Emergency fund for hard-up Brits on Universal Credit slashed by £3million in a year
A POT of emergency cash for struggling Brits on Universal Credit has been slashed by £3million in a year.
A freedom of information request by The Sun found that the Flexible Support Fund (FSF) shrunk from £40.7million in the 2018/19 tax year to £37.8million the following year.
In four years, the lifeline for millions of families in poverty has been cut by £13.9million.
The FSF is used to pay grants to help those on Universal Credit with the cost of getting back into work.
The grants are issued on top of other benefits and can be used to cover the costs of things like childcare, uniforms or work tools as long as they help you get a job.
The Department for Work and Pensions (DWP) decides how much is set aside for the fund each year.
What is the Flexible Support Fund and what can I use it for?
THE Flexible Support Fund (FSF) is a sum of money that has been put aside by the government to help you with the costs of getting a job.
The fund is managed by local job centres.
It was introduced in 2011 and replaced schemes such as the Deprived Areas Fund, the Adviser Discretion Fund and the Travel to Interview Scheme.
The idea behind the payout is to give job centres more freedom to offer support to individual cases in local areas.
The money can be used to cover the costs of:
- Training for a job, up to £150
- Travel to interviews
- Childcare
- Tools for work
- Cost of medical evidence required by a disabled person
- Clothing and uniforms to start work
- Support for single parents in financial emergencies in the first 26 weeks of starting a job.
If you've already paid for the items, such as a suit for work or upfront childcare costs, then you are unlikely to be awarded FSF as back pay.
It says the amount in the fund varies due to changing policies and levels of demand.
Sara Willcocks, head of external affairs at anti-poverty charity Turn2Us, branded the budget cuts as "incredibly concerning" especially in light of the coronavirus crisis.
She said: "Covid has meant millions more of us now need social security to just survive, which is why the government must urgently increase spending, so people have the opportunity to get back into work to thrive."
"[The FSF] will only work if it is properly funded, well advertise and easily accessible," she added.
Universal Credit is already designed to get people back into work but a string of serious problems with the system has actually left millions of people worse off.
That's why The Sun has launched the Make Universal Credit Work campaign, calling for a number of changes that will benefit hard-up claimants.
What to do if you have problems claiming Universal Credit
IF you're experiencing trouble applying for your Universal Credit, or the payments just don't cover costs, here are your options:
- Apply for an advance - Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it's a loan which means the repayments will be automatically deducted from your future Universal Credit payout.
- Alternative Payment Arrangements - If you're falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you're part of a couple.
- Budgeting Advance - You may be able to get help from the Government for emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.
- Cut your Council Tax - You might be able to get a discount on your Council Tax by applying for a Council Tax Reduction. Alternatively, you might be entitled to Discretionary Housing Payments to help cover your rent.
- Foodbanks - If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the
The DWP has declined to tell The Sun how was set aside for the 2020/21 and 2021/22 tax year because the figures are subject to an audit in the future.
It is unclear whether the support has been increased inline with the surge in number of people out of work relying on the welfare system.
Not many people know about the FSF because it's only supposed to be used if all other help as been exhausted.
There's no maximum amount that can be awarded but unlike advance payments or budgeting loans, the money doesn't have to be paid back.
It's dished out on a case by case basis by Jobcentre work coaches but you're not automatically entitled to it.
The fund has been made available to claimants for 10 years now.
A DWP spokesperson said: “Record employment in 2019/20 reduced the need for a larger Flexible Support Fund budget, which varies, by design, depending on the job market at that time.
“Since then, and throughout the pandemic, we have had a range of support available in addition to the Fund to support claimants and help them back into work, including the multi-billion pound Plan for Jobs."
How to apply
If you feel that you may be able to get help from the FSF, then you should contact your local Jobcentre or your work coach through your Universal Credit journal.
Before issuing the cash, advisers will need to see evidence that you really can't pay for the items yourself.
You will also need to tell them specifically what you will be spending the cash on.
The adviser will also need to get approval from a colleague, who will also check through the evidence that you've provided.
If you can't provide enough evidence for your meeting, you'll be advised to contact Universal Credit when you do have it.
Low-income households are set to lose their £20 weeky Universal Credit boost by the winter.
Two million Brits on benefits could be in line for a payout worth £1,560 if the Government loses a legal challenge after excluding them Covid support.
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