"A £180m-a-year hardship fund providing emergency help for low-income families who suffer sudden financial crisis as a result of domestic violence, ill-health or natural disaster such as flooding is to be scrapped, it has emerged."
"Technical documents released just before Christmas suggest the Department for Work and Pensions plans to cut its cash allocation to local authority welfare assistance schemes in 15 months' time.
Charities warned this would lead to a postcode lottery in local welfare help and trigger a rise in the number of people becoming dependent on loan sharks or charitable support, such as food banks.
Matthew Reed, chief executive of the Children's Society, said the removal of government funding for local crisis schemes was alarming. "This is yet another blow to what was once a critical safety net for families facing such unpredictable emergencies and disasters as flooding, or simply running out of money to buy food for their children or feed the electricity meter."
"We urgently need a clear commitment from government to provide local authorities with sustainable funding to support families facing an unexpected financial crisis. Without this, many more families will be forced to turn to food banks, or to use loan sharks or high-cost money lenders."
"Local welfare assistance schemes were set up in 152 local authorities in England in April, after the old, nationally administered social fund was "localised" as part of the Welfare Reform Act. The schemes are comprised of two elements – crisis support, which is designed to help penniless people with vital short-term expenses such as food or clothes; and community care grants, which would help people in severe crisis obtain basic living essentials such as beds and cooking equipment."
"The ending of the £180m funding stream in April 2015 is likely to lead to a sporadic provision of crisis help because some councils, which have no statutory duty to provide local welfare, might decide to close their schemes altogether."
http://www.theguardian.com/society/2014/jan/03/government-stops-emergency-funds-low-income-families
Charities warned this would lead to a postcode lottery in local welfare help and trigger a rise in the number of people becoming dependent on loan sharks or charitable support, such as food banks.
Matthew Reed, chief executive of the Children's Society, said the removal of government funding for local crisis schemes was alarming. "This is yet another blow to what was once a critical safety net for families facing such unpredictable emergencies and disasters as flooding, or simply running out of money to buy food for their children or feed the electricity meter."
"We urgently need a clear commitment from government to provide local authorities with sustainable funding to support families facing an unexpected financial crisis. Without this, many more families will be forced to turn to food banks, or to use loan sharks or high-cost money lenders."
"Local welfare assistance schemes were set up in 152 local authorities in England in April, after the old, nationally administered social fund was "localised" as part of the Welfare Reform Act. The schemes are comprised of two elements – crisis support, which is designed to help penniless people with vital short-term expenses such as food or clothes; and community care grants, which would help people in severe crisis obtain basic living essentials such as beds and cooking equipment."
"The ending of the £180m funding stream in April 2015 is likely to lead to a sporadic provision of crisis help because some councils, which have no statutory duty to provide local welfare, might decide to close their schemes altogether."
http://www.theguardian.com/society/2014/jan/03/government-stops-emergency-funds-low-income-families
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