Social Fund
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.
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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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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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; |
 |
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.
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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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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 |
 |
there is a direct link between the need for
care and the items requested. |
A CCG may be awarded to:
 |
improve a person's existing living conditions;
or |
 |
enable a person to move to more suitable
accommodation; or |
 |
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:
 |
spends the leave with a person in receipt of
Income Support, JSA(IB) or PC; and |
 |
if s/he we | |