Criteria for Financial Assistance
Purpose: The aim of
this factsheet is to provide a framework for Welfare Officers and those
involved in dealing with applications for financial assistance. It is intended to show the scope of
assistance given by UNISON Welfare and reflect all aspects of casework policy
as laid down by the Trustees from time to time.
This factsheet has been designed to explain the criteria that applies in respect of applications to UNISON Welfare and how applications for financial assistance are assessed.
If you have any questions arising from this factsheet, or it does not cover the information you require, please contact UNISON Welfare on 0207 551 1620 and ask to speak to a caseworker. Alternatively, please write to us at UNISON Welfare, 1 Mabledon Place, London WC1H 9AJ or e-mail: [email protected].
Contents
Page
1. Introduction 2
2. Who can apply 2-3
3. What constitutes an application for financial assistance 3-5
4. How UNISON Welfare can help 5-8
5. Where we are unable to help 8
6. Payments 9
JG/AHOW/0401
1.
Introduction
UNISON Welfare is a registered charity and the Trustees (the Welfare Board) have the specific responsibility for ensuring that the charity’s funds are used for the purposes intended i.e. for the relief of poverty and/or distressed circumstances. In establishing criteria by which to assess applications for financial assistance the charity ensures that:
· The purposes for which assistance can be given are properly defined
· That the charity’s funds are effectively and efficiently deployed in ways that achieve the benefits intended.
· All decisions can be justified
· All applications are dealt with equitably and fairly
Whilst the criteria sets a fairly rigid framework, it is acknowledged that there may be occasions when giving assistance outside the perimeters of the criteria is considered appropriate. In these circumstances, the Management Board will need to give approval before any payment can be made.
2.
WHO CAN APPLY
The following persons are eligible to apply to UNISON Welfare:
a) Members – meaning all members i.e. working, retired, unemployed and student.
b) Past members of NALGO or the ‘Welfare Fund’ who ceased employment by virtue of age or health and who at the time of leaving that employment were members of NALGO or of the ‘Welfare Fund’
c) Bona fide dependants or partners of a) and b)
d) Any person who was a bona fide dependant or partner of a deceased member or Past member at the date of such member’s death
Unemployed members - are eligible to apply for assistance for a maximum period of up to two years from the date their employment was terminated.
Dependants – a dependency relationship will exist where it can be shown that the member is or was (if deceased) making a:
· Regular financial contribution necessary for the support of an individual e.g. in the case of a child in education, or in the case of convalescence, is providing significant and necessary physical care for that individual; and
· Where the individual concerned belongs to the immediate family and/or household of the member.
The Management Board shall decide at its absolute discretion whether a dependency relationship exists between an individual and a UNISON or Past member so that, that individual can be defined as a dependant of the member.
Qualification – Membership of at least 13 weeks is required before an application can be made to UNISON Welfare.
3. WHAT CONSTITUTES AN
APPLICATION FOR FINANCIAL ASSISTANCE
As a registered charity, UNISON Welfare cannot provide money that is properly the function of the State Benefit system or other statutory organisation. Applicants must be in receipt of their full entitlement to benefit, be in the process of making application or seeking advice regarding entitlement before help can be given (generalist advice on benefit entitlement is available through UNISON Welfare).
Neither can the charity be used as a means of cheap finance. Applicants will be encouraged to help themselves by perhaps re-negotiating commitments with the assistance of a recognised debt support service either before or in conjunction with seeking help from UNISON Welfare.
The union has many low-paid members whose financial circumstances would render them eligible for assistance. However, our overriding reason for giving assistance is to help in cases of “unforeseen hardship” e.g.:
· A sudden loss of income
· Abnormal increase in expenditure because of illness
· Relationship breakdown
· Death of a relative/partner
· Circumstances that have put an unreasonable financial burden on a household
· The need for an essential item which cannot be afforded
Six important assessments are made in every application:
· Whether the nature of the application falls within current policy
· The financial position of the individual or the household
· The personal circumstances, e.g. health, domestic, work etc
· What the applicant has done or tried to do to improve matters, e.g. sought assistance from other organisations
· The consequences for those involved in the problem
· Whether it is a long or short term problem
When making any application to UNISON Welfare, it is suggested that the above issues are addressed in the branch officer’s report which will help ensure that the application can be dealt with as quickly as possible.
In considering an individual’s financial circumstances, the following assessment is usually applied to all applications:
· Weekly income from all sources is taken into account e.g. earnings (including partner’s earnings); benefits and pension payments; maintenance payments; income from non-dependant children/lodgers
· Certain income may be disregarded e.g. those non-means tested benefits that are given for specific purposes such as Disabled Living Allowance; maintenance payments where it is evident that these are not received on a regular basis.
· Income is compared to a range of scales which are agreed by the Management Board and are subject to periodic review. There are separate scales dependent on the composition of the household.
· The scales represent the income which it is considered necessary for any applicant to meet all costs except rent/mortgage/secured loans, council tax/water rates; childcare/child maintenance, household insurances, pension – where the applicant does not subscribe to an employer’s scheme; court fines/judgements.
It is important to stress that the scales do not represent a form of means testing. UNISON Welfare needs to have a complete picture of the applicant’s financial position so even expenditure that cannot be taken into account for scale purposes is identified and we know where money is being spent.
The decision on whether to offer financial assistance is guided by both income and the circumstances of the household (the six assessments highlighted earlier refer). For example someone who has sufficient income to meet normal everyday expenditure but who has very high laundry costs due to the ill-health of a family member may be assisted with the purchase of a washing machine, given help with fuel costs etc.
4. HOW UNISON WELFARE CAN HELP
The primary but not exclusive object of UNISON Welfare is to provide financial assistance as a short-term safety net. The accent is on helping people to adjust to their circumstances and/or help with specific needs rather than coming to rely on long-term income maintenance.
Assistance can be in the form of grants or loans according to the circumstances of each individual case. Occasionally it may be considered appropriate where the applicant owns their home to offer assistance subject to taking a charge on the property so that at a later date monies can be recovered and used to continue the work of helping other UNISON members. This generally applies where essential house repairs, adaptations or equipment are needed and a large sum of money is required.
Where an application is referred by another charity or other recognised statutory or voluntary organisation, the request will be assessed according to the rules and criteria of UNISON Welfare.
The following gives a broad outline of the ways that Welfare may be able to help.
Recuperative breaks/convalescence – where there are health problems and a period away would be beneficial. Partners and children can accompany the person in need. If instead of going away the applicant prefers to recuperate at home short-term assistance can be considered to help meet the costs of providing extra support e.g. housework, shopping, extra childcare etc. For more detailed information on how the scheme works, please refer to the New Convalescence Service Factsheet, No. 1.
Rehabilitation - also covered in the Convalescence Factsheet and where the applicant is suffering from a serious debilitating illness e.g. drink/drug abuse, eating disorders etc. In those cases where treatment is being provided through the NHS or other statutory agency it is recognised that there may still be a cost to the individual e.g. accommodation. UNISON Welfare will consider helping towards these costs and/or providing additional support to a partner and any dependant children during and after treatment.
Travel expenses – To attend hospital appointments of visiting dependant relatives receiving treatment and where no other help is available.
Essential household appliances/furnishings – e.g. cooker, fridge, washing machine, beds, floor coverings etc applicable where there is a need for a specific item or an existing appliance is worn out and beyond repair.
Installation of phone/phone rental - where through reasons of health, age, personal security etc access to a phone is essential. Short-term help may also be available with phone rental costs.
Prepayment prescription certificate – where the applicant cannot afford prescription charges and where no other help is available.
TV licence – where the applicant is clearly unable to meet the cost and/or is likely to have a fine imposed.
Childcare - assistance with normal ongoing childcare costs cannot be considered. However, where there are exceptional circumstances e.g. extra childcare is required do to the illness of a parent, loss of income then help to ensure minimum disruption to the child(ren) can be considered on a short-term basis.
Property repairs/facilities for the disabled – Applicants must in the first instance apply for any statutory help that may be available and forward copies of any assessment undertaken and/or Occupational Therapist’s report. Three competitive estimates will be required for all property work.
Fuel costs – Where the applicant is unable to pay a bill and renegotiating the debt is inappropriate. Payments will not generally be made in anticipation of a bill other than where perhaps short-term assistance to meet an agreed monthly charge paid by direct debit is considered appropriate and where special needs have been identified e.g. higher than average fuel bills due to ill-health.
Debts – The emphasis of any help with outstanding debts is directed towards what are known as ‘priority’ debts i.e. those where the person is at risk of losing their home – rent/mortgage arrears; the risk of imprisonment – council tax or the disconnection of essential services – water, fuel etc.
It is generally considered inappropriate to use charitable funds to help with consumer credit debt – ‘non-priority’ unless there are exceptional circumstances which would require the Board’s approval.
In most debt cases, the national caseworker will give advice on organisations that can offer help where a problem has been identified.
Disability – One off assistance may be considered for deposits on cars leased through the Motability or other appropriate scheme. Applicants will need to show that the lowest priced vehicle suited to their medical needs has been selected.
Also help with the purchase of specialist equipment e.g. wheelchair, chair/stair lifts, exercise equipment, computers etc. It is necessary to establish that the equipment is suitable for the needs of the applicant and where appropriate a supporting letter from a GP/Consultant/Occupational Therapist will be required.
Family Holidays - one week holidays provided in conjunction with the Family Holiday Association. The family must not have had a holiday more recently than 4 years prior to the application. They must also be on a low income. For further information please refer to the Family Holidays factsheet no. 2.
Funeral expenses – may be considered where the applicant is responsible for the bill and possible entitlement to help from the Benefits Agency has or is being explored.
Deposits on rented accommodation – Loans may be considered where the applicant is escaping a violent/abusive relationship and where statutory housing is unavailable or inappropriate.
· Loss of pay as a result of sickness
· Death of a partner
· Benefit applications are waiting to be processed
Any payment of weekly assistance is looked on as a short-term measure e.g. for no more than 3 months. Generally weekly assistance will not be given towards outgoings where there is a possibility of entitlement to statutory benefits e.g. council tax, rent etc. but tends to be given for food/personal needs and fuel costs.
Insurances – Assistance with the premiums or part premium for building, standard household contents insurance or endowment linked to mortgage may be considered.
Damage to property – One-off assistance may be considered in cases where essential household items have been damaged as a result of flooding or fire. Consideration will be given to whether the applicant had the means to finance appropriate insurance cover.
Applicants in nursing/residential care – Grants for specific needs may be given from time to time to help where the applicant has little or no personal income.
5. WHERE WE ARE UNABLE TO HELP
It has already been mentioned that UNISON Welfare cannot replace the responsibilities of statutory services. The following circumstances are additional areas where Welfare would not normally help:
Capital – where savings are of a level that it is not considered unreasonable for the applicant to meet the need identified from their own resources.
Legal expenses
Private medical treatment
Private education
Residential/Nursing home fees
Debt – consumer credit, due to family members or friends or any debt incurred prior to membership.
Industrial action – although consideration may be given to requests where there is evidence of financial difficulty before the onset of industrial action or, where there is an additional factor which is causing a problem.
6. PAYMENTS
Generally, the procedure for making payments is as follows:
· In cases of debt a cheque will be made out to, and sent direct to the creditor, once confirmation of the amount outstanding has been received.
· Assistance with property repairs will be paid upon satisfactory completion of the work and receipt of the contractor’s invoice. Where it is identified that an initial deposit is required then consideration may be given to an advance payment.
· Where sums have been approved for the purchase of specific items then, wherever possible, cheques will be made out to the supplier (UNISON Welfare can in certain circumstances order household appliances and furniture direct).
· Smaller payments and those short-term payments intended to help with everyday expenditure are normally sent to the branch for the Welfare Officer to administer.