Financial support for individuals

Recovery Guidance - Humanitarian Aspects

Financial support for individuals

Background and Context

Financial support is provided from a range of sources, at both local and national level. However the levels and type of financial assistance available varies and is dependant on a number of factors such as location of the incident, level of insurance cover, nature and impact of the incident, role of the Local Authority in developing a disaster appeal, level of public interest and benefit entitlement.

Work is being done in a number of areas:

Changes have been made to the processes involved in the UK's Criminal Injuries Compensation Scheme (CICS) in light of comments from previous applicants. Following the 7th July London bombings, the CICS is also re-writing its emergency incidents plan, in communication with other agencies.
Disaster Appeals/Charitable Funds – disaster funds have been established after a numbers of emergencies both in the UK and overseas; and previous emergencies, including a number of the disasters in the 1980s, the 2004 Indian Ocean tsunami, and the 7 July bombings have shown that effective establishment and management requires careful planning and sensitive application.
Compensation for victims of terrorism overseas – this is currently being looked at across government, particularly in light of overseas incidents in Egypt, Turkey and Doha in 2005. None of the victims of these disasters were entitled to compensation from the UK, or from the country in which the attacks occurred.

Charitable Fund for Victims of Overseas Terrorism – this fund is administered by the British Red Cross and was launched on the 17th May 2007. It aims to address the immediate short-term financial needs of those affected by overseas terrorist incidents.
Travel Insurance – See Dealing with insurance issues topic sheet.

Policy and Guidance

England

Compensation

Guidance on the Criminal Injuries Compensation Scheme can be found on its website or on the Home Office website. This includes guidance on:

who is eligible
expected payments
how to apply
how to appeal decisions.

Compensation is available to all victims of violent crime, which occurs in the UK. The original scheme was introduced in 1964, with compensation being paid on an ex-gratia (non statutory) basis. The Scheme was made statutory in 1996 (following passage of the Criminal Injuries Compensation Act1995).

Compensation for victims injured or bereaved in criminal acts overseas is not available through the CICA. UK victims of overseas terrorism which occurs within the EU (and a few other countries) are eligible for compensation under the compensation arrangements in the EU member state (or other country) where they were injured (or killed).

Under European Council Directive 2004/80/EC of 29 April 2004, all EU member states are required to have arrangements:

(from 1stJuly 2005) which provide ‘fair and appropriate’ compensation to victims of violent intentional crime committed within their territory, and
(from 1st January 2006) to facilitate access to compensation for its residents in cross-border situations (ie. to accept applications from its residents and pass them on for consideration by the member state where the injury was sustained).

Further information on the directive can be found on the CICA website

CICA have established a special team to deal with such applications. They will accept applications from UK residents for onward transmission to EU countries, and receive applications from EU countries whose residents were injured here.

Disaster Appeals

The British Red Cross has revised its guidance for Local Authorities [External PDF] on the setting up of disaster appeals.

Information on setting up disaster funds is also available on the Charities Commission website

Benefits

Information on benefit entitlement and on possible access to help with essential expenses from the Social Fund following an emergency can be found on the DWPs website. General information is also available on the Direct Gov website and from local Jobcentre Plus offices.

The Case Study from the Yorkshire and the Humber Flooding produced by DWP describes the benefits available during that emergency and how these were administered.

Council Tax Relief

In addition to any statutory council tax discounts that may apply to those forced out of their homes by an emergency, Local Authorities have discretionary powers, under section 13A of the Local Government Finance Act 1992,to grant discounts of up to 100% to householders who have been affected.

Charitable Fund for Victims of Overseas Terrorism

Immediate financial assistance for British victims of overseas terrorism is available through the British Red Cross' Relief Fund for Victims Of Terrorist Attacks Abroad. Information about the fund and the application forms are available on the British Red Cross- website

Wales

Compensation is not a devolved issue in Wales, which is covered by the GB Criminal Injuries Compensation Scheme.

Scotland

Compensation is also a devolved matter in Scotland, but remains party to the GB Criminal Injuries Compensation Scheme and pays a percentage of its costs.

Northern Ireland

Northern Ireland has its own compensation scheme for UK nationals who are injured or bereaved in violent crime which occurs in Northern Ireland. More information can be found on the Compensation Agency website.

DWP is responsible for benefits across Great Britain. Northern Ireland has its own system.

Roles and Responsibilities

Local and Regional

Local Authorities will take a decision on whether it is appropriate to set up a disaster appeal. Voluntary sector agencies (e.g. the British Red Cross) may also be consulted or involved in this. General financial advice should be made immediately available by the relevant organisations and agencies present if a Humanitarian Assistance Centre has been established. Any longer term centre or agency offering practical assistance would also be able to pass on information on financial assistance. Free financial advice may be offered in the event of an emergency through a regulated organisation.

Lead Government Department

The Ministry of Justice will lead on all compensation arrangements, with advice from the Department for Culture, Media and Sport (DCMS) and Foreign and Commonwealth Office (FCO) where necessary.

Decisions on benefit entitlement in Great Britain are made by Jobcentre Plus (for people of working age) and the Pension Service.

Other Government Involvement

The Criminal Injuries Compensation Authority (an agency of the Home Office) will provide compensation payments to all victims of violent crime that occurs in the UK, including terrorist attacks.

Devolved Administrations

Wales

Wales is party to the Criminal Injuries Compensation Scheme.

Scotland

Scotland is party to the Criminal Injuries Compensation Scheme.

Northern Ireland

The Compensation Agency handle compensation claims for UK Nationals affected by violent crime that occurs in Northern Ireland.

Decisions on benefit entitlement are made by the Social Security Agency, an executive agency of the Department for Social Development.

Funding

Funding for compensation payments for UK nationals affected by violent crime that occurs in the UK, including terrorism, comes from the Ministry of Justice.

Funding for the charitable fund for victims of overseas terrorist attacks comes from the British Red Cross, and from an initial government donation to the fund. Continued funding for the fund is likely to come from public/private donors.

Funding for the establishment of disaster appeals should come from Local Authorities, who will use public/private donations where appropriate.

Funding for benefits is provided through the Department for Work and Pensions (DWP).