Part IIIBenefits

Amendments etc. of Contributions and Benefits Act

I170Discretionary payments out of social fund

1

For subsection (1) of section 138 of the Contributions and Benefits Act (payments out of social fund) there shall be substituted the following subsection—

1

There may be made out of the social fund, in accordance with this Part of this Act—

a

payments of prescribed amounts, whether in respect of prescribed items or otherwise, to meet, in prescribed circumstances, maternity expenses and funeral expenses; and

b

payments by way of community care grant, crisis loan or budgeting loan to meet other needs in accordance with directions given or guidance issued by the Secretary of State.

2

After subsection (4) of that section there shall be inserted the following subsection—

5

In this Part—

  • “budgeting loan” means a loan awarded in circumstances specified in directions issued by the Secretary of State for the purpose of defraying an intermittent expense;

  • “community care grant” means a grant awarded in circumstances so specified for the purpose of meeting a need for community care;

  • “crisis loan” means a loan awarded in circumstances so specified for the purpose of meeting an immediate short term need;

and any reference in this subsection to meeting a need or defraying an expense includes a reference to helping to meet the need or to defray the expense.