| Complete Social Fund Guide |
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| Written by Administrator | |
| Wednesday, 12 November 2008 | |
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Department for Work and Pensions Social Fund GuideThis 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 September 2008, then again in September 2009 (to include new ESA, CL 3rd in a year Pathfinder area interviews and single Parent changes) Latest revision 20/11/2009 Editor. ( Page 1 and Introduction Part 2 - Community Care Grants Part 3 - Crisis Loans Part 4 – Budgeting Loans Part 5 – The Budget Part 6 - Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 - The Directions Part 9 - Transitional Arrangements Part 10 - Amendments ) Page 2 of 196 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: ◦ Community Care Grant (CCG) - to meet, or help to meet, a need for community care ◦ Budgeting Loan (BL) - to meet, or help to meet, an intermittent expense ◦ Crisis Loan (CL) - to meet, or help to meet, an immediate short term need Discretionary Scheme 2. SF decisions on CCGs, BLs and CLs are discretionary. Decisions are taken by Decision Makers (DMs). Dissatisfied applicants may ask for a review. 3. DMs do not take decisions on regulated payments or on the repayment of loans. These are made by officers authorised to make such decisions on behalf of the Secretary of State. However, the same officer may be authorised to act in any of those capacities. 4. This guide deals with the discretionary payments only. Guidance on regulated payments is in: • the Guide to the regulated fund • the Decision Maker's Guide (DMG) • the Cold Weather Payments handbook • Winter Fuel Payments Bulletins Changes to the decision making process contained in the Social Security Act 1998 Appropriate Officers 5. The Social Security Act 1998 introduces new arrangements for decision making in the discretionary social fund which effectively mean that SF decisions are made by the Secretary of State. 6. Section 36 of that Act provides for such decisions to be made by "appropriate officers" who act under the Secretary of State's authority and who exercise functions on his behalf in relation to the social fund. That section also allows the Secretary of State to nominate an appropriate officer to issue guidance to other appropriate officers in the area. Page 3 of 195 7. Section 38 of that Act similarly provides for reviews of social fund decisions to be conducted by an "appropriate officer". The terms "Social Fund Officer" and "Social Fund Review Officer" are therefore no longer appropriate. 8. The new terminology for staff making discretionary social fund decisions, to be found throughout the Guide, is as follows: • "decision maker" means an appropriate officer acting under the Secretary of State's authority pursuant to section 36(1) of the Social Security Act 1998. • "area decision maker" 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" means a decision maker who is authorised to review social fund determinations pursuant to section 38 of the Social Security Act 1998. 9. 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 and their role, title and independence from the Secretary of State is unchanged. 10. DMs must act in accordance with the law and the Secretary of State's directions. 11. 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, and sections 36(2) 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. 12. DMs must also take account of local guidance issued by the Area Decision Maker (ADM) under section 36(2) or 38(11) of the Social Security Act 1998 and Direction 40 . 13. 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 or religion. 14. 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 15. 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. Page 4 of 195 16. 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. Applications to the discretionary fund 17. The Social Security Act 1998 has amended sections 138 and 140 of the Social Security Contributions and Benefits Act 1992, firstly by specifically defining each type of payment which may be awarded from out of the discretionary social fund and secondly, by prescribing that applications for BLs are to be subject to a separate decision-making process. It follows that each type of payment from the discretionary fund must be applied for in its own right (but see para 20). 18. There are separate application forms for each element of the discretionary social fund i.e. Community Care Grants (CCGs), Budgeting Loans (BLs) and Crisis Loans (CLs). Applicants are normally expected to apply, on the appropriate form, for the specific discretionary payment which they consider best relates to their circumstances. BL applications 19. BL applications can lead to BL decisions only. It will not be possible to consider a BL application and award any other type of payment. If, however, a BL application also contains information which indicates that another type of payment may be appropriate, such information, if it is sufficient for a decision to be made, may be treated as though it were an application for that alternative type of payment. Otherwise, a separate application would be required. CCG and CL applications 20. Although there will be separate CCG and CL application forms, since both are subject to the same discretionary basis of decision making it remains possible for a 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. 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. Disclosure of information 21. Staff are reminded that Social Security records contain personal information about individuals and are held in strict confidence. Staff with access to such information are prohibited from disclosing personal information unless: • the person concerned has consented • a court order has been obtained, or • legislation allows for the disclosure 22. These instructions and instances where other disclosures can be made are contained in the Protection of Personal Information (PPI) Code. Consult the Page 5 of 195 PPI Code when a request for disclosure of information is received. Advice on individual cases can be obtained from BA Security (Warwick House, Leeds). Civil Partnership 23. From 05/12/2005 the Civil Partnership Act will allow 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. 24. 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. 25. 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 Page 6 of 195 ( Page 1 and Introduction Part 2 - Community Care Grants Part 3 - Crisis Loans Part 4 – Budgeting Loans Part 5 – The Budget Part 6 - Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 - The Directions Part 9 - Transitional Arrangements Part 10 - Amendments ) 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 and the Secretary of State's directions Page 7 of 195 • 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 Page 8 of 195 • 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 to 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. Page 9 of 195 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 an 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, 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 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 any further particulars which may reasonably be necessary. 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. Further guidance on this subject can be found at the end of this Part. 24. However, Decision Makers (DMs) are not required to consider a CCG in every case of a CL application or vice versa. Such consideration is 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: • 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. 25. Similarly, an application for a CCG may be treated as an application for a CL where the reverse circumstances apply. Page 10 of 195 Investigating the application 26. 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 27. It is the applicant's responsibility to provide all the evidence necessary to determine an application. 28. 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 29. Where the applicant provides third party details and further enquiries are needed as mentioned in para 28 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. 30. If the applicant or third party gives any information over the telephone, this is acceptable as corroborating evidence. 31. 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. 32. 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 33. If the applicant does not produce the evidence, make a decision based on the completed application and any other evidence you already hold. 34. Do not ask for further evidence if it is unlikely that the application will succeed. 35. 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 para 38 below. 36. 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. 37. 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 Page 11 of 195 the confidential information as evidence. Corroboration will not generally be necessary where information is from a professional source which is not in question. 38. 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. 39. 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 40. 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. 41. 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 42. 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. 43. 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)). 44. 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. 45. 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. Page 12 of 195 46. 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 (see also Part 8 – The Directions 25 ) Direction 25 Eligibility 47. 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)) or 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 . 48. If an applicant is no longer in receipt of IS, JSA(IB), PC or income-related Employment and Support Allowance (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. 49. 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. 50. 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. 51. 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 52. 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 53. 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. 54. JSA at hardship rate is classed as JSA(IB). 55. 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 Page 13 of 195 • for the first two weeks of the sanction Direction 7 – Circumstances in which repeat applications are not to be determined (see also Part 8 – The Directions 7 ) Direction 7 Repeat applications 56. For the purposes of Direction 7 , do not count as repeat applications those cases where: • the previous application was withdrawn before a decision was made • the applicant declined a previous offer • the applicant does not respond to the offer 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) (see also SFI Direction 7 (3) ) 57. A crisis loan 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). 58. In considering direction 7(3), a relevant change of circumstances might be, for example, a change in the: • applicant’s circumstances • budgetary position • law 59. With regard to the applicant’s circumstances and whether there has been a relevant change, consider the following example. 60. 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. 61. 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 62. 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. Page 14 of 195 63. Direction 23 is in the sections on: • Crisis Loans • The Directions Maternity and Funeral expenses 64. 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. 65. 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. 66. 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. 67. 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. 68. 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 69. 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. 70. The effect of the legislation referred to in para 64 (DWP SFG erroneously says "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. 71. 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. 72. 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 Page 15 of 195 73. 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. 74. 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 75. Normally, interpret 'funeral expenses' to be the expenses of burial or cremation. 76. 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. 77. 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 78. 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 79. 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. 80. 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. 81. 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). 82. If necessary, contact the local authority, observing the rules of confidentiality, to check: Page 16 of 195 • 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 83. 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. 84. 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. 85. 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 86. 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 87. 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 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, income-based JSA, PC and income-related ESA respectively. 88. 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. 89. 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 Page 17 of 195 estimate where this would involve any expense - see section on supporting evidence Daily living expenses 90. You cannot award a CCG for daily living expenses such as food or groceries, 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) 91. 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 ( see also Part 8 – The Directions 4 here ) Local Authority provision for community care 92. 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. 93. 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. 94. 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). 95. 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. 96. 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. 97. 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. 98. 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 99. You must also remember the need for confidentiality and the need to obtain the applicant's consent before approaching any outside body. Page 18 of 195 Direction 4 (a)(i) - People moving out of institutional or residential care ( see also "The Directions" 4 (a) (i) ) Direction 4 General 100. 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. 101. '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 102. 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: ◦ with restricted mobility or ◦ 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: ◦ Local Authority (LA) care or ◦ special residential schools This list is not exhaustive. Length of time 103. 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 104. Care or supervision will often be given 24 hours a day but may be for less. Page 19 of 195 Type of care provided 105. 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. 106. 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 133 . (DWP SFG erroneously says "See para 132") 107. 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) . 108. 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. 109. 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 110. 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 111. 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 Page 20 of 195 112. 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 113. 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. 114. 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 115. 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. 116. If an application is received from a couple being resettled into the community the amount of the CCG may be increased as appropriate. 117. 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. 118. 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. 119. Enquiries should be made with the authority responsible for the rehabilitation, if necessary. Liaison with appropriate authorities before discharge from hospital/institution 120. 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) . Page 21 of 195 What types of need may be considered 121. 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 122. 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 123. 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 124. 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. 125. 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 126. 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 127. 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. Page 22 of 195 Storage charges 128. 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 129. 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 130. 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 131. 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 132. 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. 133. 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 Page 23 of 195 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 134. 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. 135. The Housing Corporation are responsible for payment of grants and monitoring arrangements. 136. The scheme must: • help single, unsettled, homeless persons • provide temporary accommodation • provide an active resettlement service 137. 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. 138. 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. 139. 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 140. 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, 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 141. 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 Page 24 of 195 • 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 142. 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 143. 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 Clothing on discharge 144. 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. 145. 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 146 (DWP SFG erroneously says "145") below). You should not contact the prison without the applicant's permission. 146. 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 147. 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. Page 25 of 195 Young people (aged 16 or more) leaving LA care (including those the LA have placed with voluntary organisations) 148. 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 149. Young people who lack suitable accommodation may be • at risk of homelessness • vulnerable to exploitation 150. 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 151. 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 152. 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 153. Bear in mind that not all young people in these circumstances will be receiving IS or 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 154. 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. 155. 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. 156. This help could take the form of a leaving care grant to set up home. Contact SSDs/SWDs to check what: Page 26 of 195 • help they have provided • items the young person has purchased with the leaving care grant 157. 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 158. 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 159. 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 • 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 160. 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. 161. 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. 162. 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: Page 27 of 195 − 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 163. 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 164. 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 165. 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 166. CCGs may be awarded for: • essential furniture and household equipment • clothing, for those not in LA care who are returning from residential school 167. 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 ( see also "The Directions" 4 (a) (ii) ) Direction 4 General 168. 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. 169. 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 Page 28 of 195 • 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 170. 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 171. 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. 172. 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. 173. 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. 174. 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. 175. 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 176. 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 177. 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 • 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 178. A CCG may be awarded where: • the applicant or his partner is responsible for the repairs and improvements Page 29 of 195 • 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 179. 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 180 -181 (DWP SFG erroneously says "See paras 179 - 180") below as well as see section on supporting evidence 180. 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. 181. 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. 182. 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 183. 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 Page 30 of 195 DETR grants for home improvement 184. The current framework was introduced in 1996, in England and Wales. A separate system operates in Scotland 185. 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 186. Renovation grants are for: • necessary works of improvement and/or repair to a dwelling • provision of one or more dwellings by conversion 187. Renovation grants are discretionary. Common parts grants 188. 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 189. An HMO grant may be available for improvement or repair to a house in multiple occupation. 190. HMO grants are discretionary. Disabled facilities grants 191. 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 192. 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: Page 31 of 195 • 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 193. The Energy Action Grants Agency also provide help through the Home Energy Efficiency Scheme. Internal redecoration and refurbishment 194. 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 195. 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 280 also refers. (DWP SFG erroneously says "Para 279") 196. 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. 197. 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 198. 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 199. 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 Page 32 of 195 • 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 200. The Secretary of State has directed that CCGs should not 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 201. 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 draughtproofing provided by community insulation projects. Laundry needs 202. 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 203. 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 204. 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. 205. Consider the extent to which existing accommodation is not suited to the needs of the applicant or members of their family. 206. 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. Page 33 of 195 207. The following groups of people may benefit from awards under this section: • frail elderly people, particularly those: − with restricted mobility or − who have difficulty in performing personal care tasks • 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. Removal expenses 208. 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. 209. 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. 210. 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 211. 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 212. 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 213. If the move involves moving or installing domestic appliances, the cost of disconnection and connection may be met. Page 34 of 195 Applicants moving nearer relatives/close friends who will provide support (including applicants moving into another household) 214. 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: • frail elderly people, particularly those: − with restricted mobility or − who have difficulty in performing personal care tasks • 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. What types of need may be considered 215. 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. 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 216. 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. 217. 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 218. If in doubt about the arrangements to provide support, contact the SSD/SWD in the area into which the applicant is to move. 219. The following groups of people may benefit from awards under this section: • frail elderly people, particularly those: Page 35 of 195 − with restricted mobility or − who have difficulty in performing personal care tasks • 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 What types of need may be considered 220. 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. 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 221. 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. 222. 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. 223. 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. 224. 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 • 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. What types of need may be considered 225. 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 Page 36 of 195 • fares when moving home Other circumstances 226. 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. 227. 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 ( see also "The Directions" 4 (a) (iii) ) Direction 4 General 228. 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. 229. 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 230. 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. 231. 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. 232. In the types of circumstances indicated in paragraphs 230 and 231 (DWP SFG erroneously says "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 ). 233. 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: Page 37 of 195 • 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. 234. 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 235. 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. 236. "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. 237. 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. 238. 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. 239. An award of a CCG should normally be to help members of a family to stay together. In addition, the guidance in paras 236 - 238 (DWP SFG erroneously says "235 - 237") should be borne in mind when considering what is meant by "family" and a rigid interpretation of the guidance should be avoided. 240. 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 241. 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. 242. District liaison links with LAs will provide information on how your local LAs operate. Page 38 of 195 Family Fund 243. 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 dependent upon the customer’s location as follows: • aged 16 and under in England, Scotland and Northern Ireland • aged 17 and under in Wales 244. 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.. 245. 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. 246. 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 247. 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: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it '; document.write( '' ); document.write( addy_text73722 ); document.write( '<\/a>' ); //-->\n This e-mail address is being protected from spam bots, you need JavaScript enabled to view it 248. The child's parents must agree to an application being made to the Fund. 249. The following paragraphs contain guidance on some circumstances in which CCGs may be appropriate. Use discretion sensitively and with imagination when considering other circumstances. Page 39 of 195 Breakdown of a relationship 250. 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. 251. 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. 252. 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. 253. Check the facts of the case as far as possible from IS/JSA 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. 254. Do not consult outside agencies without the applicant's consent. 255. 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. 256. 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. 257. You should be particularly careful to avoid making any enquiry which may put the applicant at further risk. 258. When dealing with claims arising from domestic violence, you should alert SSDs/SWDs if you suspect that a child is at risk of harm. 259. 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 260. 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 261. 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 Page 40 of 195 substantiate the application, eg a removal estimate, without incurring any expense to the applicant. See section on supporting evidence. 262. 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 263. 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 264. 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 265. 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 266. 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 267. 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. 268. Check the facts of the case as far as possible from IS/JSA 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 269. 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 Page 41 of 195 available on reconciliation within three months of the award of a grant for the same purpose. Families needing to move house 270. 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) . 271. 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) . 272. Consider if another authority, such as the LA, may help a family with a disabled child. What types of need may be considered 273. 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 274. 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. 275. 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 276. If the family contains a disabled child, decide whether a CCG for a washing machine would relieve pressure on the family. What to award 277. 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 278. 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 279. 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 Page 42 of 195 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. 280. 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. 281. 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). 282. 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 283. 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 284. Decide what items are needed and award a CCG as appropriate. Redecoration 285. 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 286. 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 287. Priority should be given to families with a disabled child. 288. 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) Page 43 of 195 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 289-291 (DWP SFG erroneously says "288-290") below as well as the section on supporting evidence. 289. 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. 290. 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. 291. 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 What to award 292. 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 184 - 196 (DWP SFG erroneously says "183 - 195") . 293. 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. Page 44 of 195 Clothing (including footwear) for disabled children 294. 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 295. 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 296. A CCG may be awarded for certain fuel board charges to families with a disabled child or a child under five. What to award 297. 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) 298. 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 299. 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 300. 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 301. 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 Page 45 of 195 Prisoner or young offender on release on temporary licence 302. 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) . 303. 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. 304. 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. (304 again! Yes, this is an error in the source pdf. c/o the DWP) 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 ( see also "The Directions" 4(a)(v) ) Direction 4 General 305. 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. 306. 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) . 307. 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) . 308. 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 Page 46 of 195 Unsettled way of life 309. 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 310. 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 311. Districts where homelessness is a significant problem may have a Homeless Customers Liaison Officer. Planned resettlement programmes 312. 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 313. Non-publicly funded programmes providing resettlement should normally be a registered charity whose aims include the resettlement of homeless people. 314. 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. Page 47 of 195 Check with the organisation arranging the programme if necessary, observing rules of confidentiality. 315. 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. 316. 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) . 317. 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 318. 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 319. 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. 320. 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 321. 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 Page 48 of 195 322. 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 323. ‘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. 324. 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 325 and 326 below (DWP SFG erroneously says "324 and 325") . 325. 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. 326. 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. 327. 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. 328. CCGs for visits to a child in hospital would normally be given a high priority. Fares to visit ill people 329. 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. Page 49 of 195 Fares to attend funerals 330. 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. 331. 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 332. 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. 333. 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. 334. A holiday or short break would not normally be regarded as a domestic crisis. Proceedings under the Children Act 1989 (Children (Scotland) Act 1995) 335. 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. 336. 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. 337. 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 338. 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 Page 50 of 195 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 339. The £30 minimum amount and disentitlement to awards for expenses of less than £30 does not apply to awards for travelling expenses. 340. 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 341. 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 342. 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 343. 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 344. 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 345. National guidance on priority of need and local guidance on budgetary planning are important factors to consider when reaching decisions. See section Page 51 of 195 140(2) and (5) of the Social Security Contributions and Benefits Act 1992 and section 38(7) and (11) of the Social Security Act 1998. 346. 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 347. 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 4 348. Consider where the applicant's need fits, within three broad categories: high priority, medium priority and low priority. 349. 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 . 350. 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 . 351. 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. 352. 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 353. 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 Page 52 of 195 • 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 354. 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 355. Decision Makers (DMs) must always complete the process of determining the priority of the CCG before considering the budgetary position. 356. When establishing the priority of the need taking account of paras 345-353 (DWP SFG erroneously says "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 Page 53 of 195 Contributions and Benefits Act 1992 states that DMs must also have regard to the budget. 357. The Area Decision Maker (ADM) has a role to play in this, see ADM guidance in Part 5 - The Budget. 358. Directions 40 and 42 impose 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 359. The ADM will monitor demand on the budget and issue/re-issue guidance to DMs about the level of priority that can be met. This guidance is intended to help DMs to meet the requirements of Direction 40 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 349 - 351 and ADM guidance mentioned in para 357 above) (DWP SFG erroneously says "see 348 - 350 and ADM guidance mentioned in para 356 above") . 360. 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 361. 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. 362. 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. 363. 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 357 (DWP SFG erroneously says "356") above) Summary of priority and budgetary considerations 364. DMs must in law have regard to: • nature, extent and urgency of the need (see para 347 ) (DWP SFG erroneously says "346"); and • the local budget 365. The priority of an application is determined by reference to the particular circumstances of the applicant and the need. Page 54 of 195 366. The budget is not a factor in determining the priority of an application. 367. The budget is a factor in determining whether to make an award and if so, how much. How much to award Considering whether to award what the applicant asks for 368. There are no directions restricting the total amount that may be awarded as a CCG. A CCG award may be for a single item/expense or a number of items/expenses added together. Therefore, when there is sufficient priority for an award, normally allow the amount requested by the applicant for the individual item(s) on the application, so long as this amount is within a range of prices considered appropriate for an item of serviceable quality. 369. In establishing the price range you are advised to include items that are energy A-rated in the 'white goods' category as they are more advantageous for the applicant in terms of annual energy expenditure and normally well within a price range envisaged by the phrase 'serviceable quality'. Where appropriate you should advise the applicant that the award is based on the price of an A-rated item because such goods help to reduce energy bills. 370. In considering what is an appropriate range of prices, use those currently charged for guaranteed items of serviceable quality available in national catalogue outlets and/or national high street chain retailers. Do not formulate a range using prices that go beyond the yardstick of serviceable quality (eg, luxury goods with non essential extras). Note that using the prices of everyday national retailers to establish the range does not mean that the applicant is obliged to buy from these retailers. Ensure too that the items are available at the range of prices locally. 371. If the applicant has asked for an amount that appears to be too much or too little to meet the need based on the range of prices, consider awarding a lesser or higher amount. Sometimes, further enquiries will be needed and you must always take account of individual circumstances. For example, it may not be appropriate to restrict an amount asked for by a disabled applicant for a cooker, if the main reason for its high cost is because of special adaptations. 372. If you consider the amount applied for inappropriate when compared to the range of prices and you decide to award a different amount, you must fully document this and the reasons for the new amount to be awarded. 373. Exceptionally, it may be appropriate to ask the applicant if they have written estimates, see section on supporting evidence. 374. The award should normally be payable to the applicant. However, DMs do have the power exceptionally to make payment to a third party (eg a supplier). See section on third party payments for the guiding principles. Restricting award amount solely for budgetary reasons 375. Exceptionally, even if the applicant asks for an appropriate amount for an item, the DM may consider awarding a lower amount if the evidence indicates that the budget is under pressure. The main source of evidence about the state of the budget is the "budget information" provided by the ADM. Page 55 of 195 376. The reduced 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 . 377. You must fully document the reasons for the reduced award, in particular highlighting the budgetary evidence. 378. Below is an example of considerations under paragraphs 368 to 370 and 375 to 376 (DWP SFG erroneously says "367 to 369 and 374 to 375") . 379. For example: The applicant is 70 and has been discharged from hospital after a year as an in-patient. The application is for a cooker £300 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 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 DM finds that the conditions of Direction 4(a)(i) are met. 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 resolving or improving the circumstances of the applicant and in meeting the aims of the qualifying part of direction 4. He gives them high priority. The budget is being spent roughly as planned. The ADM's guidance, issued at the start of August, suggests that high priorities can be met but only to the extent the budget allowsThe ADM's summary of how the current budgetary position has been reached includes the following: From April to July the budget was meeting all high priority needs. However, this led to a 7% overspend. From August decision makers have been awarding only the minimum amount needed to meet high priority needs. This has brought spending back on target but the number of CCG applications continues to rise over the previous year's demand. The decision maker finds the budget can meet this particular applicant's high priority needs. The decision maker finds that the amount of £300 requested Page 56 of 195 for the cooker is within a range of prices appropriate for a serviceable item. However, a local reputable dealer provides fully guaranteed serviceable cookers for £225 and taking into account the budgetary position, the decision maker decides to award £225 for the cooker. The justification for this is fully documented, including naming the outlet where the item can be bought. The decision maker then goes on to consider the amount to be awarded for the bed. The amount requested is higher than the top end of the range of prices normally appropriate. However, the decision maker concludes that a bed of the high quality recommended by the hospital 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. The decision maker then considers the budgetary position but concludes that the full amount of £550 should still be awarded since a lesser amount would not fully meet the aims of Direction 4 . 380. The above is to illustrate the points in paragraph 368 (DWP SFG erroneously says "367") et seq only. It is not guidance on what amounts to use in a range of prices nor on how to document a whole CCG decision. Direction 40 - Responsibilities of the Area Decision Maker ( see also Part 8 – The Directions 40 ) Direction 40 381. 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. 382. 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 383. The ADM's other functions under Direction 40 are set out in Part 5 – The Budget . In exercising these functions, the ADM will 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 ( also Part 8 – The Directions 27 ) Page 57 of 195 Treatment of capital 384. 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). 385. 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. 386. Any capital held by the applicant's children should be disregarded. 387. 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 388. 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. 389. 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 390. 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 391. 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, Page 58 of 195 .• 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 392 below (DWP SFG erroneously says "391") . 392. From 14 October 2002 the disregard that applies to arrears and concessionary payments referred to in para 391 (DWP SFG erroneously says "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 393. 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. 394. If it is discovered that there has been a misrepresentation of facts, refer to the guidance on overpayments from the social fund. Page 59 of 195 Direction 26 - Trade Disputes Direction 26 (see also here Part 8 – The Directions 26) General 395. 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 396. 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 397. 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 398. 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 399. ‘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. 400. 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. 401. For further guidance, please see section on home savings. 402. The cost of overnight accommodation, and breakfast if included in the charge, may be met when either: Page 60 • 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 - Community Care Grant applications treated as Crisis Loan applications and vice versa ( see also "The Directions" 49 ) Direction 49 Applications 403. 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. 404. 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: • 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. 405. Where nothing on the application has prompted the DM to consider using the power in Direction 49 to convert the application to a CL, 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 CCG, 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 ). Page 61 of 195 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 Page 62 of 195 ( Page 1 and Introduction Part 2 - Community Care Grants Part 3 - Crisis Loans Part 4 – Budgeting Loans Part 5 – The Budget Part 6 - Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 - The Directions Part 9 - Transitional Arrangements Part 10 - Amendments ) Part 3 - Crisis Loans 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) CG has been awarded under Direction 4(a)(i) (editor's note: a CCG award isn't compulsory for rent in advance - see para 6.) 4. The crisis loan 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 crisis loans 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 law, directions and guidance 8. 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 likelihood of repayment and the time within which repayment is likely • the relevant allocations to the for the social fund loans budget Page 63 of 195 Secretary of State's directions 9. The Secretary of State has issued directions which qualify the power to make Crisis Loans (CLs) by reference to: • the eligibility of the applicant • exclusions • the maximum amount to be awarded • the budget allocation These directions are binding. 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 crisis loans Decision Makers (DMs) 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 social fund 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 Page 64 of 195 − 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 crisis loans 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 an 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, 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 17. An application which does not meet the requirements of the Social Fund (Application) Regulations 1988 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. Crisis Loan (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 Page 65 of 195 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: • 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 • 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. 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 formal 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; • the 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. Page 66 of 195 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 para 29 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. 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, eg 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. 36. Do not ask for further evidence if it is unlikely that the application will succeed. 37. 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. 38. 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. Page 67 of 195 39. 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. 40. 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. 41. 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 42. 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. 43. 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 (see also Part 8 – "The Directions" 14 ) Direction 14 Treatment of resources 44. Generally have regard to all income and capital resources of the family, without any disregard, subject to para 47 below. 45. 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 46. Resources available on credit should only be taken into account if the applicant is not in receipt of Income Support (IS), income-based Jobseekers Page 68 of 195 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 47. 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. 48. Such disregards will normally be applied to: • housing benefit • other Social Fund (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 Crisis Loan (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 49. 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 50. 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. Page 69 of 195 51. 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 52. 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. 53. 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 54. 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. 55. Fully disregard vCJD trust payments. Payments from the Skipton Fund 56. 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. 57. You should fully disregard Skipton Fund payments. Other disregards 58. Temporarily disregard any other resources if it is considered reasonable to do so in the circumstances, eg 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. 59. 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 60. 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. 61. 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. Page 70 of 195 Local authorities 62. 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. Direction 14A – Interview on 3rd application for a living expenses Crisis Loan Direction 14A ( see also "The Directions" 14A ) 63. An applicant who applies for a Crisis Loan for living expenses on or after 30 October 2009 and who has already made two or more applications for a (non alignment) crisis loan for living expenses in the 12 months prior to the current application will be required to complete this application by attending for interview in the nearest screened Jobcentre Plus office to his home. 64. The interview will be necessary to complete the application and provide any information in connection with the application that the Interviewing Officer reasonably asks for (but see paragraph 67 below). Unless the applicant attends the interview the application will not be determined. 65. Alignment Crisis Loan living expense applications made prior to the current application do not count towards the requirement for an interview on a third or subsequent application. 66. The general approach is to have an interview but in a case where he or she considers it appropriate, a Decision Maker may waive the requirement for the applicant to take part in an interview and determine the application. 67. Waiving the requirement might be appropriate where the applicant: • has experienced a disaster or emergency which make it impractical for them to attend an interview eg, because of the time it would take or other consequences such as injury following domestic violence, mugging, flooding, serious house fire • would – because of their remote location and/or lack of transport - have to travel an unreasonable length of time on the journey to and from the Jobcentre • appears vulnerable eg, has health related issues that make it difficult to cope with the processes of accessing the SF scheme. 68. Record the reasons for dealing with the application other than by interview. Note that waiving the requirement to interview should be considered afresh for each application. Direction 15 - Excluded persons (see also "The Directions" 15) Direction 15 69. This Direction sets out some groups of people not eligible for a Crisis Loan (CL). Other exclusions are set out in Direction 23 . Page 71 of 195 70. Prisoners who are released on temporary licence are excluded from receiving a CL. 71. 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. 72. 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. 73. 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. 74. 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 (see also "The Directions" 16) Direction 16 75. 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 Crisis Loans (CLs) in the normal way. 76. 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 77. 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. 78. 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. 79. 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. 80. 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 and their application should be treated in the normal way. Page 72 of 195 81. 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 Social Fund (SF) applications. Direction 17 - Trade Disputes, Jobseekers Allowance disallowances/sanctions and failure to take part in work-focused interviews ( see also "The Directions" 17 ) Direction 17 Trade disputes 82. If an application is made as the consequence of a disaster, consider the application in the same way as other Crisis Loan (CL) applications. 83. If the application arises other than as a consequence of a disaster, consider CL only in respect of items required for the purpose of cooking or space heating, including fireguards. Jobseekers Allowance disallowances 84. Disallowances occur where the jobseeker has not satisfied a basic condition of entitlement. 85. Under a disallowance, normal Jobseeker Allowance (JSA) is not payable for the length of the disallowance, although the jobseeker can apply for JSA at hardship rate. If an applicant for a CL, who is subject to a JSA disallowance, has not applied for JSA at hardship rate, they should be advised to do so. 86. The disallowed jobseeker who is in a prescribed vulnerable group, see Direction 17(f) , may apply for a CL for living expenses up to the first day for which the jobseeker receives JSA as a person in hardship. 87. For disallowed people who do not fall into a 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 following the disallowance decision until such time as the jobseeker modifies his behaviour and satisfies the officer who made the benefit decision on behalf of the Secretary of State that he is meeting the JSA labour market conditions, see also paragraph 93 . (DWP SFG erroneously says "see also paragraph 87") 88. For the first two benefit weeks following the disallowance decision, you can only consider crisis loans if the application is made for: • expenses which are the consequence of a disaster • other expenses for items required for the purpose only of cooking or space heating, including fireguards Example The jobseeker claims JSA from Thursday 6 May 1999. Their benefit week commences on Thursday and ends on Wednesday. Page 73 of 195 A decision to disallow is made on 6 May 1999 and the officer who made the benefit decision on behalf of the Secretary of State decides that the jobseeker is not in a prescribed vulnerable group. The specified period under Direction 17(b) will be 6 May 1999 to 19 May 1999, 14 days from the benefit week commencement date, this being the date the disallowance decision was made. During the specified period crisis loans are only available for: • expenses which are the consequence of a disaster • other expenses for items required for the purpose only of cooking or space heating, including fireguards 89. Always be sure to check the state of disallowances and sanctions applied to the jobseeker with the JSA section. This is because disallowances and sanctions can run sequentially, and can overlap. 90. Therefore, knowledge of a current disallowance or sanction will not: • tell you that an earlier disallowance or sanction still applies nor • indicate that a further disallowance or sanction is due to start in the near future 91. Direction 17 (b) applies only to disallowances under sections 1(2)(a) to (c) of the Jobseekers Act. 92. If the JSA section impose a series of disallowances or sanctions it could mean that, for people who do not fall into a prescribed vulnerable group, the restriction on availability of CLs will last longer than two weeks. 93. It is the intention of Direction 17(b) that the restriction on access to CLs mirrors, as far as possible, the period when the applicant feels the effect of withdrawal of JSA payments. 94. The specified period in Direction 17(b) is always 14 days. However, due to the prescriptive nature of the Direction, the effect of a jobseeker's signing cycle and benefit payday, the period that the applicant feels the effect of the restricted access to CLs, and is without JSA payments can be less than 14 days. 95. If jobseeker's change their behaviour after the original disallowance by making a new claim for 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 officer who made the JSA decision on behalf of the Secretary of State allows their new claim. 96. Disallowed jobseekers falling within the prescribed vulnerable group can apply for JSA at hardship rate without the two week penalty mentioned in paragraph 87. (DWP SFG erroneously says "paragraph 81") Page 74 of 195 97. The officer who makes JSA decisions on behalf of the Secretary of State decides which people fall into a prescribed vulnerable group. 98. There may be a period where the JSA claim has been referred to the officer who makes the JSA decision on behalf of the Secretary of State on a question of disallowance, but no decision has yet been reached. In these circumstances, applications by the jobseeker for a CL can be considered in the same way as other CL applications. 99. However, if the officer who makes the JSA decision on behalf of the Secretary of State has taken longer than 14 days to make the decision on the question of disallowance, the applicant should be advised to apply for JSA at hardship rate if they have not already done so. Jobseekers Allowance - conditions of employment sanctions 100. Sanctions occur if, for example, jobseekers have left their previous work voluntarily or have neglected to avail themselves of a reasonable opportunity of a training scheme, or if s/he is a jobseeker aged 18 to 24 who has refused or failed to attend a 'New Deal option'. 101. Sanctions are of a discretionary or fixed length, depending on the offence. However, see para 109 (DWP SFG erroneously says "para 103") below for New Deal sanctions. 102. Under a sanction, normal JSA is not payable for the length of the sanction, although the jobseeker can apply for JSA at hardship rate. If an applicant for a CL who is subject to a JSA sanction, has not applied for JSA at hardship rate, they should be advised to do so. 103. For people who do not fall into a 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 for the first two weeks of the sanction. 104. Because JSA is paid in arrears, the actual sanction period and the period in which the effect of the sanction is felt by the jobseeker will not be the same: Example The jobseeker claims JSA from Thursday 3 June 1999. Their benefit week commences on Thursday and ends on Wednesday. A decision to sanction for 26 weeks is made on 3 June 1999. The jobseeker is not in a prescribed vulnerable group and the period during which JSA or JSA at hardship rate are not payable is 3 June 1999 to 16 June 1999, this being the first two benefit weeks of the sanction. The jobseeker applies for JSA at hardship rate and is entitled from 17 June 1999. The specified period under Direction 17 (c) will be 17 June Page 75 of 195 1999 to 30 June 1999, 14 days starting on the first day of the benefit week immediately following the end of the period during which JSA or JSA at hardship rate was not payable. During the specified period crisis loans are only available for: • expenses which are the consequence of a disaster • other expenses for items required for the purpose only of cooking or space heating, including fireguards Jobseekers Allowance - sanctions for breach of community sentence 105. These sanctions will be imposed following a court's decision that a benefit recipient is in breach of a community sentence. They will apply to specific benefits and training allowances, but the restrictions in Direction 17 (c) apply only to those whose jobseekers allowance is affected. 106. The sanctions are to be piloted for a year from 15 October 2001 in Derbyshire, Hertfordshire, Teesside and West Midlands. They will operate in the same way as conditions of employment sanctions do (see 101 to 103 above) (DWP SFG erroneously says "95 to 97") . For the purposes of the pilot the sanctions will always be imposed for a period of up to 4 weeks. Jobseekers Allowance - Two Strikes sanctions 107. The Loss of Benefit provisions introduced by 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 introduce a benefit 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. 108. A 'Two Strikes' sanction is triggered when a person is convicted in two separate proceedings of offences committed on or after 1st April 2002 relating to disqualifying benefits. The second or subsequent offence must have been committed within 3 years of the previous conviction. A 'Two Strikes' sanction will be applied to all sanctionable benefits in payment during the disqualification period, regardless of whether the offence was committed in relation to that benefit. 109. As mentioned above in 107 (DWP SFG erroneously says "101") the sanctions apply to certain sanctionable benefits, but the restrictions in Direction 17 (c.) apply only to those whose jobseekers allowance is affected by a Two Strikes sanction . Jobseekers Allowance New Deal sanctions 110. New Deal sanctions are fixed periods of either two or four weeks which can be applied consecutively and indefinitely until the jobseeker complies with the necessary New Deal sanctions. For people who do not fall into a Page 76 of 195 prescribed vulnerable group mentioned in paragraph 102 (DWP SFG erroneously says "96") above, no JSA, even at hardship rate, will be payable for the period of the sanction, whether it be two or four weeks. CLs, subject to Direction 17(g) cannot be paid for the whole period of the New Deal sanction. Example 1 - Two week New Deal sanction New Deal sanction imposed from benefit week commencing 15 April 1999. The New Deal sanction period is 15 April 1999 to 28 April 1999. The jobseeker, who is not in a prescribed vulnerable group, will not receive normal two weeks benefit due on 30 April 1999. The specified period under Direction 17(d) will be 15 April 1999 to 28 April 1999, this being the period of the New Deal sanction. Example 2 - Four week New Deal sanction New Deal sanction imposed from benefit week commencing 15 April 1999. The New Deal sanction period is 15 April 1999 to 12 May 1999. The jobseeker, who is not in a prescribed vulnerable group, will not receive normal two weeks benefit due on 30 April 1999 and 14 May 1999. The specified period under Direction 17 (d) will be 15 April 1999 to 12 May 1999, this being the period of the New Deal sanction. During the specified period crisis loans are only available for: • expenses which are the consequence of a disaster • other expenses for items required for the purpose only of cooking or space heating, including fireguards 111. Jobseeker's who are not in a prescribed vulnerable group, who are already in receipt of JSA and who are subject to a single two week New Deal sanction or a number of non-consecutive two week New Deal sanctions, will have normal access to 'alignment' CLs at the end of the sanction. This is Page 77 of 195 because at the time of an application for an 'alignment' CL, the specified period under direction 17(d) , which is identical to the New Deal sanction period, will have expired. 112. The sanctioned jobseeker may apply for a CL for living expenses for the period up to the first JSA hardship pay day. Provided the jobseeker is in a prescribed vulnerable group, see Direction 17(f) , the application for an 'alignment' CL can be considered in the normal way. However, a sanctioned jobseeker who is not in a prescribed vulnerable group can only be offered an alignment CL after the restriction on CL availability as detailed in paragraphs 109 or 110 (DWP SFG erroneously says "103 and 104") above (in the case of New Deal sanctions) has been served. Alignment CLs cannot be paid to sanctioned jobseekers during the period prescribed in Direction 17(c) or Direction 17(d) (in the case of New Deal sanctions). 113. Always be sure to check with the JSA section that disallowances or sanctions are: • current and • due to be applied to the jobseeker 114. This is because disallowances and sanctions can run sequentially, and can overlap. Therefore, knowledge of a current disallowance or sanction will not: • tell you that an earlier disallowance/sanction still applies nor • indicate that a further disallowance/sanction is due to start in the near future 115. If the JSA section impose a series of disallowances or sanctions it could mean that, for people who do not fall into a prescribed vulnerable group, JSA at hardship rate will not be payable for longer than two weeks. It is important that the restriction on access to CLs mirrors the period of withdrawal of JSA payments. 116. Disallowed jobseekers falling within the prescribed vulnerable group can apply for JSA at hardship rate without the two week penalty mentioned in para 104 above. 117. The officer who makes JSA decisions on behalf of the Secretary of State decides which people fall into a prescribed vulnerable group. 118. There may be a period where the JSA claim has been referred to the officer who makes the JSA decision on behalf of the Secretary of State because of a possible sanction, but no decision has yet been reached. In these circumstances, you can consider applications by the jobseeker for a crisis loan in the same way as other CL applications. Work-focused interview 119. Several initiatives are in force which, in prescribed circumstances, require people of working age to take part in a Work-focused Interview (WFI) when making a new and repeat claim. These initiatives include the ONE pilots and WFIs for lone parents. In addition, Jobcentre Plus offices and WFI extension sites also operate compulsory WFIs. Page 78 of 195 120. From April 2004 the scope of WFIs for lone parents will be extended. All lone parents claiming Income Support (IS) will be required, as a condition of entitlement, to attend a WFI. 121. Where a lone parent has had a WFI sanction applied to their benefit, which is subject to a reduced weekly rate, then their access to a CL will not be restricted under the provision of Direction 17 (e) - see Direction 17 (f) (iii). 122. WFI regulations cover the making of new and repeat claims to the following benefits: • Income Support (IS) • Income-based Jobseeker’s Allowance (JSA(IB)) - not joint claims • Incapacity Benefit (IB) • Carer’s Allowance (CA) • Severe Disablement Allowance (SDA) • Widows Benefit (WB) • Housing Benefit (HB) • Council Tax Benefit (CTB) • Bereavement Benefit (BB)-Voluntary Interview HB and CTB claims only apply in ONE pilot areas. 123. People who have to take part in a WFI at the start of a claim to benefit will also be required to take part in a WFI on the occurrence of specified events known as “trigger points”. Failure to take part in an initial or trigger interview without good cause will result in a claim to benefit being treated as not made, withdrawn or subject to a reduced weekly rate. 124. SF applicants who have received a decision that they have failed to take part in a WFI will have their access to CLs restricted (see para 120 above for lone parents) (DWP SFG erroneously says "para 114") to the expenses specified in direction 17 (g) (as do other sanctioned or disallowed applicants caught by direction 17 ). However, there is an important difference between WFI restrictions and the other direction 17 sanctions/disallowances. Neither the benefit payday nor the type of benefit penalty have any relevance. The restricted access to a CL will exactly mirror the period that the benefit decision remains in place, beginning on the day it is made until the earliest of the following occurs: • a decision is made that the original decision of the officer that a person has failed to take part in a WFI was incorrect; or • the applicant has complied with the requirement to take part in a WFI; or • the requirement to take part in a WFI no longer needs to be satisfied. 125. It is for the benefit officer to decide on the above. The SF decision maker is concerned only with the dates that these events happen so that the restriction in direction 17 (e) can be applied and lifted as appropriate. 126. If a CL application is received from someone who normally resides in another area (for example a person stranded away from home without funds), the SF Decision Makers (DM) should establish the status of the applicant’s Page 79 of 195 benefit claim in the home area. This is so that the SF DM can decide if the provisions of 17(e) apply. Applicants whose partners are subject to a Jobseekers Allowance disallowance/sanction or WFI penalty 127. 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. However, where the CL application is for living expenses, the maximum living expenses payable must be calculated in accordance with direction 18 (2) (ie, no amount is payable for the partner). Remember that 18(2) is only appropriate when, had the sanctioned partner applied for the CL instead, the restrictions in direction 17 (b) to (e) would apply. 128. You must establish the status of both the applicant’s and partner’s claims to benefit when someone applies for a CL who normally resides in another area. (See 125 above) (DWP SFG erroneously says "119") Joint Claims for Jobseekers Allowance 129. Certain childless couples making new or repeat claims for JSA are required to make their claim jointly (see Part 2 for full details). 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. 130. The same principles governing CL restrictions for applicants subject to a benefit penalty will apply via directions 17 and 18 to either members of a JSA joint claim couples as to other sanctioned jobseekers. These are that where a benefit penalty is imposed on a jobseeker their access to CLs is restricted to the specified expenses in direction 17(g) : that as far as possible the period of the CL restriction mirrors the period of the benefit penalty: and that an "innocent" partner will have normal access to CLs but any award for living expenses will be limited to that partner only under direction 18 (2) with no award for the "guilty" party. Direction 7 – Circumstances in which repeat applications are not to be determined Direction 7 131. For the purposes of Direction 7 , do not count as repeat applications 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. Page 80 of 195 Direction 7(2) (see also "The Directions" 7(2) ) 132. This provision applies where the crisis) loan 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. 133. 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. 134. 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. 135. 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 136. 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 202 to 204 for definition of disaster. (DWP SFG erroneously says "paragraphs 196 to 198") Emergency since the previous award 137. 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. 138. 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. 139. Examples of causing the emergency by a direct act are gambling or misspending. 140. Where the applicant or partner did not directly cause the emergency, the Decision maker should ascertain whether reasonable steps were taken avoid it. 141. 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 Page 81 of 195 not be considered that they have taken reasonable steps to avoid an emergency. 142. 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 143. 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. 144. 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. 145. 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. 146. 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. 147. 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) (see also "The Directions" 7(3) ) 148. A crisis loan 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). 149. In considering direction 7(3), a relevant change of circumstances might be, for example, a change in the: • applicant's circumstances • budgetary position • law 150. With regard to the applicant’s circumstances and whether there has been a relevant change, consider the following example. 151. 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. Page 82 of 195 152. 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. 153. 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. 154. 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 ( see also "The Directions" 23 ) 155. 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 156. 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. 157. 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. 158. 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. 159. 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, eg 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. 160. 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. Page 83 of 195 161. 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. 162. 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, 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). 163. 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 164. 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 165. 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 166. The term 'public sector housing bodies' covers Local Authority (LA) or analogous property, ie 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 Page 84 of 195 Housing costs, repairs and improvements 167. 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. 168. 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. 169. 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 170. Assistance from the Social Fund (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 171. 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. 172. 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 173. 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 174. 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. 175. 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. 176. Applicants may ask for items in everyday use, although the need may have arisen from a medical or other condition, eg someone with an allergy Page 85 of 195 may need cotton sheets. Payments for such items from the SF are not specifically excluded. 177. If such help is requested, first find out whether aid is available from other relevant agencies, eg GPs and hospital doctors can prescribe 'borderline substances' in specific circumstances, eg sunscreen for people with particular skin ailments. 178. 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 179. This term covers expenses related to seeking and obtaining employment, eg 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. 180. 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 181. These include: • National Insurance arrears • income tax liabilities • customs charges • rent arrears • council tax arrears Accommodation charges including meals and services 182. If a Crisis Loan (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. 183. 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 184. 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 185. There are two distinct parts to the Social Fund: Page 86 of 195 • 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. 186. It therefore follows that you cannot make payments for Community Care Grants (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. 187. 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. 188. 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. 189. 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 190. 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. 191. The effect of the legislation referred to in para 180 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. 192. 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. 193. 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 194. 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. 195. In making your decision you should take into account: • the items applied for and the circumstances surrounding the need Page 87 of 195 • 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 196. 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. 197. 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 198. 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 (see also Part 8 – The Directions 3 ) Direction 3 Definition of terms 199. Individual people may be affected differently by the same situation, eg 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 200. You must have regard to all the circumstances of each case. The following examples illustrate some situations where help may be appropriate, but a Crisis Loan (CL) will not be automatic. A situation not mentioned is not automatically excluded, unless covered by a Secretary of State direction. 201. 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. (editor's note: Statutory Homeless persons (when accepted as homeless under Part 7 of the Housing Act 1996 as amended by the Homelessness Act 2002) may be able to apply for rent in advance via some Councils, all Councils have a deposit loan scheme.) (editor's note: Rent in advance in other circumstances can be met under Direction 3(1)(a) . The health and safety criteria apply to these cases.) Disasters 202. A CL can be considered for need arising from disaster, eg 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. Page 88 of 195 203. Large scale tragedies require a particularly sensitive response. Be aware that victims are especially vulnerable to emotional and psychological disturbance. 204. Local Authorities (LAs) are responsible for co-ordinating emergency and disaster planning within their area. They deal with both relatively localised disasters, eg a gas explosion damaging a single house, and large scale disasters, eg widespread flooding, chemical leak into the atmosphere. 205. 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 206. 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. 207. 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 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 208. 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 . 209. 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 210. CLs should normally be awarded for living expenses for more than two weeks in exceptional circumstances only, eg a need may arise through loss of money which would have been expected to cover until the next payment of regular income. 211. 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. (DWP SFG erroneously omits to finish this sentence) Page 89 of 195 212. 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 213. Most IS, JSA, ESA and other benefit claimants will have resources from their previous source of income, eg last wages, to cover the period until the first benefit payday. 214. 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. 215. 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 216. Hardship may be caused exceptionally due to employers imposing compulsory unpaid holidays. A CL may be appropriate in these circumstances. Capital not immediately realisable 217. Occasionally someone might be without regular income but because of capital assets worth over £16,000, eg 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. 218. 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 219. 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. 220. 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, eg 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. Page 90 of 195 Reconnection charges 221. CLs to meet the cost of reconnection charges can be considered if, eg an applicant's fuel supply has been disconnected and Third Party Deductions (TPD) action is being taken. Persons without accommodation 222. 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. 223. 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. 224. Psychiatric disorders, often found in ex-psychiatric hospital patients and ex-prisoners, are also frequently made worse by prolonged homelessness. 225. 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, eg prostitution. In addition, for young people, prolonged homelessness increases the risk of offending. 226. 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 227. 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. 228. 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. 229. 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 230. 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. Page 91 of 195 231. 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. 232. 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. 233. 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 234. 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. 235. 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). 236. 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 237. 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 238. 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. 239. 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. 240. If a 16/17 year old reports the loss or non-receipt of a benefit giro, the procedures in paragraph 239 (DWP SFG erroneously says "213") above should be followed, subject to normal replacement rules. Page 92 of 195 241. These procedures should only be followed if the applicant is a 16/17 year old and the specific circumstances described in paras 238 and 240 above occur. (DWP SFG erroneously says "212 and 214") Deciding if a crisis loan is appropriate 242. 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 243. People 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. 244. A CL may be made in the circumstances described in para 202 (DWP SFG erroneously says "para 177") et seq. The list is not definitive, but illustrates some of the situations in which crisis loans are likely to be made. 245. 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. 246. 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 crisis loan. 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 247. 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. 248. 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 249. The Social Fund (SF) is a discretionary scheme. It is discretionary so that available resources can be: • used flexibly • targeted on those whose needs are greatest Look at each application to see if a crisis loan is appropriate to meet the identified need. 250. A Crisis Loan (CL) should not be made unless either: Page 93 of 195 • 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 251. 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. 252. 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 40 253. The Area Decision Maker (ADM) notifies relevant Crisis Loan DMs of any national guidance issued by the Secretary of State about constraints on the loans budget for Crisis Loans. See section 36 (2) of the Social Security Act 1998 and the Instrument of Authorisation and Nomination. See Part 5 The Budget . Budget consideration 252. 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 Crisis Loans 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 255. Higher priority applications should be met first. Lower priority applications may need to be refused. Direction 18 - Amount to be awarded (see also Part 8 – The Directions 18 ) Direction 18 General 256. 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. 257. A CL will not necessarily compensate for the full consequences of the emergency, eg lost money will not necessarily be replaced in full. The amount of the crisis loan will be the smallest sum needed to tide the applicant over the period of need or to remove the crisis. 258. CLs are likely to fall into two broad categories: • immediate needs for living expenses Page 94 of 195 • immediate needs for other items or services Minimum amount 259. 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 260. 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 • for each child, the IS personal allowance applicable to dependent children 261. Consider if a smaller payment than the maximum set out in Directions 18 to 20 is appropriate. 262. 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. 263. 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. 264. 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, Direction 18A 265. 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. 266. 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 • for each child, the IS personal allowance applicable to dependent children 267. Fractions of a penny resulting from the above calculation can be rounded up or down to the nearest penny. Page 95 of 195 268. There are no other special rules for deciding LPTLs. Fuel expenses 269. 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 • an amount to cover forward/future consumption 270. 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 ). 271. 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. 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 (see also "The Directions 20" ) Direction 20 Jobseekers Allowance hardship cases 272. This Direction sets out the maximum which may be awarded to an applicant being paid income-based Jobseekers Allowance (JSA(IB)) at hardship rate. 273. Consider if a smaller payment is appropriate and enter the total on the decision form. 275. 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 Crisis Loan (CL) • the applicant's ability to repay 275. 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 (see also "The Directions 21" ) Direction 21 Page 96 of 195 Maximum amount - items or services 276. 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 crisis loan. 277. The maximum sum will be the lowest of: • the cost of repair to the item if the item can be repaired • the reasonable cost of purchasing the item or service, including delivery and installation where appropriate 278. 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 279. The maximum rate of a Crisis Loan (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 280. 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? 281. 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 (see also "The Directions" 5 ) Direction 5 Repayability considerations 282. Guidance on repayability considerations is given under Direction 22. Direction 22 - Ability to repay (see also "The Directions" 22 ) Direction 22 Page 97 of 195 283. 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 Social Fund (SF) • any other continuing commitments they may have 284. Take account of: • 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 These are determined by officers acting on behalf of the Secretary of State. 285. If an applicant plainly cannot afford a further loan, eg 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. 286. If as a result of the refusal of a loan on the grounds of inability to repay, the applicant claims a Community Care Grant (CCG), the Decision Maker (DM) must take account of this fact when considering the CCG application. 287. 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 288. 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. 289. Applicants' total debt at any one time will depend on whether they already have a loan from the social fund 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. 290. Before awarding any further loans consider any additional off-system debts. The total debt to the SF will reduce as repayments are made. 291. 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. 292. 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 293. 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 294. Remember that daily living expenses are not excluded for community care grants where a crisis loan cannot be awarded for such expenses due to the Page 98 of 195 £1,500 loan limit. Consider inviting a community care grant application (unless there is sufficient information to convert to a community care grant). Direction 49 - Crisis Loan applications treated as Community Care Grant applications and vice versa Direction 49 Applications 295. 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. 296. 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: • 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 • 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. 297. 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. 298. 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 299. 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 application form. The BL application form should then be processed in the normal way (see Applications section in Part 4 budgeting Loans ). Page 99 of 195 Policy Secretary of State’s Directions Direction 3 Direction 5 Direction 7 Direction 14 Direction 14A Direction 15 Direction 16 Direction 17 Direction 18 Direction 18A Direction 20 Direction 21 Direction 22 Direction 23 Direction 41 Direction 49 Page 100 of 195 Part 3A-Crisis Loans – pathfinder SoS guidance Pathfinder Direction 14B-Eligibility - 3 non-aligned living expense awards in 12 months ( see also "The Directions" 14B ) 1. This guidance is to be applied to all crisis living expense Crisis Loan (CL) applications except where they are for a CL to meet immediate living expenses whilst an applicant is awaiting the first payment of benefit or first payment of earnings as an employee after being on an income-replacement benefit. 2. This guidance will be applied to any of the above applications made on or after the start date of the Pathfinder: • 27 April 2009 in the South West Region • 8 June 2009 in the East Midlands Region 3. An applicant will usually be restricted to a total of 3 relevant living expense awards within a 12 month rolling period (but see paragraph 6) (DWP SFG erroneously says "10"). A relevant award has to meet the following conditions: • be for living expenses other than those arising because an applicant awaiting a first payment of an income replacement benefit or first payment of earnings as an employee after being on an income-replacement benefit • awarded at the Pathfinder office by a decision maker or reviewing officer on or after the relevant start date, and • be within the customer’s 12 month period. 4. The 12 month period will start on the date of the first award made to an applicant on or after the start date of the Pathfinder. For example, in the South West Region, if the first such award was made on 11 May 2009 the 12 month period would commence on that date and end on 10 May 2010. Any award made before the date of the first relevant award or 27 April 2009 would not be counted and therefore be included within the above 12 month period. 5. Where an applicant moves into an area covered by the South West or East Midlands area after the Pathfinder starts there, the first relevant award will be the first one made in that region. The date of that first award will be the first day of the applicant’s 12 month period. 6. Where a person moves to a non-Pathfinder region Pathfinder Direction 14B will no longer apply to him. 7. On each application for a crisis loan for living expenses: • which is not in consequence of a disaster, or an emergency in the specified circumstances, nor to meet the immediate needs whilst awaiting a first benefit payment/earnings as an employee after being on an income-replacement benefit, and • where the applicant has not yet reached the limit of three awards before a determination is made, the applicant should be reminded of the limit and given the opportunity to withdraw the application if he/she wishes to do so. Page 101 of 195 8. When an applicant is not eligible for a Crisis Loan by virtue of Direction 14B, the decision maker should give him information about local organisation which may be able to help. Pathfinder Direction 14B-exceptions 9. These provisions shall not be applied where an applicant has received 3 relevant awards (Pathfinder direction 14B(3) refers) in the 12 month rolling period and the current application is for assistance to meet living expenses: • as a consequence of a disaster (Pathfinder Direction 14B(2) refers) or, • in an emergency which: o is not a consequence of an act or omission for which the applicant and his partner is responsible and, o the applicant or his partner could not have taken reasonable steps to avoid. 10. Except for any awards that have to be made to meet immediate needs whilst awaiting a first payment of benefit or first payment of earnings as an employee after being on an income-replacement benefit ( Direction 14B(3) refers), the applicant will remain ineligible for further living expense CLs until the day following the end of the relevant 12 month period. Example 1 An application for a living expense Crisis Loan is made on 10 August 2009. This application is not in consequence of a disaster or emergency which the applicant was instrumental in causing or to meet immediate needs whilst awaiting a first payment of benefit/first payment of earnings. The customer has received living expense Crisis Loans on the following dates: 14 January 2009………………………………...£80.00 16 February 2009………………………………..£85.00 16 March 2009….………………………………..£90.00 27 April 2009…….………………………………...£80.00 11 May 2009……………………………………..£85.00 13 July 2009…….………………………………..£90.00 The first relevant award is 27 April 2009 and the relevant 12 month period would therefore be from 27 April 2009 to 26 April 2010. The only awards which are relevant are those made on or after the Page 102 of 195 date of the first relevant award, i.e. 27 April 2009, 11 May 2009 and 13 July 2009. Any awards made before 27 April 2009 would not be counted. The customer would not be eligible for a further award based on the application of 10 August 2009 as he has already received 3 such awards during the relevant 12 month period. The customer would not be eligible for any further crisis loans on the basis of Direction 14B until the day following the end of the above period, i.e. 28 April 2010, unless any of the subsequent applications are in consequence of a disaster, or an emergency in the specified circumstances or to meet immediate needs whilst awaiting a first benefit payment/first payment of earnings. Example 2 An application for a living expense Crisis Loan is made on 10 August 2009. This application is not to meet immediate needs whilst awaiting the first payment of benefit/first payment of earnings. The customer has received living expense Crisis Loans on the following dates: 27 April 2009………………………………………..£85.00 11 May 2009………………………………………£90.00 The first relevant award is 27 April 2009 and the relevant 12 month period would therefore be from 27 April 2009 to 26 April 2010. The customer is eligible for a crisis loan based on the application of 10 August 2009 as he has received only 2 relevant awards during the relevant 12 month period. These are 27 April 2009 and 11 May 2009. The customer would have to be advised that no further awards could be made until on or after 27 April 2010 unless they are to meet immediate needs whilst awaiting a first benefit payment/first payment of earnings, or in consequence of a disaster or an emergency in the specified circumstances. Page 103 of 195 Example 3 An application for a living expense Crisis Loan is made on 10 August 2009. This application is in consequence of a fire at the applicant’s home. The customer has received living expenses Crisis Loans on the following dates: 27 April 2009…….………………………………...£80.00 8 June 2009…………………………………….. £85.00 6 July 2009….…….……………………………..£90.00 The relevant period would be from 27 April 2009 to 26 April 2010 and the customer has received 3 awards in that period. The latest application is considered to be in consequence of a disaster and therefore a further living expense award can be made for 10 August 2009. It should be noted that the relevant period would still be 27 April 2009 to 26 April 2010 and the customer would not be eligible for a further award, before 27 April 2010. This would be with the exception of applications to meet immediate needs whilst awaiting a first benefit payment/first payment of earnings, or in consequence of a further disaster or an emergency in the specified circumstances. Alignment to benefit or first wage living expense crisis loans 11. An applicant can submit an application for this type of living expense Crisis Loan where he/she is unable to meet his/her immediate needs whilst awaiting a first benefit payment/first payment of earnings as an employee after being on an income-replacement benefit.. 12. An award made in these circumstances will not be regarded as a relevant award when calculating an individual’s 12 month period. Example An application for a living expense Crisis Loan is made on 14 September 2009. The customer has received living expense Crisis Loans on the following dates: 27 April 2009…….………………………………...£80.00 Page 104 of 195 8 June 2009……………………………………... £85.00 Award to meet immediate needs whilst awaiting first payment of benefit 10 August 2009….………………………………..£90.00 The relevant period would be from 27 April 2009 to 26 April 2010 and the customer has received a total of 3 awards in that period, however the award dated 10 August 2009 is not a relevant award for the quota, as it is an alignment loan. The applicant can receive a further living expense award for 14 September 2009. This latest award would become the 3rd award in the period. It should be noted that the relevant period would remain as 27 April 2009 to 26 April 2010 and the customer would not be eligible for a further award, before 27 April 2010, unless any subsequent applications were to meet immediate needs whilst awaiting a first payment of benefit/first payment of earnings, or in consequence of a disaster or emergency in the specified circumstances . Page 105 of 195 Policy Secretary of State’s Pathfinder Directions Direction 14B Page 106 of 195 ( Page 1 and Introduction Part 2 - Community Care Grants Part 3 - Crisis Loans Part 4 – Budgeting Loans Part 5 – The Budget Part 6 - Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 - The Directions Part 9 - Transitional Arrangements Part 10 - Amendments ) 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 Page 107 of 195 • 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 – Directions 40 and 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? - Directions 53 and 10 − 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; Page 108 of 195 • 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 Page 109 of 195 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 (see also "The Directions" 8 ) 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, Page 110 of 195 • 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. Page 111 of 195 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 (see also Part 8 – The Directions 50 ) 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) or regulation 78 of the Jobseeker’s Allowance Regulations 1996 (for applicants in receipt of jobseeker’s allowance) or regulation 156 of the Employment and Page 112 of 195 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 18 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 (see also "The Directions" 53 ) Direction 53 Page 113 of 195 Treatment of existing Budgeting Loan debt 54. The effect of the weightings accorded to applicants’ circumstances is to establish, in conjunction with Area Decision Maker (ADM) guidance under Direction 40 , limits on the maximum amount of Budgeting Loan (BL) debt individual applicants may have. 55. 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 , 10 , and 11 , the award which may be made is • the amount applied for or • the maximum amount less any outstanding budgeting loan debt owed by the applicant or partner. Applicant with no existing debt 56. 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 , 10 , and 11 ). 57. 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, 10 and 11). Applicants with existing debt 58. A loan may not be offered where the difference between the amount of existing BL debt (held by the applicant and/or his partner) and the appropriate maximum BL award amount available is less than £100. Budgetary Consideration 59. ADMs will notify Decision Makers (DMs) of the budgeting loan baseline figure on which the three maxima of loans available for determining the size of the BL award are based. Social Fund Computer System (SFCS) will hold and apply the maximum amounts at the appropriate stage in the automated decision making process. Direction 9 - Treatment of capital (see also "The Directions" 9 ) Direction 9 60. 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). 61. 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). 62. Any capital held by the applicant's children should be disregarded. 63. Check the amount of capital stated on the Social Fund (SF) application against information available from Income Support (IS), Jobseekers Allowance Page 114 of 195 (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 64. 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 2007 should also be disregarded. Any payment of Back to Work Bonus should be treated as capital. 65. 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 66. 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 67. 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 Page 115 of 195 • 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 68 below. 68. From 14 October 2002 the disregard that applies to arrears and concessionary payments referred to in para 67 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 10 - Minimum and maximum award (see also "The Directions" 10 ) Direction 10 General 69. Where the amount requested is within the limit of the amount of loan available to the applicant, taking account of existing debt, the amount requested as a Budgeting Loan (BL) should be offered in full (subject to capital, maximum debt and ability to repay rules). 70. Where the amount requested exceeds the limit of the amount of loan available to the applicant, taking into account the applicant's existing debt, the applicant should be offered the maximum of any amount within the amount of loan available to the applicant. Minimum loan 71. The lowest amount which can be awarded as a BL is £100. Direction 5 Repayability (see also Part 8 – The Directions 5 ) Direction 5 Repayability considerations 72. See Direction 11 on repayability. Direction 11 - Ability to repay (see also "The Directions" 11 ) Direction 11 Page 116 of 195 Ability to repay 73. 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. 74. 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 79 – 81 below. 75. 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. 76. An applicant's ability to repay will depend on: • their total debt to the Social Fund (SF) • any other continuing commitments they may have 77. 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 78. 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. 79. 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. 80. 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; Page 117 of 195 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 81. 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 82. Total debt means the total amount that an applicant owes to the social fund at any one time. Under no circumstances will a BL be awarded which takes the amount over £1,500. 83. Applicants' total debt at any one time will depend on whether they already have a loan from the social fund, 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. Before awarding any further loans consider any additional off-system debts. The total debt to the social fund will reduce as repayments are made. 84. In each case, any loan offer will be no more than the £1,500 total debt to the social fund. Page 118 of 195 Policy Secretary of State’s Directions Direction 2 Direction 5 Direction 8 Direction 9 Direction 10 Direction 11 Direction 50 Direction 52 Direction 53 Page 119 of 195 ( Page 1 and Introduction Part 2 - Community Care Grants Part 3 - Crisis Loans Part 4 – Budgeting Loans Part 5 – The Budget Part 6 - Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 - The Directions Part 9 - Transitional Arrangements Part 10 - Amendments ) 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 to Decision Makers (DMs) 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. Page 120 of 195 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 Page 121 of 195 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. Page 122 of 195 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 Page 123 of 195 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 ( see also "The Directions" 41 ) Direction 42 ( see also "The Directions" 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 Page 124 of 195 • 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. Page 125 of 195 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). Page 126 of 195 Policy Secretary of State’s Directions Direction 40 Direction 41 Direction 42 Page 127 of 195 ( Page 1 and Introduction Part 2 - Community Care Grants Part 3 - Crisis Loans Part 4 – Budgeting Loans Part 5 – The Budget Part 6 - Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 - The Directions Part 9 - Transitional Arrangements Part 10 - Amendments ) 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 Page 128 of 195 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: Page 129 of 195 • 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 Directions 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 interview, 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 . Page 130 of 195 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 Page 131 of 195 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 (see also Part 8 – The Directions 39 ) 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 (see also Part 8 – The Directions 32 ) 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 Page 132 of 195 • 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: Page 133 of 195 • 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 (see also Part 8 – The Directions 33 ) 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. Page 134 of 195 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 (see also Part 8 – The Directions 34 ) 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 applicants 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 Page 135 of 195 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 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. Page 136 of 195 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 (see also Part 8 – The Directions 35 ) Direction 35 59. Record all representations made at the interview 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 interview (see also Part 8 – The Directions 36 ) Direction 36 69. After the review Page 137 of 195 • 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. 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 Page 138 of 195 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 (see also Part 8 – The Directions 37 ) 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 ( see also Part 8 – The Directions 31 ) 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 Page 139 of 195 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) Page 140 of 195 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 Page 141 of 195 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. Page 142 of 195 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 (see also "The Directions" 43 ) 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. Page 143 of 195 121. 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 Page 144 of 195 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 girocheque 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 Page 145 of 195 • 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 (see also "The Directions" 44 ) 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. Page 146 of 195 Direction 45 - Reviewing Officer action, first stage (see also "The Directions" 45 ) 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 (see also " The Directions 46" ) 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 (see also " The Directions 47" ) 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 (see also "The Directions" 48 ) 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 Page147 of 195 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 Page148 of196 Policy Secretary of State’s Directions 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 Page 149 of 195 ( Page 1 and Introduction Part 2 - Community Care Grants Part 3 - Crisis Loans Part 4 – Budgeting Loans Part 5 – The Budget Part 6 - Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 - The Directions Part 9 - Transitional Arrangements Part 10 - Amendments ) 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) and (9) 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 Page 150 of 195 • 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. Page 151 of 195 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 District 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 Page 152 of 195 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.27. 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 C3(SF) to be determined afresh. 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: Page 153 of 195 • 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 Page 154 of 195 • 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 Page 155 of 195 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: Page 156 of 195 • 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. Page 157 of 195 Policy Secretary of State’s Directions SFI Direction 1 SFI Direction 2 SFI Direction 3 SFI Direction 4 SFI Direction 5 SFI Direction 6 Page 158 of 195 ( Page 1 and Introduction Part 2 - Community Care Grants Part 3 - Crisis Loans Part 4 – Budgeting Loans Part 5 – The Budget Part 6 - Reviews Part 7 – Reviews by the Social Fund Inspector Part 8 - The Directions Part 9 - Transitional Arrangements Part 10 - Amendments ) Part 8 – The Directions Level 3 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 maybe 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 1A – Transitional direction on dealing with an application made before 3 April 2006 for a budgeting or crisis loan 1A (1) A decision maker who is- (a) determining a budgeting loan or crisis loan application; or (b) reviewing a budgeting loan or crisis loan determination on an application, which was made before 3rd April 2006 shall act in accordance with the relevant directions, and take account of the relevant guidance, as they were in force immediately before that date. (2) In paragraph (1): “application” means an application made in accordance with the Social Fund (Applications) Regulations 1988; “decision maker”, where relevant, includes a social fund inspector. [Note: From 3rd April 2006 directions 9, 10, 18, 20, 21, 50, 52 and 53 are amended; and direction 51 is revoked]. Page 159 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 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 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 the budgeting loan may have contributed towards the emergency or disaster in respect of which such a payment is requested. 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) will be providing care, to remain in the community rather than enter institutional or residential accommodation in which he will receive care; or The Directions Example 2 (2) Page 160 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 (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 28 days 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. Page 161 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 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 either (aa) income support; or (bb) income-based jobseeker's allowance; or (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. Page 162 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 (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 – Budgeting Loan, minimum and maximum award 10. The minimum amount that may be awarded as a budgeting loan is £100. The maximum that may be awarded as a budgeting loan is the difference between any sum already repayable to the social fund by the applicant and his partner and £1500. 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 14A–Pathfinder-Interview on 3rd Crisis Loan Application 14A (1) Except where paragraph (2) applies, where an applicant- (a) applies for a crisis loan for living expenses and (b) has made two or more applications for a crisis loan for living expenses in the past 12 months, Page 163 of 195 Level 3 a determination will not be made on the latest application unless the applicant takes part in an interview and provides such information in connection with the application at the interview as the Decision Maker may reasonably require. (2) Where he considers it to be appropriate, Decision Maker may waive the requirement for the applicant to take part in an interview, and determine the application in the normal way. (3) This direction applies to applicants residing in the following areas who apply on or after the following dates: • South West region – 27 April 2009 • East Midlands region – 8 June 2009 • Glasgow District – 27 July 2009 (4) This direction does not apply to applications 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 if 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. Direction 14B–Pathfinder-Crisis Loan eligibility-3 or more living expense awards in the specified period 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 month 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 (b) in an emergency which – (i) is not a consequence of an act or omission for which 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 if earnings as an employee Page 164 of 195 Level 3 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 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 support service within the meaning of section2 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, Page 165 of 195 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, trade disputes, Jobseeker Allowances/sanctions and failure to take part in work-focused interviews 17. Trade Disputes (a) Where the applicant or his partner: (i) is disentitled from receiving a jobseeker's allowance pursuant to section 14 of the Jobseekers Act 1995 (referred to in this direction as 'the Act') or would be so disentitled if otherwise entitled to that allowance; or (ii) is in receipt of a reduced rate of jobseeker's allowance pursuant to section 15 of the Act (trade disputes - effect on other claimants) the expenses for which a crisis loan may be awarded are restricted to those specified in (g) until the date when the applicant or his partner is no longer disentitled from receiving jobseeker's allowance under section 14 of the Act or until the date when the applicant or his partner is no longer in receipt of a reduced rate jobseeker's allowance under section 15 of the Act. Disallowances (b) Subject to paragraph (f), where an applicant does not satisfy the conditions in section 1(2)(a) to (c) of the Act as either: (i) a claimant for a jobseeker’s allowance under section 1-(2) of the Act; or (ii) a member of a joint-claim couple which has claimed a jobseeker’s allowance under section 1-(2B) of the Act, and as a result the claim or joint-claim is disallowed, the expenses for which a crisis loan may be awarded to the applicant are restricted to those specified in (g) for 14 days starting on the first day of the benefit week immediately following the disallowance decision, or the benefit week commencement date if the disallowance decision is made on that day. Sanctions (c) Subject to paragraph (f) and except in a case to which paragraph (d) applies, where an applicant is either a claimant for a jobseeker's allowance under section 1(2) of the Act or a member of a joint-claim couple who have Page 166 of 195 claimed a jobseeker's allowance under section 1(2B) of the Act and: (i) one or more of the circumstances specified in section 19(5) and (6) or 20A(2) of the Act applied to the applicant; or (ii) section 62(1)(a) and (b) of the Child Support, Pensions and Social Security Act 2000, applied to him; or (iii) section 7(1) of the Social Security Fraud Act 2001 applied to him, the expenses for which a crisis loan may be awarded to the applicant are restricted to those specified in (g) for 14 days following the end of the period for which a jobseeker's allowance or joint-claim jobseeker's allowance is (or was) not payable. New Deal Sanctions (d) Subject to paragraph (f), where it is determined that a jobseeker's allowance is not payable to the applicant on the basis that either or both of section 19(5)(b) or (c) of the Act apply in relation to an employment programme specified in regulation 75(1)(a) (ii) of the Jobseeker's Allowance Regulations 1996 or in relation to a training scheme specified in regulation 75(1)(b)(ii) of those Regulations, the expenses for which a crisis loan maybe awarded are restricted to those specified in (g) throughout the period when he is not a person in hardship pursuant to regulation 140A(1) of those Regulations. Failure to take part in work-focused interviews (e) Subject to paragraph (f), the expenses for which a crisis loan may be awarded to an applicant in respect of whom it has been decided that he has failed to take part in a work-focused interview (“an interview”) imposed by regulations made under section 2A of the Social Security Administration Act 1992, are restricted to those specified in (g) for the purposes of any application made in the period beginning on the date of that decision and ending on: (i) the date on which it is decided that the applicant has taken part in an interview; or (ii) the last day on which he is required to take part in an interview, whichever shall first occur. (f) Paragraphs (b) (c) (d) and (e) shall not apply where the applicant is: (i) in receipt of income-based jobseeker's allowance by virtue of his being a 'person in hardship' under regulation 140(1) of the Jobseeker's Allowance Regulations 1996; or (ii) a member of a joint claim couple who are in receipt of a jobseeker’s allowance by virtue of their being a “couple in hardship” under regulation 146A (1) of those Regulations; or (iii) a lone parent to whom the provisions of the Social Security (Work- focused Interviews for Lone Parents) and Miscellaneous Amendments Regulations 2000 apply. (g) The specified expenses are - (i) expenses which are the consequence of a disaster; and (ii) expenses, outside (i), in respect of items required for the purpose only Page 167 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 of cooking or space heating (including fireguards). 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, or, as the case may be, income-based jobseeker's allowance personal allowance, for the applicant and any partner; and (b) for each child, an amount equal to the income support personal allowance applicable to dependent children, or, as the case may be, an amount equal to the income-based jobseeker's allowance personal allowance applicable to dependent children; 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) The maximum amount that may be awarded by way of a crisis loan in respect of living expenses to an applicant whose partner would, if he or she applied for a crisis loan, have had the expenses in respect of which a crisis loan may be awarded, restricted by direction 17(b) to (e) is the aggregate of - (a) an amount equal to 75% of the appropriate income support personal allowance, or, as the case may be, income-based jobseeker's allowance personal allowance, for the applicant only; and (b) for each child, an amount equal to the income support personal allowance applicable to dependent children, or, as the case may be, an amount equal to the income-based jobseeker's allowance personal allowance applicable to dependent children; 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) Where any step in the calculation under paragraph (1) or (2) results in a fraction of a penny, that fraction may be rounded up or down to the nearest penny. Direction 18A – Loan 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. Page 168 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 (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 (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 £1,500. (4) Where any step in the calculation under paragraph (3) results in a fraction of a penny, that fraction may be rounded up or down to the nearest penny. 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. (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. 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. Page 169 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 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 rehoused 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) in respect of 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 items - (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 Page 170 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 accommodation, other than: (i) payments for intermittent housing costs not met by housing benefit, income support, income-based jobseeker’s allowance or state pension credit or 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 either- (a) income support; or (b) income-based jobseeker's allowance; or (c) state pension credit. (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. Page 171 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work and Pensions Level 3 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, Page 172 of 195 Social Fund Guide – The Directions issued by the Secretary of State for Work |