Social Fund Successor Arrangements: Crisis Loans for
Living Expenses Baseline Analysis
Equality and Tackling Poverty Analysis
April 2012
Communities ASD
The Social Fund is currently administered by DWP and is available to people on low incomes to help
them budget for emergency expenses, funeral costs, the costs of a new baby or one-off payments
for large items, such as furnishing a home. The Social Fund has regulated and discretionary
elements. The regulated elements include funeral payments, maternity grants, cold weather
payments and winter fuel payments, the regulated elements of the Social Fund are not being
devolved. The discretionary elements of the Social Fund are Crisis Loans, Community Care Grants
and Budgeting Loans. Crisis Loans consist of three separate parts; Crisis Loans for Living Expenses,
Crisis Loan Alignments and Crisis Loans for Items. As part of the UK government’s Welfare Reform
Bill two discretionary elements of the Social Fund are being devolved to the Scottish Government in
April 2013. The two elements of the Social Fund are Community Care Grants and Crisis Loans for
Living Expenses. This paper contains the baseline analysis for Crisis Loans for Living Expenses, a
similar paper has been produced with the baseline analysis for Community Care Grants.
Crisis Loans are interest-free loans available to anyone (whether on benefit or not) who cannot meet
their immediate short-term needs in an emergency or as a consequence of a disaster, where there is
an immediate risk to their health or safety. Crisis loans are currently repaid through the benefits
system, and suitable recovery arrangements are made for those not on benefit. As option of
repayment through the benefits system is not available to the Scottish Government, the loans will be
replaced by grants in Scotland.
There are three parts of the crisis loans; Crisis Loan Items, Crisis Loan Living Expenses and Crisis Loan
Alignments.
 Crisis Loan Living Expenses are the only part of the Crisis Loans which is being devolved.
Existing crisis loans for general living expenses are likely to become grants in Scotland.
 Crisis Loan Alignments are for claimants who are waiting either for the first benefit payment
or their first paycheque, these are not being devolved and will be incorporated into
Universal Credit.
 DWP withdrew the facility to apply for a crisis loans for items from April 2011; claims for
such items are now treated as applications for a Budgeting Loan.
The number of applications for Crisis Loans for Living Expenses, the number of awards and the level
of expenditure in Scotland increased dramatically between 2005/06 and 2009/10. Table 1 shows the
figures for Scotland. In Scotland in 2005/06 spending was £4.7m and in 2009/10 it was £10m.
Spending in Scotland fell slightly in 2010/11 to £8.6m. The number of applications received increased
from 2005/06 to 2009/10 from 132,170 to 235,900 but fell slightly in 2010/11 to 203,510.
Table 1: Applications, Awards and Expenditure in Scotland
Year
2010/11
2009/10
2005/06
A2810149
Number of
Applications
Received
203,510
235,900
132,170
Total
Expenditure
£8,600,500
£9,999,700
£4,653,800
Number of
Awards
155,770
178,440
89,680
%
Successful
76.5%
75.6%
67.9%
Average Value
Awarded
£
55
£
56
£
52
1
These statistics can also be broken down in to the two Job Centre Plus Districts in Scotland,
Inverness and Springburn1, see Table 2. The number of applications and level of expenditure is
significantly higher in Springburn than in Inverness.
Table 2: Applications, Awards and Expenditure by Job Centre Plus District
Job Centre
Plus
District
Inverness
Inverness
Inverness
Springburn
Springburn
Springburn
Year
2010/11
2009/10
2005/06
2010/11
2009/10
2005/06
Number of
Applications
Received
65,540
80,530
48,090
137,970
155,370
84,080
Total
Expenditure
£2,704,700
£3,172,100
£1,780,100
£5,895,800
£6,827,600
£2,873,700
Number
of
Awards
49,580
60,230
35,970
106,190
118,210
53,710
%
Successful
75.6%
74.8%
74.8%
77.0%
76.1%
63.9%
Average
Value
Awarded
£
55
£
53
£
49
£
56
£
58
£
54
Number of applications by local authority
Table 3 shows the number of applications received by local authority in the years 2005/06, 2009/10
and 2010/11.
 The number of applications increased in most local authorities between 2005/06 and
2009/10.
 Inverclyde was the only local authority where the number of applications received fell.
 The highest number of applications were received in Glasgow City, 39,420 in 2010/11,
followed by North Lanarkshire (16,370) and then the City of Edinburgh (16,120).
 The lowest number of applications were received in Eilean Siar (260) and Orkney Islands
(130).
 Between 2009/10 and 2010/11 the number of applications received by local authorities
were roughly constant with small reductions in some local authorities.
Table 3: Number of Applications by Local Authority
Local Authority
Aberdeen City
Aberdeenshire
Angus
Argyll & Bute
Clackmannanshire
Dumfries & Galloway
Dundee City
East Ayrshire
East Dunbartonshire
East Lothian
East Renfrewshire
Edinburgh, City of
Eilean Siar
Falkirk
Fife
Glasgow City
2005/06
5,370
1,380
1,330
1,890
1,180
640
3,600
1,500
820
1,790
1,160
11,450
150
2,500
3,020
28,640
2009/10
9,280
3,920
3,600
2,960
2,930
4,510
9,400
7,140
1,770
3,020
1,620
19,010
250
6,010
12,700
42,760
2010/11
9,080
3,540
2,880
2,200
2,850
3,790
7,080
5,080
1,820
2,240
1,380
16,120
260
5,860
12,090
39,420
1
Inverness covers Aberdeen City, Aberdeenshire, Argyll & Bute, Dumfries & Galloway, East Ayrshire, East
Renfrewshire, Eilean Siar, Highland, Inverclyde, Moray, North Ayrshire, Orkney Islands, Renfrewshire, Shetland
Islands, South Ayrshire and West Dunbartonshire.
Springburn covers Angus, Clackmannanshire, Dundee City, East Dunbartonshire, East Lothian, City of
Edinburgh, Falkirk, Fife, Glasgow City, Midlothian, North Lanarkshire, Perth & Kinross, Scottish Borders, South
Lanarkshire, Stirling and West Lothian.
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2
Highland
Inverclyde
Midlothian
Moray
North Ayrshire
North Lanarkshire
Orkney Islands
Perth & Kinross
Renfrewshire
Scottish Borders
Shetland Islands
South Ayrshire
South Lanarkshire
Stirling
West
Dunbartonshire
West Lothian
Scotland
3,740
11,740
1,800
1,430
2,150
11,690
130
1,370
11,220
1,330
260
650
5,890
1,150
6,640
7,210
3,120
2,480
9,680
19,080
160
3,790
12,810
2,540
490
4,170
12,780
2,850
5,920
4,950
2,670
2,240
7,210
16,370
130
3,740
10,110
2,560
410
3,360
11,280
2,600
4,680
6,520
132,170
7,210
10,010
235,900
5,880
8,390
203,510
There is a strong correlation between the number of applications and population size. In order to
show which local authorities have a level of demand greater than their population share would
suggest the number of applications per thousand population was calculated, see Table 4.




Glasgow City had the highest number of applications per thousand population in 2010/11
with 66 applications per thousand population.
Inverclyde saw a large drop in the number of applications per thousand population between
2005/06 and 2009/10.
After Glasgow City the five local authorities with the highest number of applications per
thousand population were West Dunbartonshire, Inverclyde, Renfrewshire,
Clackmannanshire and North Ayrshire.
The lowest number of applications per thousand population were in the Orkney Islands with
6 applications per thousand population, Eilean Siar with 10 applications, Aberdeenshire with
14 applications, East Renfrewshire with 15 applications and the Shetland Islands with 18
applications.
Table 4: Number of Applications per Thousand Population by Local Authority
Local Authority
Aberdeen City
Aberdeenshire
Angus
Argyll & Bute
Clackmannanshire
Dumfries & Galloway
Dundee City
East Ayrshire
East Dunbartonshire
East Lothian
East Renfrewshire
Edinburgh, City of
Eilean Siar
Falkirk
Fife
A2810149
2005/06
26
6
12
21
24
4
25
13
8
19
13
25
6
17
8
2009/10
43
16
33
33
58
30
66
59
17
31
18
40
10
39
35
2010/11
42
14
26
25
56
26
49
42
17
23
15
33
10
38
33
3
Glasgow City
Highland
Inverclyde
Midlothian
Moray
North Ayrshire
North Lanarkshire
Orkney Islands
Perth & Kinross
Renfrewshire
Scottish Borders
Shetland Islands
South Ayrshire
South Lanarkshire
Stirling
West
Dunbartonshire
West Lothian
Scotland
49
18
143
23
17
16
36
7
10
66
12
12
6
19
13
73
30
90
39
28
71
58
8
26
75
23
22
37
41
32
66
27
62
33
26
53
50
6
25
59
23
18
30
36
29
51
40
764
79
59
1,320
65
49
1,109
Expenditure
Expenditure also varied by local authority, Table 5 shows the level of expenditure for crisis loans for
living expenses in each local authority over the three periods for which data is available.
Table 5: Expenditure on Crisis Loans for Living Expenses by Local Authority
Local Authority
Aberdeen City
Aberdeenshire
Angus
Argyll & Bute
Clackmannanshire
Dumfries & Galloway
Dundee City
East Ayrshire
East Dunbartonshire
East Lothian
East Renfrewshire
Edinburgh, City of
Eilean Siar
Falkirk
Fife
Glasgow City
Highland
Inverclyde
Midlothian
Moray
North Ayrshire
North Lanarkshire
Orkney Islands
Perth & Kinross
Renfrewshire
Scottish Borders
Shetland Islands
South Ayrshire
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2005/06
£223,000
£55,800
£45,000
£67,200
£37,900
£24,000
£111,400
£49,900
£25,000
£91,500
£38,400
£416,900
£7,900
£93,700
£108,000
£716,300
£179,000
£461,200
£84,800
£61,600
£82,400
£464,600
£5,600
£41,200
£350,300
£61,200
£11,100
£18,800
2009/10
£369,500
£159,000
£153,800
£119,300
£133,300
£179,400
£387,500
£271,100
£79,600
£136,100
£71,300
£800,600
£10,100
£279,900
£542,400
£1,900,300
£275,700
£288,000
£136,900
£100,200
£368,100
£867,800
£5,800
£168,400
£484,800
£108,900
£18,200
£168,000
2010/11
£368,400
£154,000
£123,500
£92,600
£119,300
£156,600
£300,700
£204,700
£80,500
£97,400
£61,300
£657,400
£11,800
£259,900
£499,800
£1,707,000
£260,200
£205,700
£117,300
£96,400
£283,900
£704,300
£6,400
£156,000
£402,800
£110,700
£18,300
£146,600
4
South Lanarkshire
Stirling
West
Dunbartonshire
West Lothian
Scotland
£241,700
£39,400
£572,100
£126,500
£497,100
£108,500
£143,900
£295,100
£4,653,800
£283,600
£433,500
£9,999,700
£235,000
£356,400
£8,600,500
This can also be calculated as expenditure per thousand population, see Table 6.
There is a large degree of variation in the level of expenditure per thousand population with
Glasgow City spending £2,879 on Crisis Loans for Living Expenses per thousand population and the
Orkney Islands spending just £318 per thousand population.
Table 6: Expenditure per Thousand Population by Local Authority, sorted by 2010/11 figures
Local Authority
Glasgow City
West Dunbartonshire
Inverclyde
Renfrewshire
Clackmannanshire
North Lanarkshire
North Ayrshire
Dundee City
West Lothian
East Ayrshire
Aberdeen City
Falkirk
Scotland Average
South Lanarkshire
Midlothian
Fife
Edinburgh, City of
South Ayrshire
Stirling
Highland
Angus
Moray
Dumfries & Galloway
Perth & Kinross
Argyll & Bute
East Lothian
Scottish Borders
Shetland Islands
East Dunbartonshire
East Renfrewshire
Aberdeenshire
Eilean Siar
Orkney Islands
A2810149
2005/06
£ 1,238
£ 1,574
£ 5,615
£ 2,061
£
779
£ 1,437
£
607
£
783
£ 1,802
£
418
£ 1,083
£
628
£
913
£
789
£ 1,071
£
303
£
911
£
168
£
453
£
838
£
414
£
711
£
162
£
297
£
740
£
997
£
558
£
505
£
236
£
429
£
239
£
300
£
286
2009/10
£ 3,229
£ 3,119
£ 3,591
£ 2,853
£ 2,638
£ 2,659
£ 2,716
£ 2,702
£ 2,534
£ 2,255
£ 1,728
£ 1,836
£ 1,925
£ 1,840
£ 1,694
£ 1,492
£ 1,676
£ 1,508
£ 1,426
£ 1,250
£ 1,395
£ 1,143
£ 1,208
£ 1,154
£ 1,325
£ 1,406
£ 966
£ 819
£ 760
£ 799
£ 653
£ 386
£ 291
2010/11
£ 2,879
£ 2,595
£ 2,579
£ 2,366
£ 2,356
£ 2,158
£ 2,100
£ 2,084
£ 2,071
£ 1,702
£ 1,697
£ 1,696
£ 1,647
£ 1,594
£ 1,446
£ 1,369
£ 1,352
£ 1,316
£ 1,208
£ 1,174
£ 1,117
£ 1,099
£ 1,057
£ 1,056
£ 1,038
£ 999
£ 981
£ 817
£ 770
£ 685
£ 627
£ 451
£ 318
5
Table 7 shows the proportion of the total expenditure in Scotland which is accredited to each local
authority.
 There was some variation between 2005/06 and 2009/10, there is little variation between
2009/10 and 2010/11.
 There is a very large difference in the proportion of funding allocated to local authorities
with Glasgow City receiving almost 20% of all funding in Scotland.
 27 local authorities (out of 32) received less than 5% of Scottish funding, five2 of which each
receive less than 1% of Scottish funding.
Table 7: Proportion of Total Expenditure in Scotland in each Local Authority
Local Authority
Aberdeen City
Aberdeenshire
Angus
Argyll & Bute
Clackmannanshire
Dumfries & Galloway
Dundee City
East Ayrshire
East Dunbartonshire
East Lothian
East Renfrewshire
Edinburgh, City of
Eilean Siar
Falkirk
Fife
Glasgow City
Highland
Inverclyde
Midlothian
Moray
North Ayrshire
North Lanarkshire
Orkney Islands
Perth & Kinross
Renfrewshire
Scottish Borders
Shetland Islands
South Ayrshire
South Lanarkshire
Stirling
West
Dunbartonshire
West Lothian
2005/06
4.8%
1.2%
1.0%
1.4%
0.8%
0.5%
2.4%
1.1%
0.5%
2.0%
0.8%
9.0%
0.2%
2.0%
2.3%
15.4%
3.8%
9.9%
1.8%
1.3%
1.8%
10.0%
0.1%
0.9%
7.5%
1.3%
0.2%
0.4%
5.2%
0.8%
2009/10
3.7%
1.6%
1.5%
1.2%
1.3%
1.8%
3.9%
2.7%
0.8%
1.4%
0.7%
8.0%
0.1%
2.8%
5.4%
19.0%
2.8%
2.9%
1.4%
1.0%
3.7%
8.7%
0.1%
1.7%
4.8%
1.1%
0.2%
1.7%
5.7%
1.3%
2010/11
4.3%
1.8%
1.4%
1.1%
1.4%
1.8%
3.5%
2.4%
0.9%
1.1%
0.7%
7.6%
0.1%
3.0%
5.8%
19.8%
3.0%
2.4%
1.4%
1.1%
3.3%
8.2%
0.1%
1.8%
4.7%
1.3%
0.2%
1.7%
5.8%
1.3%
3.1%
6.3%
2.8%
4.3%
2.7%
4.1%
2
In 2009/10 and 2010/11 the local authorities were East Dunbartonshire, East Renfrewshire, Eilean Siar,
Orkney Islands and Shetland Islands.
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6
Average Value Awarded
 Average value awarded varies by local authority, although since 2005/06 the values awarded
have converged to around £55.
 In 2010/11 average value awarded was highest in the Orkney Islands at £58 and lowest in
Aberdeen City, Renfrewshire and West Dunbartonshire at £53.
Average Value Awarded for Crisis Loan Living Expenses by Local Authority
£65
£60
£55
£50
£45
£40
2005/06
A2810149
2009/10
2010/11
Aberdeen City
Aberdeenshire
Angus
Argyll & Bute
Clackmannanshire
Dumfries & Galloway
Dundee City
East Ayrshire
East Dunbartonshire
East Lothian
East Renfrewshire
Edinburgh, City of
Eilean Siar
Falkirk
Fife
Glasgow City
Highland
Inverclyde
Midlothian
Moray
North Ayrshire
North Lanarkshire
Orkney Islands
Perth & Kinross
Renfrewshire
Scottish Borders
Shetland Islands
South Ayrshire
South Lanarkshire
Stirling
West Dunbartonshire
7