By Lucy Phillips
22 July 2010
The Department for Work and Pensions has been criticised for failing to fairly distribute a £141m hardship fund.
In a report published today, the National Audit Office said that the Community Care Grant is not being effectively managed by the DWP or Jobcentre Plus, the agency it is administered by. Grants from the fund help people on benefits buy essential household items such as cookers, beds and clothing,
Despite high demand, there are no checks in place to ensure the money is going to those most in need and there is no information about how many people are aware of the scheme’s existence. In addition, the auditors found that there were few safeguards against fraud, leaving open the possibility that people could use the money to buy any items whatsoever.
The report also estimates that Jobcentre Plus could save £14m a year through central procurement of goods purchased under the grant and £7.5m a year by standardising the amount awarded to individuals for each item.
NAO head Amyas Morse said: ‘The Community Care Grant plays an important role in helping the most vulnerable in our society. The assessment process needs to be flexible and quick but the current scheme design does not deliver value for money.’
But the DWP rejected some of the findings, claiming that the nature of discretionary schemes meant there would be variations in judgements. ‘The alternative would be to operate the scheme on a rigid, uniform basis but in a manner that would fail to meet the needs of the vulnerable people it is designed to assist,’ it said in a statement contained within the report.
Margaret Hodge, chair of the Public Accounts Committee, which will be taking evidence on the DWP’s management of the grant shortly, said: ‘We need to make sure every penny spent goes as far as possible and that those who benefit are actually those who need it most. The department does not monitor whether this happens.’
