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Social Fund

CONTENTS

INTRODUCTION

1.  RULES ON CAPITAL

2. THE REGULATORY SOCIAL FUND

3. THE NON-REGULATORY SOCIAL FUND

4.SOCIAL FUND REVIEWS

5. FURTHER INFORMATION

LEGISLATION

Social Fund is governed by Articles 134-136 of the Social Security Contributions and Benefits (NI) Act 1992 and Articles 62-64 of the Social Security Administration Act (NI) 1992 as amended by The Social Security (NI) Order 1998.

Maternity and Funeral Payments are governed by the Social Fund Maternity and Funeral Expenses (General) (NI) Regulations as amended.

Cold Weather Payments are covered by the Social Fund Cold Weather Payments (General) (NI) Regulations as amended.

Social Fund Winter Fuel Payments are governed by the Social Fund Winter Fuel Payments Regulations (NI) 2000 as amended.

Other regulations include the Social Fund (Applications for Review) (NI) Regulations and the Social Fund (Recovery by Deductions from Benefits) Regulations as amended.

 

INTRODUCTION

The Social Fund is a government fund designed to help people on low incomes with certain expenses which are difficult to meet out of weekly income. The Social Fund can be divided into two parts, a regulatory part and a non-regulatory part.

The regulatory Social Fund consists of payments for maternity expenses, funeral expenses, periods of cold weather and winter fuel. A person has a legal right of entitlement to these payments providing s/he satisfies certain conditions of entitlement contained in regulations.

The non-regulatory Social Fund provides Community Care Grants (CCGs), Budgeting Loans and Crisis Loans for a variety of other needs. There is no legal right of entitlement to these payments which are funded by a cash-limited budget.

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1. RULES ON CAPITAL

Maternity and Funeral Payments, Cold Weather Payments and Winter Fuel Payments are not affected by the amount of capital someone has.

For CCGs the following rules apply:

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any capital held by a person and/or her/his partner below £500, or £1,000 if the person or partner is aged 60 or over, will not affect the amount of payment awarded;

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if a person and/or partner has capital of more than £500, or £1,000 if aged 60 or over, the payment is reduced by the amount of any capital over £500 or £1,000 if aged 60 or over.

For Budgeting Loans:

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any capital held by a person and/or her/his partner below £1,000 (£2,000 if over 60) will not affect the Budgeting Loan award.

All capital is taken into account for Crisis Loans, except for disregarded income detailed in 3.3.3.

Note: From 11 June 2007, any payment under the Integration Loan Scheme can be disregarded for CCGs, Budgeting Loans and Crisis Loans.

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2. the regulatory social fund

Except in the case of some Funeral Payments (see 2.2.5.2), the regulatory Social Fund provides non-repayable payments. A person is entitled to any of these payments if s/he meets certain qualifying conditions laid down in regulations. Decisions on claims for these types of payments are made by a decision maker.

A person who is dissatisfied with a decision has the right of appeal to an appeal tribunal. The budget for these payments is not cash limited.

2.1 Sure Start Maternity Grant

A person can get a Sure Start Maternity Grant of £500 per new baby where she or her partner has been awarded one of the following qualifying benefits:

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Income Support;

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Income-based Jobseeker’s Allowance (JSA(IB));

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Child Tax Credit (CTC) at a rate higher than the family element, ie more than approximately £10.50 per week, or where there is a child under one year £21.00);

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Working Tax Credit (WTC) which includes the disability or severe disability element;

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Pension Credit (PC).

A payment can be made for a stillborn child if the pregnancy has lasted 24 weeks.

She can claim either:

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eleven weeks before the first day of the expected week of confinement. The claim form must be signed by a health professional, such as a general practitioner, midwife or health visitor, confirming that advice on maternal health and welfare has been received; or

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up to three months after the date of confinement.  The claim form must be signed by a health professional such as a general practitioner, midwife or health visitor confirming that advice on child health and welfare matters has been received.

There is no provision for making claims outside the time limits. However, if a claim is refused because she or partner:

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is not getting a qualifying benefit; and

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has made a claim for the qualifying benefit no later than ten days after the original claim for Sure Start Maternity Grant; and

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is subsequently awarded the qualifying benefit; and

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makes a second claim within three months of this award;

the claim will be treated as made on whichever is the later of either the date of the original claim or the date of the award of the qualifying benefit.

A payment of £500 will also be made:

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for an adopted baby or child under a residence order providing s/he is no older than twelve months at the date of claim;

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where a couple have been granted a parental order allowing them to have a child by a surrogate mother.

The claim must be made within three months of the date of adoption, residence order or parental order.

The then Department of Health and Social Services (DHSS) issued guidelines suggesting that additional sums for maternity items cannot be made by way of a CCG. Law Centre (NI) believes this guidance is open to legal challenge. For further details contact Law Centre (NI).

2.2 Funeral Payments

2.2.1 Who can claim?

A person can claim a Funeral Payment if:

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s/he has been awarded one of the following qualifying benefits:
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Income Support;

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JSA(IB);

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Housing Benefit;

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CTC at a rate higher than the family element, ie more than approximately £10.50 per week, or where there is a child under one year £21.00);

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WTC which includes the disability or severe disability element;

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PC; and

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the funeral takes place in:
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the United Kingdom (UK) or in the Republic of Ireland providing the deceased normally lived in Northern Ireland and had been resident in the UK at the date of death; or

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a European Economic Area (EEA) country or Switzerland and the responsible person is an EEA national (or family member of an EEA national) who is, under specific European Community law, either treated as a worker or entitled to reside permanently in the UK; and

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the deceased person was ordinarily resident in the UK at the date of death (this does not necessarily mean s/he died in the UK); and

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s/he claims anytime from the date of death up to three months after the date of the funeral; and

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s/he accepts responsibility for the funeral; and
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is the partner of the deceased; or

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in the case of a child or qualifying young person, is the person responsible for the child or qualifying young person unless there is an absent parent who is not in receipt of a qualifying benefit, or in the case of a still born child is the parent or the parent’s partner; or

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is an immediate family member (ie parent, son, daughter);  or

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where there is no partner or immediate family member, s/he is either:

         (a) a close relative of the deceased; or

         (b) a close friend of the deceased; and

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it is deemed reasonable for that person to accept responsibility for the funeral expenses.

Where there is no surviving partner, an immediate family test will apply. If no-one is deemed to be the responsible person when the immediate family test is applied, then the decision maker will apply the close relative test.

2.2.2 Immediate family test

Where there is no surviving partner, there is no entitlement to a Funeral Payment where an immediate family member of the deceased exists and s/he or partner is not in receipt of a qualifying benefit. Immediate family member means a parent, son or daughter. This test does not apply if the family member is ordinarily resident outside the United Kingdom. The onus of proving whether another close relative is in receipt of benefit or not rests with the Social Security Agency [DSD v Kerr (2004), TLR   7 May 2004 (HL)].

A parent, son or daughter will not be deemed an immediate family member if, at the date of death, s/he was:

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under eighteen years of age; or

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aged eighteen or nineteen and treated as a qualifying young person for the purposes of child benefit;

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awarded a qualifying benefit (or partner was awarded a qualifying benefit); or

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estranged from the deceased; or

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a wholly maintained member of a religious order; or

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a full-time student; or

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a prisoner or hospital in-patient receiving free treatment and s/he (or partner) had been in receipt of a qualifying benefit immediately before s/he entered prison or hospital; or

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ordinarily resident outside the UK; or

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receiving asylum support.

2.2.3 Close relative test

In the absence of a partner and where all immediate family members are in receipt of a qualifying benefit, the close relative test will be applied. Close relative means parent, parent-in-law or step-parent, son, son-in-law, stepson or stepson-in-law, daughter, daughter-in-law, stepdaughter or stepdaughter-in-law, brother or brother-in-law, sister or sister-in-law. All close relatives have equal status.

The decision maker will apply two tests to determine who should reasonably be expected to take responsibility for the funeral:

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where there are one or more close relatives, the nature and extent of the contact each had with the deceased;

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where the contact of one or more close relatives is equal to or closer than that of a person claiming and one of those close relatives is not in receipt of a qualifying benefit, then it will be deemed that it is not reasonable for the person claiming to take responsibility for the funeral.

These two tests do not apply to family members ordinarily resident outside the United Kingdom.

The effect of this is that normally the close relative with the greater contact will be expected to take responsibility for the funeral. If the close relative with the greater contact does not qualify for a Funeral Payment, then a close relative with less contact who does qualify will not be able to successfully claim.

2.2.4 Close friend

Close friend is not defined within the regulations. If the person claiming is a close friend, the claim will only succeed where there is:

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no partner; and

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no immediate family member; and

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no close relative who had greater or equal contact with the deceased than the close friend.

2.2.5 How much?

2.2.5.1 Expenses covered

A payment will be made to cover the following expenses:

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in the case of burial the necessary cost of:
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purchasing a new burial plot, including exclusive right of burial;

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burial (including fees levied by private contractors);

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in the case of cremation the necessary cost of:
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cremation including medical references;

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a registered medical practitioner's certificate;

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removal of pacemakers (limited to £20 if not removed by a doctor);

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the cost of documents necessary for the release of the deceased person's assets eg death certificate;

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reasonable travel costs of one return journey within the UK or where the funeral takes place in the Republic of Ireland, return journey to the Republic of Ireland in connection with arrangements or attendance at the funeral;

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the reasonable cost of transport in excess of 50 miles to transport the:
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deceased to the funeral director’s premises or place of rest;

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coffin and bearers and one additional vehicle from the funeral director’s premises or place of rest to the funeral;

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up to £700 for any other funeral expenses including funeral director's fees, undertaker fees and gratuities, chaplain and organist's fees;

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up to £120 of funeral expenses in the above categories not covered, or contributed to, by a pre-paid funeral plan or similar arrangement.

2.2.5.2 Deductions

From the amount payable, the following will be deducted:

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the value of the deceased person’s assets if they are available to the person claiming without having to go through legal procedures;

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any payment under insurance policies, occupational schemes, burial club or similar arrangement;

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payments from a relative or a charity;

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any War Disablement Pensioners Funeral Grant payment.

A claim should be made within three months of the date of the funeral. There is no provision for making claims outside the time limits. However, similar time limits which relate to the award of a qualifying benefit under the Sure Start Maternity Grant also apply here.

The then DHSS issued guidance suggesting that additional sums for funeral expenses cannot be made by way of a CCG. Law Centre (NI) believes that this guidance is open to legal challenge. For further details, contact Law Centre (NI).

2.3 Cold Weather Payments

Certain people can claim a Cold Weather Payment of £8.50 for each week designated a period of cold weather. The Department has laid down rules as to what is a period of cold weather. These state that any forecast or recording of, or period of, seven consecutive days during which the average of the maximum and minimum daily temperatures for that period is equal to or below 0°C will be considered a period of cold weather. Northern Ireland is covered by four weather stations which are linked to postcode areas. If any station forecasts or records a period of cold weather, then a person covered by that station may be entitled to a payment.

To qualify for a Cold Weather Payment, a person must be:

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on Income Support or JSA(IB) for at least one day during the cold weather; and
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receiving any of the pensioner premiums, or the disability or severe disability premiums or the disabled child premium; or

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claiming for a child under five years of age; or

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receiving the disability element or severe disability element of CTC; or

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receiving PC for at least one day during the cold weather.

A person entitled to PC and residing in a care home will not receive a Cold Weather Payment.

A Cold Weather Payment will be sent automatically to a person without the need for a claim. Where the local weather station forecasts a period of cold weather, the payment will be made in advance. The amount of capital a person has does not affect the payment.

2.4 Winter Fuel Payments

The Social Fund Winter Fuel Payment Regulations (NI) 2000 allow for payments to those aged 60 or over regardless of whether they are receiving benefit or not. Payment should be made automatically.  If not, a claim must be made before 31 March 2008 This payment is in addition to the Cold Weather Payments available through the regulatory Social Fund.

2.4.1 Who can claim?

The qualifying week is the week beginning on and including the third Monday in September of each year.  Payment will be made for the winter following the qualifying week. A person will qualify for a Social Fund Winter Fuel Payment if during the qualifying week s/he is:

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aged 60 or over; and

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ordinarily resident in Northern Ireland.

2.4.2 Exclusions

A person is excluded from receiving a Social Fund Winter Fuel Payment if s/he:

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has been receiving free in-patient treatment for more than 52 weeks in a hospital or similar institution; or

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is detained in custody under sentence from a court; or

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is receiving PC or JSA(IB) and living in residential care throughout the qualifying week and the twelve preceding weeks; or

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subject to immigration control and not eligible for social security benefits.

2.4.3 How much?

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£300 if over 80 in the qualifying week; or

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£200 if under 80 in the qualifying week; or

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£100 (or £150 if over 80) if not entitled to PC or JSA(IB) and living with or sharing a household with someone who also qualifies; or

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£100 (or £150 if over 80) if not entitled to PC or JSA(IB) and living in residential care throughout the qualifying week and the twelve preceding weeks.

If a person is in receipt of PC or JSA(IB), s/he (and partner if applicable) will receive one payment of £200 (or £300 if over 80) despite sharing a household with anyone else who qualifies.  This is paid to the person claiming.

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3. THE NON-REGULATORY SOCIAL FUND

This part of the Social Fund consists of a system of repayable loans and non-repayable grants and:

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is budget limited;

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provides no legal right of entitlement to payments;

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has the majority of its budget allocated to loans;

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carries the right of entitlement to an internal review but not to an independent appeal.

Each local social security office has appointed decision makers to make decisions on CCGs, Budgeting Loans and Crisis Loans.

By law, when making decisions on payments, decision makers must take into account:

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the nature, extent and urgency of need (Crisis Loans and CCGs); or

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a person's personal circumstances (Budgeting Loans only); and

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the existence of resources from which the need may be met; and

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a person's ability to repay (loans only); and

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whether there are other ways of meeting the need; and

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the money available in local office budgets; and

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directions and guidance issued by the Department; and

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guidance issued by the area decision maker.

The Department for Social Development issues directions and guidance to decision makers on how to operate the non-regulatory Social Fund. Decision makers are obliged to follow both the law on the Social Fund and the directions issued by the Department. They must also have regard to guidance issued by the Department and by area decision makers. Direction 40 sets out that decision makers must control the budget to give priority needs throughout the period of allocation. This is usually a period of twelve months running from April to March. Direction 42 sets out that decision makers shall not make any awards that exceed the budget.

Local guidance issued by area decision makers is important and advisers should get a copy of guidance operating in their area.

3.1 Community Care Grants

3.1.1 Who can claim?

Under Direction 25, a person can apply for a CCG if s/he is:

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in receipt of Income Support, JSA(IB) or PC on the date s/he claims the CCG; or

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less than six weeks away from discharge from residential accommodation and is likely to get Income Support, JSA(IB) or PC when discharged.

A person claiming JSA(IB) who is subject to a Jobseeker's disallowance or sanction will be treated as not being in receipt of JSA(IB) unless entitled to a hardship payment. JSA hardship payments are classed as JSA(IB).

3.1.2 Priority needs and circumstances

Decision makers are given guidance in the Decision Maker's Guide as to which needs and circumstances should be given priority for a CCG.

3.1.2.1 Priority need

The priority needs should be considered within the following categories:

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high priority should normally be given if an award will have a substantial and immediate effect  in resolving or improving the circumstances of the person applying and be very important in fulfilling the aims of Direction 4;

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medium priority should normally be given if an award will have a noticeable effect, although not substantial and immediate in resolving or improving the circumstances of the person applying, and meeting  the aims of Direction 4;

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low priority should normally be given if an award for the item requested will have only a minor effect in resolving or improving the circumstances of the person applying or in meeting the aims of Direction 4.

3.1.2.2 Priority circumstances

The significance of a person’s circumstances should be considered in deciding the priority of the application. The following circumstances are only a guide.

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A person’s ability to cope with independent living may be difficult because of:
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restricted mobility;

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learning difficulties;

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mental health problems;

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physical disability;

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mental or chronic physical illness.

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Experiences of physical or social abuse or neglect may leave a person especially vulnerable and lacking in confidence, for example young people from broken homes or who have never had a home.

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Returning to the community after a long period of residential or institutional care may leave a person very insecure and vulnerable particularly if s/he is setting up a new home on her/his own.

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A long period of sleeping rough may leave a person with little or no concept of how to live a settled way of life or cope with problems of budgeting on a low income.

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Unstable family circumstances may put the well-being of children at risk and increase the chances that they may have to be taken into care, for example a parent behaves irrationally or relationships within the family are at breaking point.

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Behaviour problems associated with drug or alcohol abuse are likely to add to difficulties of a vulnerable person trying to live independently and increase the need for a stable environment.

3.1.3 What can be awarded?

The minimum amount that can be awarded for a CCG in most cases is £30.  There is no upper limit.

The following assistance may be available depending upon a person’s circumstances:

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clothing and footwear;

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removal expenses;

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fares when moving home;

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connection charges;

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storage charges for furniture;

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furniture and household equipment;

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minor structural repairs and maintenance costs;

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internal redecoration and refurbishment;

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bedding or extra warmth for the household;

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fuel connection costs;

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re-siting of fuel board pre-payment meters;

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heavy laundry needs;

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boarding out fees prior to adoption;

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overnight accommodation as part of a travel expenses payment.

This list is not exhaustive. A decision maker may award CCGs for other items or services if s/he considers the application to be of high enough priority.

3.1.4 Excluded items

Certain items will never be paid for by way of a CCG (Direction 23 and 29). These are:

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any need which occurs outside the UK ;

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an educational or training need including clothing and tools;

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distinctive school uniform or sports clothes or equipment;

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travelling expenses to or from school;

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school meals and meals taken during school holidays by children who are entitled to free school meals;

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expenses in connection with court (legal) proceedings (including a community service order) such as legal fees, court fees, fines, costs, damages, subsistence or travelling expenses;

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removal or storage charges where a person is permanently rehoused following the imposition of a compulsory purchase order, or a redevelopment or closing order, or a compulsory exchange of tenancies, or pursuant to the Northern Ireland Housing Executive's (NIHE) statutory duty to the homeless under the Housing (Northern Ireland) Order 1988;

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domestic assistance and respite care;

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any repair to NIHE or registered housing association property;

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a medical, surgical, optical, aural or dental item or service;

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work related expenses;

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debts to government departments;

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investments;

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costs associated with home or personal security measures other than locks, bolts, chains and door viewers for outside doors and windows;

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council tax, water charges, arrears of community charge or community water charges;

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installation, purchase, rental and call charges for a telephone;

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any expenses which NIHE, a health and social services board (HSSB) or a health and social services trust (HSST) has a statutory duty to meet;

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costs of fuel consumption and any associated standing charge;

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housing costs, including repairs and improvements to the dwelling occupied as the home including any garage, garden and outbuildings and including deposits to secure accommodation, mortgage payments, rates, water rates, sewerage rates, service charges, rent, and all other charges for accommodation, whether or not such charges include payment for meals and/or services other than:
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minor repairs and improvements;

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overnight accommodation as part of travel expenses payment;

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any daily living expenses such as food and groceries, except where:
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such expenses are incurred in caring for a prisoner or young offender on release on  temporary licence;  or

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a Crisis Loan cannot be awarded because the person has reached the loan limit of £1,500.

3.1.5 Repeat applications

Under Direction 7, once an application for a CCG or Crisis Loan has been made, whether an award is allowed or not, no further application for the same item or service will be considered for 26 weeks, unless there has been a relevant change in circumstances. This could be a change in the person’s circumstances or for example a change to the district budget or the law.  This rule does not apply if:

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the previous application was withdrawn before a decision was made; or

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a previous offer was declined or not responded to; or

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the Department decided the previous application was incomplete.

3.1.6 Qualifying conditions

Under Direction 4, CCGs may be payable to:

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assist the person, a member of her/his family or other person for whom s/he will be providing care to re-establish her/himself in the community following a stay in institutional or residential care; or

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help the person, a member of her/his family or other person for whom s/he is providing care remain in the community rather than go into institutional or residential care; or

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help the person set up home in the community as part of a planned resettlement programme following a period during which s/he has been without a settled way of life; or

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ease exceptional pressures on the person and her/his family; or

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help the person or her/his partner to care for a prisoner or young offender on home leave; or

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assist the person and/or members of her/his family with travel expenses in the UK in certain circumstances set out in 3.1.13.

A person should always argue the case for a grant on the basis of the factors that a decision maker must, by law, take into account (see introduction to section 3). The application must fit within Direction 4, otherwise no payment can be made. The guidance in the Decision Maker's Guide and any local priority lists issued by the area decision maker may be used to the person’s advantage. If there is no guidance in her/his favour or the circumstances of the claim are not covered in guidance, this does not automatically mean the application will fail.

Decision makers are legally obliged to look at each application on its merits, taking account of the law and directions and having regard to, but not being bound by, guidance and local priorities.

Only one third of the Social Fund budget is given to CCGs and an application needs to be well argued to succeed. Advisers should assist people to apply for a grant rather than loan whenever possible.

3.1.7 Moving out of care

Guidance suggests that institutional or residential care includes establishments providing significant and substantial care, supervision or protection because a person is either unable to live independently in the community or might be a danger to others in the community if s/he were to do so. 

Such accommodation may include: 

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hospitals;

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residential care homes;

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nursing homes;

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homes and hostels;

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supported lodgings, eg landlady schemes used by HSSTs, HSSBs or voluntary organisations as part of a programme of rehabilitation;

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staff intensive sheltered housing providing a major level of personal care;

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prison;

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young offenders centres;

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training schools;

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HSSB/HSST care; and;

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special residential schools:

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foster care.

This list is not meant to be exhaustive and decision makers can consider awarding a CCG where a person is leaving or has recently left some other form of residential accommodation.

The following examples are of people who may have needed a high level of care, supervision or protection:

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a frail, elderly person, particularly with restricted mobility or who has difficulty in performing personal care tasks;

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a person with learning difficulties;

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a person with mental health problems;

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a person with physical or sensory impairment;

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a chronically sick person;

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a terminally ill person;

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a person who has misused alcohol, drugs or other substances;

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an ex-offender;

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a person without a settled way of life;

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a young person leaving HSSB/HSST care or a special residential school.

This list is not exhaustive.

Guidance suggests a person will normally have been in care for at least three months or have a regular pattern of institutional and residential care. Guidance also suggests that it will not normally be appropriate to award a CCG more than once to enable a person to set up home under Direction 4(a)(i) since setting up home marks the point at which a person finally ceases to be in institutional or residential care.

3.1.8 Moving house to care for someone

A CCG may be awarded if a person has to move to more suitable accommodation in order to care for someone (normally a close relative, but close friend or former neighbour may be considered) who is being discharged from institutional care and will be living in the same household.

3.1.9 Remaining in the community

CCGs are intended primarily to assist a person to live as independent a life as possible in the community.  The threat of entering care does not need to be imminent but a higher priority will be given to a person where:

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the threat of entering care is immediate or imminent; and/or

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there is a direct link between the need for care and the items requested.

A CCG may be awarded to:

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improve a person's existing living conditions; or

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enable a person to move to more suitable accommodation; or

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enable a person to move nearer someone who can offer support.

Payments may also be made where a person has to move due to intimidation. Normally, the police and NIHE, where appropriate, will be contacted for verification. Where removal costs cover a move to Britain, the expenses are met by Bryson House.

3.1.10 Prisoner or young offender

A CCG may be awarded towards living expenses if a prisoner or young offender has no entitlement to Income Support or JSA(IB) in her/his own right and s/he:

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spends the leave with a person in receipt of Income Support, JSA(IB) or PC; and

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if s/he we