Agenda item

(1)       Mr Hill, Mr Whittle and Ms Grosskopf introduced a report on the transfer of the national scheme of Community Care Grants and Crisis Loans, which were part of the Discretionary Social Fund, from the Department of Work and Pensions to upper tier (in two tier areas) authorities from April 2013. It was intended that Local Authorities should design their own local schemes to better meet the needs in their areas.

(2)       The report provided Members with background information on the reform and a summary of the thinking to date on what the key features of the scheme should be and the options for delivery.  In brief, it was believed that, in contrast to the current scheme, KCC should develop ways to meet needs in ways that did not involve giving money to individuals.  Rather, for people eligible for help under the scheme, goods and services should be provided and other help given to deal with the presenting problem and, if possible, any underlying issues affecting them. 

(3)       The report was being presented now in order for Committee members to be able to influence the development of the local scheme.  A more detailed report with a full options appraisal and firm recommendations would be presented to a future Communities Cabinet Committee prior to the Key Decision taken by the Cabinet Member.

(4)       Mr Hill, Mr Whittle and Ms Grosskopf noted comments and answered questions from Members which included the following:

·        Ms Grosskopf confirmed that currently the loans were almost all recovered from benefits but that this option would not be available to KCC.  A loan scheme would be expensive for KCC to operate and there would be difficulties with recovery.  However consideration was being given to working with Kent Savers (the Kent Credit Union) for part of the scheme.

·        In response to a question on the possibility of the funds received from Central Government running out and if so whether KCC would be required to put more money in to the scheme from its own funds, Ms Grosskopf stated that in order to avoid this KCC was looking at the most cost effective solutions.  What also needed to be taken into consideration was that assistance from the scheme helped to prevent people needing to access KCC statutory services which would be more costly to KCC in the long run.

·        Ms Grosskopf explained that it was intended that the first year would be a pilot to see how the scheme worked and to assess the demand for it.  She referred to the possible model for the pilot year set out in the report but stated that all other options would be considered.  

·        Ms Grosskopf informed the Committee that there had been some interest from third sector organisations which recycle furniture etc and they were engaging with them.

·        Mr Whittle confirmed that there would be a rigorous application process.

·        In response to a question on monitoring of the spending of any cash given to insure that it had been used for the appropriate purpose, Ms Grosskopf stated that the intention was to develop a mechanism whereby we would pay for goods and services directly rather than giving money to the individual.

·        Regarding the cost of administering the scheme, Ms Grosskopf confirmed that KCC would be receiving funding for this for two years which would enable staff to be employed as necessary to administer it.  Mr Whittle stated that post 2015 funding might be lower and this was a risk for KCC. 

·        Ms Grosskopf confirmed that they were actively engaged in discussions with the Contact Centre Manger regarding how the Contact Centre could support this scheme.  It was extremely important that there were specifically trained staff in the Contact Centre to deal with enquires about this scheme.

·        Ms Grosskopf explained that the “Troubled Families” cohort was a small subset of the people who applied for this sort of grants and loans.

·        Mr Whittle confirmed that the money allocated by Central Government for these grants and loans was not ring fenced and that after the first two years it may be rolled into the general grant. He suspected that there would be a steep tapering effect after 2015 with the expectation of an increase in the use of the voluntary and community sector to meet needs.

·        In relation to benefits data, Ms Grosskopf stated that the law had been changed to allow local authorities to access this in certain circumstances without the permission of the individual but that the necessary processes had not yet been put in place.  The DWP has stated that these will be in place by April 2013 when the scheme needed to start.

·        Ms Grosskopf acknowledged that there was a reputational risk to KCC with this reform, as Job Centre plus and other Government agencies would inform people that KCC now had the money for these grants and loans.

(5)       RESOLVED that the comments by Members on the report be noted