The Social Fund in the UK was a form of welfare benefit provision payable for exceptional or intermittent needs, in addition to regular payments such as Jobseeker's Allowance or Income Support.
The United Kingdom coalition government abolished the discretionary social fund with effect from April 2013, by means of legislation contained in the Welfare Reform Act 2012.
[1] Community care grants and crisis loans were abolished from April 2013 and instead funding was made available to local authorities in England and to the devolved administrations to provide such assistance in their areas as they saw fit.
There were three payments: The merits of each application were considered taking into account: the nature of the need; the existence of available resources; the possibility there is a more suitable provider; and the budgetary allocation.
The means-tested Supplementary Benefits scheme was revised in 1980 to include the provision of 'Single Payments' and 'Additional Requirements' which were disbursed according to detailed criteria contained in complex Regulations made under the primary legislation.
Social Fund grants for maternity and funeral needs would be based on clear, objective criteria and payments would not be constrained by the budget; they would be paid automatically on satisfying the qualifying conditions.
It also proposed a loans scheme to cover financial crises, for example, where money/benefits had been lost or stolen, or where there was an urgent need for funds following flood or fire.
The resulting legislation, the Social Security Act 1986 (c. 50),[7] reflected the policy development described above, subject to a number of changes made during the passage of the 1986 Bill.
The Council on Tribunals, for example, had issued a highly critical special report in 1986 which challenged the government's intention to dispense with an independent appeal mechanism.
In order to further entrench the independence of the SFIs, a new officer - the Social Fund Commissioner - to be appointed by the Secretary of State, was included in the legislation.
See generally, the DWP guidance at: http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/sb16-a-guide-to-the-social/sure-start-maternity-grants/ A Sure Start Maternity Grant is paid from the Social Fund as a lump sum, and is not repayable.
The Social Fund Directions[15] make it clear that the overall purpose of CLs is to help meet expenses in an emergency or disaster where there is no other means to prevent a serious health and safety risk to the applicant or their family.
[16] One of the reasons for the controversy surrounding the introduction of the discretionary Social Fund had been the initial plan to forego any appeal mechanism in favour of an internal management review of decision-making.
During the later stages of the parliamentary passage of the legislation, the Government conceded to the increasing pressure for some kind of external, independent review, albeit one which differed from the tribunal appeal model that had been a hallmark of the British social security system since the 1930s.