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The Social Fund: Current Role and Future Direction
The Centre for Research in Social Policy has recently completed a project for the Joseph Rowntree Foundation exploring the current role and future direction of the Social Fund. The research explored the contribution the discretionary Social Fund makes to living on welfare benefits. It involved benefit recipients and members of the wider general public in examining the aims of a social fund scheme and the reform of the current system.
The Social Fund was established in 1988 to provide financial support for people on low incomes experiencing exceptional needs. It has two elements: the regulated Social Fund and the discretionary Social Fund. This project focuses on the discretionary Social Fund, which has been a controversial part of the welfare system.
The research objectives are:
- To explore what contributions the Social Fund makes to reducing poverty and social exclusion;
- To assess whether proposals for changes to the Social Fund are likely to further Government objectives of combating poverty and social exclusion; and
- To produce policy recommendations for reform of the Social Fund.
There are two main elements to the research:
- Quantitative analysis of the Family Resources Survey and the Expenditure and Food Survey, to explore the main socio-economic and demographic characteristics of Social Fund users, uses made of Social Fund awards and the repayment of loans.
- Qualitative focus groups with Social Fund applicants and eligible non-applicants, to explore the role of the Social Fund in households dealing with times of particular financial hardship. Policy groups and a workshop were also convened, in which those eligible for the Social Fund, as well as members of the wider general public, explored policy options for the reform of the Social Fund. Participants identified what needs and events should be met through government support and how these needs should be met.
Based on this research, the project team have made recommendations for improving the existing Social Fund scheme, as well as making proposals for more major reforms to the Social Fund which would better meet the Government’s aims for reducing poverty and social exclusion. The full report of this research is due to be published in Summer 2006.
We are grateful to Sir Richard Tilt, the Social Fund Commissioner, and Ann Greenshields and Pauline Adey, of the Independent Review Service, for their support throughout the project, providing information and insight into the workings of the Social Fund.
Project Team: Kate Legge, Professor Bruce Stafford, Yvette Hartfree, Dr Monica Magadi, Jacqueline Beckhelling, Dr Line Nyhagen Predelli, Sue Middleton,
Dates: June 2004 to 2006
Sponsor: Joseph Rowntree Foundation
Launch: 1 June 2006
Publications
Legge, K., Hartfree, Y., Stafford, B., Magadi, M., Beckhelling, J., Predelli, N.P. and Middleton, S. (2006) The Social Fund: Current role and future direction. Joseph Rowntree Foundation. ISBN 1 85935 472 6, ISBN 978 1 85935 472 8. £17.95. Findings.
Magadi, M. and Beckhelling, J., (2006) The Use of the Discretionary Social Fund Across Families: Evidence from the Expenditure and Food Surveys, CRSP Research Report 4.
Legge, K., (2006) Receipt of Discretionary Social Fund Awards: Findings from the Family Resources Survey, CRSP Research Report 5.
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