Liberal Democrat MP for Redcar Ian Swales last week led a debate in Westminster Hall to address the poor management of the Discretionary Social Fund (DSF) by Redcar and Cleveland Council. The DSF is designed to give financial aid and support to those most in need and is regulated by the Council.

Control of the DSF was passed to the council in 2013. In the first year, Redcar and Cleveland Borough Council only spent £256,000 out of a total budget of £764,700, of which roughly half is thought to have been spent on administration and staffing costs. Of 2,100 requests for help, only 195 applications were successful.

Commenting after the debate, Ian Swales said:

“The Discretionary Social Fund is a vital lifeline to many of those most in need at times of crisis. It is absolutely crucial that this money gets to those who really need it.

“Last year the allowance of £764,000 was in the hands of the Labour Council which allowed a £500,000 underspend – turning down more than 90% of applications from people in desperate need, often sending them to food banks instead. The council is using its own perverse set of criteria to sit in judgement on people who often, through no fault of their own, find themselves in financial hardship.

“When the Department for Work and Pensions controlled the fund in 2012/13, 66% of applications were approved and the spend was £717,000. In comparison, the council has approved 9.3% of applications and of the money they did spend, about half went on internal Council administration and staffing costs.

“Following the shambles of Discretionary Housing Payment, this is yet another example of Labour playing politics with people’s lives.”

For more detailed information and transcript of the debate please see: http://goo.gl/L3jSAn