Part 1
ITEM NO.
___________________________________________________________________
REPORT OF
Assistant Mayor for Adult Services and Services for Older People
___________________________________________________________________
TO
The City Mayor
ON
15 April 2013 (For Briefing)
And
22 April 2013 (For Decision)
___________________________________________________________________
TITLE: Development of the Salford Discretionary Support Scheme - A Local
Welfare Provision Scheme to Replace the Social Fund
___________________________________________________________________
RECOMMENDATION:
For the City Mayor:

To approve the proposal to develop the Salford Discretionary Support
Scheme (SDSS), a local scheme to replace the Social Fund currently
administered by Department for Work & Pensions
 To approve the proposed local scheme for Salford – the Salford Discretionary
Support Scheme
 To approve the discretionary nature of the scheme with no formal right of
appeal for applicants
 To note the proposed scheme design of the Support Fund for those negatively
affected by recent Council Tax benefit changes and other current changes
through welfare reform
 To approve further work to take place on engagement with voluntary sector
partners in the management and delivery of the scheme
 To approve the scheme design for 2013/14 only, and the explicit commitment
to identify commissioning options for scheme for approval by September 2013
 To approve the development of a commissioning framework to identify
alternative delivery models and partners
 To approve the commissioning of an ICT support module from Northgate to
support delivery and administration of the scheme
___________________________________________________________________
EXECUTIVE SUMMARY:
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The Welfare Reform Act 2011 proposes to transfer responsibility for delivery of the
Social Fund from Department for Work & Pensions to local authorities. The Social
Fund consists of a number of elements which support vulnerable people to meet
their urgent and immediate needs and to enable them to be resettled in the
community. In 2011/12, 13, 390 separate applications for the fund were made by
Salford residents, with £1, 351, 300 being awarded to ease the hardship of poor and
vulnerable households. In 2010/11, £2, 150, 000 was awarded to Salford households
through 18, 670 applications to the fund.
The government has chosen to cap the amount awarded to each local authority at
2005/06 levels of expenditure, when access to the DWP scheme was extended to
telephone applicants. The award for Salford will be £1, 185, 232, a reduction of 13%
on the current level of expenditure, and only 55% of the expenditure in 2010/11.
Administration of the scheme would be funded through an administrative funding
grant provided to the City Council by central government. In 2013/14, this would be a
fund of £250, 448, reducing to £229, 563 in 2014/15. All funding awards have been
confirmed for 2 years only, with future funding allocations dependent on central
government future decisions.
It is proposed to develop a replacement scheme to continue to assist vulnerable
households from April 2013. In 2013/14, this would follow the general outlines of the
existing scheme. However, the scheme would be as cashless as possible to protect
the diminished funding stream and ensure that the fund was spent on necessary
items, given increases in demand and need in the city.
The scheme would complement but not replace existing support schemes for
vulnerable households such as Discretionary Housing Payments, Children’s
Services s.17 payments and Homelessness Prevention funding, to ensure that
responses to reduce duplication and maximise the benefit of every pound spent on
relieving hardship in the city.
In 2013/14, the Scheme would be administered by a co-located single Assessment
Team, based in the Community Health & Social Care Directorate to deliver a coordinated and systematic response to the needs of vulnerable people and to take
advantage of existing facilities to make awards and supply goods and support
services.
The proposed scheme is intended to operate for 1 year only. A review of the existing
scheme will take place by September 2013 and will identify alternative options for the
delivery of a revised scheme from 2014/15 and beyond. This will include options for
delivery by partners and 3rd sector agencies.
___________________________________________________________________
BACKGROUND DOCUMENTS:
(Available for public inspection)
None
___________________________________________________________________
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KEY DECISION:
Yes.
___________________________________________________________________
DETAILS:
1.0
Background and Context
1.1
In March 2012, the Welfare Reform Act received Royal assent. The Act
confirmed the government’s intentions to substantially reform the welfare
benefits system, including the introduction of a single Universal Credit to
replace a range of existing benefits. Included within the proposals was reform
of the Discretionary Social Fund which is currently administered by the
Department for Work and Pensions (DWP). This is to be replaced with a
scheme of discretionary local provision, with some elements of the existing
Social Fund administered by local authorities from April 2013.
1.2
The elements of the scheme which will be administered by local authorities
will be:


Crisis Loan payments
Community Care Grants
1.3
Under the current DWP scheme, Crisis Loans are to meet immediate needs
such as general living expenses or items needed following a disaster and
entitlement is not dependent upon receipt of a benefit. Community Care
Grants (CCG’s) are non-repayable grants to enable vulnerable customers to
live in the community and are conditional upon receipt of an income related
benefit.
1.4
The Government has stated that it believes the service is better delivered
locally and this will empower local communities to better identify and meet the
needs of the most vulnerable. However, there is no requirement to replicate
the design of the existing scheme.
1.5
The government has fixed the funding settlement for local authorities at
2005/06 expenditure levels. With the economic downturn and continuing
increases in poverty and hardship, applications to the Social Fund have
increased significantly since 2005/06, as indicated in the table below:
2005/06
2010/11
2011/12
Change
05/06-11/12
1. All Crisis Loans
Applications
Expenditure (£)
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2, 930
14, 620
9, 690
+230%
380, 000
1, 198, 200
444, 400
+17%
Number of Awards
Success Rate
2, 550
11, 210
7, 490
+193%
87%
77%
77%
-10%
3, 520
4, 050
3, 700
+5%
919, 000
951, 800
906, 300
-1%
2, 040
1, 990
1, 840
-10%
58%
44%
50%
-8%
6, 980
18, 670
13, 390
+92%
1, 299, 000
2, 150, 000
1, 351, 300
+4%
4, 590
13, 200
9, 330
+104%
2. Community Care Grants
Applications
Expenditure (£)
Number of Awards
Success Rate
3. Overall Totals
Applications
Expenditure (£)
Number of Awards
1.6
There has been a significant increase in applications and expenditure within
the Social Fund during this period. The reduction of applications in 2011/12 is
a national trend which is linked to changes in the administration of the fund by
DWP, and is not expected to be a recurrent phenomenon. This overall upward
trend is likely to continue given the pressure on household budgets. The
significant reduction in the funding being transferred to the City Council makes
the design of a local response even more difficult, with a requirement for
greater targeting and the capacity for there to be greater levels of unmet
need.
1.7
The scheme primarily supports single, younger people. Approximately 80% of
awards are made to single people, including single parents. 65% of awards
are made to households without children. 58% of awards are made to people
aged under-35, who may also be likely to be affected by recent changes to
Local Housing Allowance.
1.8
Funding levels have been confirmed for the next two years. There is no uplift
for inflation in 2014/15, and no indication has been made of likely future
allocations. Central government is proposing to allocate the following to
Salford City Council:
2013/14
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Programme Funding
(£)
Administrative Funding
(£)
1, 185, 232
250, 448
2014/15
1, 185, 232
229, 563
2.0
The Current Position
2.1
The current Social Fund scheme has been in place since 1988. It delivers a
response to financial hardship in terms of providing a safety net for
households who require emergency support.
2.2
The existing scheme is also cash-limited, and the financial position of the fund
can be an element in the decision-making process. This can lead to a
perceived lack of consistency in decision-making, with seemingly similar
claims receiving different awards depending on the remaining funding
available.
2.3
At present, DWP administers all elements of Social Fund provision. In addition
to the elements transferring to local authorities, the following elements will
continue to be delivered by DWP:


Alignment payments (made when benefit processing delays claims being
paid)
Budgeting Loans (made for non-immediately-essential items which it is hard
to budget for from low incomes)
2.4
The retention by DWP of some elements of the current provision creates the
potential for fragmentation of the safety net for vulnerable households and
households experiencing poverty and hardship. It also raises the prospect of
support for households not being aligned most efficiently. There is little scope
for data sharing between DWP and the council due to data protection issues.
2.5
The tables in 1.5, above, outline the levels of demand for each of the
elements which will transfer to SCC in April. The greatest demand within the
13, 390 applications for assistance in 2011/12 are for short-term, crisis
interventions. Allowing for speculative applications where no needs are
identified, this highlights the level of day-to-day financial hardship within the
city and the critical role that the existing Social Fund safety net plays in
supporting household finances in Salford.
2.6
It should be noted that under the current scheme, claimants can make 3
applications in a 12-month period of Crisis Loan elements. Therefore, the
number of applications is not the same as the number of applicants.
2.7
DWP will continue to take responsibility for its existing commitments in terms
of loans, and will continue to collect payments on these from claimants. This
will sit alongside the local response from local authorities.
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3.0
Salford’s Proposed Response
3.1
To ensure the continuing delivery of financial support to vulnerable
households, it is proposed to replace the existing elements of the Social Fund
with a revised scheme, called the Salford Discretionary Support Scheme
(SDSS). The Scheme will form part of the Council’s response to supporting
people through the welfare reform changes to mitigate the effects on
vulnerable people and to support those in greatest need.
3.2
The proposed scheme design is detailed in Annex 1. However, the principles
of the scheme and its key features are detailed below:
3.3
Key delivery principles are set out below for the 2013/14 scheme. These will
be revised during the scheme review:
-
-
3.4
SDSS to be a last resort safety net in cases of extreme hardship, and may
complement, but not replace existing sources of support
Limited funding means that tighter eligibility criteria are required
The scheme will seek to deliver both an immediate response to extreme
hardship and managed support for vulnerable households to enable them
to establish themselves in the community independently
Support should be targeted and prioritised on the basis of need
Cash payments will be limited, and awards be delivered in goods wherever
possible
The scheme should support the work of voluntary sector agencies in
combatting local hardship
Access routes into the scheme should be as wide as possible, balancing
the need to manage supply and demand
The scheme should be open to low-income households and not simply
those on benefits
The initial scheme will be an award-based scheme, but is expected to
move to a loans-based scheme within the first 12 months
The Salford Discretionary Support Scheme is proposed to consist of two
separate Programmes, which reflect but do not replicate the current make-up
of the Social Fund scheme. These are:
-
Immediate Emergency Assistance Programme (IEA)
Resettlement Grants Programme (RG)
3.5
The Immediate Emergency Assistance Programme is intended to meet
immediate emergency needs based around ‘safe, warm and well’ criteria
such as lack of essential food, lack of heating or households who have
experienced a recent emergency or disaster.
3.6
The Resettlement Grant Programme is intended to support the longer-term
resettlement of vulnerable people and enable them to establish themselves
successfully in the community, promoting their independence. This
Programme is likely to focus on the supply of white goods and essential
items of furniture.
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3.7
The types of practical assistance which will be offered under each Programme
are outlined in paragraph 9.5 of the Scheme Design document contained in
Annex 1.
3.8
Given the funding constraints within the scheme, it is highly likely that awards
for assistance under either Programme will be targeted at households
containing vulnerable people, including younger children, older people and
people with health needs, and these households will be prioritised within the
assessment process.
3.9
To further ensure efficient management of the fund, and to reinforce the need
for households to effective management of their finances, it will be necessary
to limit the number of applications which each household can make. It is
proposed that each household can make two applications for assistance from
the Immediate Emergency Assistance Programme in any 12-month period.
Consideration may be given to a third application, but any award would
require authorisation from the scheme manager and would be subject to
additional conditions, such as engagement with advice agencies. Households
would be limited to a single application from the Resettlement Grant
Programme in any 24-month period.
3.10
All Greater Manchester authorities are adopting a scheme and Salford’s
scheme is broadly in line with other proposed schemes across AGMA. All
local authorities face the same proportionate reduction in resources, and all
have adopted stricter eligibility and access criteria, for instance.
4.0
Scheme Review
4.1
The proposed scheme is intended to operate for up to 1 year, to 31 March
2014 at the latest. As the scheme is wholly new, it is accepted that changes
will be required to the operation and management of the scheme. Therefore, it
is proposed to explicitly commit to a scheme review by the end of September
2013.
4.2
The scheme review will include explicit consideration of alternative delivery
models. It is the Council’s intention to seek partners to deliver this scheme in
future years, and explicit support from the voluntary sector will be sought in
both designing the future scheme and in administering future delivery models.
4.3
The review will be considered by Members and will include the following
elements:





Operational assessment of the existing scheme
Options for future commissioning models, including outsourcing of the whole
scheme or elements of it
Sub-regional and cross-boundary delivery options, including AGMA-wide
potential
Recommendations as to the future delivery model
Consideration of how the scheme can support voluntary sector partners
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4.4
During 2013/14, the operational elements of the scheme will be subject to
regular review by a corporate officer group to ensure that it continues to
meet the most pressing needs in the city for the most vulnerable people.
5.0
Scheme Design
5.1
The proposed scheme design is recommended for 2013/14. The detailed
scheme design is contained in Annex 1. The key delivery principle of the
scheme is that it supports the direction of travel of the proposed changes to
the Welfare Rights and Debt Advice delivery model, as part of a whole-system
approach to addressing the needs of vulnerable people and those in poverty.
However, the key features of, and rationale behind, the proposed Salford
Discretionary Support Scheme are outlined below.
5.1.1 In recommending the scheme design, an officer group has investigated a
number of delivery options, including outsourcing and has benchmarked with
AGMA colleagues. At present, it is recommended that the risk to the Council
of immediately outsourcing this scheme would be too great given that the
scheme is wholly new, and could potentially lead to missing out on future
options such as a wider AGMA solution or delivery model, which can be
investigated further during 2013/14. However, the option remains to identify
re-commissioning options through the scheme review process.
5.2
Accessibility
5.2.1 In managing increasing demand with a reduced budget, access routes into
the scheme are critical. It is recognised that for the client group who would
expect to access the Social Fund, access to the internet may be limited and
that customer expectations tend away from web-based transactions.
Therefore, from April it is proposed to maintain wide access points for the
scheme in order not to further disadvantage this client group.
5.2.2 Access will be enabled through telephony, web and in-person through the
Salford Housing Options Point at the Opportunities Centre. However, it is
proposed to review these arrangements given concerns over the potential for
demand to outstrip the available budget.
5.2.3 Many existing service users of the Social Fund are supported in this process
by services for vulnerable people provided by the City Council. The proposed
delivery framework and access routes into the scheme complement the model
developed through the review of Welfare Rights & Debt Advice services, and
the further integration with Housing Options services, creating a single offer
for vulnerable people in need.
5.2.4 A number of delivery elements for this scheme already exist within the
services based at the Opportunities Centre, including Support Workers,
Furnished Homes, Finance Officers and existing facilities to store and
distribute goods, vouchers and cash. The ‘no wrong front door approach’ will
be supported by co-location with these services of the SDSS Assessment
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Team to facilitate a whole-system approach to dealing with vulnerable people
and a clearer and more integrated customer journey.
5.3
Eligibility
5.3.1 In common with all local authorities, it is intended to adopt eligibility criteria for
access to the scheme in Salford. To be eligible, households must have a clear
and verifiable local connection to Salford, assessed using the homelessness
legislation criteria, be in need and be a low income household in crisis. The
current scheme is only open to households who are in receipt of qualifying
benefits, whereas the proposed scheme in Salford extends eligibility to low
income working households, enabling support to be provided on the basis of
need and not on benefit entitlement. Low income is defined as 60% of median
earnings, which is the commonly used definition of family poverty.
5.3.2 A condition of eligibility for the fund will be that applicants must not have
access to savings adequate to cover their immediate need or any other
sources of funding.
5.4
Resources, Assessment and Decision-making
5.4.1 It is essential that the Scheme is managed transparently, with consistent
decision-making and prioritisation of cases of the most extreme hardship. In
common with most local authorities, it is proposed to create a co-located
SDSS Assessment Team to manage all applications to the scheme. This
would ensure consistency in application of the scheme.
5.4.2 Critical to the success and effectiveness of the scheme is the ability to
manage complex assessments of the needs of vulnerable people, including
issues of safeguarding. It is proposed that the Assessment Team be based
within the Community, Health & Social Care Directorate. This will maintain the
link with vulnerable households and also enable co-ordinated approaches to
the Resettlement Grants Programme, where debt advice, rehousing and
support are facilitated by services within this Directorate.
5.4.3 Gauging demand for the new scheme will be difficult at this stage. Given
continuing pressure on household finances, it would be sensible to assume an
increased number of applications from the 13, 390 in 2011/12. However, the
existing scheme allows 3 applications for assistance, whereas SDSS
proposes 2, which will reduce the number of applications. The more restricted
eligibility and award criteria will also potentially reduce applications, as will the
fact that we will not provide cash except in exceptional circumstances. The
Communications Plan for customers outlining the changes to the scheme will
focus on these differences, and this may deter a number of potential
applicants. Therefore, a number of existing applicants may not apply to the
new scheme. As DWP will retain responsibility for budgeting loans, a number
of applicants may also be re-directed back to DWP as the appropriate
authority to deal with an application. It is assumed that there will be greater
pressure on demand at the start of the scheme where customers may not
have understood the changes, but that this will settle as the scheme
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beds-in and information becomes more widely and deeply known and
understood. Demand profiling information will be built-up throughout
2013/14 to inform future resource deployment and budget management.
5.4.4 We have anticipated a similar pattern and spread of applications as that which
exists in the current scheme. For the first 3 months of 2013/14, we have
assumed an uplift each month as the new scheme is ‘tested’ by potential
applicants. Similarly, we have maintained an assumed increase in
applications in Quarter 1, when the financial year begins and also in Quarter
4, as Christmas impacts on household finances. However, we will monitor
demand as we would expect applications to reduce as the scheme becomes
known. The existing and assumed demand profile is as follows:
Existing
Scheme
2011/12
April
May
June
July
August
September
October
November
December
January
February
March
Total Demand Proposed
Profile*
Scheme
2013/14
1300
April
1250
May
1320
June
1120
July
1160
August
1110
September
1020
October
1040
November
860
December
1130
January
1150
February
1160
March
Assumed
Demand
Profile
1400
1300
1300
1050
1000
1000
950
950
900
1200
1100
1100
*figures not exact as DWP round figures to nearest 10
5.4.5 Based on the number of existing applications and the balance of likely
increases in demand offset against potential reductions through the scheme
design, it is proposed that the core team is initially made up as follows, with
the option for an additional assessment officer and administrative support for
the scheme at day one:



1 x Team Manager
2 x Assessment Officers
2 x Assessment Advisers
5.4.6 Assessment Officers will be expected to carry a mixed caseload between the
Immediate Emergency Assistance and Resettlement Grant Programmes.
Assessment Advisers will be expected to carry out less complex assessments
with a quicker throughput. The Team Manager will be responsible for reviews,
appeals, office management, partnership liaison and performance reporting.
Appeals against decisions made in respect of the Council Tax Support
Scheme will need to be dealt with more formally and through an alternative
route.
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5.4.7 The success of the scheme will critically rely on the effectiveness of the
Assessment Officers. It is intended to recruit a team from a wide range of
other disciplines to ensure a mixed and complementary skill-set. Recruitment
to the team will be through the Council’s existing staff resources, utilising
Creating Capacity resources and the opportunity for secondments. It is not
anticipated that external recruitment will be required. This mirrors the
approach taken in other authorities.
5.4.8 It is anticipated that co-location of the team with existing services and a
shared reception will enable administrative and customer-facing resources to
be shared, reducing pressure on the budget and creating a greater
contingency fund which could be used to supplement the Programme funding.
This arrangement will be subject to monitoring and review.
5.4.9 The proposed team composition is very similar to that proposed by other GM
authorities in terms of the ratio of officers against spend and current
demand. However, there is contingency in the budget to manage temporary
changes in demand patterns of excessive pressure on the service.
5.4.10 The Assessment Team will be based at the Opportunities Centre on Churchill
Way in Pendleton. This is a well-used and accessible location for customers
who are likely to access the scheme. The building is also currently used for
assessments of a number of vulnerable groups and the facility already exists
there for payments of money and goods for customers. Shared reception
facilities, screened private interview rooms and administrative resources also
enable costs to be kept as low as possible.
5.4.11 The decision-making process will be flexible enough to respond to exceptional
cases outside of the specified scheme arrangements, for instance to assist
with the resettlement of a household to assist with criminal justice
proceedings or a family being assisted under the Helping Families
Programme. The process may also include elements of conditionality as
part of any award. This could mean customers being required to engage
with support services such as Welfare Rights & Debt Advice, floating
support, money management, or other support and advice agencies.
5.4.12 To support the management of the scheme, a bespoke ICT system has been
identified. This can be supplied as part of the existing Northgate package
which complements the Council’s existing systems and can be easily hosted.
The system has been tested by officers and compared with other products
which have been developed. The annual cost of this module will be
approximately £12,000. There is no long-term requirement to keep this
system, or long-term contract.
5.4.13 The budget for administration of the scheme has been designed to be flexible
and to enable a contingency to exist in the case of excessive demand. It has
also been designed to be as lean as practical, balanced against the need for
the scheme to be as smooth and successful as possible.
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The outline budget for the administration of the scheme in 2013/14 is as
follows:
Budget 2013/14
Staffing
ICT (including system rental)
Communications
Office Costs
Contingency Fund
5.5
Proposed Expenditure
177, 000
18, 000
10, 000
20, 000
25, 000
250, 000
The Awards Process
5.5.1 Once a decision has been made to grant an award under the Immediate
Emergency Assistance Programme, applicants will be notified by telephone or
in person if the application has been made face-to-face. All applicants will
receive written confirmation of any award, and this will also detail any
conditions attached to the award.
5.5.2 Applicants will sign for any award in all cases, and no award will be given
without valid identification being presented.
5.5.3 The scheme will have the facility to make awards on an applicant’s behalf to a
3rd party. This will generally be a nominated support agency, and it may be a
condition of an award that this be the case, or that the award is supervised or
overseen by a nominated agency or support worker.
5.6
Method of Awards
5.6.1 Once a decision has been made to grant an award, payment may be made in
a number of ways:
-
Direct provision of goods
Vouchers
Cash payments
5.6.2 Awards under the Immediate Emergency Assistance Programme are likely to
be below a value of £50. Where cash payments are made under the
Immediate Emergency Assistance Programme, a maximum cash limit of £50
will be imposed for any award. As this programme is for immediate
emergency needs, it is anticipated that most awards will fall far short of this
figure. In exceptional circumstances, such as in regard to very large
families is very extreme immediate hardship, consideration may be given for a
larger award. This will require authorisation from the Principal Officer.
5.6.3 From April 2013, it is proposed that the scheme will be administered in the
form of grants or direct awards. At present, the facility does not exist to
practically manage a loan portfolio. This is particularly the case given the
make up of this portfolio which would be one of large numbers of small loans
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taken by households in financial hardship. However, discussions are ongoing
with the Credit Union and these will continue during 2013-14 to identify a way
in which there can be a shift from grants to loans to ensure maximum
stretch for the scheme. It is hoped to be able to deliver a loans-based model
within 6 months.
5.6.4 In the case of the direct provision of goods, it is proposed to use the existing
Furnished Homes service which has existing systems set up to distribute
goods to customers, utilising the Council’s current contract. This reinforces
the systematic, ‘whole-scheme’ approach of locating the scheme with services
for vulnerable people.
5.7
Appeals and the Review Process
5.7.1 There is no formal requirement for any appeals or review process. However,
best administrative practice would be to have these processes in place, to
ensure that decision-making is consistent, that officers are accountable, as a
quality assurance check and to promote expertise and learning within the
team and beyond.
5.8
Council Tax Support Scheme
5.8.1 The Salford Discretionary Support Scheme will incorporate facilities to ease
extreme hardship faced by residents who are negatively affected by
government changes to Council Tax arrangements.
5.8.2 In the event of customers facing extreme hardship through Council Tax
changes, direct referrals will be made into the Assessment Team for
consideration for assistance.
5.8.3 Assessments will be based on needs and levels of hardship and against the
needs criteria and eligibility criteria set out in paragraphs 3.2.2 and 5.1 of the
Scheme Design document in Annex 1, below.
5.8.4 In the event of an award being made to ease extreme hardship, of which
Council Tax changes have been a factor, a direct resource transfer will be
made between the SDSS and Council Tax services, for allocation against
Council Tax records. No payment will be made to the applicant, who will be
notified of any award in writing.
5.8.5 Payments made in respect of Council Tax support will be reported as part of
the systems of monitoring and governance set out in section 13 of the
Scheme Design document in Annex 1, below.
5.8.6 There is a separate appeals and review process for claims for assistance with
Council Tax, which will be separate to the review process within the
Scheme.
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5.9
Safeguarding
5.9.1 Given the vulnerable nature of the client group who will access the scheme
and be made awards from it, it will be critical for the Assessment Team to
have a clear and active awareness of safeguarding issues and the Council’s
safeguarding responsibilities.
6.0
Partnerships and Other Funding Sources
6.1
The successful and efficient delivery of the scheme will rely on key partners in
the 3rd sector. It is intended to create a ‘virtuous circle’ through management
of the scheme to support community-based agencies that provide local
assistance to vulnerable people.
6.2
In particular, the role of foodbanks and agencies providing furniture, white
goods and household goods will be critical to the relief of extreme
immediate hardship for many applicants. Discussions are currently ongoing
with Salford CAB regarding how the scheme can be made to work for the
benefit of local foodbanks.
6.3
Many applicants to the scheme will have no other recourse to alternative
funds. There is clearly a concern that failure for the scheme to support
applicants in genuine hardship will increase the risk that they will source
funding from doorstep lenders, payday loan companies, loan sharks and other
high interest sources of goods and finance.
6.4
Potential delivery partners for the 3rd sector will continue to be identified, with
the aim of both using the fund to support the voluntary sector but also to
maximise city-wide capacity to deliver a response to extreme hardship.
6.5
However, in order to ensure that the limited funding in the scheme is
maximised to its full potential, the assessment process will identify whether
alternative sources of funding are available. These will include options for
applicants to apply to charitable foundations, particularly where applications
for Resettlement Grants are being made, and whether applicants are eligible
for other provision such as Leaving Care Grants.
6.6
It is accepted that there is a link between the scheme and existing forms of
support provided for different needs, including Discretionary Housing
Payments, Homelessness Prevention funding, Children’s Services’ s.17
payments, Free School Meals, Sure Start Grants and Secondary School
Clothing Grants. Every effort will be made to make sure that interventions are
mutually supportive and that the most appropriate funds are used based on
the needs of each household.
7.0
Monitoring and Governance
7.1
As the scheme is cash-limited, its administration is of critical importance. The
risk remains of potential inconsistencies in the decision-making process.
Document1
There will be a robust and regular monitoring framework, including regular
reporting of:




Application types and numbers
Spend against each Programme
Decision-making times
Customer satisfaction
7.2
As part of the scheme design, investigation and testing of ICT systems has
taken place. At present, officers are minded to propose the purchase of the
Northgate module which has been specifically developed with this scheme in
mind. This could be commiussioned on an annual basis, with no long-term
commitment or cost to the Council attached. The priority would be to
commission a system which complemented the existing ICT platform and
enable a corporate solution linked to the Single Customer Account and Citizen
systems.
7.3
Reporting will be through Senior Management and Assistant Mayoral
channels. It is anticipated that the data collated in 2013-14 will assist in
profiling trends to inform the future development of the scheme.
7.4
The Scheme must support the wider objectives of the City Council. In order to
fully identify the value of the scheme, we will also measure the scheme
impacts in terms of:





Homelessness prevention
Tenancy sustainment
Resource transfer into 3rd sector
Social Value added
Cost avoidance
7.5
Financial monitoring will also include budgetary management of the
Administration Fund.
7.6
All processes in the management of the scheme will be subject to review and
investigation by the Internal Audit service.
8.0
Communications
8.1
An initial communications Plan has been developed. Communication will be
undertaken by all partners to ensure that key messages are relayed to
customers consistently.
8.2
Critical to communications is consistency with the DWP regarding the
operation of the scheme in Salford, and clear communications on the
elements of the scheme which will be retained by DWP. This should avoid the
need for customers to be passed between organisations and for conflict
between them.
Document1
8.3
An article has been commissioned for Life in Salford magazine and the
changes to the Social Fund will be incorporated into the overall messages
which will be given around the Welfare Reform agenda.
8.4
Partner organisations such as CAB have already begun to disseminate
messages regarding these changes to their customers via their websites.
8.5
Funding has been identified in the 2013/14 administration budget to conduct
communisations campaigns as reinforcement of messages will be important
to the management of demand for the scheme.
9.0
AGMA
9.1
Local authorities have all been required to design replacement schemes
which suit the needs of their own area. The SDSS scheme in Salford is
broadly in line with the approach taken by other AGMA authorities. Many of
the schemes proposed exhibit a number of common features. These include:




Common eligibility criteria
Common definition of residential connection (using homelessness legislation)
Delivery of 2-tier scheme between emergency assistance and longer-term
resettlement
Longer-term view to increase conditionality
9.2
Officers are in regular contact with colleagues in other AGMA authorities and
this will continue through 2013/14.
9.3
The commonality between schemes and the ability for delivery models to be
developed which can utilise common infrastructure such as web-based
applications mean that there is potential to develop partnership models across
the sub-region. For example, it would be possible for an authority or group of
authorities to manage delivery across multiple local authority areas,
dependent on adoption of a common scheme design and a pooling of
administration grants
.
9.4
There is therefore potential to further investigate driving efficiencies through
economies of scale across local authority boundaries.
10.0
Next Steps
10.1
The key next steps for the development of the scheme are as follows:




Promote discussion on the design of the proposed scheme to finalise
Salford’s response
Communicate forthcoming changes to stakeholders
Commence provisional recruitment into team posts
Continue discussions with 3rd sector agencies on embedding involvement in
the scheme design and delivery model
Document1
10.2
The existing officer design group will be reviewed and enhanced to maintain
an effective corporate steer and direction to this project. This group
___________________________________________________________________
KEY COUNCIL POLICIES:
Family Poverty Strategy
Homelessness Strategy
___________________________________________________________________
EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS:This proposal will ensure that a form of support scheme will continue to be provided
to vulnerable households across the city. Support will be provided based on a
common assessment of need and therefore will not disadvantage any group.
___________________________________________________________________
ASSESSMENT OF RISK:
High – The weight of demand and potential for an increasing number of claims made
to the existing scheme demonstrate the continuing level of financial hardship being
felt by households in the city. The removal of this safety net will have potentially
extremely serious consequences for vulnerable households. This is particularly the
case given the reduction in funding being made available to local authorities. Failure
to deliver an effective scheme will potentially increase costs to the authority in other
ways, including levels of family breakdown and stress, higher crime, increased
poverty and distress including recourse to expensive doorstep lending and
homelessness.
___________________________________________________________________
SOURCE OF FUNDING:
Funding for both the delivery of a replacement scheme and the administration of it
comes directly from central government. £1.185m will be made available for the
delivery of a replacement scheme in 2013/14 and 2014/15. An amount of £250k will
be made available in 2013/14 and £229k in 2014/15 for the administration of any
replacement scheme.
___________________________________________________________________
LEGAL IMPLICATIONS:
There is no legal requirement to deliver a replacement scheme for the existing Social
Fund. There is therefore no legal requirement for any consultation to take place on
any proposed replacement, and no requirement for any scheme to contain any
Appeals or Review process.
___________________________________________________________________
FINANCIAL IMPLICATIONS:
Document1
Funding for the Scheme and its administration has currently been confirmed for 2
years. No longer-term commitments to either have been given by central
government. Therefore there is a future risk to the long-term viability of the scheme.
___________________________________________________________________
OTHER DIRECTORATES CONSULTED:
Consultation has been conducted with all Directorates. The core officer group which
has overseen the development of the scheme has contained representatives from
each Directorate with the exception of Environment & Community Safety, who have
been consulted separately.
___________________________________________________________________
CONTACT OFFICER:
TEL. NO.
Mike Wright
793 2505
___________________________________________________________________
WARD(S) TO WHICH REPORT RELATE(S):
All Wards.
___________________________________________________________________
Document1
Annex 1
Local Welfare Provision
The Salford Discretionary Support Scheme
(SDSS)
Scheme Design 2013/14
Document1
Contents:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Purpose of the Scheme
Resources
Scheme Design
Accessing the Scheme
Eligibility Criteria and Exclusions
Council Tax Hardship Scheme
Decision-making
The Awards Process
Award Methods
Appeals and the Review Process
Safeguarding
Partnerships and Other Funding Sources
Monitoring and Governance
Scheme Review
1.
Purpose of the Scheme
1.1
The Salford Discretionary Support Scheme (SDSS) will replace the
provisions of the Social Fund in relation to Crisis Loans and Community
Care Grants from 01 April 2013.
1.2
The scheme will administer the funding allocated by central government to
Salford City Council in respect of these activities.
1.3
The scheme will provide a response to instances of extreme hardship for
Salford residents and in very exceptional circumstances to households being
resettled into Salford.
1.4
The delivery arrangements for the scheme provide for Salford’s approach to
these changes for 2013/14. The scheme will be reviewed through the year,
and changes to the delivery model may be undertaken during the year. A
revised delivery model for 2014/15 will be developed through this year.
2.
Resources
2.1
The Council has been allocated resources from central government both for
the delivery of the scheme and for its administration for 2013/14 and
2014/15. The resource allocations are as follows:
Function
Document1
2012/13 (set-up)
2013/14
2014/15
Administration
£11, 000
Delivery
£250, 448
£229, 563
£1, 185, 000
£1, 185, 000
2.2
The administration set-up funding for 2011/12 will support the delivery of an
ICT platform to enable delivery of the scheme on 01 April 2013.
2.3
The Administration Grant will support the delivery of the Scheme through a
co-located bespoke SDSS Assessment Team. Subject to analysis of future
demand, the proposed team structure from 01 April will be as follows:


1 x Scheme Manager (Grade M)
5 x Assessment Officer (2x Grade H; 3x Grade F-G)
2.4
At 01 April, and subject to a review within 2013/14, the Assessment Team
will be based in the Community, Health & Social Care Directorate as part of
the response to vulnerable people in the city. Delivery from the Opportunities
Centre on Churchill Way will enable the co-location with existing customer
payments, goods distribution and support services facilities, including
facilities for people with no recourse to public funds.
3.
Scheme Design
3.1
The Scheme will consist of two operational responses, details of which are
identified below:
 Immediate Emergency Assistance (IEA)
 Resettlement Grants (RG)
3.2
Immediate Emergency Assistance (IEA)
3.2.1
The IEA Scheme exists to support eligible households who are suffering
extreme hardship in emergency situations. These situations will be
temporary instances of hardship and the scheme is not designed to meet all
needs, or to manage long-term situations of poverty or deprivation.
3.2.2
An award under the IEA criteria may be made in the following circumstances:
 Households who have experienced a recent major disaster or
emergency and who require basic replacements of essential items
 Households who have no essential food
 Households with children who require essential items, for example
baby food and white goods
 Households with children or vulnerable adults who have no heating
 Households who need immediate assistance to attend a job interview
or place of work
Document1
 Households who are awaiting their first payment of wages and who
require emergency assistance to cover basic living expenses who are
not eligible for payments from DWP
3.2.3
From April 2013, IEA payments will be made in the form of a limited number
of non-repayable cash awards or the direct provision of essential goods or
vouchers for the purchase of these goods.
3.2.4
In order to ensure that the cash-limited scheme is managed fairly and
effectively, a maximum of two awards per household will be made in any
twelve month period. A third application may be made where major changes
in needs can be demonstrated, such as in the case of a disaster or accident,
but may only be considered with the authorisation of the scheme manager.
In these cases, conditions may be attached, including engagement with
money management or Welfare Rights & Debt Advice services.
3.3
Resettlement Grants (RG)
3.3.1
The Resettlement Grants Programme exists to support the long-term
resettlement of households with a local connection to Salford into the
community, with the exception of cases covered by 3.3.6, below.
Households will be supported to enable them to establish a home in the city,
particularly where households are leaving care or institutional settings and
who require support which will enable them to become independent.
3.3.2
The RG Programme will support the Council’s strategic corporate aims in
areas such as corporate parenting, promoting independence and reducing
the cost of institutional placements.
3.3.3
The RG Programme will also support Registered Social Landlords’ tenancy
sustainment strategies through linking with the allocations system to support
vulnerable households who are about to be rehoused.
3.3.4
A payment under the Resettlement Grants programme may be made to
support the following circumstances:




A household leaving long-term care
A household leaving supported accommodation for independent living
A household fleeing domestic abuse
A household leaving prison or criminal justice establishment
3.3.5
Households will be limited to one application from the Resettlement Grants
Programme in a 24-month period.
3.3.6
Support may also be provided to households who are settling into Salford
from outside of the city where this is caused by domestic abuse. Awards in
these cases would be subject to verification of the individual’s circumstances
by a supporting agency or direct referral from another local authority.
4.
Accessing the Scheme
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4.1
The scheme will be accessible through the following means:
 In-person applications
 Applications by telephone
 Web-based applications
4.2
Due to the pressing nature of immediate needs, it is expected that
applications for IEA will be primarily made by telephone or in person. These
can be made directly by the applicant or through an acceptable nominated
third party support agency, to whom the individual has given express
consent.
4.3
A minority of cases will require responses outside of normal working hours.
The IEA Scheme will be accessible for cases of immediate hardship on a
24/7 basis, with out-of-hours responses co-ordinated through the Emergency
Duty Team. This may be an interim response pending further assessment.
4.4
Face to face access will be managed from the Opportunities Centre on
Churchill Way.
5.
Eligibility Criteria and Exclusions
5.1
The Scheme will be open to applications from single households and
households with children. It is anticipated that most awards will be made to
households containing children or other vulnerable people, where wider
safeguarding risks may exist. In order to be awarded a payment from the
Salford Discretionary Support Scheme, the following eligibility criteria must
be met and verified:
 The applicant must be aged 16 or over
 The applicant must have recourse to public funds in the UK
 The applicant must have a local connection with Salford, defined by
verifiable residence in the city for 6 of the last 12 months, or 3 of the
last 5 years
 Be a low income household (60% of median earnings)
 Have an immediate need for essential assistance
 Must not have access to alternative funds or a level of savings which is
adequate to meet their needs
 Must not have access to support from family
 Must be prepared to apply for support from other agencies
5.2
The following applicants will be excluded from the scheme:
 Applicants who have no recourse to public funds
 Applicants who have been awarded 2 awards under the IEA
Programme in the last 12 months and/or 1 award under the RG
Programme where no exceptional circumstances exist
Document1
 Applicants who have failed to maintain loan repayments where loans
have been awarded under the scheme at any time
 Applicants who have failed to abide by conditions agreed as part of an
award
6.
Council Tax Support Scheme
6.1
The SDSS will incorporate facilities to ease extreme hardship faced by
residents who are negatively affected by government changes to Council
Tax arrangements.
6.2
In the event of customers facing extreme hardship through Council Tax
changes, direct referrals will be made into the Assessment Team for
consideration for assistance.
6.3
Assessments will be based on needs and levels of hardship and against the
needs criteria and eligibility criteria set out in paragraphs 3.2.2 and 5.1,
above.
6.4
In the event of an award being made to ease extreme hardship, of which
Council Tax changes have been a factor, a direct resource transfer will be
made between the SDSS and Council Tax services, for allocation against
Council Tax records. No payment will be made to the applicant, who will be
notified of any award in writing.
6.5
Payments made in respect of Council Tax hardship will be reported as part
of the systems of monitoring and governance set out in section 13, below.
7.
Decision-making
7.1
All decisions will be made by a single SDSS Assessment Team. In 2013/14,
as the scheme is based on an assessment of needs, the team will be based
in the Community Health & Social Care Directorate, and will be delivered
through services integrated to provide a service response for vulnerable
people. This will maintain the link with vulnerable households and also
enable co-ordinated approaches to the Resettlement Grants Programme,
where rehousing is often facilitated by, and support provided by, services
within the Community, Health and Social Care Directorate.
7.2
In the case of applications for assistance under the Immediate Emergency
Assistance scheme, it is accepted that there will be a need for extremely
rapid decision-making. In many case, these will need to be immediate. Turnaround times for IEA decisions will be prioritised in these cases.
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7.3
The decision-making process will take full account of issues of vulnerability
and the Council’s wider safeguarding responsibilities in determining whether
to make an award under the scheme.
7.5
Decision-making will be as consistent as possible within the scheme
designation. However, as the Scheme is subject to a cash-limited fund and
the levels of demand are unpredictable, monthly monitoring of spending and
demand assessment may mean that the prioritisation of awards will be
subject to change during the year.
7.6
Every application will be managed by a SDSS Assessment Officer, who will
carry their own caseload. Assessment Officers will be responsible for making
assessments of each individual case, including the level of vulnerability of
each household. The Assessment Officer will also be responsible for making
appropriate referrals to other support agencies, such as Welfare Rights &
Debt Advice. Assessment Officers will carry a mixed caseload of IEA and
RG applications.
7.7
Service standards for decision-making will be as follows:
Programme
Standard
Target
Immediate Emergency
Assistance
Resettlement Grants
Decisions made in 48
hours of application
Decisions made within
14 days of application
90%
100%
7.8
Assessment Officers will be responsible for signing-off their own decisions.
8.
The Awards Process
8.1
Where an award is made under either IEA or RG Programme, the award will
be recommended by an Assessment Officer, including a recommendation of
how the award is to be made, for instance in terms of vouchers, goods or
food parcels.
8.2
Awards may include elements of conditionality. For example, Assessment
Officers may combine awards with referrals into Debt Advice or other
support agencies.
9.
Award Methods
9.1
It is the Council’s intention to minimise cash awards wherever possible.
However, it is accepted that some cash awards will be required in some
cases, particularly for awards under the IEA Programme.
9.2
However, it remains the intention to provide support under the scheme in the
form of goods or vouchers for the purchase of food or essential goods. In
particular, as awards under IEA will be for immediate need, direct links to
foodbanks and furniture providers will be critical. Arrangements are being
Document1
made to deliver a pathway into a Salford Food Network, to manage the
distribution of essential food where an award has been made under the
Programme.
9.3
From 01 April 2013, any awards made in cash will be made in the form of
one-off grant payments. However, during 2013, a programme to delivery a
portfolio of loans will be delivered. This will be a partnership arrangement
with a preference for the portfolio to be delivered by a third sector agency.
9.4
All awards of whatever type will be made in person, and subject to a
verifiable and acceptable form of identification.
9.5
Awards will take the following forms:
Programme
Nature of Award
Extent of Award
Immediate Emergency
Assistance
Award of food parcels,
vouchers, essential goods
including baby food and
nappies, and in extreme
circumstances cash awards
of a maximum of £40 per
family household and £20
per single applicant
Essential goods to enable
establishment of home in
the community, including
white goods
2 Awards per 12 month
period, unless exceptional
circumstance enables 3rd
application to be
considered
Resettlement Grant
1 award per 24 month
period, unless exceptional
change in circumstances
9.6
Where an award has conditional terms attached, these will be documented
and signed for by the applicant in every case.
9.7
Where an award has been made in the form of essential furniture or white
goods, the existing Furnished Homes service will provide this service from its
existing contract from 01 April 2013.
9.8
During 2013/14, resources from the scheme will be diverted to appropriate
third sector organisations who deliver second-hand furniture services. In
these cases, supervised resource transfers will take place directly between
the Council and the provider.
9.9
Where the Council believes that there are risks of inappropriate utilisation of
the scheme, it reserves the right to make awards on the condition that they
are supervised or managed by a nominated support agency. For instance,
where applicants have support workers who can act on their behalf with
consent.
10.
Appeals and the Review Process
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10.1
There will be limited rights of appeal following an awards decision by an
Assessment Officer.
10.2
Applicants can request a review of a decision under either Programme.
Appeals must be in writing, outlining reasons why they believe the decision
should be reconsidered under one of the following criteria:

The Council has made a decision based on consideration of a factual
inaccuracy
There are extreme consequences directly resulting from the decision, such as
serious harm to a vulnerable person

10.3
Service standards for the Appeals Process are as follows:
Programme
Appeals Submission
Response Time
Immediate Emergency
Assistance
Within 7 days of the
decision
Resettlement Grants
Within 7 days of the
decision
Within 7 days of
receipt of the appeal
request
Within 14 days of the
appeal request
10.4
Appeals of decisions made under the IEA Programme will be dealt with by
the Team Manager and the responsible Head of Service.
10.5
Appeals of decisions made under the RG Programme will be dealt with by a
panel of nominated managers from all corporate disciplines to ensure
independent oversight of the decision-making process.
10.6
There will be no higher right of appeal beyond this process.
10.7
Complaints will be managed within the Council’s existing Complaints
procedures.
11.
Safeguarding
11.1
The Council will consider its wider safeguarding responsibilities within the
management of the scheme.
11.2
Members of the Assessment Team will be responsible for making
appropriate safeguarding referrals as part of their role.
12.
Partnerships and Other Funding Sources
12.1
The SDSS will explicitly support external partnerships in delivery. During
2013/14, partnerships will be delivered with third sector agencies in respect
of:


Credit Unions
Food banks
Document1


Second hand furniture
Delivery of loans portfolio
12.2
The scheme will over time be distributed through these mechanisms
following the decision-making process.
12.3
The scheme will not replace existing funding or support mechanisms,
particularly where these represent statutory provision.
13.
Monitoring and Governance
13.1
There will be a regular and formal monitoring process for the scheme. This
will include, but not be limited to, the following performance data:






Applications by number, type, month and client group
Spend data by Programme type
Spend data by month
Decision-making performance
Appeals by number, type and outcome
Support for the Council Tax Hardship scheme in applicant numbers and
financial contribution
13.2
Performance and outcomes data will be reported to the City Mayor, the
Assistant Mayor for Adult and Older People’s Services, to Members through
regular reporting to the Health & Wellbeing Board, to senior officers through
the Corporate Management Team and to agreed stakeholders and partners.
132.3
During 2013/14, profiling data will be built up, and this data will be used to
inform the operation of the scheme, including changes to in-year priorities
and review of the eligibility criteria.
13.4
Budgetary management will be reported by the responsible Head of Service
to the Strategic Director for Community, Health & Social Care on a monthly
basis. This will ensure consistent spend and also that the scheme does not
overspend, resulting in resources being unavailable at the end of the year.
13.5
In the highly unlikely event of any underspend in 2013/14 due to strict
eligibility criteria, consideration will be given to rolling this forward into the
2014/15 delivery allocation, or to utilise this in another way.
14.
Scheme Review
14.1
The operation of the scheme will be subject to regular review to ensure that
it continues to meet the most pressing needs in the city for the most
vulnerable people.
14.2
The scheme will be reviewed formally by a corporate officer group, as
delivered the scheme design. The remit of the group and its reporting
mechanism will be decided by senior officers and Members.
Document1
14.3
The outcome of the ongoing review process will be reported during 2013/14,
and any recommendations for changes to the scheme will be made in this
way.
14.4
A revised Scheme Design will be developed for 2014/15.
Document1
Annex 2
Salford Discretionary Support Scheme - The Customer Journey
SALFORD DISCRETIONARY SUPPORT SERVICE
TRIAGE
Access to
Universal
services
Application by
telephone, in person or
on-line
Positive
signposting
ASSESSMENT AND DECISION
Claim
awarded
Claim assessed in Adult
Services
Claim
refused
AWARDS
Furniture
and white
goods
Document1
Food bank
Utilities
Pre paid
card