A SCHEME set up to help struggling Inverclyde families had more than £40,000 left over in its coffers last year.

Ronnie Cowan MP has raised questions as to why the Scottish Welfare Fund, which is financed by the Scottish Government and administered by the council, had so much left in it despite a warning from local authority leader Stephen McCabe that there would be a £100,000 overspend.

As of March this year, £693,000 worth of emergency grants had been handed out from a total 2016/17 budget of £737,000 — leaving just under £44,000 left in the bank.

But in a letter to then-finance minister John Swinney in February last year, Councillor McCabe warned of a potential £100,000 overspend due to the council receiving less money from the Scottish Government, adding that it would ‘lead to further hardship for some of the most vulnerable within Inverclyde’.

Mr Cowan said: “It’s disappointing to find out that funding provided, by the Scottish Government, to support people in Inverclyde is not being spent.

“This comes after the leader of the council said in February 2016 that Inverclyde Council is expected to overspend its Scottish Welfare Fund allocation by almost £100,000.

“I would be keen to know why there is now an underspend and what action is being taken by Inverclyde Council to ensure those who require welfare support receive it?”

The council leader says the 2016/17 underspend was on the back of a £61,500 overspend the previous year and that the money has been carried over.

Councillor McCabe said: “I am not aware of any instances where Ronnie’s constituents who qualified for a payment from the Scottish Welfare Fund during 2016/17 did not receive a payment.

“If he can provide examples I will have them investigated.

“The underspend for 2016/17 will be carried forward to 2017/18, so no funding has been lost.”

Mr McCabe says the money left over will be needed, as more people are now coming forward for help.

He said: “While the spend in 2016/17 was not as high as previously anticipated, officers advised members in the June policy and resources committee report that demand for crisis grants is growing due to the roll out of Universal Credit, with payments in March and April 2017 being 67 per cent higher than in the same periods in 2016.

“If, as is expected, this upsurge in demand continues it will obviously place great pressure on the fund.

“The underspend from 2016/17 will be used to meet this increased demand along with a further £100,000 allocated from the council’s own resources.

“Only time will tell if this overall funding pot will be sufficient.

“I am happy to discuss this matter in more detail with Ronnie if he cares to contact me directly.”