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Eric Pickles accused of forcing vulnerable families towards loan sharks Eric Pickles accused of forcing vulnerable families towards loan sharks
(about 17 hours later)
Four Conservative council leaders have accused Eric Pickles of forcing vulnerable families into the hands of loan sharks by scrapping a government-backed emergency fund.Four Conservative council leaders have accused Eric Pickles of forcing vulnerable families into the hands of loan sharks by scrapping a government-backed emergency fund.
They claim the communities secretary's decision to drop the £347m local welfare assistance fund (LWA), which is supposed to provide emergency payments to low income families, could lead to extensive problems for vulnerable people.They claim the communities secretary's decision to drop the £347m local welfare assistance fund (LWA), which is supposed to provide emergency payments to low income families, could lead to extensive problems for vulnerable people.
The criticisms from high profile councillors come as the party's grassroots activists prepare for an expected collapse in electoral support in next month's local elections.The criticisms from high profile councillors come as the party's grassroots activists prepare for an expected collapse in electoral support in next month's local elections.
Local authorities currently use the LWA fund to give emergency help to people facing crisis situations, including families under the threat of homelessness or domestic abuse. It has also paid for vouchers for people struggling to afford food and basic household essentials.Local authorities currently use the LWA fund to give emergency help to people facing crisis situations, including families under the threat of homelessness or domestic abuse. It has also paid for vouchers for people struggling to afford food and basic household essentials.
It was introduced in 2013 to replace government-provided crisis loans, with each local authority area allocated money from the £347m total. This year's local government finance settlement revealed, however, that funding would not be renewed in 2015.It was introduced in 2013 to replace government-provided crisis loans, with each local authority area allocated money from the £347m total. This year's local government finance settlement revealed, however, that funding would not be renewed in 2015.
One Conservative council leader has written to Pickles claiming that plans to dispense with the fund will mean that vulnerable families will be forced to go to loan sharks.One Conservative council leader has written to Pickles claiming that plans to dispense with the fund will mean that vulnerable families will be forced to go to loan sharks.
Louise Goldsmith, who heads West Sussex county council, expressed her frustration over the Pickles' decision to scrap the LWA fund.Louise Goldsmith, who heads West Sussex county council, expressed her frustration over the Pickles' decision to scrap the LWA fund.
Goldsmith, who once worked in the finance and banking industry, wrote to the communities secretary last week to dispute his argument that the fund should be scrapped because it has been under-claimed and badly targeted.Goldsmith, who once worked in the finance and banking industry, wrote to the communities secretary last week to dispute his argument that the fund should be scrapped because it has been under-claimed and badly targeted.
"My major concern is that if the fund is withdrawn, people who have nowhere else to go will be forced towards loan sharks who will charge extortionate rates of interest, which could lead to short-term problems escalating to long term troubles," she wrote."My major concern is that if the fund is withdrawn, people who have nowhere else to go will be forced towards loan sharks who will charge extortionate rates of interest, which could lead to short-term problems escalating to long term troubles," she wrote.
Goldsmith, whose council is based in Chichester, wrote that even in her "comparatively wealthy county" the council received more than 6,000 requests for help from the LWA fund in its first year of operation. Without it, the council would have to fund its own emergency provision, she said. In 2015/16, the council's general government grant will drop by nearly £20m to £144.3m.Goldsmith, whose council is based in Chichester, wrote that even in her "comparatively wealthy county" the council received more than 6,000 requests for help from the LWA fund in its first year of operation. Without it, the council would have to fund its own emergency provision, she said. In 2015/16, the council's general government grant will drop by nearly £20m to £144.3m.
Keith Glazier, the Tory leader of East Sussex county council, said that scrapping the LWA fund could well force people towards loan sharks and a cycle of poverty. ""People become desperate and they do desperate things, so of course that is a possibility. Keith Glazier, the Tory leader of East Sussex county council, said that scrapping the LWA fund could well force people towards loan sharks and a cycle of poverty. "People become desperate and they do desperate things, so of course that is a possibility.
"There are two big issues here. The first is that the scheme hasn't had enough time to settle down and it's not had the review promised by government. Secondly, if it becomes an unfunded ask of local government then the government is going back on a promise," he said."There are two big issues here. The first is that the scheme hasn't had enough time to settle down and it's not had the review promised by government. Secondly, if it becomes an unfunded ask of local government then the government is going back on a promise," he said.
David Hodge, the leader of Surrey county council, has written to the local government minister, Brandon Lewis, demanding a meeting and calling for the government to re-exmaine its decision. David Hodge, the leader of Surrey county council and chairman of the County Council Network, has written to the local government minister, Brandon Lewis, demanding a meeting and calling for the government to re-exmaine its decision.
"It is a regrettable mistake for government to abolish the scheme because the last thing we want to do is drive these families to become troubled families," he said."It is a regrettable mistake for government to abolish the scheme because the last thing we want to do is drive these families to become troubled families," he said.
The Local Government Association's Tory chairman, Sir Merrick Cockell, who is also the head of Kensington and Chelsea council, said that the government had got it wrong. "This fund has been used by councils to provide crucial support to people facing personal crises in their lives, from help paying the rent to putting food on the table."The Local Government Association's Tory chairman, Sir Merrick Cockell, who is also the head of Kensington and Chelsea council, said that the government had got it wrong. "This fund has been used by councils to provide crucial support to people facing personal crises in their lives, from help paying the rent to putting food on the table."
Recent polls have shown that the Tories are expecting to poll as little as 22% support in the next month's European elections as up to half of the party's supporters switch to Ukip, which is neck ad neck with Labour on 30%. Party insiders acknowledge that they are braced for a smiliar drubbing in the local elections, but on a lesser scale.Recent polls have shown that the Tories are expecting to poll as little as 22% support in the next month's European elections as up to half of the party's supporters switch to Ukip, which is neck ad neck with Labour on 30%. Party insiders acknowledge that they are braced for a smiliar drubbing in the local elections, but on a lesser scale.
Officials at the Department for Communities and Local Government argue that people on benefits can get other advances.Officials at the Department for Communities and Local Government argue that people on benefits can get other advances.
A spokeswoman said: "Councils will continue to provide support to those in their community who face financial difficulties or who find themselves in unavoidable circumstances.A spokeswoman said: "Councils will continue to provide support to those in their community who face financial difficulties or who find themselves in unavoidable circumstances.
"In contrast to a centralised grant system that was poorly targeted, councils can now choose how to best to support local welfare needs within their areas. What is right for inner London will not be for West Sussex."In contrast to a centralised grant system that was poorly targeted, councils can now choose how to best to support local welfare needs within their areas. What is right for inner London will not be for West Sussex.
"Government continues to provide support to local authorities' through general funds as part of the government's commitment to reducing ring-fencing and ending top-down Whitehall control.""Government continues to provide support to local authorities' through general funds as part of the government's commitment to reducing ring-fencing and ending top-down Whitehall control."