Bring back the Social Fund

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Before the Government decided to scrap the Social Fund, people and their families had a place to turn when they found that they were without income (often through no fault of their own) and could apply for a crisis loan to tide them over with money for food or gas and electricity until they were next paid.

With the roll out of the new welfare reforms that began in April 2013, and the closure of the discretionary Social Fund system people are having to find alternative ways to support themselves when without income, and with the number of adverts for payday loansharsk on the TV it is not surprising that these companies are seeing an upsurge in applications.

Payday loans ARE NOT the answer to turning around poverty as they see people fall into spiraling dept that they are unable to clear with charges, interest and other fees mounting on a daily basis.surge-in-payday-loan-search


The government should give real thought to brining back element of the Social Fund to help those who are tempted to apply for these short term loans. with a view to helping to end the misery of those caught in the poverty trap.