From the Social Fund Localisation Response Document and to redress the malicious misinformation in the title of an earlier, rather irresponsible, thread..
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.