Discretionary Payments
The Social Security Contributions and Benefits NI Act 1992, as amended in Part VIII, provides for discretionary and nondiscretionary social payment guidelines that are published for social fund officers.
There are several nondiscretionary and discretionary-based awards.
A maternity grant is available for women or partners who are claiming certain other benefits. The application must be made within a reasonable time, and it applies to adoption.
There is provision for assistance with funeral costs for those who take responsibility for funerals in circumstances where it is reasonable for them to do so. It is available to persons on the principal benefits, such as income support, income-based jobseeker’s allowance, and working tax credit.
There are provisions for cold weather payments of up to £850 per week of cold weather, payable to persons on the pension credit or income support, or income-based jobseeker’s allowance for at least one child under five or qualified for disability or severe disability premium. Payments are made when there are weeks with mean daily temperatures at freezing point or below.
Winter fuel payments are paid to persons over 60, regardless of income or benefits. The full entitlement is £200 a week, with up to £300 for those over 80.
Discretionary awards are issued under departmental directions and guidance. They are generally cash payments, and there are no appeal mechanisms.
Departmental officers have a budget for social fund payments and discretion as to their disbursement.
Three types of awards, namely crisis loan, budget loan, and community care grants, may be made. They are generally repaid via deductions from benefits. The payments are not to be granted above the level the claimant is able to repay.
The department has regard to the urgency of the case, the circumstances, and the budget level. Applicants for purchasing loans will be on income support, income-based jobseeker’s allowance, or pension credit for at least 26 weeks. Awards range between £100 and £1,500, less outstanding loans. Loans are limited to specific items such as shoes, clothing, and furniture.
There are weightings for different categories of persons, with persons with more children having greater weight than single persons. The district budget will also be a consideration. Loans are normally expected to be repaid within two years.
Crisis loans may be awarded in particular circumstances where they are the only means to prevent damage or risk to health or safety. They may cover situations until the first payments of benefits are received. Applicants must have insufficient means to meet the particular need.
Certain categories of people are excluded, such as prisoners, persons in hospital or residential care, and full-time students, except in extreme circumstances.
Lump sums of up to £1,500 or weekly amounts for living expenses may be advanced. Claimants are not limited to those on income support, jobseeker’s allowance, or pension credit. However, persons will be obliged to make use of other available credit and sources of funds. Consideration will be given to increment capital. Crisis loans are repayable.
Community care grants may be made to persons on income support, income-based jobseeker’s allowance, or pension credit in exceptional circumstances.
They are available in very limited circumstances, including movement from institutional or residential care to the community to enable persons to remain in the community, to support a prisoner or young offender on temporary release, and to ease exceptional pressure on families.
Departmental officers have a scheme of priorities, and there is no entitlement. In the case of a person’s resettling, grants may be made for items such as furniture moving, connection charges, and special medical needs.
Exceptional pressures on families would relate to ill health, domestic violence, and relationship breakdown.
Decisions may be reviewed on request within 28 days, and after review, applicants may apply to a social fund inspector within 28 days.