Crisis fund administrators grilled by council committee

Representatives of Northgate Public Services, the company handed responsibility by Rochdale Borough Council for handling Rochdale's Discretionary Crisis Fund, were grilled by councillors at a council meeting last night following criticism of the low number of applicants being granted assistance.

MP for Rochdale, Simon Danczuk, said that as long as the scheme was being run ineffectively it was pushing people into the hands of loan sharks.

“This came to my attention after constituents who were genuinely in need of help told me they were being refused any assistance from the fund," he explained. "I’ve had people in tears in my surgery desperate for help. But they were turned away by a computer system in Hemel Hempstead.

Northgate admitted the level of refusals, of just under 50%, is a "large number" but in mitigation said the main reason for refusals is down to eligibility - people aren’t on any of the benefits deemed eligible for the fund.

Currently there are:

• 1,560 applications on the system. 1,207 of them are full applications with a decision made and 669 of those 1207 have been given an award from the fund.
• 54% of refusals were as a result of benefit issues.
• The expected shortfall by 31 March 31 2014 is just over £300,000. That assumes that there are no criteria changes.
• The average value of a crisis fund is £323.

Applications are made via telephone. This can be a conversation lasting up to 25 minutes depending on the circumstances. After that the applicant is informed that a decision will be made. ID checks then take place before the application is passed on to a senior decision maker who makes the final decision.

A spokesman for Rochdale Borough Council said: “In April this year the council was given funding from Department for Work and Pensions to assist with local welfare provision.

"Like some other councils we chose an external company to roll out this scheme. Northgate Public Services is one of the few organisations equipped to fulfil this role and are contracted to provide this service to multiple councils throughout the UK.

"The council’s on-going work involves reviewing and developing the awards criteria. The policy set was right at that time, based upon the information we had. However like any responsible organisation we are constantly reviewing this in order to meet the needs of our most vulnerable residents.

"The percentage of applications awarded so far this year is on a level with other councils through the country. As a result of further partnership working and extra publicity there was an increase of 170% in awards during Q2. The council and Northgate will continue to grow the awards until the end March 2014.”

A spokesman for Northgate Public Services said: "Northgate Public Services has been contracted on behalf of Rochdale Council to administer its Discretionary Crisis Fund. The criteria for the scheme are laid down by Rochdale Council. Northgate has been running this scheme since April when the government introduced new arrangements to administer the Fund.

"Since April, Northgate has been successfully running similar schemes at 30 Local Authorities across England and Wales. In addition, 80 other Local Authorities throughout the country have been using Northgate’s software to administer the Discretionary Crisis Fund.”

Councillors also questioned why the fund helps Rochdale Foodbank but not others in the Borough, such as those in Heywood and Middleton. Councillor Farooq Ahmed said: "In the past officers have approached other foodbanks but a criteria needs to be followed and it is hard for us if the criteria isn’t followed. We are going to set a criteria and look at that going to other areas.

“The money going to foodbanks can be reviewed quickly but it depends on what can be tweaked judging by the situation.”

Councillor Robert Clegg said: “It has to be fair across the borough's foodbanks. We have got to look at them all fairly.”

Councillors said that by the next meeting the committee wants to see:

• Information regarding updates on finances, the number of applications, percentage of refusals, applications by ward, assessment time and authority consultation figures.
• An eligibility review – how will it be done, when will it be done and timescale.
• Administrative costs – how much does it cost to administer the Discretionary Crisis Fund.

The Discretionary Crisis Fund is a fund of last resort to help people who are in needed of urgent assistance and earlier this year the Government passed responsibility for its Discretionary Crisis Fund to local authorities.

The kind of support available from the Discretionary Crisis Fund depends on circumstances and eligibility. Cash payments are unlikely, however, funds can be made available to purchase essential household items for those resettling into the borough after leaving care, or prison, or for those who have had to flee your home due to domestic violence, experienced a major flood or fire, need help with emergency travel or to purchase emergency household energy.