Departments Directions Social Fund GuidePart 5 - The Budget
Direction 41 and 42 - Responsibilities of DMs 7151The Social Security Contributions and Benefits (Northern Ireland) Act 1992 requires DMs to have regard to the budget when deciding:
- If an award should be made
- The amount of the award
7152DMs are to have regard to the grants and loans budgets in accordance with Direction 41 and 42.
7153For grants, the budgetary aim is that the total value of payments made meet the level of the District’s annual budget without exceeding it. DMs are assisted in making decisions that fulfil these requirements by both the ADM guidance and relevant budgetary information provided by the ADM.
7154For loans there is a single Northern Ireland budget which is managed centrally. DMs then have regard to the Northern Ireland budget by applying the most recent budgeting loan baseline figure when determining budgeting loan awards.
7155Also, DMs must have regard to the Department’s guidance on priorities for CLs within the loans budget.
7156Decision Makers (DMs) must:
- take account of the Area Decision Makers (ADMs) guidance specifying the level of priority for Community Care Grants (CCGs) that may be met from the budget allocation
- take account of the Department’s guidance in this Social Fund Guide which specifies the level of priority to be given to Crisis Loans (CLs)
- take account of any supplementary Departmental guidance (this will be brought to DMs’ attention by the ADM)
- apply the latest baseline figure which is provided by the Department
- use all relevant budgetary information on the state of the local District grants budget.
- Not make a Community Care Grant award which, in the aggregate with other grant awards, exceeds the District allocation.
7157To do this DMs should ensure that they:
- have current budgetary information issued by the ADM about the state of the grants budget (note that this should consist of at least a comparison of year to date expected spend against actual spend)
- are familiar with guidance in this Social Fund Guide on priorities for CCGs and CLs
- have current ADM guidance on the level of priority which may be met for CCGs
- know the current maximum amount available to each budgeting loan applicant (by reference to the current baseline figure)
7158DMs should aim to achieve a consistency of decision making:
- with other DMs within the District
- throughout the allocation period
Budgetary decision making under the relevant District allocation for CCGs
7159Throughout the allocation period, aim to meet high priority needs before those of lower priority. Do this even if the same sum could be used to meet more than one need of lower priority.
7160Priority must be decided on the basis of the nature, extent and urgency of need, taking account of the Department’s guidance on establishing priorities. DMs should never let the state of the local budget affect conclusions about the priority of CCG needs.
7161Having decided the priority of need, DMs must decide if an award can be made and, if so, how much this should be. This is done by looking at the current state of the budget.
7162Evidence about the current state of the budget position is available both in ADM guidance and the budgetary information issued by the ADM under – Direction 40.
7163See Part 2 of this Guide for full information about making CCG decisions.
Budgetary decision making under the relevant Northern Ireland allocation for loans
7164For BLs, it is the weighting value given to the application that determines the maximum amount available to each budgeting loan applicant; the higher the weighting value the higher the maximum amount will be (subject to capital, ability to repay, existing indebtedness etc).
7165The appropriate weighting value is determined under – Direction 52 on the basis of the applicant’s personal circumstances as specified in Direction 50. Weighting values for BLs can be found in Part 4 of this Social Fund guide.
7166The weightings to be applied to the baseline figure, as specified in – Direction 52, are relevant to arriving at the maximum amount of a BL award. This process has been automated.
7167The figure for the Northern Ireland budgeting loan baseline is provided by the Department and notified to DMs by the ADM. This takes account of the current state of the Northern Ireland loans budget.
7168DMs should use the budgeting loan baseline figure to determine the maximum amount appropriate to each budgeting loan applicant’s personal circumstances.
7169For CLs, DMs must consider priority based on Departments guidance on priorities in part 3 of this guide, and having decided priority must have regard to the current state of the Northern Ireland loans budget.
7170However, CL needs must be met from the loans budget first, ie above those of BLs.
7171In practice therefore, only the most exceptional and unexpected impact on the loans budget towards year end could ever justify the restriction of a CL award on budgetary grounds.
7172If such exceptional circumstances occur, the Department will provide supplementary guidance. ADMs must bring this guidance to the attention of DMs (– direction 40 refers).
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