This is the twenty fourth annual report to Parliament on the operation of the Social Fund for Great Britain required by sections 167(5) and (6) of the Social Security Administration Act 1992.

The Social Fund scheme includes a regulated scheme made up of Maternity, Funeral, Cold Weather and Winter Fuel Payments; and a discretionary scheme comprising Community Care Grants and repayable Budgeting and Crisis Loans.

Social Fund payments are wide ranging from payments to help with intermittent unexpected expenses (mainly to those in receipt of qualifying benefits), to payments aimed at certain groups to help with particular events. The fund does not therefore fall exclusively into any one of the Departmental client groups of Children, Working Age and older People, although Social Fund payments are either paid to, or benefit, all of these groups. Some statistics in this report are shown by applicant or claimant groups that fall into one or more of the wider client groups.

Annual Report to Parliament on the operation of the Social Fund 2011/2012

Forthcoming changes:

The Welfare Reform Act 2012 reforms the Social Fund to support the move to Universal Credit.

Community Care Grants and Crisis Loans will be replaced with locally based support, which will continue to provide individuals in need with help when it is most needed. It will mean however that individuals will have to take more responsibility in managing their own finances and plan for their future rather than building up benefit debts they can ill afford.

The local provision will be delivered by local authorities in England, and the devolved administrations in Scotland and Wales.