Charities have put more pressure on the government to rethink scrapping an emergency fund for vulnerable people.
In November last year, the Department for Work and Pensions outlined changes to the social fund in a white paper which would see abolition of community care grants and most aspects of crisis loans, and the transfer of administration to local authorities from 2013 when universal credit is introduced.
Family Action, along with 13 other charities including Crisis and the National Housing Federation, has tabled an amendment to the Welfare Reform Bill which is currently going through parliament. The amendment asks the government to publish details of a replacement for the scheme to ensure that vulnerable people can access money in a crisis.
In 2009/10 there were 640,000 applications for a community care grant, and 3.65 million applications for a crisis loan. Evidence given to the Public Accounts Committee last year showed that on average only 32 per cent of ‘legitimate demand’ for community care grants was met.
Helen Dent, chief executive of Family Action, said: ‘We are worried about the impact of social fund localisation on housing costs. The changes could mean that housing providers face additional pressures on support services and funds. Women fleeing domestic violence could be forced to remain in their homes, unable to flee the perpetrator or trapped in hostel or temporary accommodation because they just don’t have the financial support to help them rebuild their lives and provide for their children if they are rehoused.’
In a debate in the House of Commons yesterday, Labour MP John McDonnell said: ‘These mechanisms support people in desperate need and at key times in their lives, and they are safety nets when people are facing essential expenditure that they cannot meet.
‘They make a significant impact on individuals’ lives and in tackling poverty across the country.’
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