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Part 1ITEM NO.

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REPORT OFAssistant Mayor for Adult Services and Services for Older People

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TOThe City Mayor

ON15 April 2013 (For Briefing)

And 22 April 2013 (For Decision)

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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 co-ordinated 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____________________________________________________________________


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 Change05/06-11/12

1. All Crisis Loans

Applications 2, 930 14, 620 9, 690 +230%

Expenditure (£) 380, 000 1, 198, 200 444, 400 +17%


Number of Awards

2, 550 11, 210 7, 490 +193%

Success Rate 87% 77% 77% -10%

2. Community Care Grants

Applications 3, 520 4, 050 3, 700 +5%

Expenditure (£) 919, 000 951, 800 906, 300 -1%

Number of Awards

2, 040 1, 990 1, 840 -10%

Success Rate 58% 44% 50% -8%

3. Overall Totals

Applications 6, 980 18, 670 13, 390 +92%

Expenditure (£) 1, 299, 000 2, 150, 000 1, 351, 300 +4%

Number of Awards

4, 590 13, 200 9, 330 +104%

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:

Programme Funding(£)

Administrative Funding(£)


2013/14 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.


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:

- 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

3.4 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.

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

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 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 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

Total Demand Profile*

Proposed Scheme2013/14

Assumed Demand Profile

April 1300 April 1400May 1250 May 1300June 1320 June 1300July 1120 July 1050August 1160 August 1000September 1110 September 1000October 1020 October 950November 1040 November 950December 860 December 900January 1130 January 1200February 1150 February 1100March 1160 March 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.

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.

The outline budget for the administration of the scheme in 2013/14 is as follows:

Budget 2013/14 Proposed Expenditure

Staffing 177, 000ICT (including system rental) 18, 000Communications 10, 000Office Costs 20, 000Contingency Fund 25, 000

250, 000

5.5 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 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.

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. 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.

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

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 StrategyHomelessness 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:

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. ____________________________________________________________________


Annex 1

Local Welfare Provision

The Salford Discretionary Support Scheme (SDSS)

Scheme Design 2013/14


Contents:

1. Purpose of the Scheme2. Resources3. Scheme Design4. Accessing the Scheme5. Eligibility Criteria and Exclusions6. Council Tax Hardship Scheme7. Decision-making8. The Awards Process9. Award Methods10. Appeals and the Review Process11. Safeguarding 12. Partnerships and Other Funding Sources13. Monitoring and Governance14. 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 2012/13 (set-up) 2013/14 2014/15

Administration £11, 000 £250, 448 £229, 563

Delivery £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


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


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

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. Turn-around times for IEA decisions will be prioritised in these cases.

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

Decisions made in 48 hours of application

90%

Resettlement Grants Decisions made within 14 days of application

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 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


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

2 Awards per 12 month period, unless exceptional circumstance enables 3rd application to be considered

Resettlement Grant Essential goods to enable establishment of home in the community, including white goods

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

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


Within 7 days of the decision

Within 7 days of receipt of the appeal request

Resettlement Grants Within 7 days of the decision

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 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.

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.


Annex 2

Salford Discretionary Support Scheme - The Customer Journey


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