Commentary on Individual Provisions Section 2: Use of welfare funds: assistance for short term need and community care
12.This section sets out the circumstances in which a local authority can provide financial or other assistance to or in respect of individuals.
13.It repeats relevant text from the Scotland Act 1998 (Modification of Schedule 5) (No. 2) Order 2013: SI 2013/192 which set out an exception from the social security reservation in the Scotland Act 1998 so as to give the Scottish Parliament competence to legislate for welfare provision. Section 2 sets out the general scope of the funds.
14.Subsection (1) allows local authorities to use their welfare funds to provide occasional financial or other assistance to, or in respect of, individuals for the purposes of meeting, or helping to meet an immediate short term need arising out of an exceptional event, or exceptional circumstances. The short term need must also be one that would mean there would be a risk to the wellbeing of an individual if it were not met.
15.This section also allows local authorities to use their welfare funds to provide occasional financial or other assistance to, or in respect of, individuals to enable qualifying individuals to establish or maintain a settled home.
16.Subsection (2) provides that welfare funds can be used to provide assistance to qualifying individuals who have been or, without the assistance, might otherwise be in prison, hospital, a residential care establishment or other institution such as foster care, or be homeless or otherwise living an unsettled way of life.
17.Subsection (3) provides that a local authority may not use its welfare fund to provide assistance through loans.
18.Subsection (4) provides that a local authority may pay third parties to provide assistance to qualifying individuals by either providing goods or services. For example, a local authority may pay a contractor to provide furniture or carpets to fulfil a grant.