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"Food stamps" arrive in Britain next month. Good idea or not?

(202 Posts)
vivizone Wed 27-Mar-13 01:18:31


Food vouchers to provide emergency help but prevent spending on alcohol
Campaigners raise alarm as English councils replace cash loans with payment cards for people facing short-term financial crises

"Food stamps" arrive in Britain next month, when tens of thousands of vulnerable people will be issued with food vouchers in lieu of money to tide them over short-term financial crises.

Rather than, as now, offering a cash loan, most councils will from April offer new applicants who qualify for emergency assistance a one-off voucher redeemable for goods such as food and nappies.

Many of the 150 local authorities in England running welfare schemes have confirmed that they will issue the vouchers in the form of payment cards, which will be blocked or monitored to prevent the holder using them for alcohol, cigarettes or gambling.

Several plan to issue charity food parcels to people applying for crisis help, and are preparing to give cash grants to food banks to enable them to take on full-time staff and increase opening hours.

Each authority has drawn up eligibility rules, setting out who will qualify for crisis help and the conditions under which it will be given. One plans to make emergency help conditional on good behaviour.

The shift to in-kind and voluntary assistance follows the decision last year to abolish the government-run social fund and to replace it with more than 150 welfare assistance schemes, operated by English local authorities and the Welsh and Scottish governments.

The social fund – known as the "backstop" of the welfare system – typically offered small loans of about £50, repayable against future benefits, to help vulnerable individuals who faced short-term crises as a result of having cash stolen or benefits delayed.

A separate set of cash grants, typically worth about £1,000, was made to people with a disability, ex-prisoners and victims of domestic violence, to enable them to buy or replace items that would help them live independently, such as beds, clothing and kitchen utensils.

Although social fund spending represents a relatively tiny chunk of the social security bill, there is concern that the new arrangements will for the first time build into mainstream welfare provision the distribution of food voluntarily donated by the public, schools and businesses.

Lady Lister, a Labour peer and poverty expert, said the shift from cash loans to in-kind help would leave the most vulnerable people "high and dry".

"The social fund was a safety net under the safety net," Lister said. "I do not call putting money into food banks a safety net."

Some fear the use of in-kind vouchers will repeat the shortcomings of cashless payment cards, issued to asylum seekers. Critics said these cards left users unable to buy essential non-food items, and made them more likely to turn to risky or criminal ways of obtaining cash.

One welfare charity worker said: "There's a lot of naivety. The social fund is big, and meets a whole range of needs. There's going to be an awful lot of people that will need to tap into its successor."

But councils say huge reductions, in some cases cuts of up to a third, in the amount allocated to support people in hardship have left them with no option but to offer vouchers, refer applicants to food banks and secondhand furniture projects, and to drastically tighten eligibility. The government spent £230m on the social fund in 2009-10 but has allocated £178m to local authorities for 2013-14.

Inquiries by the Guardian found that:

• Conservative-run Hampshire council plans to invest a big chunk of its welfare fund allocation in charities and food banks. Over time, it hopes to stop offering food vouchers as part of a shift towards "reducing the entitlement culture".

• Labour-run Manchester city council will offer successful applicants low-interest loans of up to £200 a year, with a credit union, rather than food vouchers. It says in future years grants for furniture and cooking utensils will be offered on condition that recipients sign up to "expected behaviours and actions".

• Bristol city council's crisis fund restricts emergency payments to food, heating, nappies and toiletries. It says the cards "should not be used for cigarettes, alcohol or entertainment", and if misuse occurs it will seek repayment.

• Labour-controlled Darlington council plans to invest £58,000 in a church food bank, including £30,000 to enable the charity to take on a full-time worker.

From April, thousands of applicants who now have access to crisis help will be turned down under the schemes. Many councils plan to refer the expected rising numbers of unsuccessful applicants to soup kitchens and other charities.

Alison Garnham, chief executive of the Child Poverty Action Group, said: "Local authorities have been given a difficult task, to deliver support on a reduced budget at a time of rising need.

"But we are seriously concerned that some authorities will not be providing any access to cash to families to meet their essential needs, and may be offering support in a way that serves to stigmatise those who need it."

Others have warned that people who are turned down for crisis help will turn to crime, begging or loan sharks. Almost all authorities are bracing themselves for an expected rise in demand for crisis support from April, when the bulk of the benefit reforms, aimed at saving £18bn, are introduced. Among these is the so-called bedroom tax.

There is also nervousness that any glitches in universal credit, from October, will see an increase in poorer households seeking help from welfare schemes.

The government, and some charities, have argued that the existing system of crisis loans was abused by people – often young men – who did not use the loans for genuine emergencies. They argue the new system will discourage dependency, more efficiently directing scarce resources at the people who most need them.

The Guardian also found that:

• The cost of administering each of the 150-plus new welfare assistance schemes is typically equivalent to around 20% of the value of the entire local fund. Several authorities, including the Welsh government, have outsourced the running of the voucher schemes to private contractors.

• Local authorities are worried that the new patchwork of welfare assistance systems will lead to a postcode lottery, with vulnerable people moving to apply for crisis help in more "generous" boroughs.

• There are concerns that some welfare systems will not be ready by 1 April. The Furniture Re-use Network said a survey showed two-thirds of its members believed the new system would not be in place in time. There are concerns that, despite huge growth in the numbers of food banks in the past two years, many parts of the country will have little charity food assistance capacity.

blackcurrantjan Fri 19-Apr-13 01:50:32

In the Philpott case it was because of the benefit system that Lisa Willis was able to escape. I know her money was paid into his account but she was able to flee with her children and get the support she needed, she obviously set up her own account because he was not able to access her money once she had left, which the job and benefit centres help people to do. Because of benefits she was able to look after her children on her own, probably would have recieved income support and rent allowance, I know she worked as well but would have probably given this up because Mick Philpott would find her there. The same option was available to Máiréad Philpott but she obviously wasn't strong enough to leave, I imagine she probably recieved worse abuse after Lisa Willis left, considering MP was so angry he risked his childrens lives trying to frame her and Mairead was the nearest punchbag. Without the safety net of the benefits system would Lisa Willis have left or would both women have been even more dependant on Mick Philpott. I really do not understand why people constantly cite the Philpott case as an argument for benefit reform. Surly it is argument for the welfare state; that women in the situations are able to leave and not have to worry about finaces, especially if there are children involved and the women are unable to work

cory Fri 19-Apr-13 01:01:08

nywren45 Thu 18-Apr-13 07:40:53
"I think it's a good plan. It actually protects the most vulnerable - children , by ensuring they get food rather than their parents get fags ."

How are you protecting children by making sure the money provided cannot be used for heating the house they sleep in, providing them with light and hot water, sanitary protection for a 12yo, getting to the hospital with a 3yo with a broken arm or suspected appendicitis (don't imagine the hospital will provide transport)?

SquirrelNuts Fri 19-Apr-13 00:40:27

I dont agree with them, i completly understand the idea behind them for alcoholics and drug addicts, but for the vast majority of people who are not stupid with there money its just horrible!
If im ever in the unfortunate situation to need food stamps i would feel totally humiliated having to use them

manicinsomniac Fri 19-Apr-13 00:27:14

I think people should have to prove that they can't be trusted rather than try to prove that they can.

I would have no problem with people who are known to be in crisis with addictions or impulsive spending etc being issued with these stamps in place of emergency loans (not in place of their benefits - I think that's going too far for anybody, even people who are known to struggle managing money).

On the plus side though, this new system presumably means that the crisis loans are no longer loans and don't have to be paid back - that must surely be a huge relief for some?

grumpyinthemorning Fri 19-Apr-13 00:06:22

Only a matter of time before it's extended to the whole welfare system. It pisses me off tbh, I pay all my rent and bills on time, and first priority when my payments arrive is groceries. But if I had a crisis, not only would I have to deal with that shit, I wouldn't even be able to buy a cheap bottle of wine or a pack of ten cigarettes to make myself feel better. Hardly good for mental health now, is it?

Alcoholics\addicts will find a way around it. It's a stunt that will hurt more than it helps.

Sunnywithshowers Thu 18-Apr-13 23:08:25

Thanks Wanna what you've said makes sense.

Skinnywhippet Thu 18-Apr-13 22:35:53

Bring back workhouses! (Slightly joking) At least people had the fear and didn't take the help they are given today for granted. Yes, it might not be in the format people want, nevertheless, it is still help for when you are needy and that is better that nothing. We have come a long way in 100 years.

stubbornstains Thu 18-Apr-13 21:56:53

Well, for sure crime levels will rise as people get more desperate.

Which will give the Tories yet more opportunity to malign the "underclass".

Aaaaargh. angry

Wannabestepfordwife Thu 18-Apr-13 21:53:46

You've got nothing to be sorry for darkeyes I'm on a right combo of meds so I'm not very articulate at the minute

Darkesteyes Thu 18-Apr-13 21:42:36

Sorry Wanna .

Wannabestepfordwife Thu 18-Apr-13 21:21:23


Wannabestepfordwife Thu 18-Apr-13 21:21:00

sunny I know most addicts do start off as decent people I've seen first hand people's personality and morals being destroyed.

darkeyes I worded my last post really badly I've known one prostitute and she was the most amazing kind hearted person.

What I was trying to say is that people who you would never think would steal or go in to prostitution may be so desperate they feel pushed into doing things they never thought they would

Fargo86 Thu 18-Apr-13 14:41:36

I think they are a good idea. I see so many feckless parents spending their money on scratchcards and fags, while feeding their children rubbish.

Sunnywithshowers Thu 18-Apr-13 14:39:19

Wannabestepfordwife decent people might turn to theft and prostitution if they're desperate enough. Funnily enough, addicts often start off as 'decent' people.

Darkesteyes Thu 18-Apr-13 14:01:41

Loving the mysogyny of saying that prostitutes arent decent.

"Decent" people who have a choice to go into this OR feed their children are not going to let their children starve.

Ehhn Thu 18-Apr-13 09:39:52

My good friend is a head teacher at a pupil referral unit and has had endless, heart-rending stories about seriously psychologically damaged kids who have their toes sticking out of their too small or worn out shoes, don't get fed except at school, endless cases of untreated headlice and on and on and on....

Seems to me, stamps should be issued to parents who have been arrested or charged for drug/alcohol related offences or have been subject to a social services investigation (until cleared/declared no longer a risk) That way, it doesn't punish the majority who are genuinely good and caring parents but are going through a tough financial time yet protects the most vulnerable kids in society.

Wannabestepfordwife Thu 18-Apr-13 09:18:57

jennywren decent people won't turn to theft or prostitution but addicts or the those living chaotic lives possibly will,

jennywren45 Thu 18-Apr-13 09:05:57

Lovely picture some of you are painting of all these decent poor people who are so decent they will all turn to crime and prostitution if they have to buy carrots instead of fags hmm

Wannabestepfordwife Thu 18-Apr-13 08:07:26

In theory it sounds like a good idea but in practise it will be a shambles.

Addicts in my home town shoplift meat and sell it on at knock off prices so they will just do the same with vouchers.

I can see a massive increase in prostitution if your benefits have been messed up and you can't pay your rent well people will be desperate.

I am glad I don't work in retail any more shoplifting will increase with addicts becoming agressive when they can't get what they want on vouchers.

InMySpareTime Thu 18-Apr-13 07:46:57

CouthyMow, Aldi's multivitamins are dairy free (and cheap) if that helps your DS.

jennywren45 Thu 18-Apr-13 07:40:53

I think it's a good plan. It actually protects the most vulnerable - children , by ensuring they get food rather than their parents get fags .

As for the thought that Labour are going to romp home next election - how amusing! Do you really not know how much more popular Welfare Reform is making the Tories? Most people want this!

bettycocker Thu 18-Apr-13 07:20:54

What if people need emergency help for their gas and electricity? Should they sit there in the dark, take a cold shower and freeze in a cold house or flat.

I don't use this word very often, but what's happening in the UK is evil.

CouthySaysEatChoccyEggs Thu 18-Apr-13 03:25:43

I'll be honest - as a disabled Lone Parent with 4 DC's, I'm stockpiling vitamin D tablets bought from Home Bargains to prevent rickets in my DC's.

I have no guarantees. I'm also stockpiling Vitamin C tablets too.

Worries me that DS3 can't have either as they both contain lactose though. He's severely dairy allergic and his good costs a bloody arm and a leg.

CouthySaysEatChoccyEggs Thu 18-Apr-13 03:23:12

This is such a good idea. [sarcasm emoticon].

Bus fares to school. Water bill. New school shoes as child outgrown old ones. School trip. School uniform. Outgrown clothes. New winter coat. Wellies. OTC medicines that are essential yet not provided on prescription by your PCT (which is more wide ranging than you might think in some PCT's - mine won't prescribe calpol, nit lotions, hydrocortisone cream for excema, dip sticks to test for ketosis in diabetics, asthma spacers, cocodamol unless it is at a higher strength than 8/50, and many many more...).

None of these will be covered by these food stamp schemes.

And that PC and Internet connection that people should use? Not covered either. And if you are living where I am, bus fare to the nearest library or Internet cafe is £3.70 for an adult, and £2.50 for each child over 5 years old.

So quite how they will PAY to get to these PC's to use them is beyond me.

And what about bills etc too? If you are tied into contracts etc on your phone, and you don't pay, they can get bailiffs to come and take what little you DO own.

And can I just point out to you that the MAJORITY of loans from the Social fund are taken out because when you claim IS / JSA / ESA, it will take a MINIMUM of 6 weeks before you get a decision and first payment of that benefit.

Once I made a claim as my (working) Ex partner left me. It took 11 weeks for a decision to be made and payments to start.

There is just NO WAY that, for starters, you can pay THE BEDROOM TAX AND YOUR COUNCIL TAX TOP UP from food stamps alone for weeks on end...

Now, lets see - non-payment of the 'bedroom tax' actually means that you are not paying a percentage if your RENT. So you can be (and probably would be if it was 3 months worth) evicted.

Aaaannnnd...If you don't pay your Council Tax top up, you can actually be imprisoned.

Nice way to demonise the poorest in Society. hmm

higgle Sat 30-Mar-13 17:17:29

The poor are not stupid! Those of them that want alcohol and not food will simply swap their purchases for drink, thus negating the whole ( stupid) point of the exercise.

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