A fund aimed at providing support to people in crisis has
been scrapped by the government prompting fears it could force vulnerable
people to turn to payday lenders and loan sharks. The local welfare provision grant,
which is mostly used to aid people who have short-term financial difficulties,
such as benefit delays, will not be administered to local authorities in the
2015/16 year, according to the latest local government finance settlement. The removal of the £172 million fund, which
was also used to pay for foodbanks and housing-related support, means that
councils have to administer the provision through their general funds. The
development prompted concerns that people with money difficulties would fall through
the net, with a ‘terrible’ impact for families. Read more on Inside Housing.
