Welfare Reform Bill

There have already been conversations with local government, and as I think Opposition Front Benchers hinted at, there was a broad welcome for the proposals. We shall certainly be working with local authorities to make sure that what happens is exactly what the hon. Gentleman was talking about; the spread of best practice will be critical. The amendment seems to have taken no notice of the national provision of payments on account that DWP will provide under clause 98. Budgeting advances—the replacement scheme for social fund budgeting loans—will be very similar to budgeting loans, which have been hugely successful and largely self-financing. Budgeting advances will be targeted at those who are least likely to be able to access mainstream lending. That will help to ensure that vulnerable people are not driven to illegal lenders, which is rightly of concern to Opposition Members. Short-term advances—the replacement scheme for interim payments and crisis loan alignment—will ensure that people who face financial need as a result of problems with their benefit claims will, if they are eligible, be able to access financial assistance through interest-free advances of their benefit. The grounds for eligibility will be set out clearly in regulations. Another element of the amendment is a requirement for the Secretary of State to publish a proposal for a replacement scheme, based on wide consultation with stakeholders. We are already taking that approach in our discussions about replacement schemes. We will soon publish our response document to our call for evidence, which was based on wide consultation with lobby groups and local authorities. There will be a large amount of information and evidence for Members to consider. The amendment requires local authorities to set up an independent appeals mechanism, but as I have already said, local authorities will be able to set up an internal review mechanism if they think it appropriate. Furthermore, the local government ombudsman offers a fair and impartial service for people who are dissatisfied with a decision made by their local authority. In conclusion, the national scheme of payments on account and the local provision, as delivered by local authorities and the devolved Administrations, will provide well-considered replacements for the discretionary social fund, and will make sure that we are supporting more effectively than is currently the case the vulnerable individuals we have discussed today. With those reassurances, I hope Members feel it appropriate to withdraw their amendments, and we can press forward with the Bill.