Government abolishing DWP Crisis Loans

[BeingAMumIsFun]

The government is getting job centre staff to send people to the trussell trust for food parcels.

The government stated it was only people who were refused crisis loans that were being sent to the trussell trust with a voucher for a food parcel.

But the government announced they intend to scrap crisis loans -that people pay back (for people who have hit a short term crisis e.g. child in hospital, flooding).

The are recommending that councils in England get the money instead and also recommending that instead of actually giving out crisis loans that councils send people to the trussell trust for food parcels instead www.dwp.gov.uk/docs/social-fund-localisation-call-for-evidence.pdf

There were 2.69 million crisis loans given out in england last year.

So I guess this means the job centre won't only be giving those refused crisis loans money for food parcels but the job centre staff will be kept extremely busy as they will have to handle sending at least 2.69 million families to the trussell trust next year to queue for food parcels (with no fresh meat, no fresh milk, no fresh veg, no fresh bread) instead of borrowing a small amount in an emergency (and paying it back) to allow families to pay for fresh food when crisis and unexpected expense strikes.

So if you are on benefits and your child falls ill and ends up in hospital and you have to spend your benefits taking your child to hospital and visiting them in hospital - remember and leave time to trapse your children to the next town to collect your food parcel with no nutrition to help your child recover from their illness.

Let's go back to war time rations

[CogitoErgoSometimes]

I think scaremongering is the last thing we need at the moment. There used to be an MN member who would take posts like the one at the top of this thread absolutely on face-value every time and then fall into a pit of depression thinking she'd no longer be able to cope. In fact, she ended up in the newspapers saying exactly that - she couldn't cope any more...

[AmberLeaf]

Easily done when without help you really wouldnt cope.

It is depressing.

I dont think this is scaremongering at all, changes are happening and they will hit those who are most desperate.

[EdithWeston]

Amberleaf: grateful if you would point out which part of these proposed reforms will produce the potentially detrimental changes. The call for evidence has only just opened - the more specific any concerns/objections the better.

I assume all those who have fulminated on this thread have already participated in this exercise. If there points on these specific proposals which you made in your contributions, which you feel able to share here, this might be helpful for others with concerns about these plans for retention.

[AmberLeaf]

Heres the response to the call for evidence;

www.dwp.gov.uk/docs/social-fund-localisation-response.pdf

Not read it yet-on my way out.

[AmberLeaf]

Edith, the call for evidence ended in april this year.

You can read more in the response that I posted.

I didnt know about the call for evidence until very recently so did not participate.

Not surprisingly the disabled and lone parents will be most affected.

[CogitoErgoSometimes]

Changes may well happen but I think it doesn't help to put very worrying titles like 'Government abolishes...' when there is no evidence to support that statement, simply a white paper proposing alternative ideas and asking for feedback. I'm confident that, whilst the mechanisms and specifics may change, we are far too decent and civilised a society to leave the people at the very bottom of the pile without any help whatsoever.

[CogitoErgoSometimes]

From the link...

16. Lone parents are the largest users of Budgeting Loans. They are also the group at highest risk of being targeted by illegal lenders who often use small initial loans as a way of trapping victims into a spiral of ongoing loan use often coupled with extortionate interest rates, intimidation and violence.
17. Budgeting Loans are an important buffer to protect people from turning to illegal lending. Because of this the Government has committed to maintaining a simplified and modernised national system of interest-free advances accessed through the benefit system as part of the wider package of reforms..

So the OP really was scaremongering trying to make out that food parcels would replace cash. Shame on them....

[deemented]

But budgeting loans can take up to a fortnight to come through. Crisis loans usually come through the same day. And there are strict guidelines as to what you can apply for within a budgeting loan.

[EdithWeston]

I have read the response.

Crisis loans will be retained, though there will be some reforms.

Not abolition.

[AmberLeaf]

Edith read pg 20 of the doc;

Provision from april 2013

Crisis Loans for general living expensesAbolished

Replaced with locally-based provision.

Also although bugeting loans will remain for lone parents, if you have taken one out and are currently paying it back you cant apply for another obviously, so the only option if for example your fridge breaks down will be a crisis loan....except that option will no longer exist

Crisis loans are the least of it though, Community Care Grants are going too, these can be used by for example women fleeing DV, women that have to go in a hurry and leave everything behind, they are used to help with basic furnishing of a new home etc.

Provision from april 2013

Community Care Grants

Abolished. Replaced with locally-based provision.

I hope the 'locally based provision' is easy to access and adequate.

[EdithWeston]

Read the WHOLE of BOTH linked documents.

Crisis loans and Budgeting loans will continue to come from a NATIONAL budget. Others may have local budgets in future.

This thread is very misleading. Nothing is being abolished.

Some loans will be administered differently, but the entitlement remains. Compare other locally administered items - say Council Tax credit - no-one becomes ineligible for this because of local variations.

[AmberLeaf]

Edith the italic words in my pp were taken directly from the 2nd document.

They used the word abolished, I take that to mean they are being abolished.

As I said in my pp crisis loans and community care grants are to be abolished and replaced with locally based provision [ie local authorities]

from 2nd document;

^93.
A number of local authorities raised concerns that they do not have the capacity or infrastructure to deliver the new local service in-house. Some authorities may review their position when they see the indicative social fund volumes for their local area. For others this may continue to be an issue.^

Does instill much confidence in LA ability to deliver an effective service does it?

Also what you say about entitlement, crisis loans and community care grants are discretionary no one is entitled to them at all and these are the ones that are being abolished.

[EdithWeston]

I agree that the words are direct quotations.

I am pointing out however that they are partial, in particular they do not reflect the continuing eligibility for crisis loan provision. What is under discussion in the paper is a change of how crisis loans are administered, not the abolition of the provision of loans. The parameters of discretionary elements remain unchained.

I would think any LA which, at present, already maintains an infrastructure to perform a task they have no remit to do yet is wasting public funds. I also think that any LA which cannot put one in place by the time this rolls out is incompetent, and the local electorate should be baying and voting them out.

What would be illuminating here is a breakdown if which LAs have confidence in their competency, and which are the ones who do not think they can cope

It strikes me as unfortunate for the electorate that they are not able to access such information about their councils own statements on their performance (though I suppose the greater interest of honesty in evidence means that these damning admissions by a "number" (?) of LAs will have to remain confidential.

[AmberLeaf]

What is under discussion in the paper is a change of how crisis loans are administered, not the abolition of the provision of loans.

I disagree, It clearly states that they are being abolished.

It says they will be replaced with locally based provision what that provision will be is not yet decided but the report mentions 'big society' type things like furniture recycling etc.

Im not sure why you are disputing the fact [as clearly outlined in the report] that they are being abolished?

Community care grants and crisis loans are being abolished

[EdithWeston]

The provision of crisis loans will continue.

The current name for them is changing, so the old one is being abolished. A new delivery system is being arranged, so the old one will be abolished.

It is however misleading to suggest - as this thread does - that there will in future under these proposals be no crisis loans. They have not been abolished - it is just name and means of administration that are changing.

It's a bit like saying that local taxation was abolished because the system for collecting that has changed. I care far more about the substance than the name.

[AmberLeaf]

Ok

It says they are being abolished.

DWP will no longer provide that service.

LAs will provide a service.....but no one is quite sure exactly what that service will consist of and how it will be delivered.

It is likely to no longer be a cash based service...so really its not going to be as it has been so far.

So a completely different thing....same as the CCGs

To go from a cash in emergency based service to a 'possible used based goods/charity goodwill service is not the same thing under a different name.

[OpinionatedPlusSprogs]

Bastards.

[AmberLeaf]

Also the method of delivery of any future service will be very different, at present it is a faceless service, people [poor people] applying for these services currently dont have to present themselves cap in hand, under the new proposals I imagine that having to go into LA offices will be both embarassing and demeaning and on a much more personal level.

[AmberLeaf]

embarrassing

[EdithWeston]

An emergency advance of benefits from DWP will also continue.

It's no longer being called a "crisis loan" though. The possible changes in terminology, and the discontinuation of certain terms for certain categories of crisis loans, seems to have overwhelmed the bottom line, which is that provision is being retained.

A debate on how claimants should access continuing provision in reformed services is rather different from misplaced talk of abolition.

[AmberLeaf]

Yes I know alignment payments will remain Edith, thats why I didnt say they were being abolished.

But again crisis loans [for general living expense-not tide overs till benefit payments kick in] are being abolished.

its not misplaced talk of abolition IT IS HAPPENING

The provision for CCGs and crisis loans is not being retained, YOU are being misleading by constantly repeating that they are.

Abolish

1. To do away with; annul

2. To destroy completely