Disability Rights UK Factsheet

The social fund

This Disability Alliance factsheet is a basic introduction to the Social Fund. You can find out more detailed information in Disability Rights UK's Disability Rights Handbook.

Disability Rights Handbook The handbook provides information and guidance on benefits and services for people with a disability or health condition. Fully updated for 2011, our user-friendly guide presents this complex information in a concise, straightforward and jargon-free way. find out more

What is the social fund?

The social fund is a government fund which makes payments to people in need.

The regulated social fund is for maternity costs, funeral costs and to help to cover the cost of winter fuel or severe cold weather.

The discretionary social fund provides grants and loans for urgently needed items, certain necessary journeys and other emergencies.

1. The regulated social fund

These payments are non-discretionary and clients are legally entitled to them if they satisfy the eligibility conditions. There are no capital rules (although certain assets and payments can be taken into account when you claim funeral expenses payments) for these payments. They are:

• cold weather payments
• funeral expenses payments
• sure start maternity grant
• winter fuel payments

1.1 Cold weather payments

These are paid, during bouts of severe weather.

You get them if:

• The average of the actual or forecasted mean daily temperature at a specified weather station is at or below freezing for 7 days in a row.
• you are on income-based jobseeker's allowance (JSA), income support (IS) or income-related employment and support allowance (ESA) and one of the following applies:

1. someone in your household is under age 5.
2. you are getting either disability premium, disabled child premium, enhanced disability premium or pensioner premium in your IS/JSA.
3. you are getting either severe disability premium, enhanced disability premium or pensioner premium in your income-related ESA.
4. you are getting either the work related activity component or the support component in your income-related ESA.
5. you are getting child tax credit which includes a disabled child element or severely disabled child element.

•  You are on pension credit.
• You are not living in a care home.

Payment is automatic (currently £25.00 a week). 

For other help with heating see our Factsheet F53 - help with heating.

1.2 Funeral expenses payments

These are paid if you or your partner take responsibility for the costs of a funeral. To get them the following must apply:

• You or your partner must be on a qualifying benefit.
• the deceased was ordinarily resident in the United Kingdom when he or she died.
• The funeral takes place in this country. You can also get funeral expenses payments if the funeral takes place in the European Economic Area (EEA) or Switzerland and you satisfy certain rules. See the Disability Rights Handbook for more information on this.
• Your relationship to the person who has died (the deceased) must be one of the following:

1. He or she was your partner
2. He or she was a child that you were responsible for and there is no "absent parent" (unless that parent is also on a qualifying benefit).
3. He or she was a stillborn child
4. He or she was a close relative and it is reasonable for you to accept responsibility for the cost of the funeral.
5. He or she was a close friend and it is reasonable for you to accept responsibility for the cost of the funeral.

The term "ordinarily resident" is not defined. It is taken to mean the place where you normally live for the time being if there is a degree of continuity about your stay and it can be described as being settled.

What is a qualifying benefit?

These are either child tax credit (if the amount of this is more than the family element), council tax benefit,  housing benefit, income-related employment and support allowance, income-based jobseeker's allowance, income support , pension credit or working tax credit (if this includes the disabled worker or severe disability element).

What is a close relative?

A close relative is a parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, brother, brother-in-law, sister, sister-in-law, stepson, stepson-in-law, stepdaughter, stepdaughter-in-law or step-parent.

How much is the funeral expenses payment?

The amount you will receive should be the costs of providing a simple funeral. These include the costs of purchasing a new burial plot or the costs of cremation (including any medical fees. Other costs that can be paid are:

• the cost of documentation required to release the deceased’s assets.
• the reasonable costs of transport for the portion of journeys in excess of 50 miles, undertaken to transport the body within the UK to a funeral director’s premises or a place of rest
• the costs to transport the coffin, bearers and mourners in two vehicles to the funeral.
• the necessary costs of one return journey from your home for you or your partner to arrange or attend the funeral if you are responsible for the funeral costs.
• up to £700 for other funeral expenses (or £120 if you have a pre-paid funeral plan which does not cover these expenses).
  

How to claim the funeral expenses payment

Claim on SF200 from your local Department for Work and Pensions or Jobcentre Plus within 3 months of the date of the funeral.

You can also call the Bereavement Service to find out if you can get help with funeral costs or with other benefits. If you are eligible for help the Service takes claims for Bereavement Benefit and Social Fund Funeral Payments over the telephone.

The Bereavement Service numbers are:

Phone: 0845 606 0265
Phone: 0845 606 0275 (Welsh)
Textphone: 0845 606 0285
Textphone: 0845 606 0295 (Welsh)

Cases where a funeral expenses payment cannot be paid

You cannot get a funeral expenses payment if:

• The person who died had a partner at the time of his or her death.
• There is a parent, son or daughter of the person who died unless he or she:

1. is on a qualifying benefit.
2. is under age 18.
3. is aged 18 or 19 and qualifies for child benefit.
4. is aged 18 or over and in full time education.
5. is estranged from the person who died.
6. was on a qualifying benefit immediately before going into prison or hospital.
7. is a fully maintained member of a religious order.
8. is receiving support from National Asylum Support Service.
9. is ordinarily resident outside the UK.

• There is a close relative of the person who died who was in closer contact with the deceased than you were.
• There is a close relative of the person who died who was in equally close contact as you who is not getting a qualifying benefit.

1.3 Sure start maternity grant

You can claim this if you or someone in your family has had a baby in the last three month or is expecting a child within the next 11 weeks. You can still claim it if the child is stillborn as long as the pregnancy has lasted 24 weeks.

If the child (or children if it is a multiple birth) is born on or after 11 April 2011 you will only get a sure start maternity grant:

• as long as there are no other children aged less than 16 years in the family.
• where you have a dependent child or young person who has a child (or multiple birth) themselves. In this case you can apply for a sure start maternity grant as long as your dependent child does not have any other children aged less than 16 who are part of the same household. You can claim in this case even if there are other children aged less than 16 years in the family.

You can also claim sure start maternity grant if you :

• are a parent who has responsibility for a child who is one year old or less at the date of claim but are not the partner of the child’s mother when the grant was claimed.
• or your partner have been granted a qualifying order for a child who is one year old or less at the date of claim
• or your partner have been appointed the guardian of a child who is one year old or less at the date of claim
• or your partner have a child who is one year old or less at the date of claim who has been placed for adoption by an adoption agency
• your partner have adopted a child who is one year old or less at the date of claim and that adoption is recognised under English and Welsh law and takes place outside the UK

You must be on either child tax credit (if the amount of this is more than the family element), income-related employment support allowance, income-based jobseeker's allowance, income support , pension credit or working tax credit (if this includes the disabled worker or severe disability element). Payment is £500. 

Claim on form SF100 from your local Jobcentre Plus or antenatal clinic. The time limit for claiming is 3 months after the date of confinement or 3 months after the qualifying order, guardianship or adoption takes effect depending on which rule you satisfy.

Form SF100 must be signed by a health professional who confirms that you have received health and welfare advice about maternal and child health matters.

1.4 Winter fuel payments

These are paid to help with heating in your home if you are age 60 or over in the week beginning 19 September 2011. The amount paid depends on your household circumstances during the 'qualifying week'.

If you or your partner do not receive pension credit (PC) income-related employment support allowance or income-based JSA and :

• you are between the qualifying age for pension credit and 79, you will get £200 if you are the only person in the household entitled to a payment, or £100 if you share a household with one or more other people entitled to a payment – for example a married couple, or two friends living together, will each receive £100.
• you are aged 80 or over, you will get £300 if you are the only person in the household aged 80 or over, or £150 each if there are more people aged 80 or over entitled to a payment.

If you are receiving pension credit (PC), income-related employment support allowance or income-based JSA you will get £200 (or £300 if you or your partner, if you have one, are aged 80 or over) regardless of who else is in the household. If you are one of a couple and your partner receives PC, income-related employment support allowance, or income-based JSA, then he or she will receive the payment instead of you.

If you have been living in a care home for 13 weeks or more at the end of the qualifying week and are not getting income-related employment support allowance, income-based JSA or PC, you are entitled to £100 if you are between the qualifying age for pension credit and 79, or £150 if you are aged 80 or over.

There is no need to make a claim if you received a payment last year or you are on a state benefit (not including child benefit, housing benefit or council tax benefit). Otherwise you must have made a claim before 30 March 2012 by ringing the Winter Fuel payment helpline on 08459 151 515.

For other help with heating see our Factsheet F53 - help with heating.

2. The discretionary social fund

There are three types of help you can get from the discretionary social fund. These are:

• budgeting loans
• community care grants
• crisis loans

Apart from satisfying the rules for an award from the discretionary social fund you may still be refused, or offered less money, because of budgetary constraints. Payment of budgeting and crisis loans can also be refused on the grounds that you are unable to pay the loan back. 

It is always advisable to go for community care grants where possible, as these do not have to be paid back.

Wherever there is a refusal to pay, or less money is offered, you should always ask for the decision to be reviewed and get independent advice.

2.1 Budgeting loans

These are interest free repayable loans. Payment is limited to  between £100 and £1500. This is reduced by any capital/savings in excess of £1000 or £2000 for those 60 and over.

To qualify you must have been on income support, income-related employment support allowance or income-based jobseeker's allowance or pension credit for 26 weeks. 

You can only claim for:

• furniture/household equipment.
• clothing/footwear.
• rent in advance.
• removal expenses to secure new accommodation.
• improvement, maintenance and security of the home.
• travelling expenses.
• expenses connected with seeking or re-entering work.
• hire purchase debts and other debts for any of the above items.

Steve Webb MP, Minister of State to the Department for Work and Pensions has stated that:

"in the forthcoming Welfare Reform Bill, [the Government] will introduce legislation to make social fund budgeting loans available to help families to buy maternity items or items for a new baby or to help them towards meeting some of the costs of a relative's funeral. This help will be available in addition to the Sure Start maternity grant and the social fund funeral payment from late next year."

[Source: Hansard 6 Dec 2010 : Column 9WS]

The amount of loan offered depends on the budget and your personal circumstances - the number of people in your household and the length of time you have been they have been on qualifying benefits.

You claim from your local Department for Work and Pensions or Jobcentre Plus (or you can download the form) on form SF500.

2.2 Community care grants

Community care grants are intended to promote community as opposed to residential care. They enable you to buy essential items without having to pay the money back. Essential items include bedding, clothing, cookers, furniture and carpets. There is no limit to what is claimed though some items are excluded from the grant. The minimum payment awarded is usually £30 (but travelling expenses can be lower).

There is no upper limit. The grant is reduced by any capital/savings in excess of £500 or £1000 for those 60 and over.

To qualify you must be getting  income support, pension credit, income-related employment support allowance or income-based jobseeker's allowance or be due to leave institutional or residential care within 6 weeks of your application for a community care grant and be likely to get one of these benefits when when you leave. You must also need the grant for one of the following purposes:

• to help you re-establish in the community following a stay in residential or institutional care
• to help those without a settled way of life to resettle in the community
• to help you remain in the community rather than enter institutional or residential care
• to ease exceptional pressure on you and your family
• to help care for a prisoner/young offender on temporary release
• to help pay specific travel expenses

You claim from your local Department for Work and Pensions or Jobcentre Plus (or you can download the form) on form SF300.

2.3 Crisis loans

These are for short-term (usually periods not exceeding 14 days) expenses payable to cover an emergency or disaster. You do not have to be on any other benefit but your "resources" will be considered when deciding whether to make a payment. To get a crisis loan:

• You must be aged 16 or over.
• The amount to be awarded must not be more than you can afford to repay.
• You must need the loan because of an emergency or disaster, usually where the loan would be the only means of preventing serious damage, or serious risk to the health or safety of yourself or a member of your family.

Payments for an emergency

You can only get a crisis loans for an emergency if it is for:

• living expenses
• rent in advance
• board and lodging charges
• residential charges for hostels
• emergency travel when stranded away from home
• the cost of repaying emergency credit on a pre-payment meter.

The amount of any crisis loan awarded is the smallest amount needed to tide you over or remove the crisis. There is no minimum amount. The maximum amount that can be paid is £1,500 less any other social fund loan outstanding. You also cannot be awarded more than you can afford to repay.

If you are applying for immediate living expenses the maximum loan will be 60% of your ESA/JSA/IS personal allowance plus £62.33 for each dependent child. You can only get crisis Loan awards for living expenses thee times in any ' rolling' twelve month period'.

Note: Since 14 December 2009 those making applications for a crisis loan for living expenses (other than for loans to cover the period before a claimant receives their first payment of benefit or wages) may be required to attend a face to face interview. It is intended that this will apply when you make a third application.

You claim by ringing the Jobcentre Plus claimline 0800 055 6688 or at your local Jobcentre Plus office. You can also download the form SF401.

In Northern Ireland you can call freephone 0800 028 8822 (Calls from mobile phones are charged at the standard rate).

Students and crisis loans

If you are not entitled to income support, income-related employment support allowance, pension credit or income-based jobseeker's allowance, because you are a full-time student, you can only get a crisis loan to alleviate the consequences of a disaster.

2.4 Abolition of community care grants and crisis loans

Part 3 of the Welfare Reform Bill 2011 proposes the ending of discretionary payments under the social fund. This means that community care grants and crisis loans apart from any loan you get pending payment of benefit (these are known as alignment loans) will cease.

Instead, in England, new locally-administered assistance will be provided by local authorities. In Scotland and Wales the Devolved Administrations will decide the most appropriate arrangements for assistance.

The intention is that the new locally-based assistance will be implemented from April 2013. At this point community care grants and crisis loans will be withdrawn. The new assistance provided will be up to your local authority to decide.

Budgeting loans and alignment loans will be replaced by payments on account.

The DWP has produced a resource page where you can get information and updates on social fund reform at www.dwp.gov.uk/local-authority-staff/social-fund-reform/.

3. Challenging a social fund decision

3.1 Regulated (non-discretionary) social fund

If you disagree with a decision you can ask the decision maker to look at his or her decision again (this is known as a revision). You have one month from the date of your decision to do this. You will need to provide additional information to support your case and should get a local advice centre to help you.

If the decision is not changed you can appeal to a tribunal. You have another month from the date of the new decision to do this.

For more information on this see our Factsheet F36 - reconsideration and appeal - the basics.

3.2 Discretionary social fund reviews

You can ask for an internal review of any decision made by a decision maker, including the refusal of a payment, or the amount awarded (you can accept the payment pending review of the amount). You must do this in writing within 28 days of the date the decision was issued to you. The time limit can be extended if there are ‘special reasons’.

The review is carried out by a reviewing officer in the office that made the decision. If the decision is not revised in your favour, you may be asked if you want an interview by telephone. If it is difficult or inappropriate for you to use the telephone, you can be interviewed at the local office, and you can take a representative with you to help present your case.

The interview can be held at your home if you cannot attend the office or deal with it by phone.

For reviews concerning budgeting loans, the reviewing officer will only look at your circumstances at the time of the original decision (you can submit new evidence relating to the time of the decision). For other reviews, changes of circumstances since the decision can be taken into account, including changes in the level of the local budget.

If you are not happy with a review decision made by a reviewing officer, you can ask for a further review by a social fund inspector based at the Independent Review Service in Birmingham . The inspectors are independent from the DWP but must take into account the same matters as decision makers when deciding whether to change a decision.

You should apply direct to the Independent Review Service on form IRS1 within 28 days of the day the decision was issued to you. The social fund inspector can accept a late application if there are special reasons.

For more information on this see our Disability Rights Handbook.

4. Where can I get more help and information?

You can get help and information at your local advice centre, such as a Citizens Advice Bureau. You can get more information about where to get personal advice from our Factsheet F15 - Finding a local advice centre.

This Disability Alliance factsheet is a basic introduction to the Social Fund. You can find out more detailed information in Disability Rights UK's Disability Rights Handbook.

All our publications are available at www.disabilityalliance.org/shop.htm. You can also place an order by contacting Disability Rights UK on 020 7247 8776 (this is not an advice line) or by fax on 020 7247 8765. All our factsheets are available at www.disabilityalliance.org/fact.htm.

15 December 2011