Fears for needy people as cash stays in welfare fund

Most of the money comes from the Department For Work And Pensions, but it was topped up with an additional £9.2m from the Scottish Government.

As well as helping people affected by fire, flood, burglary or other catastrophes, grants are available for those with new tenancies, such as young people leaving care or homeless families, who need items such as white goods to set up home. It has also been used to help mitigate the impact of reforms to the benefit system.

It is hard to tell what is happening to the fund because detailed statistics due last week on the first three months of operation of the fund have been delayed until next February.

Announcing the delay, the Scottish Government blamed it on concerns about the quality of data supplied by Scottish councils.

However, opponents are not so sure. Scottish Labour has been pursuing greater detail after initial figures showed only half of the money available was spent in the first few months since the fund launched in April.

Local authorities, who are responsible for accepting applications under the new fund, had in some cases distributed as little as 11% of the money available to them.

Labour MSPs fear people facing severe financial difficulties are being referred to the voluntary sector and to food banks while the money available for grants goes unspent.

Dumbarton MSP Jackie Baillie, Labour's social justice spokeswoman, says the lack of detailed data about the scheme is alarming. "There have been 16 different changes to the guidance on the operation of this fund since its implementation. But there is evidence people are being referred to food banks rather than being encouraged to claim," she says.

"Why are local authorities not keeping this data?"

At a meeting of the Scottish Parliament conveners' group in September, First Minister Alex Salmond promised to update the welfare reform committee on the operation of the fund. He said: "I can tell you that in November we will be able to give you the first figures, which we believe will be robust and reliable, for the welfare fund's first six months of operation."

However, the change of plan has led opposition MSPs to restate their concerns.

Central Scotland MSP Michael McMahon, convener of the Welfare Reform Committee, says a lack of public awareness of the fund, and frequent changes to the eligibility criteria, could be among the reasons why money was not reaching those who need it fast enough.

"Change was expected, but not as often as this. There is still not enough awareness," he says. "We are concerned that if someone needs help because, say, their washing machine is broken, the Department For Work And Pensions (DWP) says, 'We do not do that any longer', but do not give any information out about who does."

This is borne out by voluntary agencies such as Citizens Advice Scotland, which points out that the DWP helpline for those in need simply points out that the old crisis loan system has been 'abolished'.

This is the case in England, but does not help those in Scotland to find their way to the new system that could help them.

Ms Baillie adds: "The key issue is that the need is out there. People are ending up going to food banks or other sources of assistance, such as payday loans."

Trisha Hall, manager of the Scottish Association Of Social Workers says there is a perception that the majority of people who might benefit from the fund simply do not know about it.

"The reality is we are in major austerity times and there is a tremendous amount of need out there. This fund is really a drop in the ocean and the guidelines are not very clear," she says.

"People are really struggling to find their way through the maze of different kinds of benefits they can apply for and more and more are being referred to voluntary organisations."

In the past social workers might have helped people fill out forms to access crisis loans, but it is increasingly difficult to prioritise this kind of work, she says.

Councils insist that the delay in publishing statistics on the scheme is down to problems with software and managing a large amount of complex data, while new systems bed in.

This refers to the new fund and the application process itself, but also to the software being used to record it.

Some councils have had to gather data manually in the first instance, and while initial figures were published, a spokesman says the details now due to be published in February will provide a much richer source of information about who is applying for grants and what kind of help the money is funding.

However, councils also say that levels of spending of the fund are now much higher and at the "right level". The Convention Of Scottish Local Authorities says councils have a target of spending £2.7m between them each month.

There has also been a push to let the public know - through a radio advertising campaign - that the fund exists and who is eligible.

At the same time, key professionals working in areas such as welfare rights, older people's organisations, Women's Aid hostels and homeless organisations are being updated on changes to the eligibility criteria and how clients can access crisis grants and community care grants.

As ever, the independence referendum looms large over this issue, for the Scottish Government and its opponents.

With ministers arguing that independence will bring greater control over benefits to the Scottish Parliament, this fund is seen as a key test of its competence to handle much bigger systems in the future.

The Scottish Government has indicated its chief statistician will now publish full details of spending for the first two quarters of the fund, covering April to September this year, when the statistics emerge in February. They are sure to be closely scrutinised.