2-local-welfare-provision-review-nov-2014

Local welfare provision review2 BackgroundThe Welfare Reform Act 2012 abolished the discretionary part of the Social Fundand introduced payments on account to replace Crisis Loan alignment payments.Budgeting Loans continue to be available to existing income-related benefitrecipients until the point at which they transfer to Universal Credit. UnderUniversal Credit Budgeting Advances will be available to meet a similar need.This reform also allowed for the delivery of a new local provision to replaceCommunity Care Grants and Crisis Loans for general living expenses. This issometimes referred to as ‘local welfare provision’ or ‘local welfare assistance’although different names are used in different local authority areas.The funding was passed over to local authorities on a non-ring fenced basis, andwith no statutory duties attached. The terms ‘local welfare provision’ or ‘localwelfare assistance’ are no more than umbrella terms, or shorthand, used todescribe the Government’s expectations on the use of the funding. Theseexpectations were set out in the Settlement Letter from the Minister for Pensionsto local authorities in August 2012 which stated:“We expect the funding to be concentrated on those facing greatest difficultyin managing their income, and to enable a more flexible response tounavoidable need, perhaps through a mix of cash or goods and aligning withthe wider range of local support local authorities/devolved administrationsalready offer. In short, the funding is to allow you to give flexible help to thosein genuine need.”Local authorities’ abilities to act in this area are provided under powers containedin other existing legislation. For example, section 2 of the Local Government Act2000 enables local authorities to provide financial assistance to any individual.Local authorities also have duties under the Housing Act 1996 (e.g. sections 188to 195) in relation to the provision of emergency and longer-term accommodation.Part 2 of the Child Poverty Act 2010 places a duty on local authorities to producea child poverty needs assessment and strategy for their area, working with otherlocal authorities. The Child Poverty Act 2010 places a duty on responsible localauthorities (those with top-tier functions) to put in place arrangements to workwith partner authorities named in the 2010 Act to reduce, and mitigate the effectsof, child poverty in their local area.The new arrangements have been administered by local authorities in England(and devolved to Scotland and Wales) since April 2013. They are entirely theresponsibility of local authorities (and the devolved administrations). Accordingly,there are no new duties on local authorities to provide the new assistance.5