Decision details

To consider the report of the Cabinet Member for Communities seeking approval to accept  the transfer of funding from central Government to Southampton City Council for local support to replace discretionary payments from the Social Fund (Community Care Grants and Crisis Loans for Living Expenses) currently administered by the Department of Work and Pensions. The indicative amount of funding will be provided via a Settlement Letter.

The Settlement Letter has been received outlining the level of funding for 2013/14 and 2014/15.

As part of the Welfare Reform Act (2012), the Government is abolishing the current system of discretionary payments from the Social Fund.  From April 2013, the support provided to households via Community Care Grants and Crisis Loans for Living Expenses will cease and Local Authorities will receive financial support to enable them to develop and implement ‘successor models’.  There is no expectation or desire for Local Authorities mirror the current scheme in whole or part. 

(i)  To note the letter from the Department of Work and Pensions (DWP) about the abolition of the Social Fund attached at Appendix 1 and that the Council’s financial settlement will include an un-ringfenced element for local welfare provision which is not guaranteed after 2014/15.

(ii)  To consider the work of the Scrutiny Inquiry on Welfare Reforms and multiagency local assessment on the impact of the Welfare Reforms on local residents and services in developing a way forward.

(iii)  To delegate authority to the Director for Environment and Economy, following consultation with Cabinet Member for Communities and Cabinet Member for Resources, to develop and implement a sustainable and holistic way forward that enables vulnerable residents to become more self reliant in the future.

1.  The Government has abolished the discretionary elements of the Social Fund and in future will be referring people who need emergency financial assistance to Local Authorities. The Government has decided that it would not be appropriate to place a new duty on local authorities in respect of new emergency provision so that there is flexibility to creatively re-design emergency provision to meet local needs.

2.  The current scheme will no longer be available from April 2013 and therefore, the Council has to decide on the way forward to help local people become more self reliant when facing financial crises.  As the funding is not guaranteed after 2014/15, it will be important to develop a holistic and sustainable way forward, bearing in mind the potential impacts of Welfare Reforms and reduction in public services. This is better done following full consideration of local assessments of the cumulative impact of the Welfare Reforms locally and the planned Scrutiny Inquiry work, to enable the development of an effective, co-ordinated and sustainable response and hence the recommendation is to request delegated authority to the Director for Environment and Economy to develop the way forward.

 To not undertake work on developing a local response would reduce effectiveness and capacity in the City to coordinate support to people in crisis and help them to become more self reliant.