Welfare Rights Team - Annual Report 2023/2024

Since December 2020 Perth & Kinross Council has delivered Perth & Kinross Council's locally delivered scheme to low-income households to help mitigate the effects of the coronavirus pandemic and subsequent cost of living crisis on households in our area.

The scheme has been recognised by the Scottish Poverty and Inequality Research Unit (SPIRU) at Glasgow Caledonian University in their Tackling Poverty Locally Online Directory.

Last financial year (2023/24) the FIF made the following payments:

• One-off rural hardship payments.
• Assistance with priority debts (energy, Council Tax, broadband, rent).
• Assistance with oil and solid fuel.
• Assistance in respect of clothing for children over the Winter period.
• Assistance with school dinner and other child-related debts.
• Crisis Grant payments for people with No Recourse to Public Funds (NRPF).
• Assistance with Infant Formula.
• Assistance with reasonable one-off needs

Last year we received 2,556 FIF applications with an award rate of 62% and average award of £419.

The total spend last financial year was £664k.

A total of 3,347 payments were made to households.

The principles of the FIF

• Robust, evidence-based assessment process and eligibility criteria.
• Provides robust data.
• All applicants must undergo a comprehensive welfare benefit check - this is a condition of the scheme to ensure that all households, whether successful or not, receive advice and assistance to ensure that they are or that they will be receiving their full welfare benefit and other entitlements in order to maximise income, reduce outgoings and to provide better longer-term sustainable solutions for our residents. This is a Best Value approach which should prevent/reduce additional cost to the local authority and other agencies/community groups at a later date.
• It does not replicate or duplicate existing statutory provision unless otherwise exhausted.
• Relies on existing capital rules which exist within the Scottish Welfare Fund in respect of Community Care Grants.
• We applied the Scottish Government, Self-Isolation Support Grant income rules to the scheme, the point at which Universal Credit would no longer be paid plus 25%. This is always based on household composition, so is proportionate and accurate and always includes an average amount for rent so that owner-occupiers were not disadvantaged by the scheme. This meant that we could assist households that weren't in receipt of benefit but who were still struggling financially.
• As FIF is not a public fund we ensured that those residents of Perth & Kinross with no recourse to public funds were in scope for all payments, ensuring that all Perth and Kinross residents had equitable access to the fund.  We made onward referrals to the Ethnic Minority Law Centre and other relevant agencies where it was appropriate to do so (the reality is and has been the case since 30 June 2021 that the group most likely to access the fund on this basis are EEA Nationals who do not have settled or pre-settled status and who are often cut adrift from any financial assistance due to current UK Government legislation).

Energy Debt payments

Households in receipt of a low-income with energy debt no greater than £3000 were able to access payments of up to £500 last financial year (the energy debt payments were up to £1000 in previous years). 

A total of 331 households benefitted from these payments which either removed or reduced their debts to energy suppliers. Households reported feeling relieved and grateful that at a time of increased living costs they were able to apply for financial support to alleviate their financial circumstances.

We allocated £130k in total to households in respect of their energy debts.

Rural Hardship payments and support with oil and solid fuel

Living rurally brings with it additional barriers for households which more often than not, come at a cost. In recognition of this FIF delivered a one-off rural hardship payment for eligible low-income households. Households with no children receiving a £100 payment and households with children receiving a £200 payment.

Last financial year we made rural hardship payments totalling £159,000 to 1130 households. Of those 1130 households, 442 had dependent children.

In addition to the rural hardship payments, last year, we also supported households struggling financially with the cost of oil and solid fuel. Throughout 2023/24 we supported 27 households to the value of £9,700 which meant they were able to heat their homes over the winter period and didn't have to make the difficult choice between heating their homes and eating.  Of those 27 households, 17 had dependent children.

Council Tax payments

Council Tax debt is an area of public debt that attracts a lot of attention and is an area where there is no longer a discretionary scheme that exists within the benefits system to assist low-income households. It is for this reason that we were so determined to include it in the various payments the FIF scheme would offer. Discretionary Housing Payments (DHP) were available to assist with Council Tax debt until 31^st March 2013, however, once Council Tax Benefit was abolished so too was the link to DHP.

We saw an opportunity to change/influence that and we did by administering FIF payments to eligible households with Council Tax debt that dated back no longer than 2018 (in-line with the introduction of full Universal Credit in our area) and for households that had no more than £3000 of Council Tax debt.

Last financial year we assisted 501 households with Council Tax debt to the value of £120k. Of these 64 payments were between £500 and £1000, 135 payments were between £250 and £500 and the remainder were below £250. All of these households received comprehensive welfare benefit checks, advice and assistance as required. Reducing priority debt to some extent and alleviating some stress for 500 households. Some households have also gone on to negotiate manageable repayment plans with our Local Taxes Team, following household income maximisation.

We undertook some analysis of the 100 highest payments awarded and found that following the FIF payment, a minimum of 8 households no longer had Council Tax arrears and the cases were no longer with Sheriff Officer. No Sheriff Officer involvement means less stress for the households overall, as well as, preventing additional charges being placed on the debt, prevents earnings and bank account arrestments and sequestrations.

Three of the households had children, two lone parent families and a large family (couple) with more than three children. There was one couple household and four of the households were single people.

All of the households were self-referred and called the Welfare Rights Advice Line on their own behalf. We identified the following benefits missing for these 8 households:

• 2 x Council Tax Reduction applications.
• 2 x Adult Disability Payment claims.
• 1 x New Style Employment & Support Allowance claim.
• 1 x Universal Credit (Limited Capability for Work-related Activity Element).
• 1 x Scottish Child Payment.
• 1 x Universal Credit claim.
• 1 x Child Disability Payment.
• 1 x Student Council Tax exemption

Some of these claims have yet to be decided by the relevant benefit authorities but so far we have been able to confirm a total award of £6650 for these 8 households alone.

In addition to the amount paid towards Council Tax arrears for these 8 households (£6,182.23) they also benefitted from a further £3,481 in FIF payments in respect of rent/mortgage arrears, energy arrears and rural hardship payments.

This is a total of £16,313.00 between all 8 households.

This is a very small sample of the work that has been undertaken but provides a flavour of the work that has been undertaken overall in each of the 2,556 FIF applications received.

One-Off Discretionary Fund

From mid-November 2023 until 31^st March 2024, an additional payment was created within the FIF scheme with similar principles to that of the Welfare Trust.

We applied a £500 limit to each award (but with discretion in exceptional circumstances) and households could apply as often as needed so long as no applications for repeat needs within 28 days. We paid over £500 on 10 occasions.

This additional fund allowed us to continue as if the Welfare Trust budget had continued and it tided PKC residents over the winter months.

460 One-Off discretionary payments were made totalling £84k. Overall these households have benefitted from the FIF scheme in a share of £190k an average of £425.25 per award.

25 (5%) of the households were not in receipt of a means-tested benefits however their incomes were below the Universal Credit threshold figure + 25%. These are households where we were satisfied there was no additional income and also a cohort that would have received little or no cash assistance elsewhere.

52 households were in paid employment. 8 of those households and had no benefit entitlement.

Over half of the applications to the one-off discretionary FIF fund were identified and submitted by the Welfare Rights Team on the household's behalf.

Case study 1

A family of 6 - a couple and 4 children - where 2 of the children had behavioural issues and additional needs living in a private let. Their youngest child (11 months) had outgrown their high chair and car seat due to disability with the need too pressing and too early for the next tranche of Scottish Government Best Start Grants which were explored as part of the assessment.  The family were previously open to us to follow up on previous assistance and Child Disability Payment was awarded for one of the children following our involvement.

The family received a One-Off payment award in respect of:

• Child's car seat
• High chair
• 36 piece crockery set
• Clothing for both adults

Total One-Off discretionary award of £457.

Other FIF awards were made in respect of:

• Rural hardship payment for a household with children
• Clothing for 4 children

Total other FIF award of £600.

Total FIF award of £1057.

Case study 2

A single gentleman in his early 60s who lived rurally presented in Pullar House. He was recently bereaved, had limited literacy and almost no digital skills.

A Welfare Rights Officer assisted him to make a claim for Universal Credit via the Universal Credit Helpline which is standard procedure for those with little or no digital skills and was advised the application could not proceed as the gentleman did not have a mobile phone number he could provide.

The Welfare Rights Officer submitted a FIF application in respect of £500 towards Council Tax arrears, a Rural Hardship Payment and funds to purchase a mobile phone and data.

The Welfare Rights Officer also assisted the gentleman with a single person's discount to reduce his Council Tax by 25%, completed a Council Tax Reduction application and a claim for Adult Disability Payment that same day once he had bought himself a mobile phone and some data.  He then proceeded to help with with his Universal Credit claim.

Total payment from FIF £820, £120 of which was a one-off payment for mobile and data.

The £820 payment does not include the income he then received from Universal Credit, his reduced Council Tax or his Adult Disability Payment, the outcome of which is still to be confirmed.

Infant Formula Fund

During 2023/24 we worked with Public Health colleagues to create a referral pathway for infant formula, guided by UNICEF recommendations. The guiding principle is that local authorities and health boards should work together to ensure that parents with a child under 12 months can access infant formula for themselves and that foodbanks and community larders should not stock or distribute infant formula.

We have, therefore, created a small fund specifically for infant formula for occasions when households may not qualify for Crisis Grants. Crisis Grants are our statutory first-response to crisis and so this provision should be exhausted, where possible, in the first instance. We can now provide cash to parents with children under 12 months of age (or a child of any age with a need that requires formula e.g. premature babies/disabled children) that require infant formula.

18 families benefitted from this fund and the total sum was £420.

No Recourse to Public Funds (NRPF) Crisis Grants

As a Council, our aim is to provide equitable access to a cash-first response in times of crisis, our FIF scheme therefore includes an NRPF Crisis Grant. The NRPF Crisis Grants element of the FIF scheme mirrors the Scottish Welfare Fund Crisis Grant scheme with the exception of Independent Review (this is undertaken by the Scottish Public Service Ombudsman for SWF cases).

In the past year we paid 60 NRPF Crisis Grants to the value of £15k with an average award of £250 to households with no recourse to public funds. The overwhelming majority of these payments were made to EEA National households where they have no settled or pre-settled status. Almost all of the households are responsible for dependent children. Onward referrals are therefore made, with consent, to the Ethnic Minority Law Centre (EMLC) to either submit late applications to the European Union Settlement Scheme or to challenge decisions by the Home Office that may be incorrect.

NRPF Crisis Case study

Mr and Mrs Barbu were referred to the Welfare Rights Team by ESOL Perth as both husband and wife's applications to the EUSS had been refused. ESOL Perth had referred the couple to EMLC but sought our advice on any entitlements the family may have.

The family are Romanian nationals, with two children of school-age.

A couple of days following the initial referral we also received an email from an elected member who was also concerned about the family.

Mr Barbu had been working pending the decision on his EUSS application, however, when he received the decision from the Home Office refusing his application, he was no longer allowed to work in the UK and duly advised his employer of his change in circumstances. Alongside this the household entitlement to Universal Credit also stopped and the family's only income was then Scottish Child Payment of £50 per week, we advised the family to report the Home Office decision to Social Security Scotland as this payment should have ended when their Universal Credit stopped.

The family had been living off food-bank parcels and borrowing money from friends for the last few weeks preceding them being referred to the Welfare Rights Team.

We assisted the family to make a FIF application. A face-to-face appointment using an interpreter was arranged and we assisted with the gathering of evidence to support the application.

All relevant evidence was submitted at this appointment and Mr Barbu was advised that FIF would be paid as follows:

• NRPF Crisis Grant for 28 days - £896
• Council Tax arrears - £301.75
• Child Clothing payment - £260
• Broadband debt - £75

When the Welfare Rights Officer advised Mr Barbu of the financial assistance his family would receive he broke down and became extremely tearful. He was overwhelmed by the response and kept thanking the member of the team.

The family's case was allocated to a Welfare Rights Officer to assist with benefit applications in the event that the Home Office decisions were overturned at appeal. The EMLC were assisting with this.

In addition, the family's children were attending a school which proved difficult to get to and caused additional financial pressure on the household. There were two schools that were within walking distance. The family did not understand why their children had been placed at this school and so we wrote to the Education Department on Mr Barbu's behalf so that he could receive an explanation for the decision and to explore whether there was the opportunity for the family's children to access a school nearer to the family home.

A further FIF NRPF Crisis Grant was awarded following the initial 28-day period as the family was again in crisis. A further £896 was awarded to tide the family over.

A third FIF NRPF Crisis Grant was awarded following the second 28-day period as the family were in crisis. A third payment of £896 was awarded.

During the appeals process for the EUSS decision it became apparent that there were outstanding legal issues that would prohibit a positive decision from the Home Office, we shared this information with EMLC with the family's consent and EMLC confirmed our thoughts. It was unlikely that any status would be granted, we advised the family during an emotional face-to-face appointment of the likely outcome and we kept up contact with them to ensure that their needs were met, as much as possible, until their final departure to Romania.

School dinner and other child-related debts

Last year we assisted 21 households with debts they owed to the Council in respect of school dinner and other child-related debts such as kids clubs. The total sum paid was £4.3k and this was an average of around £204 per household. Some of these households would have had entitlement to Free School Meals and applications were submitted on the household's behalf where this was missing. The remaining households had entitlement to a means-tested benefit such as Universal Credit or Council Tax Reduction however their earnings excluded them from Free School Meals entitlement. Removing these debts from households reduces stress, removes recovery action for the debt and improves the relationship families have with the local authority.

Clothes for children

We administered a payment to families, referred by schools, whereby they were excluded from School Clothing Grants because their earnings were too high yet they had entitlement to a means-tested benefit such as, Universal Credit or Council Tax Reduction. From November, the Council removed the requirement for schools to refer these families and we broadened the scheme to include all children not solely children of school-age. We spent a total of £83k on clothing for children and the majority of these payments were made over the winter period. Around 650 children benefitted from these payments across Perth and Kinross.