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Prepaid solutions from Prepaid Financial Services (PFS) are helping Local Authorities and councils meet the challenges posed by the abolition of the discretionary social fund and its impact on Crisis Loans and Community Care Grant payments, as outlined in the Welfare Reform Act 2012.

From April 2013, the Department of Work and Pensions will be handing over the responsibility of making Crisis Payment and Community Grants to Local Authorities. This follows the changes implemented via the Welfare Reform Act 2012 which abolished the discretionary Social Fund and introduced payments on account to replace Crisis Loan alignment payments and eventually Budgeting Loans as well, and paves the way for delivery of new local services to replace Community Care Grants and Crisis Loans for general living expenses.

The funding is not "ring-fenced" for any purpose, but the Government has advised Local Authorities what it expects the funding to be used for, the underlying...

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