Social Fund Reform and the Introduction of Local Welfare Assistance

Social Fund Reform and the Introduction of Local Welfare Assistance

Social Fund reform and the introduction of Local Welfare Assistance

The Welfare Reform Act 2012 abolished the discretionary elements of the DWP Social Fund.Crisis Loans for Items and Living Expenses, and Community Care Grants will be replaced by localised welfare assistance schemes established by unitary and county councils.

From April 2013, a local welfare assistance scheme designed by Cumbria County Council will therefore commence in Cumbria.

There is no requirement for local authorities to set up the scheme in a particular way, and local authorities are encouraged to:

  • Work in partnership with the local Third Sector to develop schemes
  • Explore a range of in-kind support, and to link to advice, information and advocacy
  • Explore a full range of models for delivery

Further data relating to all the current elements of the Discretionary Social Fund is available on the Department of Work and Pensions website at

Current data and evidence for Cumbria

Based on the most recent (half year April-September 2011) data, the following trends can be identified in Cumbria:

Recipients of Community Care Grants in Cumbria:

  • Mostly single person households (85%)
  • Just over 1 in 4 recipients are lone parents, the majority of whom have children below 5 years old
  • More noticeable number of middle-aged and pensioners as recipients than for Crisis Loans. 48% = adults between 18 and 34, 37% = adults 35-54, 15% adults aged 54 and above

Recipients of Crisis Loans (Items and Living Expenses):

  • Majority of recipients are young adults between 18-34 (62% of Crisis Loan Items, and 66% Crisis Loan Living Expenses)
  • Overwhelmingly for single individuals with no children under the age of 16
  • A significant minority of recipients are lone parents with children below 5 years of age

A breakdown of awards made to recipients in Cumbria by theme for the period April – September 2011 is below

Community Care Grants April – September 2011

Awarded for: / Number / Spend
Moving out of residential/institutional accommodation / 110 / £20,640
Helping people to stay in the community / 360 / £160,220
Families under exceptional pressure / 400 / £210,850
Prisoners/offenders on temporary release / Below 10 / £1,840
Planned resettlement / 50 / £27,760
Travel expenses / 30 / £7,290
Approximate Total / 960 / £428,600

Figures from DWP – rounded to nearest 10; therefore may not sum due to rounding.

Crisis Loans April – September 2011

Crisis Loans awarded for: / Number / Spend
Leaving care and not entitled to benefit / 20 / £1,300
Leaving care - rent in advance / Below 10 / £100
Disaster e.g. fire, flood, explosion, chemical leaks etc / 20 / £700
Emergency travelling expenses / Below 10 / £200
Lost or stolen money/giro / 740 / £43,600
Capital not realisable / 470 / £24,400
Reconnection of fuel supply / 10 / £300
Homelessness – securing accommodation / 10 / £2,900
Benefit spent - living expenses required / 2,070 / £98,200
JSA disallowance imposed on customer / 130 / £21,300
JSA sanction imposed on customer / Below 10 / £200
Item needs replacement / 40 / £6,100
Approximate Total / 3510 / £199,300

Figures from DWP – rounded to nearest 10; therefore may not sum due to rounding.

Contact Details:

John Marsh, Policy Officer, Cumbria County Council

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