Agenda item

(Report of the Assistant Chief Executive. To be introduced by the Cabinet Member for Finance and Carbon Reduction). This report sets out delivery options and recommendations with regard to how Haringey Council will deliver the Support Fund going forward.

Cabinet considered a report, introduced by the Cabinet Member for Finance and Carbon Reduction, which sought approval of the proposed Social Fund Policy.

The Leader noted that there was a limited budget available for this within any given financial year and that once the fund had been used there was no further funding available even if people were able to demonstrate need. She placed on record her concern that there would be an increasing number of people applying to the fund at a time when the Government had reduced the fund by 15% upon its transferral of management to Local Authorities. 

RESOLVED:

1. That the process for procuring an external supplier to run the Haringey Support Fund scheme, with a proposed contract commencement date after the 1August 2013, be agreed, in accordance with the criteria developed by the Council and documented in the specification for the procurement process.

2. That it be agreed that an interim solution would be operational from 1 April until such time as the Council would go live with the new provider, which was anticipated as being after 1 August 2013, and that the delivery of the Haringey Support Fund would be administered in-house whilst the procurement process was completed and Cabinet approval was obtained on the preferred supplier.

3. That authority be delegated to the Assistant Chief Executive to make procurement decisions necessary to support the fulfilment of the interim in-house solution, within the allocated financial budget envelope for both administration and awards (value £451,641), as detailed in section 6 of the report, and that as part of this authority also be delegated in respect of the finalisation of a waiver and award of contract to local supplier ‘ReStore’ up to a value of £160,00.

4. That it be noted that the Support Fund policy, set out in Appendix C of the report, would be used during the interim period and to inform the procurement process. 

Alternative Options Considered

The following options were considered, and summarised below:

Absorb the funding to support other Haringey strategies

The funding could be used to support other council aims and objectives in line with current priorities, as follows:

Ø  Work with local businesses to create jobs

Ø  Deliver regeneration to key areas of the borough

Ø  Tackle the housing challenges

Ø  Improve school standards and outcomes for young people

Ø  Deliver responsive, high quality services to residents

This option was not taken forward as it would not fulfil the immediate need of current users of the Social Fund in line with guidance issued by the Department of Works and Pensions (DWP) and as a minimum we would have to signpost those in the community who are most vulnerable to alternative sources of either funding or assistance.

Develop a scheme that replicates the current scheme using additional Council funding

The discretionary arm of the Social Fund will be abolished by the Welfare Reform Act 2012 and local authorities will receive reduced funding to enable them to provide locally-administered assistance to the vulnerable, under existing powers.  Given that the funding is restricted annually and applicants may be refused simply on the grounds that the money has run out, Members could approve additional monies being used to support the scheme.

This option is not recommended at this time due to the lack of accurate data to enable the council to establish the efficiency of the current DWP provision and that the objectives of the scheme are fulfilled in targeting the relevant support to those most vulnerable.  

Merge with other Hardship schemes within the council

This provision could be linked to other funds available within the authority that support those in need.  The option of merging the Support Fund with existing Discretionary Housing Payments, Section 17 payments (for Children’s Services) and other Hardship payment related schemes has been considered.  Meetings were held with other Directorates to review opportunities for joint working and distribution of funds.  However the administrative burden of managing a number of varying priorities and the complexity of the Governance and decision making process, made this option not viable within the timeframes.

Set up Scheme In-House

The option of running the scheme in-house as a permanent approach to delivery has been discounted due to the inability to maximise economies of scale that could be achieved by procuring an external provider.  For example; the additional cost of purchasing and administering an IT solution to support the scheme.  However the interim arrangements for the period up to procurement of a supplier will be delivered in-house.

Partner with other Local Authorities

A significant amount of analysis and liaison with other Local Authorities has assisted in the decision making process.  Knowledge and learning has been shared with other Authorities, but there is not the appetite from other Authorities to partner to deliver schemes at this stage. 

Reasons for Decision

Whilst the money is not ring-fenced there is an expectation that support will be given to certain vulnerable groups in a similar way to the DWP’s current process. Following analysis and review, the procurement of an external supplier was seen as the most suitable option for cost and service benefit reasons.

An interim solution is needed to ensure effective support is available for those who need it from 1 April 2013 when the DWP no longer provides this service.