Crisis loans will be offered to help people across North Lincolnshire with short-term financial emergencies
Crisis loans and community care grants are planned to be delivered by North Lincolnshire Council with effect from April 1.
The new scheme, Local Welfare Provision, will take over from the Social Fund and provide finance for people either in crisis or at risk of losing their home.
The Department for Work and Pensions (DWP) are currently responsible for these Social Fund areas.
It is considered that by bringing these services to a local level a more informed decision can be made on the level of need and the extent of the crisis.
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The council will be able to provide more support for people and increase people's awareness of the help that is available.
The council will receive a grant of £96,000 in 2013/14 and £88,000 in 2014/15 to implement the support. A fund of about £452,000 each year for the next two years will be available to provide support to local people who face a short-term financial emergency.
The current Social Fund scheme does not try to solve the long-term problem, people are repeating the same cycle by continually applying for more funds.
The Local Welfare Provision will be able to work with those in need to try and find a long-term solution.
DWP believe that a locally-delivered service is more likely to create an equal spread of applications across all ages, as currently only a small number people are aware of the funds available.
A crisis loan is an interest-free loan available to anyone who cannot meet their immediate short-term needs in an emergency.
Community Care grants are for benefit recipients only and cover a range of expenses including household equipment. They are mainly awarded to help vulnerable people return to or remain in the community or to ease exceptional pressures on a household.
Under the new scheme the awards will not be repayable and only two crisis loans can be made within 12 month.
Councillor Neil Poole, from Messingham, cabinet member for Policy and Resources at North Lincolnshire Council, said:
"Moving to a more responsive and less rigidly applied system will focus on the real needs of people. The new scheme will mean that people in North Lincolnshire will receive more support and advice.
"Financial pressures are ever increasing and we want to make sure we provide support for those in need. Many people are unaware of the help that's out there if they are in crisis, which is why bringing the service to a local level is important to increase people's understanding.
"We are currently working with a number of partners on our Financial Inclusion Group to develop and deliver training to assist those who need it to manage household incomes."