DWP grant scheme is 'inefficient and unfair'

15 Dec 10
The government’s £141m Community Care Grant scheme is both inefficient and unfair, according to a group of influential MPs

By Lucy Phillips

16 December 2010

The government’s £141m Community Care Grant scheme is both inefficient and unfair, according to a group of influential MPs.

A report by the Public Accounts Committee, published today, found the discretionary hardship fund, administered by the Department for Work and Pensions, is failing to reach the people most in need.

Errors are too common, and a large proportion of decisions on who to allocate money is challenged and over-turned, while administrative costs are unacceptably high.

PAC chair Margaret Hodge said: ‘The department doesn’t know whether grants are going to those most in need and doesn’t check that the grant is spent as intended. There is a postcode lottery and whether an applicant is awarded a grant depends on where he or she lies. Key target groups such as pensioners and members of ethnic minorities are losing out because they are less likely to know about the scheme.’

The scheme has been frozen in cash terms since 2006/07 with future funding expected to remain at £141m a year.

Jobcentre Plus also came under fire for failing to introduce basic anti-fraud measures and for its poor decision-making.

The government’s welfare reform white paper, published last month, contains plans to devolve responsibility for administering the grant to local authorities. The MPs said this would provide a good opportunity to address many of the problems they had identified, but warned: ‘Responsibility should only be handed to local authorities if there is a clear business case to do so, and if local authorities are properly resourced to do the job. Devolution does not absolve the department of its responsibility to ensure greater fairness in the scheme.’

The report also says there is scope for efficiency in the scheme by purchasing frequently requested items through central contracts.

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