Welfare Reform Bill

I shall have a lot more to say on the Social Fund when we reach the next group of amendments; this one is by way of a starter. Those whose only income is derived from contribution-based benefits are at present not eligible to apply for help from the Social Fund. Contribution-based benefits can be claimed by those who have at least some national insurance contributions. Currently, eligibility for community care grant and for budgeting loans is restricted to people receiving pension credit, income support, income-based or means-tested JSA and income-based ESA. Community care grants do not have to be paid back, while budgeting loans are interest-free loans to help people meet one-off expenses. People with sufficient national insurance contributions have to claim the contribution-based element of benefits whether or not they have any other income or savings. Many people who have claimed contribution-based benefits do not have any other income or savings but are clearly disadvantaged compared to those on income-based or means-tested benefits. This is clearly unfair. Many people in this position face financial hardship and have no option other than to approach loan sharks. I do not usually cite case studies but on this occasion I will. A citizens advice bureau in Surrey advised a client who was in receipt of incapacity benefit. His circumstances were such that, had it not been for his NI record, he would have been entitled to income-based, means-tested benefits, which give access to the Social Fund. The client had moved into an unfurnished flat which had no cooking facilities or carpets and lacked a fridge. He had asked for a grant or loan from the Social Fund but had been told that he was ineligible because he was receiving incapacity benefit. As a result the client was cooking meals on a camping stove, which is dangerous, and buying take-away meals, which are expensive. The Minister may say that all the Bill does is to make provision to allow the Social Fund to be delivered by external providers. However, we cannot let pass this opportunity to discuss extending access to the Social Fund as a whole, however it is provided, to other low-income groups—in the case of this amendment, to those whose sole income is contribution-based benefits. I beg to move.