue about constraints on the award of CLs.

Decision Maker’s (DM) discretion 11. The guidance should help you to reach a decision, but you should:

• always use discretion • avoid a rigid interpretation of the guidance • consider circumstances which appear to be outside the scope of the

guidance • remember that SF payments are discretionary and the absence of

directions or guidance applying to a particular circumstance, item or service does not mean that help should be refused

• make sure that you consider all the circumstances of a case when you determine an application

• consider the consequences of refusing the award • consider the circumstances in which the need arose and whether

payment to a third party might be appropriate. 12. The questions, in order, which you should consider are:

• eligibility criteria: is the applicant eligible? - Direction 14, 15, 16 and 17 is it a repeat application? - Direction 7 do any of the exclusions apply? - Direction 23

• qualifying conditions: does the applicant satisfy the requirements of Direction 3?

• priority of need - what is the priority of each item or service which satisfies the conditions in Direction 3? In practice, expenses which will prevent serious damage or serious risk to health or safety will, by their nature, be of high priority. Consider Secretary of State guidance and all the circumstances of the case, including:

the nature, extent and urgency of need the existence of resources from which the need may be met the possibility that some other person or body may wholly or partly meet

the need • budget - you are bound by:


section 140(1)(e) of the Social Security Contributions and Benefits Act 1992 to have regard to the budget allocation

Direction 41 to take account of the guidance issued by the Secretary of State about priorities for the loans budget in general and any guidance about constraints on the award of CLs as the Secretary of State may issue

• award: how much should you award? - Direction 18 , 20 and 21 consider the

applicant's ability to repay - Directions 5 and 22. NB although the DM determines that an award is repayable it is the officer acting on behalf of the Secretary of State who decides the terms and conditions of repayment.

13. Ensure the reasons for your decision are fully supported by the evidence and are recorded in your decision or supported by computer system records where appropriate. The evidence should always be available for future scrutiny if necessary. 14. When you have obtained all the necessary information, make the decision without delay. Never deliberately delay a decision until the need has passed.

Applications 15. The Social Fund (Applications and Miscellaneous Provisions) Regulations 2008 prescribe the form and manner in which applications are to be made, and the time at which an application is to be treated as made, for discretionary payments from the Social Fund. 16. The date of a written application to the Social Fund is the date it is received in an office of the department, including the office of an agent acting on behalf of the department, provided the application is in writing and:

• on a form approved by the Secretary of State or • is acceptable as sufficient in the circumstances of the case, e.g. there is

sufficient information in a letter and • if an application is made on behalf of a person, by someone other than

an appointee, that person must give their consent in writing to the application being made on their behalf

17. An application which does not meet the requirements of the above regulations as described in para 16 is termed defective. However, you can treat the application as made on the date it was originally received provided the applicant complies with a request to supply in writing or at an interview. 18. CL applications should, where possible, be dealt with on the date that the need arises. 19. Although Community Care Grants (CCGs) and CLs may be applied for in their own right, because applications for both are determined on similar discretionary bases, directions provide that, in certain circumstances, an application for a CCG may be treated as an application for a CL and vice versa. Further guidance on this subject can be found at the end of this Part. 20. However, Decision Makers (DMs) are not required to consider a CCG in every case of a CL application or vice versa. Such consideration may be appropriate where the information declared by the applicant in support of a CL application alerts the DM to the possibility of a CCG being appropriate, and where:




Similarly, an application for a CCG may be treated as an application for a CL where the reverse circumstances apply.

Applications made over the telephone 21. From 1st October 2002, where a customer makes an initial enquiry by telephone and agrees to make their application by telephone, they will only need to sign the application if a payment is to be made. 22. If the decision is negative, the customer will receive that decision by telephone avoiding unnecessary journeys to the office and will also receive by post full written confirmation of the decision and notification of the right to a review. 23. Remember that this service is intended for customers who make their initial contact to the office by telephone: customers who are already in the office must never be told to go home and telephone. 24. Customers who have difficulty making themselves understood on the telephone must be offered an immediate office interview instead. 25. When a customer contacts the office about a CL by telephone, confirm at the outset that he/she:

• understands what will happen i.e.: if the decision is negative they will receive it by telephone, with full

written confirmation by post; if the decision is positive and they require an immediate payment they

will be required to attend the office with satisfactory evidence of their identity to confirm their statement and agree repayment terms and conditions;

• is happy to make the application by phone. 26. While it is a legal requirement that the loan offer and repayment terms must be accepted and signed by the customer before the payment is due, this will not always necessitate attendance at the office. For example the:

• CL may be for a household item, and there is time for the acceptance and payment to be made by post;

• customer has contacted the Jobcentre Plus office from the Welfare Rights Office or Citizen Advice Bureau and is able to make the application and agree the repayment terms by fax.

Investigating the Application 27. You will normally be able to decide whether to make a loan from the information on the application form. But further investigation may be necessary if:

• there is insufficient information • there is any reason to doubt the validity of the application or the identity

of the applicant is unclear.


Supporting Evidence 28. It is the applicant's responsibility to provide all the evidence necessary to determine an application. 29. Sometimes it may be necessary to seek further information or clarify an aspect of the application. You can usually resolve this by either:

• contacting the applicant; or • checking Departmental records.

30. Where the applicant provides third party details and further enquiries are needed as per above para, it would be appropriate to contact the third party (particularly a social worker or probation officer) if they are likely to be able to provide more detail. 31. If the applicant or third party gives any information over the telephone, this is acceptable as corroborative evidence. 32. If the applicant gives any information over the phone, this is acceptable as corroborating evidence. 33. Exceptionally, it may be appropriate to ask the applicant for any corroborating evidence they may have, such as:

• estimate of cost of repair • estimate of cost of replacement • relevant evidence of a medical condition, e.g. an existing doctor's note,

a letter from a hospital or prescription counterfoil. 34. You should ask for as much supporting evidence from the applicant for corroboration as is reasonable and necessary to substantiate the application, but do not:

• ask for evidence which would incur any expense to the applicant • insist that the applicant provides supporting evidence, particularly from

a third party. 35. If the applicant does not produce the evidence, make a decision based on the completed application and any other evidence you already hold. Do not ask for further evidence if it is unlikely that the application will succeed. 36. Any information on which you base your decision must be made available to the applicant either on request or at the review stage. If necessary, you may take reasonable steps to protect the identity of the source, see Disclosure of Information (Part 1) and para 41 below. 37. With this in mind you should investigate the validity of any information provided either anonymously or in confidence and which casts doubt on other evidence held. 38. You may be able to obtain evidence from another source or clarify the matter by obtaining further evidence from the applicant thus avoiding the need to use the confidential information as evidence. Corroboration will not generally be necessary where information is from a professional source which is not in question. 39. If corroboration of confidential information is necessary but not reasonably obtainable you should seek the consent of the third party source to use the information as evidence. You should however make it clear that, if they agree, the source of the evidence may be made known to the applicant. 40. If exceptionally you nevertheless use as evidence any information provided in confidence without the consent of the person who has provided


the information you may take reasonable steps to protect the identity of the source, e.g. by:


• summarising the content of the information 41. You must fully document the evidence used and the weight you have given to such evidence bearing in mind the need to ensure the facts on which you base your decision are correct. 42. Investigate in the normal way any allegations of fraud which may suggest that:

• entitlement to benefit is in doubt or • misrepresentation has occurred.

Direction 14 - Eligibility

Treatment of resources 43. Generally have regard to all income and capital resources of the family, without any disregard, subject to para 47 below. 44. Any resources which are actually available to the applicant or could be obtained in time to meet the need if application were made should, subject to para 58, be taken into account. Resources include:

• Job Grant • capital assets • earnings • any other income • cash in hand • funds in bank or building society accounts which may be obtained by

means of a cash card or a cheque and cheque guarantee card • credit facilities but see para 46 • money available through any existing loan or overdraft facility but see

para 46. 45. Resources available on credit should only be taken into account if the applicant is not in receipt of Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)) and is likely to be able to afford the required repayments.

Disregards 46. Disregard any resources if you consider it reasonable to do so in the circumstances of the case. You should not routinely disregard any resource; you should establish that the resource has been specifically earmarked for a purpose. 47. Such disregards will normally be applied to:

• housing benefit • other SF payments • the value of the applicant's home or premises acquired for occupation

by the applicant within 6 months • the value of any premises occupied by a relative or former partner of the

applicant


• the value of any reversionary interest • the assets of any business owned by the applicant • any sum paid to the applicant in consequence of damage to or loss of

the home or any personal possessions and intended for its repair or replacement

• any sum acquired on the express condition that it is used for effecting essential repairs or improvements to the home

• any personal possessions, except those acquired for the purpose of securing eligibility for a CL

• any payment made under section 17 of the Children Act 1989 or section 22 of the Children (Scotland) Act 1995 unless the payment was made for the same need as the CL application

• any run-on payment of council tax or housing benefit • any compensation award set aside for the replacement of lost livelihood • any integration loan granted under The Integration Loans for Refugees

and Others Regulations 2007. 48. Section 73(14) of the Social Security Contributions and Benefits Act 1992 requires that the mobility component of Disability Living Allowance should be disregarded in full when considering the resources of a person who has applied for a CL.

Payments from the Independent Living (Extension) Fund/Independent Living (1993) Fund 49. Fully disregard payments from the Independent Living (Extension) Fund/Independent Living (1993) Fund. The Independent Living (Extension) Fund and Independent Living (1993) Fund are discretionary trust funds which will make payments to enable a severely disabled person to continue to live in the community. 50. Primarily payments will be made to enable the disabled person to employ domestic assistance or personal care. However, trustees are able, exceptionally, to make lump sum payments for items which will prevent the applicant from entering residential care.

Payments from the MacFarlane Trust 51. Fully disregard payments made from the MacFarlane Trust. This is a charitable trust established partly out of funds provided by the Secretary of State to the Haemophilia Society for the relief of poverty or distress amongst those suffering from haemophilia. 52. Payments made from the trust do not have to be disclosed by SF applicants or social security claimants.

Payments from variant Creutzfeldt Jakob Disease (vCJD) trusts 53. The vCJD trusts make payments to people who have contracted vCJD and their immediate families. The payments are made in recognition of the pain and suffering of victims and their families. 54. Fully disregard vCJD trust payments.


Payments from the Skipton Fund 55. The Skipton Fund makes payments to those people infected with Hepatitis C from NHS blood or blood products. These payments are made on compassionate grounds and will help alleviate some of the problems people, affected in this way, are experiencing. 56. You should fully disregard Skipton Fund payments.

Other disregards 57. Temporarily disregard any other resources if it is considered reasonable to do so in the circumstances, e.g. you may consider it reasonable to disregard capital assets such as savings certificates for a few days provided the applicant is urgently arranging to cash them. 58. If the CL application is for an item or service, some of the applicant's resources may be required for immediate day to day living expenses.

Help from another person or body 59. Take into account any help which might be available from any other source to meet or partly meet the need, if there is a realistic expectation that help would be available in time. Possible sources of help might be charities and benevolent funds which are known to be likely to provide the required assistance. 60. Do not routinely refer applicants to employers, relatives or close friends unless there is reason to believe that an offer of help will be forthcoming.

Local authorities 61. The Social Services Department (SSD) (Social Work Department (SWD) in Scotland), do not normally meet financial needs. If there is an indication that help may have been sought or provided by them, check with the SSD/SWD to avoid duplication of help.

Interview on 3rd application for a living expenses CL (Direction 14A) 62. Direction 14A no longer applies from 14 December 2009 when the Social Fund Applications and Miscellaneous Provisions (Amendment) Regulations come into force. When some-one wishes to make a third or subsequent application for a CL in 12 months, the Secretary of State may require that application to be made at a face to face interview. 63. The decision whether to require an interview is made under the regulations by an official exercising the functions of the Secretary of State. It is not subject to review. The decision must, however, be a reasonable decision. See paragraphs 23 to 34 in Part 1 of this guide for full details.

Direction 15 - Excluded persons

Direction 15 64. This Direction sets out some groups of people not eligible for a CL (CL). Other exclusions are set out in Direction 23. 65. Prisoners who are released on temporary licence are excluded from receiving a CL.


66. Release on temporary licence in England and Wales is governed by rule 9 of the Prison Rules 1999. It was formerly referred to as home leave or temporary release. 67. The corresponding arrangement in Scotland is known as temporary release and is governed by Part XIV of the Prisons and Young Offenders Institutions (Scotland) Rules 1994. 68. You should consider a Community Care Grant (CCG) for a person receiving Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)) or payment on account of such benefits who needs help with the extra expense of caring for a prisoner on release on temporary licence. 69. The exclusion in direction 15(b) does not apply to people who are:

• released from prison on parole • released from prison on permanent licence • on bail pending a court hearing.

Direction 16 - Students and persons from abroad

Direction 16 70. Students who receive Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)) or payment on account of such benefits are eligible for CLs in the normal way. 71. There is no exclusion from PC for students aged 60 or over who are in:

• full time advanced education • part time advanced education • full time non-advanced education • part time non-advanced education.

72. Student top-up loans and Access Funds are available in addition to any education grant. Most full time students are excluded from receiving IS, JSA or ESA or payments on account of such a benefit throughout the period of their course including the long vacation where this occurs during but not at the end of a course. 73. Full time students who are not in receipt of IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits are eligible for CLs during term time or in any vacation only to alleviate the consequences of a disaster. 74. Discretionary payments from the Access Funds, administered by the appropriate educational institution, are intended to provide help in cases of financial hardship. In determining an application you may wish to check the availability of such funds. 75. A person who is or would be treated as a person from abroad and is in a category that does attract an entitlement to IS, JSA(IB) or ESA(IR) or payments on account of such a benefit, is not excluded from receiving a CL to alleviate the consequences of a disaster. Treat their application in the normal way. 76. Particular attention should be given to the clothing needs of refugees. Persons from abroad who are eligible for urgent case payments will also be


eligible for IS, JSA(IB) or ESA(IR) premiums. Take account of this when considering SF applications.

Direction 17 – Sanctions and disallowances

Direction 17 77. Direction 17 restricts the CL awards which may be made in specified circumstances to expenses that arise as a consequence of disaster or in respect of fireguards or items required for space heating or cooking. 78. Essentially it prevents an applicant from access to what are generally referred to as CLs for living expenses and for most goods or services where that applicant’s benefit has been disallowed or sanctioned. 79. The aim of the direction is to ensure that the applicant cannot undermine the financial impact of such a disallowance or sanction by receiving a CL instead. 80. Specifically, Direction 17 provides that in the circumstances described in below a SF payment under Direction 3 is to be awarded only to meet:

• expenses which are the consequence of a disaster; or • expenses in respect of fireguards or items required for the purpose only

of space heating or cooking. 81. The circumstances are that the DM finds that the application is made wholly or partly because the applicant is (or for the purposes of sub-paragraphs (b), (c) and (d) only, has been) the subject of one or more of the following, a: (a) trade dispute (b) disallowance (c) sanction or (d) work-focused interview sanction.

Decision making process 82. In determining whether Direction 17 applies, a DM must look at all the circumstances that led to the CL application being made. Identifying that the applicant is subject to a disallowance or sanction is only the first step. 83. Consideration must be given to the reasons why the CL application has been made. It is for the DM to discover the reasons and make a finding as to whether the application is wholly or partly due to the disallowance or sanction. 84. It is possible that even though an applicant is subject to a disallowance or sanction, their CL application was not as a result of one of these. An applicant may have had sufficient resources in spite of a reduction in their benefit, however intervening events have resulted in a loss of those resources and the necessity for a CL has arisen. 85. There is no definitive list of events that result in the applicant not having enough to cover living expenses. Such events might include:

• loss of money; • theft of money; • spending resources on an unexpected emergency situation.

86. If the DM finds that the application was as a result of one of the specified circumstances in Direction 17(2), whether wholly or partly, CLs should be restricted according to Direction 17(1).


Example A jobseeker has refused to follow a jobseeker’s direction and has his benefit sanctioned for 2 weeks. Despite the sanction, the jobseeker has sufficient money to meet his living expenses. Five days before he will receive his first payment of JSA since being sanctioned, the jobseeker loses his wallet containing his last £50. His application for a CL for living expenses is awarded as the DM finds the application was due to his wallet being lost and not because of the sanction.

Trade disputes (Direction 17(3)(a)) 87. A claimant will not be entitled to Jobseekers Allowance (JSA) for any week which includes at least one day where the claimant is involved in a trade dispute (as per Jobseekers Act, section 14). 88. When such a claimant makes an application for a CL, and it is determined that the application was due wholly or partly to the disentitlement, their access to CLs will be restricted under Direction 17. 89. If an application is made as the consequence of a disaster, consider the application in the same way as other CL applications. 90. If the application arises other than as a consequence of a disaster consider a CL in respect of fireguards or items required for the purpose only of space heating or cooking. 91. There is no provision for hardship payments in relation to customers who are involved in a trade dispute, and as such irrespective of whether the customer may be a member of a perceived vulnerable group or not, their access to CLs will be restricted under Direction 17 in the circumstances described above.

Jobseekers Allowance Disallowances (Direction 17(3)(b)) 92. Disallowances occur where the jobseeker has not satisfied a basic condition of entitlement to Jobseekers Allowance (JSA), for example availability for employment. 93. Under a disallowance, JSA is not payable for the length of the disallowance. Where that jobseeker falls within a prescribed vulnerable group (see paragraph 142), they can apply for JSA(IB) hardship payments immediately. If an applicant for a CL who is subject to a JSA disallowance and appears to fall within a vulnerable group has not applied for JSA(IB) hardship payments they should be advised to do so. 94. An applicant who is in a prescribed vulnerable group (see paragraph 142 below) and already in receipt of JSA(IB) hardship payments, may apply for a CL under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for this group, see Direction 17(4)(a). 95. JSA will not be payable, even JSA(IB) hardship payments, to applicants who are not in a prescribed vulnerable group (see paragraph 143 below) until such time as the jobseeker modifies his behaviour and satisfies the JSA basic conditions of entitlement. 96. For these cases, if JSA is not payable due to a disallowance and the DM finds that the application for a CL is wholly or partly due to that disallowance,


Example 1 A jobseeker has refused to enter into a Jobseeker’s agreement and as a result his JSA has been disallowed. He is a single man with no health problems and he is not eligible to receive JSA(IB) hardship payments. As his JSA has been stopped he has no money, so makes an application for a CL for living expenses. The DM considers that Direction 17(2)(b) applies, i.e., the application is made because the applicant is the subject of a disallowance. As the jobseeker is not receiving JSA(IB) hardship payments for being a member of a vulnerable group, a CL for living expenses is not allowed under Direction 17(1).

Example 2 A jobseeker states that she is not available for employment and as a result her JSA is disallowed. She applies for a CL as her handbag containing £100 is stolen and as a result she has no money for food. The DM considers that the CL application is as a result of her money being stolen not due to the fact that her JSA is disallowed. Consequently Direction 17(2)(b) does not apply and a CL for living expenses can be considered.

97. If a jobseeker changes their behaviour after the original disallowance by making a new claim to JSA and satisfies the officer who made the JSA decision on behalf of the Secretary of State of their eligibility to JSA, the original disallowance and thus the restriction on availability for CLs, will no longer apply from the date the new claim to JSA is allowed.

Jobseekers Allowance – employment sanctions (Direction 17(3)(c)(i) & (ii)) 98. Employment sanctions occur if, for example, jobseekers have left their previous work voluntarily or through misconduct. 99. The length of employment sanctions are discretionary, to be set by the DM up to a maximum of 26 weeks. During the period of a sanction JSA is not payable, however for those who fall within a prescribed vulnerable group (see paragraph 142 below) the jobseeker can apply for JSA(IB) hardship payments. 100. If a sanctioned applicant who comes within a prescribed vulnerable group is not receiving JSA(IB) hardship payments they should be advised to apply immediately. Until such time as they actually receive JSA(IB) hardship payments their access to a CL will be restricted under Direction 17. 101. For people who do not fall into a prescribed vulnerable group (see paragraph 143 below) JSA, including JSA(IB) hardship payments, will not be


payable, for the first two weeks of the sanction. After this time they can then apply for hardship payments. Irrespective of whether they receive hardship payments or not, as they are not a member of a vulnerable group they will not be eligible under Direction 17 for a CL for living expenses. Example 1 A jobseeker has resigned from his job and as a result his JSA has been sanctioned for 12 weeks from 19/4/10 to 11/7/10. He falls within a vulnerable group as his wife is pregnant and he has applied for and is receiving JSA(IB)hardship payments. In this case Direction 17(3)(c)(i) does not apply as he falls within the exception at 17(4)(a) so a CL for living expenses can be considered under the normal rules.

Example 2 A jobseeker has been dismissed from his job due to misconduct and as a result his JSA has been sanctioned for 7 weeks from 3/5/10 to 20/6/10. He is a single, healthy man and does not fall within a vulnerable group for the purposes of JSA(IB) hardship payments. On 17/5/10 he applies for a CL for living expenses as he has no money to buy food. The DM determines that his application for a CL is due to the fact that his JSA is sanctioned so Direction 17(3)(c)(i) applies and a CL for living expenses is refused under Direction 17(1). In this case the applicant should be directed to apply for JSA(IB) hardship payments as jobseekers who are not in a vulnerable group are entitled to make such an application from the 15th day that JSA is not payable because of the sanction. Irrespective of whether the jobseeker ultimately receives JSA(IB) hardship payments, he would still be ineligible for a CL for living expenses as the reason he may be receiving hardship payments is not because he is a member of a vulnerable group.

Jobseekers Allowance – Jobseekers direction (Direction 17(3)(c)(i) & (ii) 102. A claimant’s JSA can be sanctioned where they have refused or failed to carry out a jobseeker’s direction (JSD sanction) and cannot show good cause for the refusal or failure. A JSD sanction is a fixed period sanction lasting for one week. 103. During the period of a sanction JSA is not payable, however those who fall within a prescribed vulnerable group (see paragraph 142) can apply for JSA(IB) hardship payments. If a sanctioned applicant who comes within a prescribed vulnerable group is not receiving JSA(IB) hardship payments, they should be advised to apply immediately. Until such time as they actually receive JSA(IB) hardship payments their access to a CL will be restricted under Direction 17. 104. Claimants who are not part of a vulnerable group are eligible to apply for JSA(IB) hardship payments from the 15th day that benefit is not payable due to a JSD sanction, however this is subject to a number of exceptions. Irrespective of whether a claimant who is not part of a vulnerable group


receives hardship payments or not, any applications they make for a CL will be subject to Direction 17.

Jobseekers Allowance – Training and New Deal sanctions (Direction 17(3)(c)(i) & (ii)) 105. These types of sanction occur if, for example, jobseekers have failed to attend or neglected to avail themselves of a place on a New Deal option, the Flexible New Deal or a mandatory training scheme. 106. New Deal (including the Flexible New Deal) sanctions are for a fixed period of 2, 4 or 26 weeks and can be applied consecutively. Those in a prescribed vulnerable group (see paragraph 142) can apply for JSA(IB) hardship payments immediately. However, in the case of claimants who are not in a vulnerable group, JSA is not payable for the whole of the period of the sanction. In the case of the Flexible New Deal, a 26 week sanction can be brought to an end after a minimum of 4 weeks where the claimant agrees in writing to comply with his or her action plan. 107. An applicant who is in a prescribed vulnerable group and already in receipt of JSA(IB) hardship payments, may apply for a CL under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for this group. 108. For those who are not in a vulnerable group whose JSA is not payable because of a sanction, an application for a CL for living expenses cannot be considered if the application is made as a result of that sanction. In these cases a CL can only be considered to alleviate the consequence of a disaster, for fireguards or for expenses for items for space heating or cooking. Example 1 A jobseeker has refused to attend her place on a FND programme and as a result her JSA is sanctioned for 2 weeks. She is a single person with no children or health problems so is not in a vulnerable group and not entitled to JSA(IB) hardship payments. As she has no money she makes an application for a CL for living expenses but the DM determines that her CL application is as a result of the sanction so Direction 17(3)(c)(i) applies and a CL for living expenses is not allowed under Direction 17(1).


Example 2 A jobseeker is in receipt of JSA(C). He has lost his place on an employment programme through misconduct and as a result his JSA is sanctioned for 2 weeks. The jobseeker is married with 2 children, and therefore a member of a vulnerable group and asks for hardship payments. The DM is satisfied that unless JSA is paid the children will suffer hardship. The jobseekers entitlement to JSA(IB) is established and as he is part of a vulnerable group JSA(IB) hardship payments commence. The jobseeker applies for a CL and is entitled to have it considered under the normal rules without the Direction 17 restriction as he is receiving JSA(IB) hardship payments as part of a vulnerable group.

Two Strikes sanctions (Direction 17(3)(c)(iii) & (iv) 109. The Loss of Benefit provisions contained in section 7 of the Social Security Fraud Act 2001 (known as a “Two Strikes” sanction) are designed to be a deterrent against continued abuse of the benefit system. They provide for a sanction for those convicted of benefit offences whereby payment of certain benefits is either stopped entirely or reduced, if a person would otherwise be entitled to those benefits, during a fixed 13 week disqualification period. 110. A Two Strikes sanction is triggered when a person is convicted in two separate proceedings of one or more benefit offences committed on or after 1st April 2002 relating to disqualifying benefits. The second or subsequent offence must have been committed within five years of the previous conviction. A Two Strikes sanction can be applied to all sanctionable benefits in payment during the disqualification period, regardless of whether the offence was committed in relation to that benefit. 111. While the Two Strike sanction can be applied to a range of benefits, restricted access to CLs under Direction 17(2)(c) only applies if the benefit sanctioned is income support, employment and support allowance, jobseekers allowance or state pension credit. The exceptions to this, as with other Direction 17(3)(c) sanctions, are vulnerable groups in receipt of hardship payments (see Direction 17(4)). 112. For jobseeker’s allowance, those in a prescribed vulnerable group (see paragraph 142) and already in receipt of JSA(IB) hardship payments may apply for a CL without reference to Direction 17. Claimants who are not part of a vulnerable group, can apply for JSA(IB) hardship payments on the 15th day that benefit is not payable as a result of the Two Strikes sanction, but will still be subject to Direction 17. 113. For income support, employment and support allowance and state pension credit, the prescribed vulnerable groups are customers who are pregnant or seriously ill or have a family member who is pregnant or seriously ill. 114. If they are receiving their sanctioned benefit subject to a 20% reduction only (as per regulation 3(1)(a) or 3A(1)(a) of the Social Security (Loss of Benefit) Regulations 2001), they can apply under the normal rules without


reference to Direction 17. Access to a CL for living expenses is not restricted for these groups (see Direction 17(4)(c) and (d)). 115. All other IS, ESA(IR) and SPC customers who have been sanctioned under the Two Strikes provisions will receive their benefit but it will be reduced by 40%, however any CL applications will still be subject to Direction 17.

One Strike sanction (Direction 17 (3)(c)(iii) & (iv))) 116. The Loss of Benefit provisions in the Social Security Fraud Act 2001 have been amended from 1st April 2010 to introduce section 6B; a loss of benefit sanction for all first offences of benefit fraud (a “One Strike” sanction). The new sanction will apply not only to cases which are prosecuted and result in a criminal conviction for benefit fraud but also to those cases which result in an administrative penalty or a caution. 117. The aim is to increase the deterrent effect of the existing sanctions regime by extending the provision on loss of the right to continuing benefit to cover those committing a first benefit fraud offence. 118. Where a benefit is subject to a One Strike sanction it could be reduced or not payable in its entirety, depending on the benefit and prescribed circumstances. All One Strike sanctions, irrespective of whether benefit is reduced or not payable, are for a fixed four week disqualification period. 119. A One Strike sanction is triggered if a relevant offence was committed after 1st April 2010. If the individual is convicted of a benefit fraud offence after 1st April 2010 (or accepts an administrative penalty or caution) but the offence was committed prior to that date, then One Strike sanctions will not apply. 120. As with Two Strike sanctions, One Strike sanctions can be imposed against numerous benefits, however the Direction 17 restriction only applies to income support, employment and support allowance, jobseekers allowance and state pension credit subject to those exceptions for vulnerable groups detailed in paragraphs 121 to 124 below (see Direction 17(4)). 121. For jobseekers allowance those in a prescribed vulnerable group and already in receipt of JSA(IB) hardship payments may apply for a CL without reference to Direction 17. Claimants who are not part of a vulnerable group, can apply for JSA(IB) hardship payments on the 15th day that benefit is not payable as a result of the One Strikes sanction, but will still be subject to Direction 17. 122. For income support, employment and support allowance and state pension credit, the prescribed vulnerable groups are customers who are pregnant or seriously ill or have a family member who is pregnant or seriously ill. 123. If they are receiving their sanctioned benefit subject to a 20% reduction only (as per regulation 3 (1) (a) or 3A (1) (a) of the Social Security (Loss of Benefit) Regulations 2001), they can apply under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for these groups (see Direction 17 (4)(c) and (d)). 124. All other IS, ESA(IR) and SPC customers who have been sanctioned under the One Strikes provisions will receive their benefit but it will be reduced by 40%, however any CL applications will still be subject to Direction 17.


Jobseekers Allowance – Fail to show good cause sanctions (Direction 17 (3)(c)(v)) 125. From 6th April 2010 the Jobseekers Allowance Regulations have been amended to introduce a new sanction for jobseekers who fail to attend mandatory interviews. 126. The change introduces a new one week sanction for jobseekers who fail to attend a mandatory interview, and although they contact Jobcentre Plus within five working days are unable to show good cause for the failure. Entitlement to JSA will continue but benefit will not be payable. A second or subsequent failure to attend without showing good cause within the same jobseeking period will result in a further two week sanction. 127. If an applicant for a CL who is the subject of a sanction, as they did not show good cause for failing to attend an interview, has not applied for JSA(IB) hardship payments they should be advised to do so. 128. Those in a prescribed vulnerable group (see paragraph 142) who are already in receipt of JSA(IB) hardship payments may apply for a CL under the normal rules without reference to Direction 17. Access to a CL for living expenses is not restricted for this group. 129. However for applicants who are not in a vulnerable group where the DM determines that the CL application is wholly or partly as a result of the sanction a CL can only be considered to alleviate the consequences of a disaster or for fireguards or items for space heating or cooking. Example 1 A jobseeker has failed to attend his fortnightly jobsearch review interview and has not shown good cause for missing the appointment. As a result his JSA is sanctioned for one week. The jobseeker is not a member of a prescribed vulnerable group and is unable to receive JSA(IB) hardship payments. He makes an application for a CL as he has no money and the DM determines that his application is as a result of the sanction imposed on his JSA claim. As the jobseeker is not in receipt of JSA(IB) hardship payments for being a member of a prescribed vulnerable group, Direction 17(2)(c) applies and a CL is refused under Direction 17(1).


Example 2 A jobseeker has failed to attend her 13 week mandatory interview at the Jobcentre. This is the second interview she has failed to attend in the same jobseeking period so a two week sanction has been imposed. The jobseeker is pregnant so falls into a prescribed vulnerable group and is receiving JSA(IB) hardship payments. She makes an application for a CL as she has no money. The DM determines that even though she would be subject to Direction 17 (3)(c)(v), the exception in Direction 17(4) applies as she is receiving JSA(IB) hardship payments for being in a vulnerable group. Therefore the CL application can be considered in the normal way.

Work-focused interview or work-focused health-related assessment sanctions – ESA (Direction 17(3)(c)(iv)) 130. In relation to ESA, customers may be required to attend either a work- focused interview (WFI) or a work-focused health-related assessment (WFHRA). If they fail to take part in a required interview a sanction may be imposed and ESA will be paid at a reduced rate. The reduction is applied to the work related activity component of ESA. 131. SF applicants who have received a decision that they have failed to take part in a WFI or WFHRA and as a result their ESA has been sanctioned, will have their access to CLs restricted to expenses in consequence of a disaster and expenses in respect of fireguards or items for space heating or cooking under Direction 17. 132. There are no hardship payments to vulnerable groups under this sanction and accordingly the Direction 17 restriction to CLs will apply to all applicants who are subject to this sanction whether or not they may fall into a vulnerable group.

Work-focused interview sanction – IS, IB and SDA (Direction 17(3)(d)) 133. Several initiatives are in force which in prescribed circumstances require people of working age to take part in a WFI when making a new and repeat claim. A WFI sanction may be imposed if a customer fails to take part in a required WFI. This may result in the payment of income support, incapacity benefit or severe disablement allowance being disallowed or reduced due to this failure. 134. SF applicants who have received a decision that they have failed to take part in a WFI will have their access to CLs restricted to expenses in consequence of a disaster and expenses in respect of fireguards or items for space heating or cooking under Direction 17. 135. However this restriction does not apply to those in a prescribed vulnerable group, which is currently limited to lone parents (see Direction 17(4)(e)).


Example A lone parent has failed to attend her WFI and as a result her IS is sanctioned and paid at a reduced rate. She makes an application for a CL as she finds it difficult to manage on her reduced benefit. The DM determines that although the CL application is as a result of the sanction, it is not appropriate to apply the restricted access to a CL under Direction 17 as the applicant falls within the exception at 17(4)(e). The DM considers a CL in the normal way.

Applicants whose partners are subject to a sanction, disallowance or WFI penalty 136. Where it is the applicant’s partner who has a claim to benefit that is subject to the above sanctions/penalties, the applicant has normal access to a CL. 137. However where the CL application is for living expenses, the maximum living expenses payable must be calculated in accordance with Direction 18(2B), i.e. no amount is payable for the partner who has been sanctioned. Note that this only applies when, had the sanctioned partner applied for the CL instead, the restrictions in Direction 17 would apply.

Joint Claims for Jobseekers Allowance 138. Certain childless couples making new or repeat claims for JSA are required to make their claim jointly. Both members of the couple will have to satisfy JSA entitlement conditions to get JSA and both will be claimants with equal rights and responsibilities in relation to the claim. 139. The same principles governing CL restrictions for applicants subject to a benefit penalty will apply via Directions 17 and 18 to either member of a JSA joint claim couple as to other sanctioned jobseekers. 140. These are that:

• where a benefit penalty is imposed on a jobseeker their access to CLs is restricted to specified expenses as laid down in paragraph 80; and

• their partner who is not the subject of the benefit penalty will have normal access to CLs; but

• any award for living expenses will be limited under Direction 18(2B).

Prescribed vulnerable/non vulnerable groups 141. Direction 17(4) provides an exception to the general restriction imposed by Direction 17(1). This exception is essentially for vulnerable groups, however it may depend on whether they are entitled to, and receiving, a hardship payment for being a member of a vulnerable group under the rules of the specific benefit being sanctioned. 142. For the purposes of JSA disallowances and sanctions, the following customers are considered to be a member of a vulnerable group:

• a single pregnant woman; • members of couples or polygamous marriages where at least one

member of the couple or marriage is pregnant; • a single person responsible for children or young people;


• members of couples or polygamous marriages responsible for children or young people;

• a person who qualifies for Disability Premium; • a person with long-term medical conditions; • a person who provides care for disabled people; • certain 16 or 17 year olds; and • certain persons under the age of 21

143. Customers who do not fall within a vulnerable group are generally healthy, childless people with no caring responsibilities. 144. There is no provision for hardship payments for vulnerable groups that are the subject of a trade dispute. 145. When a customer’s IS, ESA or SPC is the subject of a One or Two Strike sanction, they will only be considered part of a vulnerable group when they or any member of their family is pregnant or seriously ill. In these cases the reduction in benefit is smaller than for other sanctioned customers. 146. When a vulnerable group customer is subject to a JSA disallowance or sanction, or an IS, ESA and SPC One or Two Strike sanction, they may be entitled to have their benefit paid at hardship rate immediately. If such a hardship payment is in payment, when an applicant applies for a CL they are not restricted by Direction 17 and their application should be considered in the normal way. 147. It should be noted that non-vulnerable group customers may be entitled to hardship payments as well, but usually a number of weeks after the sanction is imposed. Despite receiving a hardship payment, these customers are not excluded from the Direction 17 restriction on CLs. 148. The amount of benefit paid when on hardship can vary even between vulnerable customers, so this should not be used as the key factor in deciding if the customer falls within Direction 17 (4). 149. In relation to WFI sanctions imposed on IS, IB or SDA, vulnerable customers are limited to lone parents as per Direction 17(4)(e). 150. DMs may find the following table and flowchart useful when determining whether or not the restriction in Direction 17 applies.

Direction 17 – table showing when to consider restricted access to Crisis Loans





access under D171

17(3)(a) Trade Disputes (no changes)

JSA – Non vulnerable group JSA – Vulnerable group2

No benefit payable or hardship considered No benefit payable or hardship considered

Yes

Yes

17(3)(b) Disallowances


No benefit payable until availability resolved, no hardship considered Hardship considered immediately

Yes

No 17(4)(a) & (b)

17(3)(c) Sanctions






access under D171

17(3)(c)(i) & (ii) s19 or s20A JS Act Sanctions (including New Deal and training sanctions)


Hardship considered after 2 weeks3

Hardship considered immediately

Yes

No 17(4)(a) & (b)



Yes

No 17(4)(a) & (b)

ESA(C) – Non vulnerable group ESA(C) – Vulnerable group

No benefit payable, however can apply for ESA(IR) at reduced rate No benefit payable, however can apply for ESA(IR) at reduced rate

Yes

Yes6

17(3)(c)(iii)4

s6B Fraud Act 20015

Benefit fraud offences – One strike (effective from 01/04/2010) 17(3)(c)(iii)4

s7 Fraud Act 20015

Benefit fraud offences – Two strikes (D17 extended to IS/ESA/SPC) IS/ESA(IR)/SPC –

Non vulnerable group IS/ESA(IR)/SPC – Vulnerable group

Benefit only subject to 40% reduction, no hardship considered Benefit only subject to 20% reduction, no hardship considered

Yes

No 17(4)(c) & (d)

17(3)(c)(iv) s8 Fraud Act 2001 Benefit fraud offences – One & Two strikes

JSA joint-claim – Non vulnerable group JSA joint-claim – Vulnerable group


Yes

No 17(4)(a) & (b)

17(3)(c)(v) Reg. 27A JSA Regs No good cause sanction (effective from 06/04/2010)


No benefit for 1 week for 1st offence then no benefit for 2 weeks for later offences Hardship considered immediately

Yes

No 17(4)(a) & (b)

17(3)(c)(vi) Reg. 63 ESA Regs Failure to take part in WFI or WFHRA for ESA

ESA – Non vulnerable group ESA – Vulnerable group

Work-related activity component only to be reduced, no hardship considered Work-related activity component only to be reduced, no hardship considered

Yes

Yes

17(3)(d) Failure to take part in WFIs

IS/IB/SDA – Non vulnerable group IS/IB/SDA – Vulnerable group

Dependent on specific regulations Dependent on specific regulations

Yes

No 17(4)(e)

Note 1: A CL may be awarded but only in respect of expenses as a consequence of a disaster or expenses for fireguards or items required only for space heating or cooking. Note 2: Claimants considered to fall within a vulnerable group vary according to the relevant benefit. Refer to SF Guide for further detailed information. Note 3: Hardship payments to non-vulnerable groups are not available in some cases. Examples include claimants who are required to participate in a New Deal option, the Flexible New Deal and where the claimant failed to participate in a Back to Work session. Note: all sanctioned claimants considered part of a non-vulnerable group, whether they are receiving hardship payments or not, will have their access to CLs restricted in accordance with D17. Note 4: 17(3)(c)(iii) does not apply to joint-claim JSA which is provided for in 17(3)(c)(iv). Note 5: ss6B & 7 Fraud Act sanctions can be imposed on a larger range of benefits than D17 applies to. Please note that D17 is only relevant where the benefit sanctioned under ss6B or 7 is JSA, IS, ESA or SPC. For all other benefits that may be sanctioned under ss6B or 7 (including IB & SDA) access to CLs is NOT restricted under D17.


Note 6: Unless receiving ESA(IR) at reduced rate.

Direction 17 Consideration Flowchart


Direction 17 Consideration Step Action Table

Step Action 1 Is CL application for expenses as a consequence of disaster or

for cooking/heating items? Yes – Normal rules apply No – Go to Step 2

2 Is customer/partner currently, or has recently been, subject to a sanction/disallowance/WFI? Yes – Go to Step 3 No – Normal rules apply

3 Is CL application wholly or partly due to disallowance/sanction? Yes – Go to Step 4 No – Normal rules apply

4 Does sanctioned benefit fall within Direction 17(3) definitions? Yes – Go to Step 5 No – Normal rules apply

5 Is customer in receipt of hardship payment as per Direction 17(4)(a)(e)? Yes – Normal rules apply No – Restriction under Direction 17 applies.

Direction 7 – Circumstances in which repeat applications are not to be determined

Direction 7 151. For the purposes of Direction 7, do not refuse to determine an application for the same expenses in those cases where:

• the previous application was withdrawn before an offer was made • the applicant declined the offer on the previous application • the applicant did not respond to the offer on the previous application • the Secretary of State decided that the previous application was

incomplete. See the Social Fund (Applications and Miscellaneous) Regulations 2008.

Direction 7(2) 152. This provision applies where the CL application is for living expenses and an award has already been made to that person or their partner for the same period on a previous application. 153. The Secretary of State envisages very limited circumstances in which, where an award for living expenses has been made, it would be appropriate to determine a further application for living expenses for the same period. 154. The decision maker should refuse to determine the repeat application unless satisfied that the expenses are for help:

• as a consequence of a disaster which has occurred since the previous award; or


• in an emergency which: has arisen since the previous award, is not a consequence of an act or omission for which the applicant or

partner is responsible, and the applicant or partner could not have taken reasonable steps to avoid.

155. Where the repeat application is for living expenses as a result of something an applicant or partner has done, or failed to do, the application will not be determined unless one of the exceptions above applies.

Disaster since the previous award 156. If there has been a disaster since the previous award and the Decision Maker is satisfied that help with living expenses is needed as a consequence of this, the Decision Maker can go on and determine the repeat application under Direction 3. See paragraphs 196 to 198 for definition of disaster.

Emergency since the previous award 157. In order to determine the application, the SF Decision Maker must be satisfied that the emergency is not the result of an act or omission on the part of the applicant or partner for which they are responsible. And that they could not have taken reasonable steps to avoid the emergency. 158. This means considering:



159. Examples of causing the emergency by a direct act are gambling or misspending. 160. Where the applicant or partner did not directly cause the emergency, the Decision Maker should ascertain whether reasonable steps were taken avoid it. 161. For example, if the home is burgled, confirm that steps were taken to secure the home in the first place by locking all doors and windows etc. Whilst it may be understandable that the applicant or partner forgot to lock a door leaving cash easily accessible to an opportunist thief, in most cases it could not be considered that they have taken reasonable steps to avoid an emergency. 162. Similarly, if the applicant or partner chose to carry all their available cash and this is lost or stolen, there may have been several steps that could have been taken to avoid the emergency. For example, some cash could be left in the bank or secure at home; or more securely carried around on a person in an inside pocket or money belt.

Exceptions 163. In considering the responsibility of the applicant or partner, the Decision Maker should take account of their individual circumstances. For example, it may be relevant that the person whose act gives rise to the emergency is suffering from a mental illness or disability.


164. However, where that person is a member of a couple, the Decision Maker should still consider whether the other member of that couple could have taken reasonable steps to avoid the emergency. 165. Those who are the innocent victims of crimes such as serious physical assault which results in the loss or theft of money are not likely to have caused the emergency, or have been able to take steps to avoid it. There will generally be corroborative evidence available for such incidents, such as a police report and an ongoing investigation. 166. However, where the applicant or partner is a victim of crime, the Decision Maker must still be satisfied that the emergency could not reasonably have been avoided. For example, the Decision Maker should seek further explanation where it is not apparent why it was necessary to be in a known high crime area late at night carrying more than a small amount of money. 167. If satisfied that neither the applicant nor partner caused the emergency and could not have taken reasonable steps to avoid it, the exception in Direction 7(2)(b) applies; the Decision Maker can go on and determine the repeat application under Direction 3.

Direction 7(3) 168. A CL or grant application made after 28 days from the date of a previous application for the same expense is not subject to the provisions of direction 7(3). 169. In considering direction 7(3), a relevant change of circumstances might be, for example, a change in the:

• applicant's circumstances • budgetary position • law.

170. With regard to the applicant’s circumstances and whether there has been a relevant change, consider the following example. 171. A repeat application for a bed is made by 2 different applicants who have already been awarded a payment for a bed. Applicant A did not buy a bed, but a different household item instead. Applicant B did buy a bed, but the bed has been subsequently destroyed by a house fire. 172. In the above example, there is no relevant change in Applicant A’s circumstances. There may however, be a relevant change in Applicant B’s circumstances. 173. In terms of the budgetary position, a new budget allocation at the beginning of the year or the normal budget fluctuations throughout the year would not in themselves represent a relevant change of circumstances. However where there has been a change in the budget that allows greater award amounts this may constitute a relevant change. 174. The main focus, in deciding whether a change is relevant, will be on whether it relates to the reasons for refusing or awarding a payment.

Direction 23 – Exclusions

Direction 23 175. Consider if the item or service requested is among the exclusions.


Removal or storage charges where a housing authority has a duty to rehouse a person 176. Where a housing authority accommodates a person under its homelessness duties (Part VII of the Housing Act 1996 or Part ll of the Housing (Scotland) Act 1987), it has a duty to protect their property against loss or damage. Authorities usually discharge this duty by arranging for the removal or storage of the applicant's property, for which they may make a reasonable charge. 177. Authorities also have a duty to protect a person's property where an applicant is rehoused following the imposition of a compulsory purchase order, or a redevelopment or closing order, or a compulsory exchange of tenancies. 178. Authorities in England and Wales have a duty under homelessness legislation to secure accommodation for eligible homeless applicants in priority need, where there is no suitable alternative accommodation available. For unintentionally homeless applicants, this duty applies for a period of two years, after which it can be reviewed. 179. While an applicant is accommodated by an authority under homelessness legislation they can also apply through the housing register for a longer-term council or housing association tenancy. The authority's homelessness duty ceases with the allocation of such a tenancy under its housing allocation scheme. At that point, it has no further duty to protect that person's property, e.g. by arranging for its removal to the applicant's new address. Similar duties apply in Scotland, with the exception of the two year period and that no suitable alternative accommodation should be available. 180. You should exclude removal or storage charges where the housing authority is discharging a duty to accommodate a person under the homelessness legislation (Part VII of the Housing Act 1996 or Part II of the Housing (Scotland) Act 1987) or following the imposition of a compulsory purchase order, or a redevelopment or closing order, or a compulsory exchange of tenancies. 181. You should consider an award, subject to the priority of the application, for removal or storage charges, where the housing authority is rehousing a person under its housing allocation powers. 182. If the housing authority is not under a duty to protect a person's property but there is a possibility that it may use discretionary powers to arrange or meet the cost of removing or storing that property, you should have regard to this in dealing with the application, i.e. the possibility that some other person or body may wholly or partly meet the applicant's need (section 140(1)(c) of the Social Security Contributions and Benefits Act 1992). 183. If necessary, contact the housing authority, observing rules of confidentiality, to check:

• what help is being given or would be given on application, and • whether that help is under mandatory or discretionary powers.

Respite care 184. This term covers a range of situations allowing a respite, or break, for either:

• someone looking after a person in need of care


• a disabled or elderly person who lives alone and needs a rest from their tasks for a week or two.

185. Respite care includes the following situations: • arrangements made for someone else to come into the home and

provide care, either for a set period or on a regular basis for, say, a few hours each week. LAs may provide such services but the provision may vary from one LA to another. Voluntary organisations can also help

• a person normally cared for in their own home who is being taken into short term residential care

• a person living independently who is being given a short term break in residential care.

Repair to property of public sector housing bodies 186. The term 'public sector housing bodies' covers Local Authority (LA) or analogous property, i.e. a property provided by:

• new towns • Urban Development Corporations • most housing associations • housing co-operatives • housing trusts • the Development Board for Rural Wales • Scottish Homes • Scottish Fire and police authorities.

Housing costs, repairs and improvements 187. The Secretary of State has directed that grants or loans cannot be made to meet, or help to meet, the cost of repairs and improvements to the dwelling occupied as the home, including any garage, garden and outbuildings, other than minor repairs and improvements. 188. The use of the term “repairs and improvements” includes the cost of both materials and labour. A repair will generally put right something that is defective. An improvement will generally upgrade something, or add something to the property that was not there before. 189. It is difficult to precisely define the term “minor”. The following considerations, however, will be relevant when deciding whether a repair or improvement is “minor” or not:

• the nature and extent of the work • the time needed to complete the work • the cost of the work.

190. Assistance from the SF is not appropriate to meet, or help to meet, the cost of repairs or improvements which are not minor. These are more appropriately financed through:

• house insurance • DETR grants, • a commercial loan.

191. The Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), the Pension Credit or income-related Employment and Support Allowance (ESA(IR) assessment may include an amount in respect of interest


on a loan taken out for some repairs and improvements. The IS (General) Regulations 1987 Schedule 3 paragraph 16(2) Jobseeker’s Allowance Regulations 1996 Schedule 2 para 15(2), the Pension Credit Regulations 2002 Schedule 2, para 12(2) and Employment and Support Allowance Regulations 2008, Schedule 6, para 17(2) specify the repairs and improvements for which interest may be included in IS, JSA(IB), PC and ESA(IR) respectively. 192. For people under 60, IS, JSA(IB) and ESA(IR) help for interest on loans taken out for these costs will not generally be payable until they have received IS, JSA(IB) or ESA(IR) for 39 weeks.

Medical, surgical, optical, aural or dental item or service 193. Such items or services should normally be provided through the health service but those items or services for which a charge is made are:

• free for people on IS, JSA(IB) or ESA(IR) • free or at reduced cost for certain other groups.

194. There is no specific definition of medical items in Social Security or NHS legislation. You should use a common sense approach and take account of the circumstances of the individual application. 195. Refer people asking for help from the SF for any such item or service to their GP, dentist, optician, health or local authority, as appropriate. 196. Applicants may ask for items in everyday use, although the need may have arisen from a medical or other condition, e.g. someone with an allergy may need cotton sheets. Payments for such items from the SF are not specifically excluded. 197. If such help is requested, first find out whether aid is available from other relevant agencies, e.g. GPs and hospital doctors can prescribe 'borderline substances' in specific circumstances, e.g. sunscreen for people with particular skin ailments. 198. If help cannot be provided from other agencies, consider the application:

• on its merits • assessing its priority in relation to:

the other applications the budget.

Work related expenses 199. This term covers expenses related to seeking and obtaining employment, e.g. fares when seeking work, new clothes on starting work. Some employers will consider an advance of earnings to help a new employee with such expenses. 200. Help may also be available from the Employment Service in the form of discretionary Jobfinders’ Grants and Jobseekers’ Grants or in the form of a Budgeting Loan (BL).

Debts to government departments and local authorities 201. These include:

• National Insurance arrears • income tax liabilities


• customs charges • rent arrears • council tax arrears.

Accommodation charges including meals and services 202. If a CL application is received for a payment in advance to secure accommodation in a hotel, lodging house or similar establishment, any award should meet the accommodation charge only. 203. If the charge includes meals and/or services and the accommodation charge is not known, you may deduct a reasonable amount for meals and/or services that are known to be provided, before making a loan offer.

Application for excluded item 204. If another body might be able to meet the need, refer the applicant to them. If in doubt that the agency can help, seek the agency's advice before referring the applicant to them. Record all action clerically and on the decision form.

Maternity and Funeral expenses 205. There are two distinct parts to the SF:


• a discretionary scheme to meet payments of community care grants, CLs or budgeting loans in accordance with directions and guidance issued under section 138(1)(b) of the Act. Such payments are defined in section 138(5) of the Act.

206. It therefore follows that you cannot make payments for CCGs, CLs or BLs from the discretionary fund under section 138(1)(b) for any form of maternity or funeral expense, whether referred to in regulations or not. 207. The regulations do not define the terms 'maternity expenses' and 'funeral expenses'. You should interpret these terms in relation to their ordinary common sense meaning, but have some regard to their use in Social Security legislation. 208. You must therefore decide if you should regard a particular item as a maternity or funeral expense according to the individual circumstances of each application. 209. If you receive an application for maternity or funeral expenses, check to see if the applicant or their partner has made a claim for a Sure Start Maternity Grant or Funeral Payment under the regulated scheme. If the applicant or partner has not made a claim invite them to do so if appropriate, as well as dealing with the application to the discretionary fund. Maternity expenses 210. While the term 'maternity expenses' has its ordinary meaning there is no one accepted meaning of the term. You must use your judgement in deciding whether to consider an item to be a maternity expense. 211. The effect of the legislation referred to in para 161 above is to exclude awards from the discretionary fund for items such as the initial clothing needs


of a newborn baby. You may consider items which a child needs later in its development, such as larger size clothing, as the needs of a growing child rather than maternity expenses. 212. You may consider clothing for a pregnant woman, often referred to as 'maternity clothing' as a personal need of the expectant mother rather than an immediate need of a newborn baby. 213. Consider whether the help requested is for:


maternity expenses. 214. A person can make a claim for a Sure Start Maternity Grant from the regulated fund 11 weeks before the expected date of confinement and up to 3 months after the birth. Baby items requested within this period may often fall within the category of maternity expenses. 215. In making your decision you should take into account:

• the items applied for and the circumstances surrounding the need • the timing of the application, i.e. before, around the time of or after the

birth • whether it is reasonable to class the need as a maternity expense.

Funeral expenses 216. Normally, interpret 'funeral expenses' to be the expenses of burial or cremation. All items referred to in the specification in the Funeral Payment Regulations are funeral expenses, even though there may be a limit on the amounts payable for some items. 217. If an applicant requests other items, consider if these are actual expenses of burial or cremation. Some items may be connected with a death but may not be expenses of burial or cremation. For example, you may consider:

• a headstone to be a memorial • clothing to attend a funeral to be a personal need of the applicant.

218. Advise the applicant if another body might be able to meet the need. Contact the other body if you are not sure that they would be able to help.

Direction 3 - The qualifying conditions Direction 3

Definition of terms 219. Individual people may be affected differently by the same situation, e.g. the ability of a fit person to cope with a particular set of circumstances may differ from that of someone who is chronically sick, so it is not intended to give a precise definition of terms such as:

• emergency • disaster • serious risk to the health or safety.

Examples of Crisis Loan situations 220. You must have regard to all the circumstances of each case. The following examples illustrate some situations where help may be appropriate,


but a CL will not be automatic. A situation not mentioned is not automatically excluded, unless covered by a Secretary of State direction. 221. Bear in mind the purpose of CLs, particularly that they should be the only means of avoiding serious damage or risk to the health or safety of the applicant or member of the family, unless the need is for rent in advance when the applicant is leaving institutional or residential care.

Disasters 222. A CL can be considered for need arising from disaster, e.g. fire, flood or some other calamitous occurrence, resulting in significant damage, loss or destruction. The mere occurrence or the scale of disaster should not be considered in isolation from the applicant's resources and ability to cope with the needs arising. In these cases, however, consider first whether it may be appropriate to award a community care grant. 223. Large scale tragedies require a particularly sensitive response. Be aware that victims are especially vulnerable to emotional and psychological disturbance. 224. Local Authorities (LAs) are responsible for co-ordinating emergency and disaster planning within their area. They deal with both relatively localised disasters, e.g. a gas explosion damaging a single house, and large scale disasters, e.g. widespread flooding, chemical leak into the atmosphere. 225. In cases of disasters, liaise closely with the LA staff responsible for emergency services to avoid duplication of help. District Managers hold guidance on this. A contingency reserve is available should Districts be faced with additional expenditure resulting from an accident or emergency in their area.

Emergency travel expenses 226. If someone is stranded away from home without access to their regular means of support a CL may be made for travel expenses. Consider if it is cheaper for the applicant to return home or continue the journey. 227. 16 and 17 year olds may apply for a CL to cover the cost of a journey home after unsuccessfully seeking work or a Work Based Training for Young People place elsewhere. When considering the applicant's ability to repay the loan, take into account that the applicant will normally have:

• a guarantee of a place on Work Based Training for Young People in their home area and

• an allowance from which to repay the loan when they take up the place. 228. Deductions can be made from Income Support (IS), income-based Jobseekers Allowance (JSA(IB)) or income-related Employment and Support Allowance (ESA(IR)) where it is payable in addition to an allowance for Work Based Training for Young People

Loss of money etc 229. Loss of money may result from a variety of different circumstances. Any amount to be awarded will be subject to the maximum in Direction 18. 230. If a giro is not received or is lost before encashment this should be dealt with under the normal replacement rules. These provide for full replacement in most cases. The need to consider a CL should only arise in a


minority of cases where full replacement is not made because of strong doubts about the circumstances of the non-receipt or loss.

Living expenses for more than 14 days 231. CLs should normally be awarded for living expenses for more than two weeks in exceptional circumstances only, e.g. a need may arise through loss of money which would have been expected to cover until the next payment of regular income. 232. This might include situations where, because of misfortune or management difficulties, the resources which are taken into account in the IS, JSA(IB), Pension Credit (PC) or ESA(IR) assessment are all spent leaving the applicant without funds to live on. 233. A CL should normally only be made for living expenses for longer than two weeks where the indications are that the crisis will not come to an end within that period.

Hardship due to payment of regular income in arrears 234. Most IS, JSA, ESA and other benefit claimants will have resources from their previous source of income, e.g. last wages, to cover the period until the first benefit payday. 235. Similarly, for most people starting work the benefit payment arrangements will be such as to provide resources to cover the period up to their first pay day. 236. Some people may not have sufficient resources to meet their needs during these periods and a CL may be appropriate in such circumstances. Payment will not normally be necessary for living expenses for more than 14 days.

Hardship due to compulsory unpaid holidays 237. Hardship may be caused exceptionally due to employers imposing compulsory unpaid holidays. A CL may be appropriate in these circumstances.

Capital not immediately realisable 238. Occasionally someone might be without regular income but because of capital assets worth over £16,000, e.g. property, there is no entitlement to IS, JSA(IB) or ESA(IR). A person in this situation who is not able to realise those assets immediately will be expected to raise money against them. 239. A CL for living expenses will only be appropriate in these circumstances for a short period until the applicant arranges credit facilities. If no attempts are being made to realise the asset or arrange alternative credit facilities, a CL will not be appropriate.

Fares to hospital for patients 240. Hospital fares are covered by the Hospital Fares Scheme, or in Scotland the Fares to Hospital and Highlands and islands Travelling Expenses Schemes. The provisions include payment in advance. 241. Consider awarding a CL for travelling expenses, including an escort if necessary, if an applicant requests fares to hospital for treatment for


themselves or a member of their family, e.g. because transport by ambulance and through the hospital car scheme has been refused, their condition is serious and the applicant cannot receive the fare in advance from the hospital. Take normal recovery action.

Reconnection charges 242. CLs to meet the cost of reconnection charges can be considered if, e.g. an applicant's fuel supply has been disconnected and Third Party Deductions (TPD) action is being taken.

Persons without accommodation 243. The homeless may be at particular risk if they have to sleep rough. This risk is often greater for the elderly or those who are not in good health. For all people, the risk increases when the weather is bad or a period of sleeping rough is prolonged. 244. Physical disorders, most frequently including acute respiratory infections, such as bronchitis and tuberculosis (TB), and hypothermia and even a form of 'trench foot' can result from prolonged exposure to the cold and the damp. 245. Psychiatric disorders, often found in ex-psychiatric hospital patients and ex-prisoners, are also frequently made worse by prolonged homelessness. 246. The possibility of assault is common to all people sleeping rough but young people are also especially vulnerable to the risk of drug dependency, alcohol misuse and exploitation, e.g. prostitution. In addition, for young people, prolonged homelessness increases the risk of offending. 247. Take all of these factors into account when considering the question of serious risk to health or safety in relation to CL applications for money to secure accommodation or living expenses made by homeless people or those threatened with homelessness.

Special needs on leaving institutional or residential care 248. There is only one circumstance where a CL may be awarded other than on health/safety grounds. If a Community Care Grant (CCG) is made to help a person return to the community after a period of institutional or residential care, a CL may be made to cover a maximum of four weeks rent in advance. 249. Do not award weekly amounts in excess of the amount of housing benefit likely to be awarded, seek advice from the LA, if necessary. In such cases the CCG and any capital should be disregarded when considering the applicant's resources in calculating the amount payable. 250. Living expenses may also be covered up to the first payment of IS or JSA(IB) in such cases but only where the health/safety criterion is met. Staying in, or returning to, institutional or residential care should not be considered a means of preventing serious risk or serious damage to the applicant's health or safety but other resources should be taken into account. The disregard of any capital does not apply in the calculation of the amount awarded for living expenses.


People discharge from prison 251. CL applications for discharged prisoners should be treated with particular urgency and sensitivity. Bear in mind the additional pressures and risks that prisoners face on returning to the community, for example the risk of re-offending if a prisoner is destitute. 252. Some people discharged from prison will not have sufficient resources to meet their needs until their first benefit payday. Where an application for living expenses is made immediately on discharge, establish whether the applicant already has sufficient resources from any discharge grant paid by the prison service. Do not automatically assume that an applicant has been issued with a discharge grant, as this payment is not made consistently to all prisoners, nor to all categories of ex-offenders. Where there is any doubt, for example the applicant does not produce form B79 Notification of discharge from prison, check the situation with the prison. 253. If paid, a discharge grant covers the period immediately after release. It is not a substitute benefit payment covering a specific period. Therefore people released from prison may still apply, and qualify, for a CL at any time from the date of discharge to their first pay day. 254. If an applicant applies for a CL for items following the refusal of a CCG, consider whether the refusal of the CCG application may have contributed to the emergency for which the applicant is seeking a CL.

Needs arising when someone is on a Means Tested Benefit 255. A CL may be made, subject to the normal considerations, during the first 26 weeks of an IS, JSA(IB), PC or ESA(IR) claim including payments on account of such benefits, during which time an applicant would be excluded from a payment of a budgeting loan. 256. After 26 weeks on IS, JSA(IB), PC or ESA(IR),or payment on account of such benefits an applicant may apply for help with an expense which may be met by either a CL or a Budgeting Loan (BL). 257. Consider if, in an emergency or as a consequence of a disaster, the need has to be met immediately to avoid serious damage or risk to health or safety. If the need does not have to be met immediately, even though health/safety considerations may apply, a CCG or a BL may be appropriate.

Application for a Crisis Loan following refusal of a Budgeting Loan 258. If an applicant applies for a CL following the refusal of a budgeting loan, consider whether the refusal of the BL application may have contributed to the emergency or disaster for which the applicant is seeking a CL.

16/17 year olds claiming Jobseekers Allowance 259. 16/17 year olds who have established entitlement to JSA or payments on account of such a benefit may wish to apply for a CL to cover the period until their benefit is paid. 260. Details of the application will be taken by the Claims Specialist at the Employment Service Jobcentre (ESJ) and then faxed to the Social Fund section. The Decision Makers (DMs) determination should then be faxed to the ESJ who will arrange for the issue of any payment.


261. If a 16/17 year old reports the loss or non-receipt of a benefit giro, the procedures in paragraph 213 above should be followed, subject to normal replacement rules. 262. These procedures should only be followed if the applicant is a 16/17 year old and the specific circumstances described in paras 212 and 214 above occur.

Deciding if a Crisis Loan is appropriate 263. CLs are not restricted to people receiving IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits or any other social security benefit 264. A person receiving IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits may be able to get help with some expenses through CCGs or BLs. 265. A CL may be made in the circumstances described in para 177 et seq. The list is not definitive, but illustrates some of the situations in which CLs are likely to be made. 266. Consider the individual circumstances of each application and decide whether or not the need requires immediate relief. These circumstances should be distinguished from those covered by IS or JSA(IB) Urgent Case Payments, see IS(OS)M Part 1 or the relevant JSA guide. 267. When an applicant moves into your office's area, it is important to establish if there is continuing entitlement to any benefits when considering a CL. If there is a continuing entitlement the applicant should be referred to the appropriate benefit section for payment of that benefit. These payments should normally be treated as a resource as in Direction 14.

Third party payments 268. The award should normally be payable to the applicant. However, DMs also have power to make payment to a third party who can provide, or arrange for the provision of, the items or expenses covered by the award. See Sections 138(3) and 139(5) of the Social Security Contributions and Benefits Act 1992. 269. This power should only be used exceptionally, for example, where there is firm evidence that the award may not be used for its intended purpose. If you do decide to make such a payment, document the reasons fully, since a DM's determination to make payments to a third party can be reviewed like any other determination.

Establishing Priorities

General 270. The discretionary aspect of the SF scheme exists to use available resources:

• flexibly, and • targeted on those whose needs are greatest.

271. Look at each application to see if a Crisis Loan (CL) is appropriate to meet the identified need. 272. A CL should not be made unless either:


• it is the only means of avoiding serious damage or risk to the health or safety of the applicant or a member of the family

• the need is for rent in advance when someone leaving institutional or residential care and a Community Care Grant (CCG) is being awarded to enable them to return to the community.

273. If an award of a CL is the only means of preventing serious damage or a serious risk to the health or safety of the applicant or a member of his family the application will by its nature be of high priority. 274. CL needs have first claim on the loans budget, above that of Budgeting Loan (BL) applications.

Direction 40 - Responsibilities of the Area Decision Maker

Direction 40 275. The Area Decision Maker (ADM) notifies relevant CL DMs of any national guidance issued by the Secretary of State about constraints on the loans budget for CLs. See section 36 (2) of the Social Security Act 1998 and the Instrument of Authorisation and Nomination. See Part 5 – The Budget.

Budget consideration 276. When deciding whether to make a loan:

• first take into account all the circumstances of that particular application and the extent of the need

• take into account of guidance issued by the Secretary of State about priorities for the national loans budget in general and any guidance about constraints on the award of CLs as the Secretary of State may issue (Direction 41)

• record all action on SFCS and on the decision form, taking particular care to document the reasons for decisions thoroughly.

277. Higher priority applications should be met first. Lower priority applications may need to be refused.

Direction 18 - Amount to be Awarded Direction 18

General 278. If you consider that a Crisis Loan (CL) is appropriate, determine the amount to be awarded. This will vary from case to case depending on the individual circumstances. 279. A CL will not necessarily compensate for the full consequences of the emergency, e.g. lost money will not necessarily be replaced in full. The amount of the CL will be the smallest sum needed to tide the applicant over the period of need or to remove the crisis. 280. CLs are likely to fall into two broad categories:

• immediate needs for living expenses • immediate needs for other items or services.


Minimum Amount 281. There is no Secretary of State direction on the minimum amount of a CL. If the amount being considered is small be certain that:

• the absence of this small amount would cause serious damage or risk to the health and safety of the applicant or a member of the family

• there is no other means available to the applicant to lessen the risk

Amount to be Awarded 282. The maximum rate of CL for immediate living expenses, except for those lone parents defined in direction 18A(1), for any period is:

• 75% of the appropriate Income Support (IS) personal allowance for the applicant and partner plus


283. Consider if a smaller payment than the maximum set out in Directions 18 to 20 is appropriate. 284. You may round maximum amounts down to the nearest multiple of £0.50, if the rounded amount is sufficient to tide the applicant over the period of need or remove the crisis. If the amount is rounded down, give an explanation on the decision form. 285. A CL for immediate living expenses as calculated above may not be increased because IS, JSA(IB), PC or ESA(IR) premiums are or would be payable. 286. Special rules apply for:

• those receiving income-based JSA at hardship rate, see Direction 20 • those whose partners are disallowed/sanctioned jobseekers, • those whose partners have not taken part in a Work Focused Interview

(WFI).

Direction 18A 287. Crisis loans referred to as lone parent transitional loans (LPTLs) will be available from 2 March 2009 for those lone parents whose entitlement to IS ends because they do not have a child under 12 years of age and who therefore move from IS to JSA or ESA. These LPTLs are subject to a higher maximum amount as detailed in Direction 18A. The higher amount applies from the payday the next IS payment would have been made until the day before the first full (fortnightly) payment of JSA or ESA is made. 288. The maximum rate of LPTL for immediate living expenses for any period is:

• 100% of the appropriate Income Support (IS) personal allowance for the applicant plus


289. Fractions of a penny resulting from the above calculation can be rounded up or down to the nearest penny. There are no other special rules for deciding LPTLs.


Fuel Expenses 290. Normally it is not appropriate to consider the award of a CL for a debt. However, sometimes as part of an application for living expenses, applicants state that they need a fuel powercard or token which includes an amount to:

• make up for having used emergency supplies of fuel, and • cover forward/future consumption.

291. However, fuel expenses to make up for having used emergency supplies of fuel as above are, in these situations, a current debt. Where appropriate they should be considered and awarded separately so that the customer does not need to meet these from the CL award for living expenses (which are subject to restriction under Direction 18). 292. Thus where an applicant applies for a CL in respect of living expenses and indicates that this is to include the cost of a fuel, if an applicant indicates that they want a fuel powercard or token in an application for living expenses, you must identify as far as possible the amount needed for the fuel arrears and consider these under Direction 3 as immediate short term needs for an item or service. 293. The balance of the fuel powercard or token (the ongoing or forward fuel consumption) should then be considered as part of immediate short term needs for living expenses.

Direction 20 - Calculation of amounts for living expenses Jobseekers Allowance hardship cases

Jobseekers Allowance hardship cases 294. This Direction sets out the maximum which may be awarded to an applicant being paid income-based Jobseekers Allowance (JSA(IB)) at hardship rate. 295. Consider if a smaller payment is appropriate and enter the total on the decision form. 296. 16 and 17 year olds who have to live independently may be eligible for a higher rate of JSA(IB). Check with the JSA section to see which rate of income-based JSA is appropriate before deciding:

• the amount of any CL • the applicant's ability to repay.

297. The applicant may be receiving an urgent case payment simultaneously with the operation of a higher rate deduction. If this is the case, the CL should not exceed the amount of JSA(IB) that is, or would be, payable excluding premiums and housing costs.

Direction 21 - Maximum amounts

Maximum amount - items or services 298. The amount of the loan will be the smallest sum needed for the provision or repair of any item or service which you consider should be met as a CL. 299. The maximum sum will be the lowest of the:

• cost of repair to the item if the item can be repaired


• reasonable cost of purchasing the item or service, including delivery and installation where appropriate.

300. Consider an award for the minimum deposit and any repayment instalment which has to be paid during the crisis period if the applicant:

• is not on Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit PC) or income-related Employment and Support Allowance (ESA(IR), and

• can get the item on hire purchase, credit sale or other commercial repayment terms, and

• is able to meet the required repayments.

Maximum amount - accommodation charges including meals and services 301. The maximum rate of a CL for immediate living expenses is:

• 75% of the appropriate IS personal allowance for the applicant and partner plus

• for each child, the IS personal allowance applicable to dependent children.

302. Consider if the accommodation charge requested is reasonable, and remember that the CL should be the smallest sum needed to remove the crisis during the period of need. As Local Authorities (LAs) are legally bound to make an interim payment of housing benefit within 14 days of receipt of a claim, long term payments for housing costs should not be necessary.

Is the amount requested appropriate? 303. You are not expected to check the amounts requested against a price list detailing the amounts to be paid for certain items or in specific circumstances. However, if the amount requested appears to be inappropriate, this should be queried. Exceptionally it may be appropriate to ask the applicant if they have written estimates, see section on supporting evidence.

Direction 5 - Repayability

Repayability considerations 304. Guidance on repayability considerations is given under Direction 22.

Direction 22 - Ability to repay

Direction 22 305. The likelihood of repayment is to be judged solely on the applicant's ability to repay. An applicant's ability to repay will depend on:

• their total debt to the SF • any other continuing commitments they may have.

306. Take account of the following, which are determined by officers acting on behalf of the Secretary of State:

• the recommended maximum repayment period • the likely rate of repayment


• all the circumstances of the application, in particular the consequences for the applicant if you refuse the payment

• the level of multiple debt. 307. If an applicant plainly cannot afford a further loan, e.g. because an existing debt has recently been rescheduled and the applicant is already repaying his loans over a period of 130 weeks, you are advised to consider carefully whether to refuse or make a lesser award. 308. If as a result of a refusal of a loan on the grounds of inability to repay, the applicant applies for a Community Care Grant (CCG), the Decision Maker must take account of this fact when considering the CCG application. 309. If an applicant has requested an amount that is more than s/he can afford, offer the amount the applicant can afford to repay.

Total Debt 310. Total debt means the total amount that an applicant owes to the SF at any one time. Under no circumstances award a loan which takes the amount over £1500. 311. An applicant’s total debt at any one time will depend on whether they already have a loan from the SF and, if so, how much of any outstanding loans they have repaid. Social Fund Computer System (SFCS) will show the total amount of debt outstanding. 312. Before awarding any further loans consider any additional off-system debts. The total debt to the SF will reduce as repayments are made. 313. In each case:

• you are advised normally not to allow an applicant more than they could be expected to repay within a repayment period which is most appropriate to the applicant's individual circumstances but

• you must not allow an applicant more than £1,500 total debt to the SF. 314. Consider carefully all the circumstances before offering a loan which would require repayment either:

• at a rate approaching the recommended maximum deduction • over a period approaching the recommended maximum for repayment.

315. In particular, consider the applicant's: • ability to meet other demands on their income • likely future need for, and ability to repay, a further loan for essential

items. 316. Remember that daily living expenses are not excluded for CCGs where a CL cannot be awarded for such expenses due to the £1,500 loan limit. Consider inviting a CCG application (unless there is sufficient information to convert to a CCG).

Direction 49 - Crisis Loan applications treated as Community Care Grant applications and vice versa

Applications 317. Although there are separate Community Care Grant (CCG) and Crisis Loan (CL) application forms, since both are subject to the same discretionary basis of decision making, it is possible for a Decision Maker (DM) to receive a


CL application and decide to award a CCG or vice versa. This involves treating the CL application as though it was an application for a CCG. 318. DMs are not required to consider a CCG in every case of a CL application or vice versa. Such consideration may be appropriate where the information declared by the applicant in support of a CL application alerts the DM to the possibility of a CCG being appropriate, and where:



Similarly, an application for a CCG may be treated as an application for a CL where the reverse circumstances apply. 319. Where nothing on the application has prompted the DM to consider using the power in Direction 49 to convert the application to a CCG, there is no need to refer to the direction in the decision record. However, where evidence has prompted such consideration but the DM has ultimately decided to determine the application as a CL, the thought-process leading to that conclusion should be documented. 320. Directions and guidance on how to decide CCG and CL applications are in the respective parts of the Guide dealing with CCGs and CLs.

Budgeting Loans 321. A BL should be applied for on the appropriate application form, or in such other manner, in writing as the Secretary of State accepts is sufficient in a particular case, and can only be awarded on the basis of such an application. 322. If a BL application form contains information which would suggest that an application for a CL or a CCG might succeed, the applicant should be invited to apply on the appropriate application form. The BL application form should then be processed in the normal way (see Applications section in Part 4 Budgeting Loans).


Part 4 – Budgeting Loans General 1. Budgeting Loans (BLs) are intended to help those in receipt of Income

Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC), income-related Employment and Support Allowance (ESA(IR)) or payment on account of such benefits to spread the cost of intermittent expenses over a longer period. They represent an interest-free credit facility for those in need of financial assistance to cope with such expenses.

2. Unlike Community Care Grants (CCGs) and Crisis Loans (CLs), they are not limited to people facing special difficulties arising from special circumstances. However, BL awards are still subject to an overall cash-limit. 3. As with CLs and CCGs, decisions on whether to award BLs and, if so, how much to award will be based on relevant facts. 4. For CLs and CCGs, primary legislation provides for 'all the circumstances of the case' including 'the nature, extent and urgency of the need' to be taken into account. 5. By contrast, for BLs, the Social Security Contributions and Benefits Act 1992 (as amended by the Social Security Act 1998) provides for the applicant's personal circumstances, as specified in Directions by the Secretary of State, to be taken into account.

Secretary of State's directions 6. The Secretary of State has issued directions which qualify the power to make Budgeting Loans (BLs) by reference to: • the eligibility of the applicant • whether the item applied for falls within one of the specified categories • the applicant’s personal circumstances • the basis on which awards are made • the effect of capital • the maximum and minimum amount which can be awarded • the budget allocation 7. These directions are binding. 8. BL decisions are based on: • eligibility criteria:

− whether the applicant meets the qualifying benefit conditions - Direction 8

• qualifying conditions: − whether the application is in respect of an item of expense

for which a BL may be awarded - Direction 2 − Direction 2 is broad enough to encompass most routine

periodic expenses and it will be rare to refuse an application on this direction alone

• applicant's personal circumstances - Direction 50 • specified weightings for personal circumstance - Direction 52 • budget


− to have regard to the national loans budget (“the relevant allocation”) by applying the current budgeting loan baseline figure issued by the Secretary of State and notified by the ADM – Direction 40, 41

− taking account of the Secretary of State’s guidance about priorities for the loans budget – Direction 41

• amount of award − how much should be awarded? - Direction 53 − whether the amount of the applicant's capital affects the

amount of the award? - Direction 9 • repayability

− consider the applicant's ability to repay - Directions 5 and 11

− section 139(4) repayment terms as determined by the Secretary of State and agreed with the applicant (the Social Fund (Miscellaneous Provisions) Regulations 1990).

Applications 9. A Budgeting Loan (BL) should be applied for on the appropriate application form, though it can also be made in such other manner, in writing, as the Secretary of State accepts is sufficient in a particular case (regulation 2(1) of the Social Fund (Applications and Miscellaneous Provisions) Regulations 2008 refers). 10. The BL application form asks for simple facts relevant only to the scope of the BL scheme. It is not therefore intended that a BL application can result in anything but a BL decision. 11. If an applicant asks on a BL application form for the application also to be considered as a Community Care Grant (CCG), or information on the form (or local knowledge) suggests a CCG application might succeed, the applicant should be invited to apply on the appropriate form. 12. The BL application should then be processed in the normal way. 13. On receiving a BL application, check that it has been fully completed. If it has not, you are advised to try to obtain the relevant information by phoning the applicant and if this is unsuccessful, to write to the applicant to obtain the relevant information. The application should not be refused at this stage. 14. When the relevant information is received, the application should be processed without delay. 15. An application may be refused without consideration of the applicant's personal circumstances where the applicant: • is not in receipt of Income Support (IS), income-based Jobseekers

Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)) or payment on account of such benefits;

• has not been in receipt of IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits for 26 weeks;

• is involved in a trade dispute as described in Direction 8(1)(b); • has applied for a category of items that is outside the scope of the

scheme; or


• has sufficient capital over and above the amount allowable (£1,000 or, where the applicant or partner is 60 or over, £2,000) to meet the full amount requested.

Determining an application - Establishing the facts to be taken into account 16. Facts which relate to the applicant's specified personal circumstances and position under section 140(1)(b)-(e) must be taken into account. It will be the applicant's responsibility to provide such information on the application form as may be required. 17. In practice, relevant circumstances relating to qualifying benefit records will be retrieved automatically by Social Fund Computer System (SFCS) when the application is processed. However you should bear in mind that benefit can be administered clerically.

Decision making process 18. Since BL decisions will be based on a limited number of personal circumstances, the processing of decisions will, in practice, be largely automated on SFCS. Check that the applicant's circumstances are reflected correctly and then record the decision accordingly.

Joint Claims for Jobseeker's Allowance 19. Certain childless couples making new or repeat claims for JSA are required to make their claim jointly. The group of claimants who are affected by this requirement are defined by age: at least one of the couple ("joint claim couple") must be over 18 and born on or after 28th October 1957. 20. Under the Jobseeker's Act and associated Regulations both members of a joint claim couple will be required to meet the JSA entitlement conditions and will each have equal rights and responsibilities. In effect, they will both be claimants. 21. Where one member of the couple does not meet the JSA conditions the "innocent" member of the couple will be able to get JSA at the single person's rate. If the entitlement conditions are met, the couple will receive joint claim JSA (which is JSA(IB)). 22. The couple will have to nominate which of them will receive benefit for them both. In the event of the nominated person being sanctioned, then payment of joint claim JSA will be automatically paid to the member of the couple who is not subject to sanction. 23. In order to ensure that only the person who is being paid JSA(IB) is eligible for a BL a provision has been introduced which defined how "in receipt of" should be interpreted in directions. This provision can be found at the beginning of the Secretary of State's directions in Part 8. This means that the member of a joint claim couple who is being paid joint claim JSA on behalf of the couple is the only member who can be eligible to apply for a BL. 24. Direction 8(1)(c) will apply to joint claim couples and therefore the total period of any joint claim will benefit both members equally for BL eligibility. 25. DMs must therefore ensure that when dealing with applications from a member of a joint claim couple, they identify that the applicant is the member of the couple who is being paid joint claim JSA.


Direction 8 – Eligibility Direction 8

Receipt of Income Support, income-based Jobseekers Allowance, income-related Employment and Support Allowance or Pension Credit for 26 weeks 26. The 26 week qualifying period will be satisfied where the applicant has been on Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance ESA(IR) or payment on account of such benefits for a continuous period of 26 weeks or more as at the date of the determination. Any breaks of 28 days or less will be ignored for the purpose of calculating the 26 week qualifying period. 27. Where there is doubt over the benefit information held by Social Fund Computer System (SFCS), for example the date of claim supplied by the applicant does not correspond, you should establish whether the discrepancy has resulted from benefit being paid clerically. 28. Where benefit is paid in arrears the applicant should be treated as having been in receipt of IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits for the period covered by the payment. 29. Receipt of IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits in Northern Ireland will count towards the qualifying period. 30. The three waiting days at the start of a claim for JSA or ESA do not count as days of receipt of a qualifying benefit. 31. An application may be refused without consideration of the applicant's personal circumstances where the applicant does not satisfy the qualifying benefit condition.

Couples 32. A Budgeting Loan (BL) can only be awarded to the partner who receives IS, JSA(IB), PC or ESA(IR) or payment on account of such benefits. It is possible for the other partner to become the IS or PC claimant or the jobseeker if this is beneficial to the application, eg if the applicant does not satisfy the eligibility criteria but their partner does. See the Decision Maker's Guide (DMG) on changing IS claimants or jobseekers within a household. These rules also apply to PC. 33. Eligibility for a BL is based on whether the applicant is at the time of the application getting: • IS or Pension Credit as the claimant, • JSA(IB), • ESA(IR),or • Payments on account of such benefits and throughout the qualifying period :

• has been getting IS or PC as the claimant, • JSA(IB), • ESA(IR),or • Payments on account of such benefits, or • has been the partner of someone receiving IS, JSA(IB), PC or ESA(IR)

or payment on account of such benefits. The partner does not have to


be the same partner as at the time of the application. A partnership can continue to exist where one partner is temporarily absent, eg in prison

Jobseekers Allowance disallowances/sanctions 34. BLs are dependent upon receipt of a qualifying benefit. JSA disallowances and sanctions are different in their effects: • disallowances - occur where the jobseeker has not satisfied a basic

condition of entitlement • sanctions - these occur where, for example, jobseekers have left their

previous work voluntarily or have neglected to avail themselves of a reasonable opportunity of a training scheme. Sanctions are of a discretionary or fixed length, depending upon the offence

35. Under a disallowance or sanction normal JSA is not payable for the length of the disallowance or sanction although the jobseeker can apply for JSA at the hardship rate. 36. JSA at hardship rate is classed as JSA(IB). 37. For people who do not fall within the prescribed vulnerable group (normally single, healthy, childless, people and healthy, childless couples with no caring responsibilities) no JSA (even at hardship rate) will be payable: • so long as a disallowance applies or • for the first two weeks of the sanction

Trade disputes 38. BLs cannot be awarded if the applicant or partner is involved in a trade dispute as described in Direction 8(1)(b). An application may be rejected without consideration of the applicant's personal circumstances where the applicant or partner is involved in a trade dispute as described in Direction 8(1)(b).

Repeat applications 39. There are no restrictions on repeat applications for BLs.

Exclusions 40. BLs may only be awarded if the application is in respect of one or more of the categories of items specified in Direction 2. They cannot be awarded in respect of any other categories of items.

Direction 2 – Budgeting Loan qualifying conditions Direction 2

Scope of budgeting loans 41. The following categories of items, as specified in Direction 2, define the scope of the Budgeting Loan (BL) scheme: • Furniture and household equipment • Clothing and footwear • Rent in advance and/or removal expenses to secure fresh

accommodation • Improvement, maintenance and security of the home


• Travelling expenses • Expenses associated with seeking or re-entering work • HP and other debts (for expenses associated with any of the above) 42. The only role of the item categories in the Direction is to specify the types of items in respect of which BLs may be awarded. 43. The item categories represent a broad range of types of expense that Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance (ESA(IR)) recipients may have difficulty in budgeting for from their benefit. 44. A breakdown of item details and their individual amounts under the broad categories is not required. Nor is it necessary to check the applicant's need for any item(s) applied for. 45. If the applicant indicates on the application form an item or category that clearly would not fall into the broad categories of items in this Direction, then a BL cannot be awarded. Such applications may be refused without consideration of the applicant's personal circumstances. 46. Where an applicant specifies an item, then you should where possible, identify the appropriate category to which it belongs and proceed with the application as normal.

Direction 50 - Personal circumstances of applicant Direction 50 47. All Budgeting Loan (BL) applications are subject to a factual test, as specified in Direction 50 i.e. the composition of the applicant’s household.

Members of the applicant’s household. 48. On the date of the decision, the applicant, their partner, if any, any child or young person for whom the applicant or their partner is responsible, and any child of that child or young person are to be counted as members of the applicant’s household at the date of the determination for the purposes of Direction 50 if they would be under regulation 16 of the Income Support (General Regulations 1987 (for applicants in receipt of income support or pension credit), regulation 78 of the Jobseeker’s Allowance Regulations 1996 (for applicants in receipt of jobseeker’s allowance) or regulation 156 of the Employment and Support Allowance Regulations 2008 (for applicants in receipt of the Employment and Support Allowance). 49. Normally the applicant would be expected to be receiving Income Support (IS), income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance ESA(IR) or payment on account of such benefits for their partner. However, occasionally, where the applicant and their partner have just embarked on a cohabiting arrangement, the benefit position may not yet have come to reflect the nature of the domestic arrangements. In such circumstances, it might be appropriate to consider whether there is other evidence available which would reflect the true nature of the domestic situation; for instance, whether a member of the couple has made an application for a joint benefit payment. 50. The applicant or their partner is likely to be in receipt of benefit in respect of a child or young person for whom they are responsible; however, as long as the child or young person normally resides with the applicant as a


member of her/his household that is sufficient. Generally, the test laid down by the relevant regulations is that a person is responsible for a child or young person, who is therefore to be treated as a member of that person’s household, if they are receiving child benefit in respect of them. However, where no person is receiving child benefit in respect of them, the person who is to be treated as responsible for that child or young person is the person with whom the child or young person usually lives (see reg 15(2)(a) of the IS Regs; reg 77(3)(a) of the JSA Regs and reg 156(1)(b) of the Employment and Support Allowance Regulations 2008)

Direction 52 - Weightings for personal circumstances Direction 52 51. The Secretary of State has directed that the maximum amount available to an applicant shall be determined by reference to the composition of the applicant’s household. 52. Accordingly, the Secretary of State has specified in Direction 52 that the weighting value to be attached to a household: • containing only the applicant shall be one. • containing only the applicant and a partner shall be one and one third. • which includes one or more children aged 19 or under shall be two and

one third. 53. This means that anyone with dependent children will fall into the third category above and there is no difference in treatment under the test according to the size of the family. For example the third category will apply to: • a single lone parent applicant with one child • a couple with four children

Direction 53 - What to award Direction 53 54. The effect of the weightings accorded to applicants’ circumstances is to establish, in conjunction with the budgeting loan baseline figure notified by the Area Decision Maker (ADM) under Direction 40, limits on the maximum amount of Budgeting Loan (BL) debt individual applicants may have. 55. ADMs will notify Decision Makers (DMs) of the budgeting loan baseline figure on which the 3 maxima of loans available for determining the size of the budgeting loan award are based. The Social Fund Computer System (SFCS) will hold and then apply the maximum amounts at the appropriate stage in the decision making process. Treatment of existing Budgeting Loan debt 56. The extent of access applicants will have to their own limit will depend on whether or not they already have BL debt. To arrive at the maximum amount available to an applicant for budgeting loan, the baseline figure is multiplied by the appropriate weighting value (this is the “maximum amount”). Subject to directions 9, 11 and 53(3), the award which may be made is the lower of: • the amount applied for or • the maximum amount less any outstanding budgeting loan debt owed

by the applicant or partner.


Applicant with no existing Budgeting Loan debt 57. If an applicant has no existing BL debt and s/he has applied for an amount that is either less than or equal to, the limit on the amount of BL loan available to the applicant, then a full award may be made (subject to Directions 9,11 and 53(3)). 58. If the amount requested is above the maximum of the amount of BL loan available to the applicant, then the most that may be awarded is the limit of the amount of BL loan available to the applicant (subject to Directions 9, 11 and 53(3)). Maximum debt limits – direction 53(3) 59. No award may be made which causes the total sum of budgeting and crisis loans repayable to the social fund by the applicant and partner to exceed £1,500. Therefore any award calculated as per paragraphs 55, 56 or 57 above may be subject to further reduction to:

• an amount that is the difference between the current total SF debt of applicant and partner, and

• the debt limit of £1,500.

Minimum award 60. A budgeting loan of less than £100 may not be awarded.

Direction 9 - Treatment of capital Direction 9 61. Any capital held by the applicant and partner of, below £1,000, (or £2,000 if the applicant or partner is aged 60 or over), will not affect the amount awarded as a Budgeting Loan (BL). 62. If the applicant and partner have capital of more than £1,000, (or £2,000 if the applicant or partner is aged 60 or over), a BL is reduced by the amount of any capital over £1,000, (or £2,000 if the applicant or partner is aged 60 or over). 63. Any capital held by the applicant's children should be disregarded. 64. Check the amount of capital stated on the Social Fund (SF) application against information available from Income Support (IS), Jobseekers Allowance (JSA), Pension Credit (PC) or Employment and Support Allowance (ESA). Further enquiries will be needed only if: • there is a significant difference; and • the decision on the application might be affected 65. For the purposes of the SF, the definition of what constitutes capital is the same as that for IS, income-based Jobseekers Allowance (JSA(IB)), Pension Credit (PC) or income-related Employment and Support Allowance ESA(IR), except that any payments from the Family Fund and integration loans under The Integration Loans for Refugees and Others Regulations 2007should also be disregarded. Any payment of Back to Work Bonus should be treated as capital. 66. The main types of capital are: • current accounts • savings accounts • national savings certificates


• fixed term investments • life insurance or endowment policies • friendly societies personal deposit accounts • trust funds • property other than the applicant's home 67. This list is not exhaustive. Refer to the Decision Makers Guide (DMG) for: • a complete list of types of capital • the procedures for assessing the capital available to the applicant 68. The IS, JSA(IB), PC or ESA(IR) rules for disregarding capital, relevant to the benefit that the applicant is in receipt of, apply to BLs, except that any payments from the Family Fund and integration loans under The Integration Loans for Refugees and Others Regulations 2007should also be disregarded. Disregard arrears of, and concessionary payments made to compensate for arrears due to the non-payment of, the following benefits, payments and allowances: • mobility allowance, • mobility supplement, • the mobility component of DLA, AA, • the care component of DLA, • IS, • Working Families Tax Credit, • Child Tax Credit at a rate higher than the appropriate maximum family

element, and/or Working Tax Credit where a disabled worker is included in the assessment,

• Disabled Person's Tax Credit, • Housing Benefit, • Council Tax Benefit, • income-based JSA (and, where a claimant is receiving JSA,

contribution-based JSA), • income-related Employment and Support Allowance • Pension Credit • any allowance paid under the Earnings Top-up Scheme 1996, • any discretionary housing payment paid pursuant to regulation 2(1) of

the Discretionary Financial Assistance Regulations 2001, and, where a claimant is receiving income support,

• supplementary benefit, • family income supplement under the Family Income Supplements Act

1970 and housing benefit under Part II of the Social Security and Housing Benefits Act 1982, but only for 52 weeks from the date of receipt of the arrears, subject to para 69 below.

69. From 14 October 2002 the disregard that applies to arrears and concessionary payments referred to in para 68 above will be extended from 52 weeks to the remainder of the benefit award of IS, income-based JSA or income-related Employment and Support Allowance ESA(IR) if that is a longer period, in cases where there has been an official error and the total of arrears plus any concessionary payment is £5000 or more. This will apply to payments received in full on or after 14 October 2001. The extended disregard can be continued across benefit awards where a claimant transfers


from claiming either IS, income-based JSA or income-related ESA to the other benefit, or there is a change of claimant from one partner to another, but only where the new benefit award follows on immediately after the previous one.

Direction 5 Repayability Direction 5

Repayability considerations 70. See Direction 11 on repayability.

Direction 11 - Ability to repay Direction 11

Ability to repay 71. The repayment terms of Budgeting Loans (BLs) are determined by officers acting on behalf of the Secretary of State. The award of a BL may depend on its repayment being completed within the recommended 104 weeks. 72. If an applicant has requested an amount that is more than they can afford to repay within 104 weeks, based on standard repayment rates as determined by officers acting on behalf of the Secretary of State, the applicant may be given alternative offers to maximise the award size and enable the applicant to make a choice according to their existing commitments and the weekly repayments available to them within 104 weeks - see paras 77 – 79 below. 73. The applicant may be given more than one offer on the same BL application which may affect the amount of the award. Alternative offers may be made to the applicant if the standard rate of repayment is insufficient to make a full award. 74. An applicant's ability to repay will depend on: • their total debt to the Social Fund (SF) • any other continuing commitments they may have 75. In calculating repayments, officers acting on behalf of the Secretary of State must have regard to: • the recommended maximum repayment period of 104 weeks • the likely various rates of repayment • the level of multiple debt 76. If an applicant plainly cannot afford a further loan, eg the applicant is already repaying his loans over a period of 104 weeks and has multiple other debts; it would be inadvisable to award a budgeting loan. 77. If an applicant has requested an amount that is more than they can afford based on repayment rates as set on behalf of the Secretary of State, the applicant will be given alternative offers to maximise the award size and enable the applicant to make a choice according to their existing commitments. Where the applicant has no current loan and his/her standard rate of repayment is insufficient to enable recovery within 104 weeks, the applicant will be offered a choice of: • a reduced amount, repayable at the standard rate;


• the full amount requested, repayable at a higher rate (subject to a maximum of 20% of available income i.e. Income Support (IS), Pension Credit (PC),Jobseekers Allowance (JSA) or Employment and Support Allowance (ESA) adult personal allowance/premia rates + Child Tax Credit and Child Benefit for any dependent children but excluding housing costs); or

• an amount in between the two that is the maximum that can be repaid at the higher rate of repayment.

78. Where the applicant is repaying an existing SF loan with less than 104 weeks outstanding, the applicant will be offered a choice of either: • an amount that is equal to that which can be repaid at existing

repayment rates, between the completion of repayment of the existing loan and the end of the 104 week period;

or where this is less than the amount available to offer: • the amount available to offer subject to maximum repayment rate not

exceeding 20% of the available income and the 104 week ceiling; • an amount between the two where it is the maximum that can be repaid

subject to the 20% and 104 week ceiling; or • an amount equal to that which can be repaid within 104 weeks by

combining the proposed loan and existing social fund debt and setting a higher rate of recovery with the 20% maximum

79. Where the applicant is repaying an existing social fund debt with a full 104 weeks still to run: • an amount equal to that which can be repaid with 104 weeks by

combining the proposed loan and the existing social fund debt and setting a higher repayment rate subject to the 20% maximum (where this could not be done the BL would be refused.

Total debt 80. Total debt means the total amount that an applicant and his partner owe to the social fund at any one time. Under no circumstances will a BL be awarded which takes the amount over £1,500 (see Direction 53(3).


Policy


Direction 2

Direction 5

Direction 8

Direction 9

Direction 11

Direction 50

Direction 52

Direction 53


Part 5 – The Budget

The National Social Fund Budget

General 1. This section describes how the national cash limited Social Fund budget is controlled and managed.

The law 2. The Social Security Administration Act 1992 and the Social Security Contributions and Benefits Act 1992 provide for: • a fund to be set up – ie the Social Fund, section 167(1) of the Social

Security Administration Act 1992 • the Secretary of State to allocate amounts in each financial year for

Social Fund payments – sections 168(2) to 168(4) of the Social Security Administration Act 1992

• DMs must have regard to, amongst other things, the relevant allocation in deciding whether or not to make particular Social Fund payments or how much to award – section 140(1) and (1A) of the Social Security Contributions and Benefits Act 1992

General financial arrangements 3. The annual national discretionary social fund budget is made up of: • annual treasury funding • anticipated loan repayments to the Fund during the financial year 4. It is therefore important that all loans are recovered effectively. 5. There are two separate budget allocations made for payments by Decision Makers (DMs) in each SF Benefit Delivery Centre (SF BDC): • a national loans budget for Budgeting Loans and Crisis Loans • a national grants budget for Community Care Grants 6. A single national allocation is made for loans and is monitored and managed nationally. 7. The national grants budget is sub divided and a budget allocation is made to each SF BDC. Each SF BDC must monitor and manage its own budget allocation for Community Care Grants. 8. The Secretary of State can re-allocate funds or make additional allocations in year. 9. The transfer of any part of the Social Fund grants budget from one BDC to another must be approved by the Secretary of State.

The contingency reserve 10. A contingency reserve is retained centrally to provide SF BDCs with additional budget funding for grants should they be faced with additional expenditure resulting from unexpected one-off situations or local incidents. 11. Allocations from the contingency reserve are made by the Secretary of State, based on evidence provided by the SF BDC.


12. The contingency reserve is not an alternative to normal budget management measures.

The annual budget

General 13. Two separate allocations are made for payments by Decision Makers (DMs) in each SF BDC: • an amount allocated for Community Care Grants (CCGs) to each BDC • an amount allocated nationally for Budgeting Loans (BLs) and Crisis

Loans (CLs) 14. These two allocations are referred to as the grants budget and the loans budget respectively. DMs are required to manage the funds allocated to them responsibly. To help them to do this, the Area Decision Maker (ADM) must provide relevant and up to date guidance and information. 15. There is no power locally to set or alter the budget allocation, or to change the geographical area covered by the allocation.

Direction 40 – Responsibilities of the Area Decision Maker Direction 40 16. Area Decision Makers (ADMs) are required by Direction 40 to carry out all the functions in Direction 40, or to ensure that the functions are carried out on their behalf by delegation to a suitably qualified Operations Manager (normally the SF HEO). 17. The aim of carrying out the functions is to support Decision Makers (DMs) in their role in controlling and managing the budget allocated to them.

Planned profiles of expenditure 18. For the grants budget, there should be a planned month by month profile of expenditure at the start of the year against which the ADM monitors actual monthly spend. 19. The planned profile will normally be based on patterns of historical demand as identified by national monitoring and provided to BDCs on a yearly basis. 20. The ADM may also reflect local patterns of demand in the planned profile where necessary, to take account of anticipated local factors. 21. Use the plan as a monitoring tool to check whether actual spend differs from planned spend. 22. This must be done at least once a month. Where there is a variance, take appropriate action. For example, if the misalignment of actual expenditure against profiled expenditure is due to sustained higher/lower than normal demand, then the ADM guidance must be reviewed, and budgetary information updated. 23. Any re-profiling must be accompanied by some remedial action to control and manage the budget. Never re-profile just to mask differences in actual versus planned spend, as this will create a false position for DMs as the year progresses. 24. Only revise the planned profile in isolation if there is a change to the annual allocation, or if the demand patterns on which it is based have not


materialised. Ensure DMs are aware of when and why re-profiling has taken place. 25. Check the efficacy of ADM guidance issued under Direction 40, and the budgetary information provided to the DMs (Direction 40). Make amendments where necessary to control and manage Community Care Grant (CCG) spend. Following this action, consider re-profiling the remainder of the budget if this will help DMs to focus better on the budgetary position. 26. For the loans budget, check that DMs are fully aware of the current budgeting loan maximum amounts notified in accordance with Direction 40 and that these are accurately reflected on the Social Fund Computer System.

ADM guidance for CCGs 27. The Secretary of State gives guidance to assist DMs in deciding the priority of needs for those applications which may qualify for a CCG under Direction 4 . 28. The ADM must issue guidance which specifies the level of priority that can be met from the budget. There are only three possible levels of priority for CCGs (high, medium and low). 29. The suggested appropriate statements for ADM guidance for CCGs are, for example: • “decision makers may meet needs assessed as high priority”; or • “decision makers may meet needs assessed as high and medium

priority” 30. However, if there are indications that not all needs within a specified level of priority can be met, this must be reflected in the ADM guidance. In such circumstances, the guidance statement should add the words “to the extent the budgetary position allows” to the statements above. 31. For example, where the budgetary position indicates that all high priority needs can be met, but that not all medium priority needs can, the ADM guidance statement should be: “Decision makers may meet needs assessed as high priority, and may meet needs assessed as medium priority to the extent the budgetary position allows”. 32. Similarly, if budgetary pressures mean that not all high priority needs can be met, the statement: “Decision makers may meet needs assessed as high priority to the extent the budgetary position allows” applies. 33. The statement should alert DMs to carefully take account of the budgetary position when deciding applications within that particular level of priority, possibly resulting in some needs not being met for budgetary reasons. 34. Note that any statement in the ADM guidance on the level of CCG priority to be met must be consistent with the actual budgetary position.

Guidance for CLs 35. ADMs do not issue guidance about CLs. 36. The Secretary of State’s guidance states that the loans budget must meet crisis loan needs first and consequently all applications qualifying for a CL under direction 3 (1) (a) will have a higher priority than all other loans. There is no need to reproduce this within ADM guidance.


37. Unless DMs are notified otherwise, there are no budgetary constraints on the nationally controlled loans budget for payment of CLs. 38. Exceptionally, it may be necessary for the Secretary of State to issue national guidance about constraints to which Decision makers must have regard when making crisis loan awards. 39. In this case, the ADM must notify the relevant Decision makers of the national guidance in force. This is not part of ADM guidance.

BLs – maximum amount 40. For BLs the ADM must notify Decision makers of the most recent national baseline figure for determining the maximum amount available to each BL applicant under the national budget. 41. The figure notified to Decision makers should be the latest figure provided by the national tier and be accurately recorded on SFCS and the SFBL system. 42. The budgeting loan baseline figure takes account of national demand for both budgeting loans and CLs. 43. The aim is to control and manage the national allocation whilst providing consistency of outcomes for BL applicants wherever they live.

Information about the budgetary position of the grants budget 44. Direction 40 requires ADMs to provide CCG DMs with information about the budgetary position and to revise this monthly as necessary. This information is needed by DMs so that they can have regard to the state of the local budget when making CCG decisions. 45. It is for ADMs to judge the precise content of the information they issue and whether to update it more often than once a month, eg due to volatility of demand. 46. It is recommended that the information be in the form of written statements that show, for example: • how up to date the workload is • comparison of year to date expected spend against actual spend • what types of needs have been met to reach the current budgetary

position (and over what period) • whether amounts awarded have been restricted (and over what period) 47. This list is not exhaustive. But an example might read: ‘The actual year to date spend is £x. At this stage in the year, we expected to have spent only £x. The budget has reached this position even though only high priority CCG needs have been met for the past x months. And despite the fact that during this same period, awards for major household items have been restricted on budgetary grounds, to the very lowest retail amounts found locally’. 48. Note: If DMs use this information as evidence in a decision, it should be part of the papers referred to the Independent Review Service in the event of a review by a Social Fund Inspector (SFI). 49. In addition to these mandatory functions, ADMs should note that the following management practices support the overall budget management process: • maximising loan recovery


• encouraging exchanges of information and good practice both between DMs in the SF BDC, and with other SF BDCs/Jobcentres/Regions

• using management checks to identify gaps in individual learning or general inconsistency in approach

• taking prompt action on grants budget variance against profile reporting district budget/recovery information as required to the National tier.

Direction 41 and 42 – Responsibilities of Decision Makers Direction 41 Direction 42 50. The Social Security Contributions and Benefits Act 1992 requires DMs to have regard to the budget when deciding: • if an award should be made • the amount of the award 51. DMs are to have regard to the grants and loans budgets in accordance with Direction 41 and 42. 52. For grants, the budgetary aim is that the total value of payments made meet the level of the BDC’s annual budget without exceeding it. DMs are assisted in making decisions that fulfil these requirements by both the ADM guidance and relevant budgetary information provided by the ADM. 53. For loans there is a single national budget which is managed nationally. DMs have regard to the national budget by applying the most recent budgeting loan baseline figure when determining budgeting loan awards. 54. Also, DMs must have regard to Secretary of State’s guidance on priorities for CLs within the loans budget. 55. Decision Makers (DMs) must: • take account of the Area Decision Makers (ADMs) guidance specifying

the level of priority for Community Care Grants (CCGs) that may be met from the budget allocation

• take account of the Secretary of State’s guidance in this Social Fund Guide which specifies the level of priority to be given to Crisis Loans (CLs)

• take account of any supplementary Secretary of State’s guidance (this will be brought to DMs’ attention by the ADM)

• apply the latest baseline figure which is provided by the Secretary of State

• use all relevant budgetary information on the state of the local SF BDC grants budget

• not make a community care grant award which, in the aggregate with other grant awards, exceeds the SF BDC allocation

56. To do this DMs should ensure that they : • have current budgetary information issued by the ADM about the state

of the grants budget (note that this should consist of at least a comparison of year to date expected spend against actual spend)

• are familiar with guidance in this Social Fund Guide on priorities for CCGs and CLs

• have current ADM guidance on the level of priority which may be met for CCGs


• know the current maximum amount available to each budgeting loan applicant (by reference to the current the baseline figure)

57. DMs should aim to achieve a consistency of decision making: • with other DMs within the SF BDC • throughout the allocation period

Budgetary decision making under the relevant SF BDC allocation for CCGs 58. Throughout the allocation period, aim to meet high priority needs before those of lower priority. Do this even if the same sum could be used to meet more than one need of lower priority. 59. Priority must be decided on the basis of the nature, extent and urgency of need, taking account of the Secretary of State’s guidance on establishing priorities. DMs should never let the state of the SF BDC budget affect conclusions about the priority of CCG needs. 60. Having decided the priority of need, DMs must decide if an award can be made and, if so, how much this should be. This is done by looking at the current state of the budget. 61. Evidence about the current state of the budget position is available both in ADM guidance and the budgetary information issued by the ADM under Direction 40. 62. See Part 2 of this Guide for full information about making CCG decisions.

Budgetary decision making under the relevant national allocation for loans 63. For BLs, it is the weighting value given to the application that determines the potential maximum amount available to each budgeting loan applicant; the higher the weighting value the higher the maximum amount will be (subject to capital, ability to repay, existing indebtedness etc). 64. The appropriate weighting value is determined under Direction 52 on the basis of the applicant’s personal circumstances as specified in Direction 50. Weighting values for BLs can be found in Part 4 of this Social Fund guide. 65. The weightings to be applied to the baseline figure, as specified in Direction 52, are relevant to arriving at the maximum amount of a BL award. This process has been automated. 66. The figure for the national budgeting loan baseline is provided by the Secretary of State and notified to DMs by the ADM. This takes account of the current state of the national loans budget. 67. DMs should use the budgeting loan baseline figure to determine the maximum amount appropriate to each budgeting loan applicant’s personal circumstances. 68. For CLs, DMs must consider priority based on Secretary of State’s guidance on priorities in part 3 of this guide, and having decided priority must have regard to the current state of the national loans budget. 69. However, CL needs must be met from the loans budget first, ie above those of BLs. 70. In practice therefore, only the most exceptional and unexpected impact on the loans budget towards year end could ever justify the restriction of a CL award on budgetary grounds.


71. If such exceptional circumstances occur, the Secretary of State will provide supplementary guidance. ADMs must bring this guidance to the attention of DMs (direction 40 refers).


Policy Secretary of State’s Directions Direction 40 Direction 41 Direction 42


Part 6 – Reviews The review model 1. The law provides one review model for all discretionary social fund determinations. However, there are two procedural routes within the review model. One route relates to the review of Community Care Grant (CCG) and Crisis Loan (CL) determinations and the other relates to the review of Budgeting Loan (BL) determinations. The two procedural routes are clearly distinguished and set out in Directions 32 and 39. 2. The Social Fund Guide contains the Directions in a decision making sequence, each followed by the relevant guidance. When reviewing a determination, it is important that the correct sequence of actions is followed. 3. You must ensure that you have properly carried out all the necessary steps in the correct order when considering any application for review. Failure to do so will mean that the review has not been conducted correctly and a Social Fund Inspector (SFI) is unlikely to feel able to confirm a review decision where the process has not been correctly followed.

Powers under which reviews are conducted

General 4. There are four separate powers of review to be found in or under section 38 of the Social Security Act 1998, two of which are mandatory and two of which are discretionary. 5. You must conduct a review if: • an application for review is properly made – section 38(1)(a) • one of the circumstances in Direction 31 appear to be the case –

section 38(10)(a). 6. You have the discretion to review in: • cases of misrepresentation or failure to disclose a material fact to

determine that an overpayment is recoverable – section 38(1)(b) • such other circumstances as the Decision Maker (DM) thinks fit –

section 38(1)(c)

Reviewing a determination 7. In reviewing a determination under section 38(1)(a) or (c), the DM must, under section 38(7) of that Act: • in the case of Community Care Grant (CCG) and Crisis Loan (CL)

determinations, have regard to all the circumstances of the case, in particular those matters specified as those which the DM should take into account when making the original determination, (see section 140(1)(a) – (e) of the Social Security Contributions and Benefits Act 1992); act in accordance with any general directions issued by the Secretary of State under section 140 of that Act; and take account of guidance issued by the Secretary of State under section 140 or with regard to reviews; and take account of guidance issued by the Area Decision Maker (ADM) under section 38 of the Social Security Act


• in the case of Budgeting Loan (BL) determinations, have regard to such of the applicant's personal circumstances as may be specified in directions issued by the Secretary of State, see section 140(1A) of the Social Security Contributions and Benefits Act 1992 (as inserted by section 71(2) of the Social Security Act 1998), together with those matters specified in section 140(1)(b) – (e) of the Social Security Contributions and Benefits Act 1992; act in accordance with any general directions issued by the Secretary of State under section 140 of that Act and take account of guidance issued by the Secretary of State under section 140 and take account of guidance issued by the ADM under section 36 of the Social Security Act and any general guidance the Secretary of State may issue with regard to reviews and

• act in accordance with any general directions under sections 38(7) and (10) of the Social Security Act 1998 issued by the Secretary of State about reviews, including:

− the circumstances in which a determination is to be reviewed

− the manner in which a review is to be conducted 8. In reviewing the determination, the Reviewing Officer (RO): • need not consider any issue that is not raised by the application for

review under section 38(1)(a) • need not consider any issue that did not cause the DM to review the

original determination under section 38(1)(c) 9. Directions made under section 38(10)(b) set out the manner in which reviews are conducted.

Decisions that can and cannot be reviewed 10. Decisions which can be reviewed are: • the amount of an award • the refusal of an award • if an award should be paid to a third party • if payment should be by instalments • refusal to determine a repeat application • overpayments in consequence of a misrepresentation or failure to

disclose material facts. 11. Reviews of overpayment questions are dealt with separately.

Effect on repayments or payments by instalments 12. A review application may be received from an applicant who is either repaying a Social Fund (SF) award, or being paid a SF award by instalments. The repayment or payments will continue until the review has been resolved.

Determinations outside the remit of reviews 13. This review process does not apply to: • decisions about the rate of repayment, this should be dealt with as a

complaint • SF maternity, funeral, cold weather and winter fuel payment decisions,

which are: − based on regulations


− determined by officers who are authorised to make such decisions on behalf of the Secretary of State

14. Dissatisfied customers can ask for their decision on the regulated scheme to be reconsidered or they can appeal against the decision.

Summary of review process 15. An applicant who is dissatisfied with a decision about a Community Care Grant (CCG), Budgeting Loan (BL) or Crisis Loan (CL) may apply for it to be reviewed. 16. There are two stages to the review process. 17. First • the application for review is considered by a Reviewing Officer (RO)

authorised to review such determinations See Directions 32 and 39 then • if the reviewing officer (RO) is not minded to change the original

determination in relation to a CCG or CL wholly in the applicant's favour, and the RO rejects the applicant’s own evidence or bases the decision on evidence provided by a third party, the applicant should be given the opportunity of taking part in a telephone interview. See Direction 33(2), 34 and 35. It will be appropriate to offer a face to face interview in the circumstances detailed at paragraph 43 below.

• a formal review interview is not required in relation to a BL application (Direction 33(4) refers), although the applicant should be provided with an explanation of the decision and an opportunity to comment/ask questions where the dispute relates to their personal circumstances or receipt of a qualifying benefit. This explanation should usually be provided by telephone, but must be in writing if the applicant:

○ cannot be contacted and is difficult to reach by telephone ○ is disadvantaged by using the telephone due communication or other

problems, or ○ has requested a written explanation.

• after the review, the case is determined and a decision issued with a letter telling the applicant of their right to apply for a further review by the SFI. See Direction 36.

18. Second, if the applicant is dissatisfied with the review decision from the District, they may apply for a review by the SFI. 19. It is possible that, at any stage of the review process, the applicant may decide to withdraw the application for review. See Direction 37.

Time limits and manner of applying for a review 20. Regulations issued under section 38(1)(a) prescribe the time, form and manner for applying for a review. Under the Social Fund (Applications for Review) Regulations 1988, applications: • must be made within 28 days of the date of issue of the decision,

although this period may be extended by the Reviewing Officer (RO) if there were special reasons

• must be in writing and contain reasons for the application


• if made on behalf of the applicant, unless they are the appointee, must have the applicant's consent, as signified in writing, to the application being made on their behalf

• must be signed by the person making the application 21. A properly made application for review must satisfy all the above conditions. Use part 1 of form SF 602 to show if they are satisfied.

Applications for review

Application outside time limits 22. The Reviewing Officer (RO) should extend the 28 day time limit so that the review can take place if: • there is a special reason to do so 23. If the RO decides that there are no special reasons, they must consider whether a review under Direction 31 is appropriate.

Application does not contain reasons 24. The RO: • is required to decide whether or not the application does contain

reasons and therefore is or is not made in accordance with the regulations • records on form SF 602 the decision and the reasons for it 25. If the RO decides that the application satisfies the regulations, process the review application. 26. If the RO decides that the application does not satisfy the regulations, the RO will send letter SF 225 to the applicant requesting reasons for the review.

Application made by a third party 27. Regulation 2(6) of the Social Fund (Application for Review) Regulations 1988, as amended by the Social Fund (Miscellaneous Amendments) Regulations 1990, states that where an application for review is made on behalf of the applicant, that person should signify in writing his consent to the application being made on his behalf. 28. The RO: • considers if the application has been made in accordance with the

regulations • record on form SF 602 the decision and the reasons for it, see Direction

37 29. If the RO decides that the application does not satisfy the regulations, the RO will send letter SF 228 to the applicant.

Direction 39 – Manner in which a review is to be conducted – stage one Direction 39

Reviewing Officer's action, first stage 30. On receipt of the case, the Reviewing Officer (RO) should re-examine the application form, decision form and relevant papers to ensure that at the time of the original determination:


• the law (including directions) was interpreted and applied correctly • the Secretary of State's guidance and any guidance issued by the Area

Decision Maker (ADM) under section 36(2) of the Social Security Act 1998 and Direction 40 were taken into account

• in Community Care Grant (CCG) and Crisis Loan (CL) cases sufficient information about the relevant circumstances of the case was obtained, and proper regard was given to all the relevant circumstances of the case, including the nature, extent and urgency of the applicant's need and the relevant Social Fund allocation

• in Budgeting Loan (BL) cases, proper regard was given to all the relevant circumstances of the case including, the correct information about those personal circumstances specified in the relevant directions as applied to the applicant at the date on which the original determination was made and Decision Maker (DM) applied the national baseline figure applicable at the date of the original determination

• the decision was reasonable in the circumstances, impartial and did not take irrelevant considerations into account

31. The word ‘reasonable’ mentioned in the final bullet point above, should be taken to mean ‘a reasonable decision that any DM faced with the facts and law relating to the case could have reached’. 32. Once the determination has been re-examined reconsider the determination, see Direction 32.

Direction 32 – Manner in which a review is to be conducted – stage two Direction 32

Reviewing Officer's action, second stage – Community Care Grant and Crisis Loans cases 33. When you have re-examined the Community Care Grant (CCG) or Crisis Loan (CL) determination under Direction 39 (1) to see if it was made properly, reconsider the determination: • with regard to the facts which existed at the time the original

determination was made • with regard to any new evidence or other factors raised by the

application for review • with regard to any relevant change of circumstances • applying the law and directions, taking account of guidance and local

priorities and bearing in mind the need to correct any error that may have occurred

• taking account of the relevant Social Fund allocation existing at the date of the review

34. This second stage of the CCG/ CL review will take place on the basis of all the relevant evidence available at the time of the review.

Reviewing Officer's action, second stage – Budgeting Loan cases 35. When you have re-examined the Budgeting Loan (BL) determination under Direction 39(2) to see if it was made properly, reconsider the determination:


• having regard to all the relevant facts of the case as at the date on which the original determination was made

• having regard to the correct treatment of such of the applicant's personal circumstances as are specified in Direction 50 as applied to him as at the date on which the original determination was made

• checking computer and associated records • asking for further information if necessary • applying the law and the directions, bearing in mind the need to correct

any error that may have occurred. 36. This second stage of the review will look at the original determination in the light of: • the applicant's personal circumstances as specified in Direction 50

which applied to him as at the date the original determination was made; and

• any material facts not considered under Direction 50 which applied to the applicant at the date the original determination was made; and

• any increase in the amount repayable to the social fund by the applicant or his partner or both since the date of the original determination and, where there has been such an increase, any sums repaid to the social fund since the date of the original determination, and

• the national baseline figure issued by the Secretary of State for determining the maximum amount available to each budgeting loan applicant under the national budget which is current at the date of the review.

Decision changed wholly in applicant's favour 37. For the decision to be wholly in the applicant's favour, it must meet all the points of the original and review applications. If it is clear that you can change the decision wholly in the applicant’s favour, you should conduct a full review under Direction 39 and 32. 38. The decision should be:

• recorded on form SF602 giving reasons and an explanation as to why the decision can be changed wholly in the applicant’s favour;

• issued with a letter telling the applicant that if they disagree with the revised decision they can ask for a further review by the Social Fund Inspector (SFI)

39. The DM and RO should ensure that they have all the relevant information to determine the application/review. Where a relevant issue is raised in connection with an application, the DM or RO should seek more information where this is necessary to ensure the relevant issue is fully taken into account in determining the application or review. .

Direction 33 – Decision not wholly in applicant's favour Direction 33 40. If the reviewing officer is of the opinion that the decision in relation to a community care grant or crisis loan review cannot be changed wholly in the applicant's favour the applicant must be given the opportunity of taking part in an interview in the following circumstances:


• the RO is minded to reject the applicant’s evidence; or • base the revised decision on evidence provided by a third party, which

the applicant is not aware of. 41. The majority of these interviews will be conducted by telephone, with a specific time and date arranged to enable the applicant to prepare for the interview. The interview may proceed on first contact if appropriate and with the applicant’s agreement. 42. Under no circumstances should the applicant be pressured into participating in a telephone review on first contact. It should be made clear to the applicant that a future date and time can be arranged so that the applicant can be better prepared for the interview. 43. It may be appropriate to interview the applicant in person – see Direction 33(3)(a) to (c) refers). This may include where the applicant: • has difficulty making themselves understood on the telephone e.g.

− people who are deaf or have a hearing impairment may find it difficult to hear the explanation of the original determination over the phone or

− have a speech impediment that would make it difficult to express their views;

• where the applicant’s first language is not English • is nervous about using the telephone; • does not have access to a telephone e.g. persons without

accommodation or where public call boxes/payphones are not a suitable option;

• has requested that they be interviewed in person and the Reviewing Officer (RO) has decided that in the applicant’s circumstances it would be reasonable to do so e.g. due to the sensitive nature of a case, an applicant may not wish to discuss their circumstances over the telephone.

The examples listed are not exhaustive. 44. While the situations mentioned in Direction 33(3)(a) and (b) are the only ones where the RO must give the applicant an opportunity to be interviewed in person, the RO may choose to interview the applicant in person in any circumstance where it seems appropriate. 45. The RO, in the case of a budgeting loan review application, should be able to reach a decision without the need to conduct an interview with the applicant. The RO should only contact the applicant and provide an explanation of the decision, preferably by telephone, where the applicant has disputed the key facts, i.e. the personal circumstances taken into account or receipt of a qualifying benefit. The explanation would also provide the applicant with an opportunity to comment and ask questions about the original decision. 46. Where the applicant: • cannot be contacted or is difficult to reach by telephone; or • is disadvantaged by using the telephone due to communication or other

problems; or • has requested a written explanation the RO must provide in writing the above explanation of the decision and respond to any comments or questions raised.


Direction 34 – Interviewing the applicant Direction 34

The Interviewing Officer 47. The Interviewing Officer (IO), who may be the Reviewing Officer (RO) appointed to review such determinations or a suitable, trained Decision Maker (DM) based at the Local Service Outlet, will conduct the review interview unless either: • they are unavailable or • the Social Fund (SF) Manager decides that an alternative SFDM would

be more appropriate 48. In the vast majority of cases, the review interview will be conducted over the telephone by a RO, acting as the IO. See Direction 33. 49. Where a face-to-face interview is required, the preferred option is for the IO to be a trained peripatetic RO, available to carry out the interview by appointment. Where this is not possible, e.g. because of geographical distance or the need for an urgent Crisis Loan (CL) interview, then exceptionally the interview will be carried out by someone other than that RO.

The review interview (for Community Care Grants and Crisis Loans) 50. The interview is intended to meet the applicant’s right to natural justice and to know the case against him. Applicants are unlikely to have a good understanding of the decision making process and might not know what information is relevant to their application. 51. It is therefore important that the IO asks the right questions to elicit the information. To do so, the IO needs to examine the existing evidence, mindful of the tests that have to be met for an award, to identify any gaps or conflicts and the questions he needs to ask in the course of the interview. 52. The IO should • explain fully the reasons for the decision which is being reviewed; • advise the applicant about any evidence held that they are not aware of

e.g. information obtained from a third party such as a social worker however if corroboration of confidential information is necessary but not reasonably obtainable you should seek the consent of the third party source to use the information as evidence;

• ask any necessary questions to establish the facts; • give the applicant the opportunity to provide any additional information; • ask any further questions that may arise from any additional information

the applicant gives • prepare an accurate account of the interview and agree it with the

applicant; • advise the applicant of what will happen following the interview; • advise the applicant of his right to independent review, if he is

dissatisfied with the review decision. 53. The explanation to the applicant should include: • all relevant law, directions and guidance that led to the decision • all factors/ evidence, including the state of the allocation, taken into

account and any disregarded, with the reasons


• in Community Care Grant (CCG) and Crisis Loan (CL) cases, how discretion was applied

54. The applicant's statement in respect of the review being undertaken should include: • why the applicant disagrees with the determination and the reasons

behind it • in CCG and CL cases:

− why the applicant considers that more emphasis should be given to factors that the reviewing officer may not think very important;

− any other evidence, factors or information that the applicant feels should be considered

− further supporting documentation 55. If the applicant is interviewed in person, where possible, the interview should take place in a private interview room. If necessary, the interview may take place in the applicant’s home, e.g. if he or she is severely disabled or frail and elderly.

An explanation of the decision-Budgeting Loan Review Application 56. It is not necessary to offer the applicant a formal review interview in order to provide him/her with a fair and proportionate review of the original decision. This is because the conditions of entitlement for budgeting loans (BLs) are more limited than those relating to Community Care Grants and Crisis Loans and the decision making process is therefore more formulaic and not open to interpretation. 57. The applicant should be offered an explanation of the original decision where there is a dispute about the key facts, i.e. the personal circumstances or receipt of a qualifying benefit. The explanation would also provide the applicant with an opportunity to comment and ask questions about the original decision. 58. The reviewing officer would be able to correct any factual errors in relation to the applicant’s personal circumstances and receipt of a qualifying benefit in the subsequent review decision.

Direction 35 – Interviews Direction 35 59. Record all representations made at the interview held under Direction 33 (2) by the applicant and/ or representative on form SF602. If necessary, continue details on form SF602c and tag form SF602c to form SF602. 60. Record also that an explanation as outlined in guidance on Direction 34 has been given. 61. The Interviewing Officer (IO) should read back the record of the telephone interview and obtain the applicant’s verbal agreement, note part 5 of form SF602 that a telephone interview was conducted, sign the form A6 and tag it to the Social Fund (SF) papers relating to the review application. 62. When the applicant is interviewed in person, the applicant should sign part 5 of form SF602 and any attached forms to show that they agree with the written record of the interview.


63. Where the applicant asks for a copy of the written record of the interview, you should provide them with a copy of form SF602 and/or form A6 on request. 64. Do not add to records of the interview after the interview has finished. 65. Where the applicant indicates that they require more time to obtain additional information, you should provide them with sufficient time to supply such information. 66. During the interview tell the applicant that: • the case will be reviewed and a new decision issued • it is their right, following the review decision, to apply for a further review

by the Social Fund Inspector (SFI) Record at part 5 of form SF602 that this has been done. 67. Exceptionally, where the applicant either refuses to verbally agree their statement or sign form SF602, note this on form A6 and tag the form A6 to the SF papers relating to the review application. 68. If you think the applicant has not understood the points being made you should attempt to clarify them, for example, by sending the applicant a written record of the interview asking them to sign and return it within 7 days. If the record cannot be agreed within a reasonable time after the interview the review should be completed in accordance with the guidance on Direction 36.

Direction 36 – Action following the review Direction 36 69. After the review • reconsider the original decision on the basis of the facts at the time of

the original decision, see Directions 39 and 32 • identify and record details of any errors in the original decision • take account of any relevant changes in circumstances and new

evidence • complete part 6 of form SF602 • issue a written decision and inform the applicant that if they do not

agree with the decision they can ask for a further review by the Social Fund Inspector (SFI).

70. Where there are no errors or relevant changes in circumstances/new evidence that affect the original decision you should confirm that decision. Where an error has been identified, you should revise the original decision, by making a fresh decision. 71. In the case of a community care grant or crisis loan the review decision must include: • a copy of an accurate account of the interview • an explanation that an interview was declined, or the applicant failed to

attend an interview – whichever is appropriate.

Failure to attend/take part in an interview 72. Care should be taken when deciding to make a new determination where the applicant has failed to attend or failed to take part in an interview offered. The fact that the applicant did not answer their telephone or were not in the office at the appointed time is not a reason to go ahead and make a new determination.


73. The applicant may have simply not received the appointment letter, it may have been delivered to the wrong address or might not have been delivered on time, or they were late getting home/to the office. 74. Every effort should be made to give the applicant the opportunity of putting their case. It would be particularly important, for example, to consider offering a further interview or contacting the applicant by letter or phone, where the original decision was based on evidence that the applicant was unaware of.

Applicant contacts SF BDC about review decision

Applicant telephones or calls at office 75. If the applicant telephones or calls in person to query the Reviewing Officer's decision, a member of the Social Fund staff should explain the reasons for the decision. If the applicant is dissatisfied with the explanation, the applicant should be advised: • of the Social Fund Inspector (SFI) review procedure and time limit • to put in writing any application for SFI review and the reasons for the

application • to send the SFI review application to the Independent Review Service

Recording details of applicant's phone call or visit 76. Record on a form A169 details of the phone call or visit. Tag the form A169 to the Social Fund papers relating to the decision being questioned. File the papers in the Social Fund wallet.

Direction 37 – Withdrawal of application for review Direction 37 77. If the applicant does not respond to enquiries within 7 days or decides to withdraw the review application you must continue with the review and issue a decision. 78. Where the applicant asks for his review application to be withdrawn, you should consider whether this is appropriate. In some circumstances it would not be appropriate to accept the request to withdraw e.g. if the original decision appears to have been based on a mistake of law or was made in ignorance of a material fact, you would have the duty under Direction 31 to conduct a review.

Direction 31 – Circumstances in which a determination is to be reviewed Direction 31 79. The term 'Reviewing Officer' (RO) in Directions 32 to 39 means any Decision Maker (DM), other than the DM who made the original determination, or a RO who is conducting a review in a particular case. However the RO will not necessarily be the person who conducts the interview. 80. A review of a determination may be initiated other than by an application for review by the applicant. Where there appears to have been an error of fact or law, then the RO must conduct a review. It may also be reasonable to review the determination if other circumstances apply.


81. If representations have been made to the effect that the determination concerned had been made in ignorance of, or based on a mistake as to, a material fact, the power to review should not be exercised unless it can be shown clearly either that: • not all the relevant facts were considered when the determination was

made or • although the relevant facts were considered, not all of them were taken

into account fully in making the determination. 82. On receipt of a case the RO should: • follow Directions 32 and 39 • take account of the guidance on Direction 39 Consideration of previous applications 83. In the course of looking at a previous application, for example when establishing whether Direction 7 has been applied properly, you may note that the determination in relation to it contains an error of fact or law. 84. In cases like this, you should conduct a review not only of the determination made in relation to the current application, but also of that made in relation to the previous application. In the circumstances outlined in para. 83 above, the previous determination must be reviewed.

Reviews under section 38(1)(c) of the Social Security Act 1998 85. A review may be initiated under Section 38(1)(c) of the Social Security Act 1998 by: • the Reviewing Officer (RO); • a Decision Maker (DM); or • the applicant Section 38(1)(c) review initiated by the applicant 86. If the applicant requests the review the RO should: • first consider it in accordance with the requirements of regulations made

pursuant to section 38(1)(a), and • if it does not comply with those requirements, consider whether they

may deal with it under Section 38(1)(c) (which affords a wider range of discretion than allowed under Direction 31)

87. The RO should consider if: • any of the circumstances in Direction 31(1)(a) or (b) apply or • any other circumstances apply which make it reasonable to accept that

a review can take place 88. The RO should arrange for the case to be reviewed if they decide that any: • of the circumstances in Direction 31(1)(a) or (b) apply or • other circumstances apply which could reasonably warrant a review 89. The RO should send letter SF 226(b), if they decide that: • none of the circumstances in Direction 31(1)(a) or (b) apply and • no other circumstances apply which could justify a review


Review by Social Fund Inspector

Applicant dissatisfied with Reviewing Officer's (RO’s) decision 90. If the applicant is dissatisfied with the RO’s decision, they may apply to the Social Fund Inspector (SFI) for a further review. The Secretary of State's directions and guidance on reviews by SFIs appear in Reviews by Social Fund Inspectors. 91. An application for a review by a SFI should be: • made within 28 days from the date of issue of the RO’s decision,

although the SFI may extend the time limit if there are special reasons even if the 28 days have already passed

• in writing and contain reasons for the application • sent or delivered to a DWP office • signed by the applicant or appointee (or by a third party if the applicant

provides their written consent to the application being made on their behalf)

92. If a letter regarding a further review, or expressing dissatisfaction with the reviewing officer's decision is received in the office, the RO should follow the procedure in the Review Guide.

Deciding if an application for SFI review is properly made 93. It is for the SFI to decide if an application for SFI review has been made in the correct time, form and manner. 94. If a letter requesting a further review, or expressing dissatisfaction with the RO's decision is received in the office the RO must: • prepare the papers as described in the Review Guide and • send the papers to the IRS without delay 95. See the Review Guide for recommended timescales. 96. If the application for SFI review is unsigned, or from a third party and does not contain the applicant's signature, the RO must send it immediately to the IRS with all the appropriate papers. See Review Guide for full details of the forms required. 97. The Independent Review Service (IRS) will decide whether to accept the application. 98. If the IRS refuse the application, the papers will be returned to the office for filing. If the applicant's signature or necessary consent is obtained, the IRS will send a copy to the office with a request for the papers. For further action, see the Review Guide. 99. If the application for SFI review involves a decision in which Direction 7 was considered an issue, i.e. there has been an application for the same item within 26 weeks, the SFI will need to see the previous application to decide if Direction 7 has been correctly applied on the decision under review. In these cases the RO must send photocopies of the previous application papers to the SFI. 100. The SFI will send copies of all the papers and information relating to the application to the applicant or their representatives. 101. If the papers have not been returned to the office within six weeks the RO must contact the SFI urgently for an explanation.


102. Once an application for review has been lodged with the SFI, the RO should not attempt to further review the decision being considered by the SFI. Send letter SF 233 (clerical letter, see the Review Guide) to the SFI if the: • applicant dies • applicant goes into prison • applicant goes abroad • applicant moves home • additional relevant information has been received 103. The RO should notify the IRS if: • there is a change in the annual budget allocation to the District • there is a change in the Area Decision Maker’s guidance • there is a change in the District profile • a Social Fund payment is awarded

Powers of the SFI 104. Section 38(4) of the Social Security Act 1998 states that the SFI has the power to: • confirm the decision made by the Decision Maker (DM) • make any decision that the DM could have made • refer the case to a DM for decision 105. It is for the SFI to consider if an application for SFI review has been made in the correct time and manner. 106. The SFI will notify the applicant of their decision.

Direction 38 – Social Fund Inspector refers the matter to a Review Officer for decision Direction 38 107. The Social Fund Inspector (SFI) will indicate why they cannot confirm the Review Officer’s (RO’s) decision, e.g. the evidence in the case does not support the decision. 108. The RO should consider, first, whether any more information or evidence should be sought before they redetermine the application. 109. When the RO is satisfied that all the necessary information is available to enable the case to proceed, they should determine the case afresh. 110. The RO's new determination: • is made in light of comments from the SFI • should take fully into account the points raised by the SFI 111. The RO should show on form SF 603: • that the case is being determined afresh • all new evidence and relevant changes of circumstances and how they

have been considered • any points of law or interpretation dealt with by SFI in a particular case,

and that they have been taken into account • all defects identified by the SFI and how they have been remedied • further information required by the SFI • that each of the points made by the SFI has been taken into account

and is covered in the documentation of the RO's determination


112. Record the new decision in full on form SF 603 addressing all the points raised by the SFI. Send a copy of this to the Independent Review Service for the Social Fund (IRS) as soon as possible. 113. The RO should arrange for the new decision to be implemented and for a copy of form SF 603 to be sent to the applicant with the decision letter. 114. A Social Fund applicant who is dissatisfied with the new decision has the right to apply for a review by the SFI.

Overpayments out of Social Fund

General 115. This section describes the separate review arrangements when considering overpayments of Community Care Grants (CCGs), Budgeting Loans (BLs) and Crisis Loans (CLs) which were obtained through misrepresentation or failure to disclose material facts. 116. You must remember that, with the exception of overpayment questions under this section, all applications for review must be processed in accordance with the procedure described in paragraphs 1 to 114.

The Law 117. Section 71ZA of the Social Security Administration Act 1992 (which was inserted by section 75 of the Social Security Act 1998) enables the Secretary of State to recover discretionary social fund payments which have been overpaid as a consequence of a person's misrepresentation or failure to disclose any material fact where there has been a determination to that effect. 118. Under section 38(1)(b) of the Social Security Act 1998 Decision Makers (DMs): • may determine that a CCG, BL or CL was overpaid on the grounds that

person who applied for a discretionary social fund payment (including a case where someone applied on behalf of someone else), had obtained the payment by misrepresentation or by a failure to disclose any material fact.

119. In determining whether there has been an overpayment and whether that overpayment is recoverable the DM must, pursuant to section 38(8) of the Social Security Act 1998:- • act in accordance with any general directions issued by the Secretary of

State which may include; − the circumstances in which a determination is to be

reviewed − the manner in which a review is to be conducted and

• take account of any general guidance issued by the Secretary of State.

Direction 43 – Overpayments – misrepresentation etc Direction 43 120. When considering whether there has been an overpayment and whether that overpayment is recoverable, the Decision Maker (DM) should decide:


• whether the person who applied for a discretionary social fund payment or a person who applied on their behalf, misrepresented or failed to disclose any material fact

• whether, as a result of any misrepresentation or failure to disclose any material fact, a payment has been made

• from whom the overpayment is recoverable; and • the amount that is recoverable. 121. It does not matter whether the misrepresentation or failure to disclose any material fact was fraudulent or otherwise. 122. Where it is claimed that a person is not responsible for the misrepresentation or failure, the DM should consider the following points: • non-responsibility is limited to those who are blind, illiterate or do not

fully understand a particular form they have signed. This may be caused by poor education, illness or inborn incapacity and can be temporary or permanent

• poor education, illness or inborn incapacity alone is not sufficient to show non-responsibility. People are expected to take reasonable steps to understand what they sign

• the burden of proof rests with persons who contend that they are not responsible for the misrepresentation or failure to disclose a material fact.

Knowledge of the material fact

Examples

(1) A relevant officer's decision on behalf of the Secretary of State that a person had obtained a social fund qualifying benefit by misrepresentation or failure to disclose a material fact may itself be sufficient evidence of misrepresentation in relation to the social fund payment.

(2) There may be misrepresentation in duplicate instrument of payment (IOP) cases where a person signed a declaration to return one IOP without cashing it but goes on to cash both.

(3) Misrepresentation can occur even though a person is unaware of the true position. For example, if the person's partner conceals from him the fact that she has earnings of her own, which if known, would have led to a cessation of IS or income-based JSA.

(4) There is misrepresentation if the declaration on the application form is not qualified, e.g., Declaration: "the information on this form is true and complete". Whether the applicant knew the material fact is irrelevant.


(5) The only exceptions are where the declaration is qualified, e.g., Declaration: "as far as I know, the information on this form is true and complete" or where the applicant states that they did not know what they were signing.

These examples are not, by any means, exhaustive 123. Where cashing an Instrument of Payment (IOP) does not involve the signing of a declaration: • the misrepresentation is the act of presenting the IOP to the bank or

building society; and • the person presenting the IOP misrepresents that there is entitlement to

receive that payment as the beneficiary or on behalf of the beneficiary. Declarations on girocheques and payable orders

Example

Cheques for over £250 and payable orders do not contain any form of declaration. It is the act of presenting the IOP to a bank or building society where a material fact has not been disclosed which is a misrepresentation.

When a person signs a cheque for £250 or under, the person signs a declaration that "I acknowledge receipt of the sum to which I am entitled."

Since no mention is made of the reporting of facts which could affect the amount of the payment, signing the declaration is normally a misrepresentation only where, for example:

• in duplicate IOP cases, the recipient had made an undertaking to return one of the IOPs without cashing it; or

the amount of the social fund award has been corrected and the person was asked to return the IOP uncashed.

124. Examples of evidence which the DM may take into account when deciding whether there has been an overpayment and whether that overpayment is recoverable include: • a certificate of conviction, which relates to the particular qualifying

benefits which the applicant was in receipt of at the time of the social fund determination under review; or

• a written admission; or • both a certificate or conviction and a written admission; or


• any other evidence that may be available, e.g., the testimony of a handwriting expert or direct evidence from a witness such as a Post Office clerk who witnessed the act of misrepresentation.

Disclosure reasonably to be expected 125. It is not enough that the person who fails to disclose a material fact does so because they genuinely believe it to be immaterial. It must also be shown that a reasonable person would not think the fact to be material. The DM should: • consider the information, state of knowledge and circumstances of the

person at the time the material fact should have been disclosed; and • then decide whether a reasonable person would have concluded:

− that the fact was not material; or − that the fact was material but did not have to be disclosed.

126. The test of the "reasonable person" is objective.

Deciding from whom the overpayment is recoverable 127. An overpayment is recoverable from any person who applied for a discretionary social fund payment or a person who applied on their behalf, who has misrepresented or failed to disclose a material fact. Where a person is acting on the applicant's behalf, the overpayment may be recovered from more than one person. 128. 'Any person' may mean: • the applicant or • a person, other than the applicant, i.e. a person acting on the applicant's

behalf, whose misrepresentation or failure to disclose caused the overpayment

129. In failure to disclose cases, the applicant's partner may have the same obligation but only if it can be shown that the partner knew: • the material fact; and • that the applicant had made an application for a social fund payment;

and • that the material fact affected their eligibility for the social fund payment;

and • that the disclosure was reasonably to be expected.

Direction 44 – Action following the Decision Maker’s overpayment determination Direction 44 130. After reaching the determination: • the Decision Maker (DM) should issue the determination with a letter

telling the person that if he does not agree with the determination he can ask for the determination to be reviewed by the Review Officer (RO).

• if the person asks for his case to be reconsidered, refer the case to the RO.

131. The RO should continue the review action.


Direction 45 – Reviewing Officer action, first stage Direction 45 132. In continuing with the review the Reviewing Officer (RO) should examine the evidence of misrepresentation and all relevant papers. Re-examine the overpayment determination to ensure that it was made properly, having full regard to whether: • the law and directions, including the overpayment directions, were

followed • the Secretary of State's guidance on overpayments was followed • the DM acted fairly, followed the required procedural steps and acted

without bias 133. Once the overpayment determination has been re-examined to see if it was made properly, reconsider the overpayment determination, see Direction 46.

Direction 46 – Manner in which a review of an overpayment determination is to be conducted

Review Officer (RO) action, second stage Direction 46 134. When you have re-examined the overpayment determination to see if it was made properly, reconsider the determination: • with regard to the facts and circumstances of the misrepresentation or

non disclosure • with regard to any new evidence or other factors raised by the

application for review • asking for further information if necessary • applying the law and directions and taking account of guidance and

bearing in mind the need to correct any errors that may have occurred.

Direction 47 – Action following the Review Officer’s review Direction 47 135. After making a new determination in accordance with Direction 46, issue a written decision and inform the applicant that if they do not agree with the decision they can ask for a further review by the Social Fund Inspector (SFI).

Withdrawal of application for review 136. If the applicant decides to withdraw the application for review of the overpayment decision, the recovery of the sum overpaid will proceed without further review action.

Direction 48 – Social Fund Inspector refers the matter back to the Reviewing Officer for determination Direction 48 137. The Social Fund Inspector (SFI) will indicate why they cannot confirm the Reviewing Officer’s (RO) decision, e.g. that the law and directions had not been applied properly. The RO should consider whether any more information


or evidence should be sought before conducting a fresh overpayment determination. 138. The RO's new determination: • is made in the light of comments from the SFI • should take full account of the points raised by the SFI


Policy


Direction 31

Direction 32

Direction 33

Direction 34

Direction 35

Direction 36

Direction 37

Direction 38

Direction 39

Direction 43

Direction 44

Direction 45

Direction 46

Direction 47

Direction 48


Part 7 – Reviews by the Social Fund Inspector Introduction 1. The Social Security Administration Act 1992 (as amended by the Social Security Act 1998) provides that a social fund determination may be further reviewed by an independent Social Fund Inspector (SFI) where an applicant to the Social Fund is dissatisfied with the outcome of the local review of the original determination. 2. SFIs are: • independent of the Department of Social Security and its Benefits

Agency • appointed by the Social Fund Commissioner who is responsible for their

training, for monitoring the quality of their decisions and for giving such advice and assistance as he thinks fit to improve the standard of their decisions

Social Fund Inspectors 3. The Secretary of State's directions and guidance to SFIs are given in this section.

Power under which reviews are conducted 4. Under section 38(3) of the Social Security Act 1998, SFIs must, when the applicant applies for a review in the time, form and manner prescribed by Regulations, further review a Decision Makers (DMs) determination which has already been reviewed. 5. The SFI is only empowered to review determinations made by DMs or (under section 38(5) of the Social Security Act 1998) by himself or other SFIs. The SFI has no power to review non reviewable decisions made by an officer acting on behalf of the Secretary of State, eg decisions about the rate of repayment of a loan. 6. In reviewing a determination the SFI is required to act in accordance with the law including the Secretary of State’s directions (section 38(7) and (8) of the Social Security Act 1998). The SFI must also take account of any guidance issued by the Decision Maker nominated for his area under section 36(2) and section 38 (11) of the Social Security Act 1998.

Determinations which can be reviewed 7. Determinations which can be reviewed are those the DM has made about: • the amount of an award • the refusal of an award • if an award should be paid to a third party • if an award should be paid by instalments • refusal to determine a repeat application • overpayments in consequence of a misrepresentation or failure to

disclose material facts. Reviews of overpayment questions are dealt with separately.


The Social Fund Inspector’s powers 8. Under section 38(4)(a) – (c) of the Social Security Act 1998, the SFI can: • confirm the DM's determination or • make any determination which a DM could have made or • refer the matter back to the DM for determination

How the review is carried out 9. An application for review by an inspector is to be sent or delivered direct to the Independent Review Service (IRS). Cases for review are referred to the IRS by the SF BDC when the IRS contact the BDC following receipt of the review application. 10. The SFI's review should be conducted on the basis of: • the evidence contained in the papers received from the District and • any fresh evidence 11. All documents sent to the SFI should be copied to the applicant to give him or her the opportunity to comment. 12. Any additional information placed before the SFI on behalf of the applicant or by the DM should be copied to the other party. 13. The SFI may wish to make additional enquiries to clarify or supplement the information in the papers. They may seek information from the applicant or the DM. Information will usually be obtained by correspondence and copied to each party. 14. The applicant has no right to an oral hearing. If the SFI is unable to obtain all the information they require by other means, they may decide to interview the applicant. The interview should be arranged at a mutually convenient location and the applicant may be accompanied by a relative, friend or representative if they wish.

SFI requests a review be carried out under Direction 31 15. In the course of looking at a previous application, the SFI may note that it contains an error of fact or law which indicate that a review under Direction 31 is appropriate. 16. In these cases, the SFI will advise the Review Officer (RO) that he has identified an error and point out that where there is an error, he must review this determination under the terms of Direction 31. 17. The SFI will alert the RO that a review under Direction 31 may be appropriate where he has sight of a previous application for the purposes of Direction 7(3) and identifies a relevant change of circumstances which he cannot take into account, in that determination. Although not reviewing the previous application, the SFI would have to look at that application to establish e.g. if Direction 7 has been properly applied.

SFI Direction 1 – The role of the Social Fund Inspector: Community Care Grant and Crisis Loan applications SFI Direction 1


First stage: Community Care Grant (CCG) and Crisis Loan (CL) determinations 18. The first stage of the Social Fund Inspector (SFI) review of a CCG or CL determination is to consider if the determination under review was made correctly. The factors in direction 1 will help the SFI to decide if the determination was both legally sustainable and made in accordance with the correct procedure. 19. The first stage of the SFI's review should take place on the basis of the circumstances at the time the original decision was given, together with any relevant changes in circumstances before the Review Officer (RO).

SFI Direction 2 – Social Fund Inspector reviews: Community Care Grant and Crisis Loan determinations SFI Direction 2

Second stage: Community Care Grant (CCG) and Crisis Loan (CL) determinations 20. If the Social Fund Inspector (SFI) is satisfied that the decision on a CCG or CL application was both legally sustainable and made in accordance with the correct procedure, he or she should then look at the merits of the decision having full regard to any new evidence and any relevant change in circumstances. The SFI should consider if, taking into account all the circumstances, the Review Officer’s (RO’s) conclusion is one they agree with. 21. This does not mean that the SFI should reject a determination simply because it is not exactly the one they would have made. The SFI should however, be satisfied that the determination is one that can be adjudged to be right in the circumstances of the case before confirming it. 22. Not all changes in circumstances will be relevant to the application or will have a material effect on the CCG or CL determination. The SFI will need to consider any change in circumstances brought to his attention, including, for example, changes in the relevant allocation or affecting the applicant's need for the item applied for. 23. If the SFI is unable to confirm the reviewing officer's determination because it does not comply with either Direction 1 or 2, they will need to decide whether the matter should be dealt with by substituting their own determination or by referring the case back to the RO via the HEO(SF) to be determined afresh.

SFI Direction 3 – The role of the Social Fund Inspector: Budgeting Loan determinations SFI Direction 3

First stage: Budgeting Loan (BL) determinations 24. The first stage of the Social Fund Inspector’s (SFI’s) review is to consider if the BL determination under review was both legally sustainable and made in accordance with the correct procedure. The factors in Direction 3 will help the SFI to decide if the determination was both legally sustainable and made in accordance with the correct procedure.


25. The first stage of the SFI's review should take place on the basis of: • all the relevant circumstances of the case, including the correct

treatment of the personal circumstances specified in the relevant directions as applied to the applicant as at the date on which the original determination was made; and

• whether the RO had regard to the relevant allocation in accordance with Direction 41 by applying the baseline figure current at the date of the review determination.

SFI Direction 4 – Social Fund Inspector review: Budgeting Loan determinations SFI Direction 4

Second stage: Budgeting Loan (BL) determinations 26. If the Social Fund Inspector (SFI) is satisfied that the decision on the BL application was both legally sustainable and made in accordance with the correct procedure, they should then look at the original determination in the light of: • the applicant's personal circumstances as specified in Direction 50

which applied to him as at the date the original determination was made; and

• any new evidence which confirms the applicant's personal circumstances existing at the time the original determination was made; and

• any increase in the amount repayable to the social fund by the applicant or his partner or both since the date of the original determination, and where there has been such an increase, any sums repaid to the social fund since the date of the original determination.

27. In arriving at the maximum amount available to a budgeting loan applicant the SFI is to apply the baseline figure current at the date of his review determination. 28. If the SFI is unable to confirm the reviewing officer's determination because it falls at either of the Directions 3 and 4, they will need to decide whether the matter should be dealt with by substituting their own determination or by referring the case back to the RO via the HEO(SF) to be determined afresh.

SFI substitutes a determination 29. There will be cases where, in the SFI's opinion, it is not appropriate to refer the case back for redetermination. If the SFI decides to determine the case, they should first ensure that all the relevant information is available to enable a decision to be given. 30. The SFI might decide to substitute a determination for that of the reviewing officer if: • there is any indication that the decision was not impartial, or there was

prejudice or bias • the case is urgent or delays have occurred and the SFI adjudges that

the interests of justice would be served by a speedy conclusion


• the required procedural steps were not followed in the determination under review, but the SFI is satisfied that there could be no material change in the outcome of the case and the applicant should know the result quickly

• the case has been referred to the SFI a second time, the SFI is unable to confirm the RO's redetermination, and considers it expedient that a final decision is given.

There may be other reasons for the SFI to substitute a decision.

SFI determines a Community Care Grant (CCG) or Crisis Loan (CL) application 31. If the SFI determines a CCG or CL application, he or she will do so in accordance with section 38(7)(a)(i) of the Social Security Act 1998. The SFI, in making the decision, should have regard to all the circumstances at the time, including any revealed by new evidence or affected by changes in circumstances.

SFI determines a Budgeting Loan (BL) application 32. If the SFI determines a BL application, he or she will do so in accordance with section 38(7)(a)(ii) of the Social Security Act 1998. The SFI, in making the determination should have regard to: • all the relevant circumstances of the case including, the correct

information about such of the personal circumstances specified in the relevant directions as applied to the applicant at the date on which the original determination was made

• the relevant allocation (“the national loans budget”) by applying the baseline figure issued by the Secretary of State and current at the date of the SFI's review

• any increase in the amount repayable to the social fund by the applicant or his partner or both since the date of the original determination, and where there has been such an increase, any sums repaid to the social fund since the date of the original determination

•

Cases referred back for redetermination 33. If they decide to refer the case back for redetermination, the SFI should give detailed reasons for the decision. They will identify defects in the District decision process and give clear reasons for referring the case. 34. In referring the case back for redetermination, the SFI might give one or more reasons, eg: • the evidence in the case does not support the decision given • the decision is based on irrelevant considerations • the law or directions have been interpreted or applied incorrectly • insufficient weight has been given to relevant considerations • the decision is unreasonable or irrational • • the determination, in a CCG or CL case, is not the correct one in the

circumstances of the case The SFI may give other reasons for referring the case back.


35. If the applicant remains dissatisfied, they may again apply to have the determination reviewed by a SFI.

Overpayments out of Social Fund 36. The Secretary of State's directions and guidance to Social Fund Inspectors (SFIs) on overpayments out of the Social Fund are given in this section.

The Law 37. Section 75 of the Social Security Act 1998 (which inserts a new section 71ZA into the Social Security Administration Act 1992) enables the Secretary of State to recover discretionary social fund payments which have been overpaid as a consequence of the recipient's misrepresentation or failure to disclose any material fact where there has been a determination to that effect.

Powers under which SFI conduct reviews of overpayment determinations 38. Under section 38(3) and (9) of the Social Security Act 1998, SFIs must, when the applicant applies for review of an overpayment determination in the time, form and manner prescribed by the Social Fund (Application for Review) Regulations 1988, further review a Decision Makers (DMs) overpayment determination which has been reviewed by a Review Officer (RO). 39. The SFI is only empowered to review an overpayment determination made by a DM or (under section 38(5) of the Social Security Act 1998) by another SFI. The SFI has no power to review decisions relating to the method or rate of recovery of overpayments made on behalf of the Secretary of State pursuant to section 71ZA of the Social Security Administration Act 1992 (as inserted by section 75 of the Social Security Act 1998). 40. In reviewing an overpayment determination, the SFI is, by virtue of section 38(8) of the Social Security Act 1998, bound by the law and general directions issued by the Secretary of State with regards to overpayment determinations. SFIs must also take account of any general guidance on overpayment determinations issued by the Secretary of State. 41. Under section 38(6)(b) of the Social Security Act 1998, the only questions which the SFI need consider are whether: • any person misrepresented or failed to disclose a material fact • any, and if so what, amount is recoverable by the Secretary of State as

a consequence of the misrepresentation or failure

Social Fund Inspector’s (SFI's) powers 42. Under section 38(4)(a) -(c) of the Social Security Act 1998, the SFI can: • confirm the DM's decision or • make any determination which a DM could have made or • refer the matter back to the DM for determination

SFI Direction 5 – Social Fund Inspector overpayment review, first stage SFI Direction 5


SFI overpayment review – first stage 43. The first stage of the Social Fund Inspector’s (SFI’s) review is to consider if the decision under review was reached correctly. The factors set out in Direction 5 will help the SFI to decide if the overpayment determination was both legally sustainable and made in accordance with the correct procedure. The second stage of the SFI's review should look at the circumstances of the misrepresentation or failure to disclose any material facts. 44. It does not matter whether the misrepresentation or failure to disclose was fraudulent or otherwise.

SFI Direction 6 – Social Fund Inspector overpayment review, second stage SFI Direction 6

SFI overpayment review – second stage 45. If the Social Fund Inspector (SFI) is satisfied that the overpayment determination was both legally sustainable and made in accordance with the correct procedure, they should continue with the review, having full regard to the factors set out in Direction 6. 46. The SFI should consider if, in taking account all the factors in Direction 6, the RO's determination is one they agree with. This does not mean that the SFI should reject a determination because it is not exactly the one they would have made. The SFI should, however, before confirming the overpayment determination, be satisfied that it is a determination which can be considered to be legally correct, having regard to all the relevant factors. 47. If the SFI is unable to confirm the Review Officer’s (RO’s) determination because it falls at Direction 5 or 6 they will need to decide whether the matter should be dealt with by substituting their own determination or referring the case back to the RO to be determined afresh.

SFI substitutes a determination 48. If the SFI decides to substitute his own determination, they should first ensure that all the relevant papers surrounding the misrepresentation or failure to disclose material facts are available to enable a determination to be given. 49. The SFI might decide to substitute a determination for that of the RO if: • the SFI finds that the determination was not impartial, or that there was

prejudice or bias • the required procedural steps were not followed in the determination

under review • the case has been referred to the SFI a second time, the SFI is unable

to confirm the RO's redetermination, and considers it expedient that a final decision is given

There may be other reasons for the SFI to substitute a determination. 50. If the SFI determines the application, they will do so in accordance with the general directions and guidance issued under section 38(8) of the Social Security Act 1998. The SFI in making the determination, should have regard to all the facts relating to the misrepresentation or failure to disclose, including any revealed by new evidence.


Case referred back for redetermination 51. If the SFI decides to refer the case back for redetermination, he should give detailed reasons for the decision, identify defects in the Decision Maker’s (DM’s) decision process and give clear reasons for referring the case. 52. In referring the case back for redetermination, the SFI might give one or more reasons, eg: • the evidence in the case does not support the decision given • the decision is based on irrelevant facts • the law and directions have been interpreted or applied incorrectly • insufficient weight has been given to relevant facts • the determination is unreasonable or irrational • The SFI may give other reasons for referring the case back. 53. If the applicant remains dissatisfied, they may again apply to have the determination reviewed by a SFI.


Policy


SFI Direction 1

SFI Direction 2

SFI Direction 3

SFI Direction 4

SFI Direction 5

SFI Direction 6


Part 8 – The Directions

The Directions issued by the Secretary of State for Work and Pensions

The Directions issued by the Secretary of State for Work and Pensions under sections 138(1)(b) and (5), 140(1A), (2), (3) and (4) of the Social Security Contributions and Benefits Act 1992, section 38(7) - (10) of the Social Security Act 1998 and section 168(5) of the Social Security Administration Act 1992

General For the purposes of these Directions:

(1) a person is in receipt of a benefit if:

(a) it has been paid in respect of that person; and

(b) it is paid -

(i) to him; or

(ii) a person appointed to act on his behalf.

(2) a partner means, where the applicant is a member of a couple:

(a) who are married;

(b) in a civil partnership; or

(c) living together as if they are married or in a civil partnership,

the other member of that couple

Direction 1 – Needs which may be met by social fund payments 1. The needs which may be met by Social Fund payments awarded under section 138(1)(b) of the Social Security Contributions and Benefits Act 1992 are those set out in directions 2, 3, and 4.

Direction 2 – Budgeting Loan qualifying conditions 2. Subject to direction 8, a budgeting loan may be awarded to assist an applicant meet any of the following intermittent expenses the need for which occurs in the United Kingdom:

(a) Furniture and household equipment


(b) Clothing and footwear

(c) Rent in advance and/or removal expenses to secure fresh accommodation

(d) Improvement, maintenance and security of the home

(e) Travelling expenses

(f) Expenses associated with seeking or re-entering work

(g) HP and other debts (for expenses associated with paragraphs (a) to (f) above)

Direction 3 – Crisis Loan qualifying conditions 3. (1) Subject to paragraphs (6) to (9) and directions 14, 14C, 16 and 17, a social fund payment may be awarded to assist an applicant to meet expenses (except those excluded by these Directions) as provided in this direction.

(2) If the provision of such assistance is the only means by which serious damage or serious risk to the health or safety of that person, or to a member of his family, may be prevented a social fund payment may be awarded to assist an applicant to meet expenses-

(a) in an emergency, or as a consequence of a disaster, in the case of expenses referred to in paragraph (4); or

(b) as a consequence of a disaster in the case of expenses referred to in paragraph (5).

(3) Where a social fund payment is being awarded under direction 4(a)(i) to the applicant or other person mentioned in that sub-paragraph, a social fund payment may be awarded to assist the applicant to pay rent in advance which is payable to a landlord who is not a local authority.

(4) The expenses referred to in paragraph (2)(a) are –

(a) living expenses;

(b) (except where paragraph (3) applies) rent in advance which is payable to secure fresh accommodation where the landlord is not a local authority;

(c) charges for board and lodging accommodation and residential charges for hostels, but not deposits, whether included in the total charge or not;

(d) travel expenses where the applicant is stranded away from home;


or

(e) the cost of repaying the emergency credit on a pre-payment meter for a past supply of fuel for heating, lighting or cooking in order for the supply of fuel to be restored.

(5) The expenses referred to in paragraph (2)(b) are expenses for items or services other than those included in paragraph (2)(a).

(6) Where an application is made for a payment under this direction in respect of expenses referred to in paragraph (2)(b), consideration is to be given first to whether the applicant satisfies the conditions for a payment under direction 4(a)(i), (ii) or (iii) and paragraphs (7) to (9) are to be followed.

(7) If the applicant satisfies the conditions for a payment under direction 4(a)(i), (ii) or (iii) (including direction 25) the application is to be treated as an application for a payment under direction 4.

(8) If the applicant does not satisfy the conditions for a payment under direction 4(a)(i), (ii) or (iii) the application is to be dealt with as an application for a payment under direction 3.

(9) If an application is treated under paragraph (7) as an application for a payment under direction 4 but the decision maker does not make an award for the full amount applied for, consideration is to be given to whether an award may be made under direction 3 for the remainder.

(10) ……………………………………………………………………………….

(11) This direction applies in respect of an application for a payment under this direction made on or after 4 April 2011.

Direction 4 – Community Care Grant qualifying conditions 4. Subject to directions 25 and, 26, a social fund payment may be awarded to promote community care –

(a) by assisting an applicant with expenses, including expenses of travel within the United Kingdom, (except those excluded by these directions) where such assistance will –

(i) help the applicant, a member of his family or other person for whom the applicant (or a member of his family) will be providing care, to establish himself in the community following a stay in institutional or residential accommodation in which he received care; or

(ii) help the applicant, a member of his family or other person for whom the applicant (or a member of his family) is currently or will be providing


care, to remain in the community rather than enter institutional or residential accommodation in which he will receive care; or

(iii) ease exceptional pressures on the applicant and his family; or

(iv) allow the applicant or his partner to care for a prisoner or young offender on release on temporary licence under rule 9 of the Prison Rules 1999 or, in Scotland, on temporary release under Part XIV of the Prisons and Young Offenders Institutions (Scotland) Rules 1994; or

(v) help the applicant to set up home in the community as a part of a planned resettlement programme following a period during which he has been without a settled way of life; or

(b) by assisting an applicant and one or more members of his family, or any of those persons, with expenses of travel including any reasonable charges for overnight accommodation within the United Kingdom in order to –

(i) visit someone who is ill; or

(ii) attend a relative’s funeral; or

(iii) ease a domestic crisis; or

(iv) visit a child who is with the other parent pending a court decision; or

(v) move to suitable accommodation.

Direction 5 - Repayability 5. Any award within direction 2 or 3 shall include a determination that it is repayable; an award within direction 2 is referred to in these directions as a budgeting loan and an award within direction 3 is referred to as a crisis loan.

Direction 6 – Community Care Grants not repayable 6. Any award within direction 4 shall not include a determination that it is repayable; an award within direction 4 is referred to in these directions as a community care grant.

Direction 7 – Repeat applications 7. (1) A decision maker shall not determine an application in the circumstances set out in this direction.

(2) Where the application is for a crisis loan for living expenses in respect of a period for which such a payment has already been awarded to the applicant or his partner, the decision maker shall not


determine the application unless satisfied that it is to meet living expenses:

(a) as a consequence of a disaster which has occurred since the previous award; or

(b) in an emergency which –

(i) has arisen since the previous award,

(ii) is not a consequence of an act or omission for which the applicant or partner is responsible, and

(iii) the applicant or partner could not have taken reasonable steps to avoid.

(3) A decision maker shall not determine any other crisis loan application, or a grant application, made within 12 months of a previous application by the same person for the same expenses for which a payment has already been awarded or refused unless there has been a relevant change of circumstances.

Direction 8 – Budgeting Loan eligibility 8. (1) A social fund payment under direction 2 shall only be awarded to an applicant if at the date of the determination of the application –

(a) he is in receipt of:

(i) a qualifying benefit, which, for the purposes of this direction means

(aa) income support;

(bb) income-based jobseeker's allowance;

(cc) state pension credit; or

(dd) income-related employment and support allowance; or

(ii) payments on account of a qualifying benefit such as may be made by the Secretary of State under regulation 2 of the Social Security (Payments on account, Overpayments and Recovery) Regulations 1988;

(b) neither he nor his partner is disentitled from receiving a jobseeker's allowance pursuant to section 14 of the Jobseekers Act 1995 (trade disputes) nor would they be so disentitled if otherwise entitled to that allowance, and

(c) for each week of the 26 weeks immediately preceding the date of


determination of the application, he has been in receipt of a qualifying benefit or of a payment on account of such a benefit or the partner of a person in receipt of a qualifying benefit or of a payment on account of such a benefit.

(2) For the purposes of paragraph (1)(c), where the applicant or, as the case may be, his partner, has been in receipt of a qualifying benefit, or of payments on account of such a benefit, for two or more periods, the last of which includes the date of the determination of the application and those periods are separated by one or more intervals of 28 days or less during which neither the applicant nor his partner was in receipt of a qualifying benefit, or of payments on account of such a benefit, those intervals shall be treated as part of a continuous period of receipt of a qualifying benefit or of payments on account of such a benefit.

(3) For the purposes of paragraph (1)(c) and (2), where an applicant or, as the case may be, his partner, has been in receipt of income-based jobseeker's allowance or income-related employment and support allowance, the period of three waiting days prescribed by regulation 46(2) of the Jobseeker's Allowance Regulations 1996 or 144(1) of the Employment and Support Allowance Regulations 2008 as appropriate, shall not be treated as a period of receipt of a qualifying benefit.

Direction 9 – Treatment of capital 9. (1) Where –

(a) the applicant, or his partner, is aged 60 or over and the total capital resources of the applicant and his partner exceed £2000; or

(b) the applicant is, or if he has a partner, both are aged under 60 and the total capital resources of the applicant and his partner exceed £1000

any budgeting loan which would but for this direction be awarded shall be awarded only if, and to the extent that, the amount of the award is more than the excess.

(2) Subject to paragraph (3) in this direction, 'total capital resources' shall be calculated in accordance with –

(a) where the applicant or his partner is in receipt of income support, Chapter VI (capital) of Part V of, and Schedule 10 to, the Income Support (General) Regulations 1987;

(b) where the applicant or his partner is in receipt of income-based jobseeker's allowance, Chapter VI (capital) of Part VIII of, and Schedule 8 to, the Jobseeker's Allowance Regulations 1996;

(c) where the applicant or his partner is in receipt of state pension


credit, Part III (income and capital) and Schedule V to the State Pension Credit Regulations 2002.

(d) where the applicant or his partner is in receipt of income-related employment and support Allowance, Part 10, Chapters 1 and 7 and Schedule 9 to, the Employment and Support Allowance Regulations 2008.

(3). For the purposes of paragraph (2), the following shall be disregarded in calculating the total capital resources –

(a) any payments made from the Family Fund to the applicant, his partner or children; and

(b) any integration loan granted to the applicant or his partner under The Integration Loans for Refugees and Others Regulations 2007 (S.I. 2007 No 1598) as they have effect at 11 June 2007.

Direction 10 – revoked from 4 July 2011 - but see Direction 53(3)

Direction 11 – Budgeting Loans, ability to repay 11. No budgeting loan may be awarded in excess of the amount which the applicant is likely to be able to repay.

Direction 14 – Crisis Loan eligibility 14. A social fund payment under direction 3 shall only be awarded to an applicant if at the date when the application is determined:

(a) he is aged 16 or over; and

(b) he is without sufficient resources to meet the immediate short-term needs of himself or his family, or both himself and his family.

Direction 14C - Crisis Loan eligibility - 3 or more living expense awards in the specified period 14C.(1) This direction applies to applications for a social fund payment under direction 3 made on or after 4th April 2011.

2) Unless paragraph (3) applies or (subject to paragraph (7)), the current application is for an alignment award, an applicant is not eligible for a social fund payment under direction 3 for expenses referred to in direction 3(4)(a), (d) or (e) if he has had three relevant awards (see paragraphs (6) to (8)) in the twelve months ending on the date on which the current application is made.

(3) An award may be made where, by virtue of paragraph (2), the applicant would not be eligible for a social fund payment under direction 3 for expenses


referred to in direction 3(4)(a), (d) or (e), but the decision maker is satisfied that the latest application is made–

(a) as a consequence of a disaster; or

(b) in an emergency which–

(i) is not a consequence of an act or omission for which the applicant or his partner is responsible, and

(ii) the applicant or his partner could not have taken reasonable steps to avoid.

(4) For the purposes of paragraph (2), two relevant awards are to be treated as a single award where the following conditions are satisfied–

(a) an application is determined in an emergency and a payment is awarded by a decision maker in the Out of Hours Service of the Department for Work and Pensions (DWP) to cover only the period until a DWP office at which an application may be made is next open (Award A);

(b) the decision maker advises the applicant to apply again on the day the appropriate DWP office is next open;

(c) the applicant applies on that day in accordance with the Social Fund (Applications and Miscellaneous Provisions) Regulations 2008; and

(d) a relevant award (Award B) is made in respect of a period immediately following the period covered by Award A.

Interpretation of this direction

(5) For the purposes of this direction “relevant award” is to be interpreted in accordance with paragraphs (6) to (8).

(6) A relevant award is an award made on or after 4th April 2011 under direction 3 for assistance with -

(a) living expenses referred to in direction 3(4)(a) (but not an alignment award);

(b) travel expenses referred to in direction 3(4)(d); or

(c) fuel expenses referred to in direction 3(4)(e).

(7) An award is a relevant award insofar as it relates to any expenses referred to in paragraph (6)(b) or (c) even if it is combined with an alignment award.


For the avoidance of doubt, an award which includes payment for more than one category of the expenses referred to in paragraph (6) is a single award for the purposes of paragraph (2).

(8) An award made by virtue of paragraph (3) is a relevant award.

(9) An alignment award is an award made where-

(a) an income replacement benefit has been claimed but full benefit entitlement is not yet in payment; or

(b) employment has begun but first payment of earnings as an employee after being on an income-replacement benefit has not yet been received,

and as a consequence, the applicant needs help with living expenses until such time as full benefit entitlement or remuneration is received.

(10) On referral by bodies such as the police and social services the Out of Hours Service of the DWP mentioned in paragraph (4) may provide help in emergency situations when DWP offices are closed.

Direction 15 – Crisis Loans, excluded persons 15. (1) A crisis loan may not be awarded in respect of a person who is -

(a) a resident in a care home within the meaning of section 3 of the Care Standards Act 2000, a resident in premises providing a care home service within the meaning of section 2 of the Regulation of Care (Scotland) Act 2001, or a hospital in-patient, unless it is planned that the person will be discharged within the following two weeks; or

(b) a prisoner or person who is lawfully detained or is on release on temporary licence under rule 9 of the Prison Rules 1999 or, in Scotland, on temporary release under Part XIV of the Prisons and Young Offenders Institutions (Scotland) Rules 1994; or

(c) a person who is a member of and fully maintained by a religious order; or

(d) a person who is (or would be) treated as –

(i) a person in full time relevant education for the purpose of income support; or

(ii) a person receiving relevant education for the purpose of income-based jobseeker's allowance


(iii) a person receiving education for the purpose of income-related employment and support allowance

and, as a result, falls into a category whereby he is not (or would not be) entitled to income support, income-based jobseeker's allowance or income-related employment and support allowance.

(2) For the avoidance of doubt, a person shall not be treated as falling within head (i), (ii) or (iii) of paragraph 1(d) if he is in receipt of state pension credit or payments on account of state pension credit.

(3) In Scotland, a person shall not be excluded from award of a crisis loan under paragraph 1(a) above if that person resides in premises providing a care home service and receives personal support, but does not receive nursing or personal care.

Direction 16 – Crisis Loans, students and persons from abroad 16. A social fund payment under direction 3 shall be awarded only in order to alleviate the consequences of a disaster where the applicant is:

(a) a full time student except where he is in receipt of income support, income-based jobseeker's allowance, state pension credit or income-related employment and support allowance or payment on account of such benefits, or

(b) a person who is treated (or would be treated if he were to claim one of the benefits below) as;

(i) a person from abroad for the purposes of income support, income-based jobseeker’s allowance or income-related employment and support allowance; or

(ii) in the case of state pension credit, as a person not in Great Britain,

and, as a result, falls into a category whereby he is not entitled to income support, income-based jobseeker’s allowance, state pension credit; income-related employment and support allowance.

Direction 17 – Crisis Loans, sanctions and disallowances 17. (1) Subject to paragraph (4), in the circumstances described in paragraph 2, a social fund payment under direction 3 is to be awarded only to meet expenses which are the consequence of a disaster.

(2) The circumstances mentioned in paragraph (1) are that the decision maker finds that the application is wholly or partly because the applicant is (or for the purposes of sub-paragraphs (b), (c) and (d) only, has been) the subject


of one or more of the following:

(a) a trade dispute;

(b) a disallowance;

(c) a sanction;

(d) a work-focused interview sanction.

(3) For the purposes of this direction an applicant (“A”) is the subject of:

(a) a trade dispute if:

(i) A is not, or would not be, entitled to a jobseeker’s allowance under section 14 of the Jobseeker’s Act 1995 (the JS Act) or a joint-claim jobseeker’s allowance under section 15A;

(ii) A’s partner is in receipt of a reduced rate of jobseeker's allowance under section 15 of the JS Act or a reduced rate of joint-claim jobseeker’s allowance under section 15A because A is, or would be, prevented from being entitled to a jobseeker’s allowance by section 14 of the JS Act;

(b) a disallowance if;

(i) A’s claim for jobseeker’s allowance has been disallowed because A failed to satisfy one or more of the conditions in section 1(2)(a) to (c) of the JS Act; or

(ii) A’s claim for jobseeker’s allowance as a member of a joint-claim couple has been disallowed because A failed to satisfy one or more of the conditions in section 1(2)(a) to (c) of the JS Act.

(c) a sanction if;

(i) A’s jobseeker’s allowance is not payable under section 19 of the JS Act;

(ii) A’s joint-claim jobseeker’s allowance has been denied or reduced under section 20A(1) of the JS Act as one or more of the circumstances specified in section 20A(2) of the JS Act applies to A;

(iii) A’s jobseeker’s allowance, income support, employment and support allowance or state pension credit is not payable or has been reduced under section 6B or 7 of the Social Security Fraud


Act 2001 (the Fraud Act);

(iv) A’s joint-claim jobseeker’s allowance is not payable or has been reduced under section 8 of the Fraud Act;

(v) A’s jobseeker’s allowance (including a joint-claim jobseeker’s allowance) is not payable under regulation 27A of the Jobseeker’s Allowance Regulations 1996 (JSA Regulations) as A has not shown good cause for a failure to attend; or

(vi) the payment of A’s employment and support allowance has been reduced under regulation 63 of the Employment and Support Allowance Regulations 2008 for failure to take part in a work-focused health-related assessment or a work-focused interview;

(d) a work-focused interview sanction if payment of A’s income support, incapacity benefit or severe disablement allowance, or that of their partner, is disallowed or reduced due to A’s failure to take part in a work-focused interview as required by regulations made under section 2A or 2AA of the Social Security Administration Act 1992.

(4) Paragraph (2)(b), (c) and (d) does not apply where an applicant is:

(a) in receipt of an income-based jobseeker’s allowance because they are a “person in hardship” under regulation 140(1) of the JSA Regulations or regulation 5(1) of the Social Security (Loss of Benefit) Regulations 2001 (Loss of Benefit Regs);

(b) a member of a joint-claim couple who are in receipt of jobseeker’s allowance because they are a “couple in hardship” under regulation 146A(1) of the JSA Regulations or regulation 11(2) of the Loss of Benefit Regulations;

(c) in receipt of reduced income support or income-related employment and support allowance under regulation 3(1)(a) of the Loss of Benefit Regulations;

(d) in receipt of reduced state pension credit under regulation 3A(1)(a) of the Loss of Benefit Regulations; or

(e) a lone parent to whom the provisions of the Social Security (Work-Focused Interviews for Lone Parents) and Miscellaneous Amendments Regulations 2000 apply.


Direction 18 – Crisis Loans, amount to be awarded 18. (1) Subject to (2) and (4) the maximum amount that may be awarded under direction 3(4)(a) as a crisis loan in respect of living expenses for applicants, other than people whose income-based jobseeker's allowance is reduced by virtue of regulation 145 of the Jobseeker's Allowance Regulations 1996 (hardship cases), is the aggregate of -

(a) an amount equal to 60% of the appropriate income support personal allowance, for the applicant and any partner; and

(b) for each child, an amount equal to the personal allowance applicable to dependent children, in respect of income support;

but must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and his partner and £1500.

(2) In the circumstances referred to in paragraph (2A), the maximum amount that may be awarded by way of a crisis loan in respect of living expenses is the amount set out in paragraph (2B).

(2A) The circumstances are that if an applicant’s partner were to apply for a crisis loan, the expenses in respect of which a crisis loan may be awarded would be restricted by direction 17(1) because one or more of the circumstances in direction 17(2)(b) to (d) applies.

(2B) The amount referred to in paragraph (2) is the aggregate of –

(a) an amount equal to 60% of the appropriate income support personal allowance for the applicant only; and



(3) Where any step in the calculation under paragraph (1) or (2B) results in a fraction of a penny, that fraction may be rounded up or down to the nearest penny.

(4) An award for expenses referred to in direction 3(4)(b) to (e) is not


limited under paragraph (1) or (2) but the total sum awarded under direction 3(4) must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and his partner and £1500.

(5) This direction applies to an application for a crisis loan in respect of living expenses made on or after 4th April 2011.

Direction 20 – Crisis Loans, calculations of amounts for living expenses Jobseeker’s Allowance hardship cases 20. (1) Subject to paragraph (3), the maximum amount that may be awarded under direction 3(4)(a) as a crisis loan in respect of living expenses for applicants whose income-based jobseeker's allowance is reduced by virtue of regulation 145 (hardship cases) of the Jobseeker's Allowance Regulations 1996 is -

(a) the aggregate of -

(i) an amount equal to 60% of the appropriate income-based jobseeker's allowance personal allowance for the applicant and any partner; and

(ii) for each child, an amount equal to the income-based jobseeker's allowance personal allowance rate applicable to dependent children; or

(b) the income-based jobseeker's allowance applicable amount payable in such circumstances

whichever is the lower, but must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and his partner and £1500.

(2) Where any step in the calculation under paragraph (1) results in a fraction of a penny, that fraction may be rounded up or down to the nearest penny.

(3) An award for expenses referred to in direction 3(4)(b) to (e) is not limited under paragraph (1) but the total sum awarded under direction 3(4) must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and his partner and £1500.

(4) This direction applies to an application for a crisis loan in respect of living expenses made on or after 4th April 2011.

Direction 21 – Crisis Loans, maximum amounts 21. The maximum amount which may be awarded in respect of any item or


service under direction 3 (crisis loans) is the lesser of -

(a) in the case of an existing item, the cost of repair; or

(b) the reasonable costs of replacing an existing item, or purchasing a new item or service (including delivery and installation),

but the amount must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and his partner and £1500.

Direction 22 – Crisis Loans, ability to repay 22. No crisis loan may be awarded in excess of the amount which the applicant is likely to be able to repay.

Direction 23 – Crisis Loans, exclusions 23. (1) A crisis loan may not be awarded in respect of

(a) any of the following:

(i) any need which occurs outside the United Kingdom;

(ii) an educational or training need including clothing and tools;

(iii) distinctive school uniform or sports clothes of any description for use at school or equipment of any description to be used at school;

(iv) travelling expenses to or from school;

(v) school meals taken during school holidays by children who are entitled to free school meals;

(vi) expenses in connection with court (legal) proceedings (including a community service order) such as legal fees, court fees, fines, costs, damages, subsistence or travelling expenses (other than a crisis loan for emergency travelling expenses where an applicant is stranded away from home);

(vii) removal or storage charges where an applicant is re-housed following the imposition of a compulsory purchase order, or a redevelopment or closing order, or a compulsory exchange of tenancies, or pursuant to a housing authority's statutory duty to the homeless under Part VII of the Housing Act 1996 or Part II of the Housing (Scotland) Act 1987;

(viii) domestic assistance and respite care;

(ix) any repair to property of any body mentioned in section 80(1) of the


Housing Act 1985 or section 61(2)(a) of the Housing (Scotland) Act 1987 and, in the case of Scotland, any repair to property of any housing trust in existence on 13 November 1953;

(x) a medical, surgical, optical, aural or dental item or service;

(xi) work related expenses;

(xii) debts to government departments;

(xiii) investments; or

(b) any expense which is excluded by direction 17.

(2) ln addition to the expenses excluded by paragraph (1), a crisis loan may not be awarded for any expenses in respect of any of the following –

(a) costs of purchasing, renting or installing a telephone and of any call charges;

(b) mobility needs;

(c) holidays;

(d) a television or radio, or licence, aerial or rental charges for a television or radio;

(e) garaging, parking, purchase, and running costs of any motor vehicle except where payment is being considered for emergency travelling expenses;

(f) housing costs, including repairs and improvements to the dwelling occupied as the home including any garage, garden and outbuildings, and including deposits to secure accommodation, mortgage payments, water rates, sewerage rates, service charges, rent and analogous charges for accommodation, other than:

(i) payments for intermittent housing costs not met by housing benefit, income support, income-based jobseeker’s allowance, state pension credit or income-related employment and support allowance for which direct payments cannot be implemented such as the cost of emptying cess pits or septic tanks; or

(ii) rent in advance which is payable to secure fresh accommodation where the landlord is not a local authority; or

(iii) charges for board and lodging accommodation and residential charges for hostels, but not deposits, whether included in the total


charge or not; or

(iv) minor repairs and improvements;

(g) council tax, council water charges, arrears of community charge, collective community charge contributions or community water charges.

Direction 25 – Community Care Grant eligibility 25. (1) For the purposes of this direction, a qualifying benefit is:

(a) income support;

(b) income-based jobseeker's allowance;

(c) state pension credit; or

(d) income-related employment and support allowance.

(2) A social fund payment under direction 4 shall only be awarded to an applicant if:

(a) the application is treated as made on a date upon which the applicant is in receipt of a qualifying benefit; or

(b) the application is treated as made on a date upon which the applicant is in receipt of payments on account of a qualifying benefit, such as may be made by the Secretary of State under regulation 2 of the Social Security (Payments on account, Overpayments and Recovery) Regulations 1988 and that date is not earlier than 18 August 2002; or

(c) the conditions set out in direction 4(a)(i) are satisfied at the date the application is treated as made and it is planned that the applicant will be discharged within six weeks of that date and is likely to receive a qualifying benefit upon discharge.

(3) For the purposes of paragraph 2(a) above, and subject to paragraph (4) below, the applicant shall be treated as having been in receipt of a qualifying benefit from the date from which that benefit has been awarded.

(4) For the purposes of direction 4(a)(ii) to (v) and direction 4(b), the applicant shall not be deemed to be in receipt of:

(a) income-based jobseeker's allowance; or

(b) income-related employment and support allowance


on any of the three waiting days prescribed by regulation 46(2) of the Jobseeker's Allowance Regulations 1996, or regulation 144(1) of the Employment and Support Allowance Regulations 2008 respectively.

Direction 26 – Community Care Grants, trade disputes 26. Where the applicant or his partner is disentitled from receiving a jobseeker's allowance pursuant to section 14 of the Jobseeker's Act 1995 (trade disputes) or would be so disentitled if otherwise entitled to that allowance, or is in receipt of reduced rate income-based jobseeker's allowance pursuant to section 15 of the Jobseeker's Act 1995 (trade disputes - effect on other claimants) a community care grant may not be awarded except in respect of travelling expenses within the United Kingdom in the following situations -

(a) if the visit is made by a partner or dependant who is not affected by the trade dispute, an award may be made in respect of travelling expenses for:

(i) a visit to a patient who is a close relative or who was prior to his admission to hospital or similar institution a member of the same household; or

(ii) a visit to a person who is a close relative or who was prior to his illness a member of the same household as the visitor and is critically ill but not in hospital or similar institution;

(b) if the visit is made by a person who is affected by the trade dispute, an award may be made in respect of travelling expenses for:

(i) a visit to a partner in hospital or similar institution; or

(ii) a visit to a dependant in hospital or similar institution, if the person affected by the trade dispute has no partner living with him who would be eligible for an award within paragraph (a) of this direction, or the partner is also in hospital or similar institution; or

(iii) a visit to a critically ill close relative or member of the household of the person affected by the trade dispute, whether or not he is in hospital or similar institution.

Direction 27 – Community Care Grants, treatment of capital 27. (1) Where –

(a) the applicant, or his partner, is aged 60 or over and the total capital resources of the applicant and his partner exceed £1000; or

(b) the applicant is, or if he has a partner, both are aged under 60 and the total capital resources of the applicant and his partner exceed


£500,

any community care grant which would but for this direction be awarded shall be awarded only if and to the extent that the amount of the award is more than the excess.

(2) Subject to paragraph (3) in this direction, 'total capital resources' shall be calculated in accordance with –

(a) where the applicant or his partner is in receipt of income support, Chapter VI (capital) of Part V of, and Schedule 10 to, the Income Support (General) Regulations 1987;

(b) where the applicant or his partner is in receipt of income-based jobseeker's allowance, Chapter VI (capital) of Part VIII of, and Schedule 8 to, the Jobseeker's Allowance Regulations 1996;

(c) where the applicant or his partner is in receipt of state pension credit, Part III (income and capital) and Schedule V to the State Pension Credit Regulations 2002;

(d) where the applicant or his partner is in receipt of income-related employment and support Allowance, Part 10, Chapters 1 and 7 and Schedule 9 to, the Employment and Support Allowance Regulations 2008.

(3) For the purposes of paragraph (2), the following shall be disregarded in calculating the total capital resources –

(a) any payments made from the Family Fund to the applicant, his partner or children; and

(b) any integration loan granted to the applicant or his partner under The Integration Loans for Refugees and Others Regulations 2007(S.I. 2007 No 1598) as they have effect at 11 June 2007.

Direction 28 – Community Care Grants, minimum award 28. (a) Subject to paragraph (b) below, the minimum amount that may be awarded as a community care grant under direction 4(a) is £30, but no award shall be made under direction 4(a) where the value of an item of expense which would otherwise qualify for an award, or in the case of more than one such item their aggregate value, amounts to less than £30.

(b) Paragraph (a) shall not apply in respect of awards made for either daily living expenses or travelling expenses.

Direction 29 – Community Care Grants, exclusions 29. A community care grant may not be awarded in respect of any expenses


which are excluded by direction 23(1)(a)(i)-(xiii) nor in respect of –

(a) costs of purchasing, renting or installing a telephone and of any call charges;

(b) any expenses which the local authority has a statutory duty to meet;

(c) costs of fuel consumption and any associated standing charges;

(d) housing costs, including repairs and improvements to the dwelling occupied as the home, including any garage, garden and outbuildings, and including deposits to secure accommodation, mortgage payments, water rates, sewerage rates, service charges, rent, and all other charges for accommodation, whether or not such charges include payment for meals and/or services, other than:

(i) minor repairs and improvements; or

(ii) charges for accommodation applied for under direction 4(b);

(e) council tax, council water charges, arrears of community charge, collective community charge contributions or community water charges;

(f) any daily living expenses such as food and groceries, except:

(i) where such expenses are incurred in caring for a prisoner or young offender on release on temporary licence under rule 9 of the Prison Rules 1999 or, in Scotland on temporary release under Part XIV of the Prisons and Young Offenders Institutions (Scotland) Rules 1994; or

(ii) where a crisis loan cannot be awarded for such expenses because the maximum amount referred to in direction 18 has already been reached.

Direction 31 – Circumstances in which a determination is to be reviewed 31. (1) A determination made by a decision maker must be reviewed where it appears that the determination concerned:

(a) was based on a mistake as to the law (including the Directions) or

(b) was given in ignorance of, or was based on a mistake as to, some material fact.

(2) Reviews referred to in paragraph (1) above shall be undertaken by a decision maker (other than the one who made the determination being reviewed) or by a reviewing officer authorised for the purpose of


carrying out social fund reviews.

(3) A reference in directions 32 to 39 to a “reviewing officer” is to a decision maker or reviewing officer carrying out a review.

Direction 32 – Manner in which a review is to be conducted 32. (1) In reviewing a community care grant determination and a crisis loan determination the reviewing officer having first considered the matters specified in direction 39(1), must have full regard to:

(a) all the circumstances which existed at the time the original determination was made;

(b) any new evidence which has since been produced; and

(c) any relevant change of circumstances.

(2) In reviewing a budgeting loan determination the reviewing officer having first considered the matters specified in direction 39(2), must, have full regard to:

(a) the applicant's personal circumstances as they existed at the time the original determination was made;

(b) the material facts confirming the applicant's personal circumstances which existed at the time the original determination was made;

(c) any new evidence, supporting the material facts which confirm the applicant's personal circumstances existing at the time the original determination was made and which has since been produced;

(d) any other material fact which existed at the time the original determination was made and any new evidence supporting that fact which has since been produced;

(e)…. [provision removed from 1 April 2009]

(f) any increase in the amount repayable to the social fund by the applicant or his partner or both since the date of the original determination and, where there has been such an increase, any sums repaid to the social fund since the date of the original determination.

(3) For the purposes of paragraph 2(a) to (c), in relation to the applicant's personal circumstances, the reviewing officer shall only have regard to those circumstances which are both applicable to him and which are specified in directions issued by the Secretary of State pursuant to section 140(1A) of the Social Security Contributions and Benefits Act 1992.


(4) In arriving at the maximum amount available to a budgeting loan applicant the reviewing officer shall apply the baseline figure current on the day the review determination is made (see direction 40(f) and direction 41).

Direction 33 – Decision not wholly in applicant’s favour 33. (1) In determining an application for review a reviewing officer must comply with procedures set out in paragraphs (2) to (6) as appropriate.

Review of a determination of an application for a Community Care Grant or Crisis Loan

(2) If a reviewing officer is minded not to revise a determination of a community care grant or crisis loan wholly in the applicant’s favour, the applicant must be given the opportunity of taking part in a telephone interview before a determination is made, if:

(a) the reviewing officer is minded to reject evidence that has been put forward in support of an application for a payment, and rejection of that evidence would be detrimental to the application; or

(b) the reviewing officer intends to use evidence from a third party of which the applicant is unaware, and use of that evidence would be detrimental to the application

Mode of Interview for a review of Community Care Grants and Crisis Loans

(3) The interview under (2) must be conducted by telephone except in the following circumstances where the applicant must be given the opportunity of being interviewed in person, accompanied by a relative, friend or representative if he wishes:

(a) the applicant has a communication or other problem that might be a disadvantage in understanding the points made by the interviewing officer or in making any representations in relation to their application, on the telephone;

(b) the applicant does not have access to a telephone; or

(c) the applicant has requested an interview in person and the reviewing officer considers that it would be appropriate to conduct such an interview in the applicant’s case.

Review of a determination of an application for a Budgeting Loan

(4) A reviewing officer must comply with paragraph (5) if:

(a) he is minded not to revise the determination of a budgeting loan


wholly in the applicant’s favour, and

(b) the applicant has expressly disputed information, upon which the determination was based, about:

(i) his personal circumstances, i.e. the composition of his household (direction 50 refers); or

(ii) receipt of a relevant qualifying benefit (direction 8).

(5) The reviewing officer must contact the applicant to:

(a) explain the determination;

(b) give the applicant an opportunity to comment, and;

(c) if necessary, ask questions to ascertain relevant facts.

(6) Under paragraph (5), the reviewing officer must normally contact the applicant by telephone, but where the applicant:

(a) cannot be contacted or is difficult to reach by telephone; or

(b) is disadvantaged by using the telephone due to communication or other problems; or

(c) has requested a written explanation,

he must write to the applicant instead.

Direction 34 – Interviewing the applicant (CCGs and CLs) 34. During any interview under direction 33(2) the interviewing officer must:

(a) explain the reasons for the determination, including the relevant law (including directions) and the facts that were taken into account;

(b) ask the applicant any questions necessary to establish all the relevant facts;

(c) give the applicant the opportunity to make any representations and to provide any additional evidence in relation to his application.

Direction 35 – Interviews 35. The interviewing officer must record an accurate account of the interview conducted under direction 33(2), including any representations the applicant makes in relation to his case, and this must be agreed with the applicant.


Direction 36 – Action following the review 36. The reviewing officer, having decided whether or not to revise the determination concerned, shall inform the applicant of his decision in writing and that written notification shall advise the applicant of his right to apply for a further review of that decision by a social fund inspector.

Direction 37 – Withdrawal of application for review 37. If an applicant indicates in writing that he does not wish to proceed with his application the reviewing officer should take no further action unless satisfied that he should conduct a review in accordance with direction 31 (circumstances in which a determination is to be reviewed).

Direction 38 – Social Fund Inspector refers the matter to a Reviewing Officer for decision 38. A reviewing officer shall consider carefully any cases referred by the social fund inspector for re-determination. He should take into account any reasons given by the social fund inspector in reaching his decision to refer the matter to him, remedy any defects drawn attention to by the social fund inspector and note that he has done so when determining the case afresh.

Direction 39 – Review action, first stage 39. (1) In reviewing a community care grant determination and a crisis loan determination the reviewing officer must have full regard initially to:

(a) whether the decision maker applied the law correctly in arriving at his decision. In particular:

(i) that the decision is sustainable on the evidence;

(ii) that the decision maker took all relevant considerations into account and did not take irrelevant considerations into account;

(iii) that the decision maker interpreted the law - including Secretary of State directions - correctly;

(b) whether the decision maker acted fairly and exercised his discretion to arrive at a conclusion that was reasonable in the circumstances - ie a decision that a reasonable decision maker could have reached;

(c) whether the required procedural steps have been followed and there has been no bias.

(2) In reviewing a budgeting loan determination the reviewing officer must have full regard initially to:

(a) whether the decision maker applied the law correctly in arriving at


his decision. In particular:

(i) that the decision is sustainable on the evidence;

(ii) that the decision maker took all relevant considerations into account and did not take irrelevant considerations into account;


(b) whether the decision maker had regard to the relevant allocation in accordance with direction 41;

(c) whether the decision maker acted fairly, followed the required procedural steps and acted without bias .

Direction 40 – Responsibilities of the Area Decision Maker 40. The nominated Area Decision Maker must carry out the following functions:

(a) make a planned profile of the level of grants expenditure for the relevant decision makers throughout the period of the allocation and monitor actual expenditure against it;

(b) issue, and monitor the effect of, guidance which specifies the level of priority which may be met from the allocations for grants under direction 4;

(c) issue information about the budgetary position of the grants allocation;

(d) on at least one occasion during every month review the planned profile made under paragraph (a), the guidance under paragraph (b) and the information under paragraph (c);

(e) revise the planned profile, guidance and information reviewed under (d) above as is necessary to ensure that actual expenditure does not exceed the planned level of expenditure for the period of the allocation;

(f) notify the relevant decision makers of the most recent national baseline figure issued by the Secretary of State to be applied when determining the maximum amount available to each budgeting loan applicant under direction 52 (in order to manage spending of the national loans budget);

(g) notify the relevant Crisis Loan decision makers of any national guidance issued by the Secretary of State about constraints on the loans budget for crisis loans and monitor their observance of it.


Direction 41 – Budget responsibilities of Decision Makers for loans 41. (1) In determining an application for a loan, Decision Makers must have regard to the national loans budget (which is the “relevant allocation”) by:

(a) applying the current budgeting loan baseline figure issued by the Secretary of State for the purpose of determining budgeting loans;

(b) taking account of the guidance issued by the Secretary of State about priorities for the loans budget in general;

(c) taking account of any guidance about constraints on the award of crisis loans as the Secretary of State may issue.

(2) Where the Secretary of State issues guidance referred to in (1) (c), this will be notified to Decision Makers by the Area Decision Maker.

(3) In having regard to the national loans budget, Decision Makers should note that:

(a) the annual national budget for budgeting loan and crisis loan payments is arrived at by combining annual treasury funding with the amount of forecast loan recoveries for the year;

(b) the baseline figure referred to in direction 40(f) and directions 32, 52 and Social Fund Inspector's direction 4 is set at the start of the budget allocation period, and varied as appropriate during that period, with the aim of spending the annual budget in full; variations in the baseline figure are kept to a minimum so as to provide maximum consistency of budgeting loan award amounts available throughout the year;

(c) the baseline figure reflects the budgetary position of the loans budget as it is arrived at by taking account of the amount of the budget spent and loans recovered so far, and the forecast demand and recoveries for the rest of the year.

Direction 42 – Budget responsibilities of Decision Makers for grants 42. (1) Decision makers must have regard to the relevant community care grants allocation by:

(a) taking account of guidance issued by the Area Decision Maker about the current level of priority that may be met from the relevant allocation

(b) referring to the budgetary information issued by the Area Decision Maker to ascertain the current budgetary position.


(2) Decision Makers must be satisfied that any award they make in the period of the allocation does not, in the aggregate with other awards in that period, exceed the allocation.

Direction 43 – Overpayments – misrepresentation 43. If any question arises as to whether, in consequence of a misrepresentation or failure to disclose any material fact by any person who applied for a discretionary social fund payment, an amount of a community care grant, budgeting loan or crisis loan has been overpaid and is recoverable:

(a) the determination may be reviewed by a decision maker;

(b) the questions which shall be determined on that review are whether any misrepresentation or failure to disclose a material fact has occurred and if so, whether any and if so, what amount(s) has been overpaid and is recoverable in consequence of the misrepresentation or failure to disclose.

Direction 44 – Action following the Decision Maker’s overpayment determination 44. (1) Where following a review under direction 43, the decision maker has determined that a person has obtained a community care grant, budgeting loan or crisis loan in consequence of a misrepresentation or failure to disclose any material fact and as a result of that misrepresentation or failure, an amount has been overpaid and is recoverable, he shall notify the person in writing of his determination.

(2) The written notification referred to in paragraph (1) above shall advise the person that if he does not agree with the determination made under direction 43, he must so notify the decision maker within the time specified in the decision maker's written notification, whereupon that determination will be reviewed by another decision maker (referred to in this direction and in directions 45 to 48 as the "reviewing officer").

(3) Where the person to whom the determination made under direction 43 relates, informs the decision maker that he does not agree with that determination, the decision maker must pass all the papers relevant to that determination to a reviewing officer, who will freshly determine the question referred to in direction 43 (making a written record of his determination) and that determination will supersede that of the decision maker.

Direction 45 – Reviewing officer action, first stage 45. In reviewing an overpayment determination pursuant to direction 44, the reviewing officer must have full regard initially to:

(a) whether the DM applied the law correctly in arriving at his decision.


In particular:

(i) that the overpayment determination is sustainable on the evidence,

(ii) that the DM interpreted the law - including Secretary of State directions correctly;

(b) whether the DM acted fairly, followed the required procedural steps and acted without bias.

Direction 46 – Manner in which a review of an overpayment determination is to be conducted 46. Having first considered the matters specified in direction 45, the reviewing officer in reviewing the overpayment determination concerned must have full regard to:

(a) the material facts and circumstances of any misrepresentation or failure to disclose;


(c) whether any, and if so what, amount is recoverable as a consequence of the misrepresentation or failure to disclose any material fact.

Direction 47 – Action following the Reviewing Officer’s review 47. The reviewing officer, after determining whether any, and if so what, amount is recoverable shall inform the applicant of his decision in writing and shall also inform him of his right to apply for a further review of that decision by a social fund inspector.

Direction 48 – Social Fund Inspector refers the matter back to the reviewing officer for determination 48. A reviewing officer shall consider carefully any case referred by a social fund inspector for re-determination. He shall take into account any reasons given by the social fund inspector in reaching his decision to refer the matter to him, remedy any defects drawn attention to by the social fund inspector and note that he has done so when determining the case afresh.


Direction 49 – Crisis Loan applications treated as Community Care Grant applications and vice versa 49.(1) Where an applicant applies for a crisis loan and-

(a) direction 3(6) to (9) does not apply; and

(b) information supplied by the applicant in support of the application indicates that a grant may be appropriate; and

(c) there is no application for a crisis loan, or for a grant, to meet the same need which is being considered by a decision maker, or by a social fund inspector, as at the date of determination,

the decision maker may (in the circumstances set out in paragraph (1A) only), determine the application as an application for a grant.

(1A) The circumstances mentioned in paragraph (1) are when the application is for –

(a) living expenses where direction 3(2) is met, but a crisis loan cannot be awarded because the maximum amount referred to in direction 18 has already been reached, or

(b) living expenses where such expenses are incurred in caring for a prisoner or young offender on release or on temporary licence under Rule 9 of the Prison Rule 1999 or, in Scotland on temporary release under Part XIV of the Prisons and Young Offenders Institutions (Scotland) Rules 1994, or

(c) travel expenses where the applicant, or a member of his family, or someone that the applicant or a member of his family has care for, is stranded away from home.

(2) Where an applicant applies for a grant and the information supplied by the applicant in support of the application indicates that a crisis loan may be appropriate the decision maker may determine the application as an application for a crisis loan, provided there is no application for a crisis loan, or for a grant, to meet the same need which is being considered by a decision maker, or by a social fund inspector, as at the date of determination.


Direction 50 - Personal circumstances of applicant 50. (1) In determining whether to make an award of a budgeting loan to the applicant or the amount to be awarded, the decision maker shall have regard to the persons who are members of the applicant’s household at the date of the determination.

(2) Whether a person is a member of the applicant’s household at the date of the determination for the purposes of this direction shall be determined in accordance with –

(a) regulation 16 of the Income Support (General) Regulations 1987 where the applicant or his partner is in receipt of income support, or payments on account of income support, at the date of the determination;

(b) regulation 78 of the Jobseeker's Allowance Regulations 1996 where the applicant or his partner is in receipt of income-related jobseeker’s allowance, or payments on account of income-related jobseeker’s allowance, at the date of the determination; or

(c) regulation 16 of the Income Support (General) Regulations 1987 where the applicant or his partner is in receipt of state pension credit, or payments on account of state pension credit, at the date of the determination;

(d) regulation 156 of the Employment and Support Allowance Regulations 2008 where the applicant or his partner is in receipt of income-related employment and support allowance.

Direction 52 – Weightings for personal circumstances 52. The weighting values referred to in direction 53 which are to be applied to the baseline figure referred to in direction 40(f) and direction 41 in arriving at the maximum amount available by way of a budgeting loan, are as follows:

(a) the weighting value to be attached to a household containing only the applicant is one;

(b) where the applicant has a partner, the weighting value to be attached to the household is one and one third;

(c) where there is one or more children aged 19 or under in the applicant’s household, the weighting value to be attached to the household is two and one third.


Direction 53 – What to award 53. (1) Having identified the applicant's personal circumstances in accordance with direction 50, and the weighting values which apply to those personal circumstances as specified in direction 52, the decision maker shall determine the maximum amount available by way of a budgeting loan to the applicant by applying the appropriate weighting value to the baseline figure issued by the Secretary of State.

(2) Subject to paragraph (3) and directions 9 and 11, the highest award which may be made on any application shall be the lesser of:

(a) the amount applied for; or

(b) the maximum amount, less any budgeting loan debt owed by the applicant and his partner.

(3) No award may be made which causes the sum repayable to the social fund by the applicant and his partner (by way of crisis loan and budgeting loan) to exceed £1500.

(4) The minimum amount that may be awarded as a budgeting loan is £100.

The Directions issued by the Secretary of State for Work and Pensions to Social Fund Inspectors The Directions issued by the Secretary of State for Work and Pensions under sections 138(1)(b), 140(2) and 140(3) of the Social Security Contributions and Benefits Act 1992 and sections 66(7) and 66(8)(a) and (b) of the Social Security Administration Act 1992 to the Social Fund Inspectors

Social Fund Inspector’s Direction 1 – Role of the Social Fund Inspector: Community Care Grants and Crisis Loan applications 1. In reviewing a community care grant determination and a crisis loan determination a social fund inspector must have full regard initially to:

(a) whether the decision maker applied the law correctly in arriving at his decision on review. In particular:

(i) that the decision is sustainable on the evidence,


(ii) that the decision maker took all relevant considerations into account and did not take irrelevant considerations into account,

(iii) that the decision maker interpreted the law including Secretary of State directions correctly;

(b) whether the decision maker acted fairly and exercised his discretion to arrive at a conclusion that was reasonable in the circumstances - ie a decision that a reasonable decision maker could have reached;

(c) whether the required procedural steps have been followed and there has been no bias.

Social Fund Inspector’s Direction 2 – Social Fund Inspector’s reviews: Community Care Grants and Crisis Loan determinations 2. If in reviewing a community care grant determination and a crisis loan determination initially, a social fund inspector is satisfied that the decision was reached correctly, having regard to the factors in direction 1, the social fund inspector in reviewing the determination thereafter must have full regard to:

(a) all the circumstances, including the state of the budget and, for community care grants, local priorities, that existed at the time the original determination was made;


(c) any relevant change of circumstances.

Social Fund Inspector’s Direction 3 – The role of the Social Fund Inspector: Budgeting Loan determinations 3. In reviewing a budgeting loan determination a social fund inspector must have full regard initially to:


(i) that the decision is sustainable on the evidence,

(ii) that the decision maker took all relevant considerations into account and did not take irrelevant considerations into account,


(b) whether the decision maker had regard to the relevant allocation in accordance with direction 41;


(c) whether the decision maker acted fairly, followed the required procedural steps and acted without bias.

Social Fund Inspector’s Direction 4 – Social Fund Inspector review: Budgeting Loan determinations 4. (1) If in reviewing a budgeting loan determination initially, a social fund inspector is satisfied that the decision was reached correctly, having regard to the factors in direction 3, the social fund inspector in reviewing the determination thereafter must, have full regard to:

(a) the applicant's personal circumstances as they existed at the time the original determination was made;

(b) the material facts confirming the applicant's personal circumstances which existed at the time the original determination was made;

(c) any new evidence supporting the material facts which confirm the applicant's personal circumstances existing at the time the original determination was made and which has since been produced.

(d) any other material fact which existed at the time the original determination was made and any new evidence supporting that fact which has since been produced

(e)….[ provision removed from 1 April 2009 ]

(f) any increase in the amount repayable to the social fund by the applicant or his partner or both since the date of the original determination and, where there has been such an increase, any sums repaid to the social fund since the date of the original determination.

(2) For the purposes of paragraph (1)(a) to (c), in relation to the applicant's personal circumstances, the social fund inspector shall only have regard to those circumstances which are applicable to him and which are specified in directions issued by the Secretary of State pursuant to section 140(1A) of the Social Security Contributions and Benefits Act 1992.

(3) In arriving at the maximum amount available to a budgeting loan applicant, the social fund inspector shall apply the baseline figure current on the day his review determination is made (see direction 40(f) and direction 41).

Social Fund Inspector’s Direction 5 – Social Fund Inspector overpayment review, first stage 5. In reviewing an overpayment determination a social fund inspector must have full regard initially to:



(i) that the overpayment determination is sustainable on the evidence;

(ii) that the decision maker interpreted the law - including Secretary of State directions - correctly

(b) whether the decision maker acted fairly, followed the required procedural steps and acted without bias.

Social Fund Inspector’s Direction 6 – Social Fund Inspector overpayment review, second stage 6. If in reviewing an overpayment determination initially, a social fund inspector is satisfied that the overpayment determination was both legally sustainable and made in accordance with the correct procedure, having regard to the factors set out in direction 5, the social fund inspector in reviewing the overpayment determination thereafter must have full regard to:

(a) the material facts and circumstances of misrepresentation or failure to disclose;


(c) whether any, and if so what, amount is recoverable as a consequence of the misrepresentation or failure to disclose any material fact.


Part 8A – Transitional and revoked Directions

Transitional Directions applying in respect of applications for payments under them before 4 April 2011

Direction 3 – Crisis Loan qualifying conditions 3. (1) Subject to directions 14, 16 and 17, a social fund payment may be awarded to assist an applicant to meet expenses (except those excluded by these directions) –

(a) in an emergency, or as a consequence of a disaster, provided that the provision of such assistance is the only means by which serious damage or serious risk to the health or safety of that person, or to a member of his family, may be prevented; or

(b) where the expenses are rent in advance payable to a landlord who is not a local authority and a social fund payment is being awarded under direction 4(a)(i).

(2) Where an applicant applies for a social fund payment under paragraph (1)(a) of this direction following the refusal of an application for a budgeting loan, the decision maker should consider whether refusal of the application for a budgeting loan may have contributed towards the emergency or disaster in respect of which such a payment is requested.

(3) This direction applies in respect of an application for a payment under this direction made before 4th April 2011.

Direction 17 – Crisis Loans, sanctions and disallowances 17. (1) Subject to paragraph 4, in the circumstances described in paragraph 2, a social fund payment under Direction 3 is to be awarded only to meet:

(a) expenses which are the consequence of a disaster; or

(b) expenses in respect of fireguards or items required for the purpose only of space heating or cooking.

(2) The circumstances mentioned in paragraph (1) are that the decision maker finds that the application is wholly or partly because the applicant is (or for the purposes of sub-paragraphs (b), (c) and (d) only, has been) the subject of one or more of the following:

(a) a trade dispute;


(b) a disallowance;

(c) a sanction;

(d) a work-focused interview sanction.

(3) For the purposes of this direction an applicant (“A”) is the subject of:

(a) a trade dispute if:

(i) A is not, or would not be, entitled to a jobseeker’s allowance under section 14 of the Jobseeker’s Act 1995 (the JS Act) or a joint-claim jobseeker’s allowance under section 15A;

(ii) A’s partner is in receipt of a reduced rate of jobseeker's allowance under section 15 of the JS Act or a reduced rate of joint-claim jobseeker’s allowance under section 15A because A is, or would be, prevented from being entitled to a jobseeker’s allowance by section 14 of the JS Act;

(b) a disallowance if;

(i) A’s claim for jobseeker’s allowance has been disallowed because A failed to satisfy one or more of the conditions in section 1(2)(a) to (c) of the JS Act; or

(ii) A’s claim for jobseeker’s allowance as a member of a joint-claim couple has been disallowed because A failed to satisfy one or more of the conditions in section 1(2)(a) to (c) of the JS Act.

(c) a sanction if;

(i) A’s jobseeker’s allowance is not payable under section 19 of the JS Act;

(ii) A’s joint-claim jobseeker’s allowance has been denied or reduced under section 20A(1) of the JS Act as one or more of the circumstances specified in section 20A(2) of the JS Act applies to A;

(iii) A’s jobseeker’s allowance, income support, employment and support allowance or state pension credit is not payable or has been reduced under section 6B or 7 of the Social Security Fraud Act 2001 (the Fraud Act);

(iv) A’s joint-claim jobseeker’s allowance is not payable or has been reduced under section 8 of the Fraud Act;

(v) A’s jobseeker’s allowance (including a joint-claim jobseeker’s allowance) is not payable under regulation 27A of the Jobseeker’s


Allowance Regulations 1996 (JSA Regulations) as A has not shown good cause for a failure to attend; or

(vi) the payment of A’s employment and support allowance has been reduced under regulation 63 of the Employment and Support Allowance Regulations 2008 for failure to take part in a work-focused health-related assessment or a work-focused interview;

(d) a work-focused interview sanction if payment of A’s income support, incapacity benefit or severe disablement allowance, or that of their partner, is disallowed or reduced due to A’s failure to take part in a work-focused interview as required by regulations made under section 2A or 2AA of the Social Security Administration Act 1992.

(4) Paragraph (2)(b), (c) and (d) does not apply where an applicant is:

(a) in receipt of an income-based jobseeker’s allowance because they are a “person in hardship” under regulation 140(1) of the JSA Regulations or regulation 5(1) of the Social Security (Loss of Benefit) Regulations 2001 (Loss of Benefit Regs);

(b) a member of a joint-claim couple who are in receipt of jobseeker’s allowance because they are a “couple in hardship” under regulation 146A(1) of the JSA Regulations or regulation 11(2) of the Loss of Benefit Regulations;

(c) in receipt of reduced income support or income-related employment and support allowance under regulation 3(1)(a) of the Loss of Benefit Regulations;

(d) in receipt of reduced state pension credit under regulation 3A(1)(a) of the Loss of Benefit Regulations; or

(e) a lone parent to whom the provisions of the Social Security (Work-Focused Interviews for Lone Parents) and Miscellaneous Amendments Regulations 2000 apply.

(5) This direction applies in respect of an application for a payment under Direction 3 made before 4th April 2011.

Direction 18 – Crisis Loans, amount to be awarded 18. (1) Subject to (2) the maximum amount that may be awarded as a crisis loan in respect of living expenses for applicants, other than people whose income-based jobseeker's allowance is reduced by virtue of regulation 145 of the Jobseeker's Allowance Regulations 1996 (hardship cases) and subject to Direction 18A, is the aggregate of -

(a) an amount equal to 75% of the appropriate income support


personal allowance, for the applicant and any partner; and



(2) In the circumstances referred to in paragraph (2A), the maximum amount that may be awarded by way of a crisis loan in respect of living expenses is the amount set out in paragraph (2B).

(2A) The circumstances are that if an applicant’s partner were to apply for a crisis loan, the expenses in respect of which a crisis loan may be awarded would be restricted by Direction 17(1) because one or more of the circumstances in Direction 17(2)(b) to (d) applies.

(2B) The amount referred to in paragraph (2) is the aggregate of –

(a) an amount equal to 75% of the appropriate income support personal allowance for the applicant only; and



(3) Where any step in the calculation under paragraph (1) or (2B) results in a fraction of a penny, that fraction may be rounded up or down to the nearest penny.

(4) This direction applies to an application for a crisis loan in respect of living expenses made before 4th April 2011.

Direction 20 – Crisis Loans, calculations of amounts for living expenses Jobseeker’s Allowance hardship cases 20. (1) The maximum amount that may be awarded as a crisis loan in respect of living expenses for applicants whose income-based jobseeker's allowance is reduced by virtue of regulation 145 (hardship cases) of the Jobseeker's Allowance Regulations 1996 is -

(a) the aggregate of -

(i) an amount equal to 75% of the appropriate income-based jobseeker's allowance personal allowance for the applicant and any


partner; and

(ii) for each child, an amount equal to the income-based jobseeker's allowance personal allowance rate applicable to dependent children; or

(b) the income-based jobseeker's allowance applicable amount payable in such circumstances

whichever is the lower, but must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and his partner and £1500.


(3) This direction applies to an application for a crisis loan in respect of living expenses made before 4th April 2011.

Direction 49 – Community Care Grant applications treated as Crisis Loan applications and vice versa 49.(1) Where an applicant applies for a crisis loan and information supplied by the applicant in support of the application indicates that a grant may be appropriate, the decision maker may determine the application as an application for a grant, provided there is no application for a crisis loan, or for a grant, to meet the same need which is being considered by a decision maker, or by a social fund inspector, as at the date of determination.

(2) Where an applicant applies for a grant and the information supplied by the applicant in support of the application indicates that a crisis loan may be appropriate the decision maker may determine the application as an application for a crisis loan, provided there is no application for a crisis loan, or for a grant, to meet the same need which is being considered by a decision maker, or by a social fund inspector, as at the date of determination.

(3) This direction applies to an application for a crisis loan made before 4th April 2011.

Revoked Directions

Direction 1B – Revocation of Direction 14B (Pathfinder – Crisis Loan eligibility – 3 or more living expense awards in the specified period)

1B. (1) Direction 14B (Pathfinder – Crisis Loan eligibility – 3 or more living expense awards in the specified period) is revoked with effect from the end 28


March 2010.

(2) Where a decision made under it before 29 March 2010 is being reviewed by an appropriate officer or social fund inspector, Direction 14B is to be treated as still having effect for the purposes of that review.

(3) This direction is revoked on 4th April 2011.

Direction 14B - Pathfinder- Crisis Loan eligibility - 3 or more living expense awards in the specified period NOTE: Direction 14B is revoked with effect from the end of 28 March 2010 (see Direction 1B).

14B. (1). An applicant shall not be eligible to a social fund payment under direction 3 if he has had 3 relevant awards in a period beginning with the date of the first relevant award made on or after the relevant date and ending 12 months from that date.

(2) Paragraph (1) shall not apply where the applicant would otherwise not be eligible by virtue of that paragraph but the Decision Maker is satisfied that the latest application is for assistance to meet living expenses:

(a) as a consequence of a disaster; or

(b) in an emergency which –

(i) is not a consequence of an act or omission for which the applicant or his partner is responsible and,

(ii) the applicant or his partner could not have taken reasonable steps to avoid.

(3) For the purposes of this direction, a relevant award is an award made under direction 3 for assistance with living expenses, except any award which is applied for or has been made in the following circumstances:

• an income replacement benefit has been claimed but full benefit entitlement is not yet in payment, or

• employment has begun but first payment of earnings as an employee after being on an income-replacement benefit has not yet been received

and as a consequence, the applicant needs help with living expenses until such time as full benefit entitlement or remuneration is received.


(4) The relevant date in paragraph (1) is:

• 27 April 2009 for the South West region

• 8 June 2009 for the East Midlands region.

Direction 18A – Lone Parent Transitional Loan, amount to be awarded 18A. (1) This direction applies where the applicant is a lone parent:

(a) whose entitlement to income support has ended solely by virtue of the coming into force, in relation to the applicant, of the Social Security (Lone Parents and Miscellaneous Amendments) Regulations 2008 and

(b) who, because he is no longer entitled to income support, has applied for Jobseeker's Allowance or Employment and Support Allowance which has been awarded but not yet paid for two full benefit weeks.

(2) This direction applies to the period which:

(a) begins on the day after the last day in respect of which income support was paid, and

(b) ends on the day before Jobseeker’s Allowance or Employment and Support Allowance is first paid for two full benefit weeks.

(3)The maximum amount that may be awarded as a crisis loan in respect of living expenses for an applicant to whom paragraph (1) applies is the aggregate of –

(a) an amount equal to 100% of the appropriate income support personal allowance, for the applicant; and


but must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and £1,500.


(5) This direction is revoked on 4th April 2011.



Part 9 - Amendments The table below provides a brief reference to the subject(s) of the amendment and which part(s) of the Social Fund Guide (SFG) and Directions are changed by the amendment. This amendment page will appear as a separate part of the SFG (Part 9) and cover the period from 1 January to 31 December. Amendment No.

Subject Directions affected

Part of SF Guide affected

Date of change

1 Changes to Crisis Loan scheme

Directions 3, 18, 20 and new Direction 14C introduced

Part 8 Directions Part 3 Crisis Loan guidance. Minor changes to Parts 1, 2 and 4

4th April 2011

2 Minor changes

Direction 7, 10,14C, 49, 53.

Part 1,2,3,4 and 8.

4th July 2011

dwp - the social fund - technical guide for decision makers - amendment 2 of 2011, july 2011

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