Social Fund

The Social Fund is intended to help with living costs that aren't covered by other benefit payments. It's made up of non-repayable grants and some repayable loans. To qualify for Social Fund payment you usually have to be receiving a 'qualifying benefit'.

The social fund is in 2 parts; the regulated and the discretionary.

The regulated social fund covers:

• Maternity grants
• Funeral expense
• Winter fuel and cold weather payments

If you satisfy the conditions of entitlement, you will receive payment.

The discretionary part covers:

• Budgeting loans
• Community care grants
• Crisis loans

Entitlement is discretionary as the amount awarded.

Regulated Fund

Sure Start Maternity Grant.
This is a lump sum of £500 payable to families on low income to help with the cost of a first child.

Funeral payments.
This is a lump sum to cover the essential costs of a funeral.  You must be responsible for organising the funeral to claim. The payment may have to be paid back from the estate of the deceased. There are complicated rules stating you can't claim if some other person close to the deceased could have afforded to pay the funeral costs. Qualification is means tested.

Winter Fuel Payments
A lump sum payable to help pay fuel bills; although it can be spent on anything.  It is not means tested. You must be the pensionable age for woman to qualify and payments are normally made automatically. Men age between 60 and 64 may need to apply. For winter 2010/11 this can be between £125 and £400 depending on your situation.

Cold Weather Payments
With the same intentions of winter fuel payments but open to everyone and means tested.

Discretionary Fund

Community care grants
These can be used to met the costs of starting or continuing to live independently. Eligibility is subject to qualifying benefits, and normally contains a disability element. The money does not need to be repaid.

Budgeting Loans
Budgeting Loans are for those on low income needing help with certain essential expenses. This takes the form of an interest free loan which is paid back by deductions for other benefits. The loan can be from £100 to £1,500 and normally paid back over a maximum of 104 weeks. You may be able to get a budgeting loan if you or your partner have been receiving any of the following benefits for at least 26 weeks:

• Income Support.
• Income-related Employment and Support Allowance.
• Income-based Jobseeker's Allowance.
• Pension Credit.

Typical use of a budgeting loan can be:

• Furniture or household equipment
• Clothing or footwear
• Advance rent or removal expenses for a new home
• Travelling expenses
• Things to help you look for or start work
• Improving, maintaining or securing your home
• Repaying hire purchase or other debts you took out to pay for any of the above

Crisis Loans

Social fund crisis loan are intended to provide financial help in the case of an emergency or disaster. To qualify for a crisis loan you must satisfy all of the following. You can apply for a Crisis Loan you need to prove:

• You don't have enough money to meet your (or your family's) immediate short term needs in an emergency or as the result of a disaster.
• without the loan there will be serious damage or risk to your (or your family's) health or safety.