NAO: Social Fund decisions must improve
The quality of decision-making in Jobcentre Plus offices on the eligibility for emergency Social Fund payments needs to improve.
That is the conclusion of a new report by the National Audit Office, which found that awareness of the scheme was low, and decision making variable.
The Social Fund, which is administered by Jobcentre Plus, regulates a number of discretionary, emergency payments for those in financial need. These include budgeting loans and crisis loans for individuals who cannot cope with a sudden financial crisis, such as having their benefit money stolen.
Though the NAO believes the fund is playing an “important role” in helping those in financial hardship, there is a risk that potentially eligible people are not aware of the fund.
In a survey by the watchdog, only 47 per cent of low-income people were aware of the fund’s existence.
In addition, it is concerned Jobcentre Plus staff may not be giving the correct advice. In 2003-04 the internal review service overturned 41 per cent of the crisis loan decisions that were referred to it.
The NAO calls on the Department for Work and Pensions to increase awareness, both among potential applicants and its own staff. And, the DWP should introduce up-to-date, centrally co-ordinated training for its own staff on the fund.
Speaking this morning, Auditor General Sir John Bourn, said: “The Social Fund provides an important safety net for some of the most vulnerable in society, many of whom will have limited or no access to affordable credit and mainstream financial services. The Social Fund is reaching many people in need. But the Department needs to raise awareness of it both with potentially eligible customers and its own staff.
He added he was “concerned about the standard of decision-making on Social Fund applications, as evidenced by the high number of errors on certain awards.”
