APPENDIX D Key Changes , item 450. PDF 39 KB - Council meetings

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Current DWP SchemeLoans are interest free.Administration of loans andgrants is managed centrallyby the DWP.Repayments are taken atsource and deducted fromDWP benefits.The DWP only provide cashbasedawards and do notretrospectively checkwhether the award was usedfor the purpose intended.The DWP do not checkwhether the need for whichthe application is madecould be met by other localschemes.Lewisham’s Local SupportSchemeLewisham, providing it hasbeen verified by the DWP.A 2% monthly interest ratewill be levied (via the CreditUnion) on all loans.The Credit Union willmanage the administrationof Emergency Loans onbehalf of the Council and allapplicants will be required tojoin the Credit Union as acondition of receiving theirloan.The Credit Union will set arepayment plan inconjunction with theapplicant and manage thecollection process.Lewisham will provideapplicants with locallysourced replacement itemsor vouchers and prepaidcards, which can be used topurchase agreed items atspecified stores.As part of the applicationprocess, the Council willassess whether the needcould be met by anotherscheme/funding sourcewithin the authority or by alocal voluntary/communityorganisation.Rationale For Changefraudulent applications.Charging a minimal interestrate on loans will allow us torecycle our available fundingmore effectively, thussupporting a greater numberof residents and ensure thatthe Credit Union is financiallyable to administer thescheme on the Council’sbehalf.By using the Credit Union todisburse funds and collectrepayments on our behalf,we will also be able topromote financialresponsibility amongstapplicants and increaseaccess to budgeting support.Unlike the Council, the CreditUnion already has existingexpertise and infrastructurein this area. By not needingto establish our ownmechanisms for collectingrepayments, we will be ableto target the maximumamount of funding atvulnerable residents.This approach will ensurethat the requirements of allapplicants are met in themost appropriate mannerand that limited funds areeffectively targeted at thosemost in need.This will not restrict accessto Emergency Loans, butinstead ensure that supportis not duplicated orinconsistently applied. If thesupport that the applicantrequires cannot beaddressed elsewhere anddoes not fall into an areapreviously excluded underthe DWP scheme, then theirapplication will still be
Current DWP SchemeThe DWP do not limit thenumber of grants that anapplicant can receive withina year.Crisis Loans can be used tofund Rent in Advancepayments for applicants whoare moving into theprivately-rented sector.Applications for Crisis Loansare made viatelephone/paper form whilstapplications for CommunityCare Grants are made viapaper form only.Lewisham’s Local SupportSchemeApplicants will be limited toone grant per year.Rent in Advance paymentswill only be made wherethey are part of a successfulSupport Grant applicationinvolving a plannedresettlement process.The majority of applicationswill be made online. Inexceptional circumstances,customers will be able toapply via telephone.Rationale For Changeassessed.By limiting the number ofgrants that applicants canreceive, we will ensure thatthe available funding issustained for the whole yearand the needs of as manyresidents as possible aremet. If applicants requireadditional financial support,then they will be able toaccess this via the CreditUnion.The numbers applying forand receiving funding forRent in Advance paymentsare relatively low, but themoney spent from theoverall Social Fund allocationis significant. However,evidence from the DWPsuggests that the majority ofRent in Advance paymentsare currently made to thoseapplicants who havereceived a Community CareGrant as part of aresettlement process. TheDWP Budgeting Loan schemewill continue to makeprovision for Rent inAdvance payments for allapplicants who are already inreceipt of ongoing benefits,whilst the local scheme willensure that provision is inplace to support people who,because of a period ofinstitutional care, would nothave been eligible forbenefits (and therefore aDWP Budgeting Loan).The introduction of onlineapplications means that theprocess of accessing a loanwill be quicker, easier andmore convenient for themajority of customers whilstthey and third-party
Page 1: APPENDIX D: OUTLINE OF KEY CHANGES1

APPENDIX D Key Changes , item 450. PDF 39 KB - Council meetings

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