crisis loans from april

red_devil

I heard yesterday that crisis loans will be dealt with by your local council from April?

sammyjammy

Correct kind of, Crisis loans will no longer exist. Councils will be responsible for supporting people in urgent need of funds but it will be up to them what the rules are and how they implement it.

MinaMina

I think hardship payments will be the same too.

It's going to be very hard for people in need

DannyboyMidlands

feelthelove wrote: »

that's why the governement are doing it so the poor get poorer its their only agenda and i feel very sorry for those who are going to worse off .
More food banks are opening up and down the country , how has it got to this where people can't afford to feed themselves , its a toss up for many families to put the heating on or to eat

That's a bit melodramatic isn't it?

The Government are just trying to save money and let the Local Authority take the grief. It'll be up to them who can have what money and on what basis and will be voted on by local residents.

Sounds fair enough to me.

DannyboyMidlands

It doesn't matter whether I have or not.

iluvmarmite

feelthelove wrote: »

that's why the governement are doing it so the poor get poorer its their only agenda and i feel very sorry for those who are going to worse off .
More food banks are opening up and down the country , how has it got to this where people can't afford to feed themselves , its a toss up for many families to put the heating on or to eat

Not melodramatic at all, it's true, in this very cold weather it means the heating has to go on for longer and a lot just can't afford it, it means going cold or going with 1 meal a day.

In my opinion the government know they won't get re elected when the time comes, they are the most hated government ever so will go out with a bang, they have caused suffering and hardship amongst those who have no money and will make them suffer more as a way of sticking their fingers up at them because they have the power to make people suffer, before they go they will make dam sure they cause a lot more suffering just because they can.

As for the crisis and budgeting loans, well our council will probably spend it on other things within the borough and just tell people they haven't been accepted for one, who is gonna know the truth?

BigAunty

Here is one reason why Crisis Loans, introduced to deal with the short term costs associated with an emergency or disaster such as a fire and flood, were surely unable to continue in their current form.


400,000 people having more than 10 disasters each in 7 years ...??!!

a DWP press release from March 2011-

"Crisis Loans were set up to meet immediate short-term needs in an emergency. Yet in the last seven years there have been over seven million claims from 400,000 regular users applying for 10 or more crisis loans. Since telephone claims were introduced in 2006 daily spend on the loans has tripled to £1million a day."

Here is a link to the proposed reforms.

http://www.dwp.gov.uk/local-authority-staff/social-fund-reform/

BigAunty

Also, the Crisis Loan system was riddled with organised fraud

http://www.thisisnottingham.co.uk/gang-played-crisis-loans/story-13418409-detail/story.html

http://benefitfraud.blogspot.co.uk/2012/11/jail-for-crisis-loans-frauds.html

http://www.thisisstaffordshire.co.uk/Brothers-admit-crisis-loan-fraud/story-12564114-detail/story.html

http://www.wakefieldexpress.co.uk/news/local/more-wakefield-news/crisis-loan-scam-gang-1-4745171

http://www.bbc.co.uk/news/uk-england-leeds-18701452

http://www.coventrytelegraph.net/news/coventry-news/2012/03/19/gang-forcing-hard-up-people-in-coventry-to-take-out-loans-92746-30569828/

briclegg

maggie thatcher,s goverment were bad and introduced many cuts,but this one is shameful.just attacking the worst off people.They should never have been elected as a coalition goverment.they now need to go big time.

princessdon

iluvmarmite wrote: »

Not melodramatic at all, it's true, in this very cold weather it means the heating has to go on for longer and a lot just can't afford it, it means going cold or going with 1 meal a day.

In my opinion the government know they won't get re elected when the time comes, they are the most hated government ever so will go out with a bang, they have caused suffering and hardship amongst those who have no money and will make them suffer more as a way of sticking their fingers up at them because they have the power to make people suffer, before they go they will make dam sure they cause a lot more suffering just because they can.

As for the crisis and budgeting loans, well our council will probably spend it on other things within the borough and just tell people they haven't been accepted for one, who is gonna know the truth?

Actually they are gaining a lot of votes recently and the recent polls don't put them far behind, they are catching up fast, so by the time it goes to the polls's I wouldn't call it. Last year I'd have said it is was a done deal, but I am not so sure now.

As for crisis loans via the council, I think it's a good move. They have access to services that can support people as opposed to repeatedly giving money that when needs repaid puts them with less money etc.

I know my LA are looking at none financial support (eg recyled white goods) to prevent more debt.

BigAunty

On the one hand, clearly the Crisis Loan system is being abused and is not fit for purpose - 1,121,910 loans were given in the year 2009-10, and more than half of applicants had multiple loans. Clearly there were not more than a million floods and fires by the portion of the population receiving benefits! So it has clearly exceeded its original remit.

Claims rocketted after interviews were scrapped and then telephone claims were introduced so it is more about the means of applying being made easier than benefit claimants suddenly experiencing an 89% increase in emergencies (claims increased by 89% in the 2 years before the stats I published and after changes were made that made it easier to get).

On the other, if it means people stay away from loan sharks, all the better. However,since apparently many loans are not repaid, this should also be looked at.