Monday, 25 May 2015

Housing groups condemn plan to end crisis loans

Government plans to abolish parts of a fund to help vulnerable people have been slammed by 20 organisations.

The coalition government plans to remove crisis loans and community care grants from the social fund and transfer administration to councils.

The organisations, in a joint letter to the Guardian newspaper and welfare reform minister Lord David Freud, warn that this could leave vulnerable people with little or no support.

The letter said: ‘Crisis loans and community care grants are the ultimate safety net for the most vulnerable in society.

‘For example, they enable women and children fleeing domestic violence to clothe themselves and furnish their homes or parents in rural areas who cannot afford a car to visit their child if they are taken into hospital unexpectedly. We are deeply concerned at the government’s proposals to abolish these elements of the social fund and pass some of the funding to local authorities, without any statutory obligation to ensure they provide emergency support to vulnerable people.’

The letter’s signatories include the National Housing Federation, Crisis, Homeless Link, St Mungo’s and the Child Poverty Action Group.

The social fund reform proposals are likely to be debated when the Welfare Reform Bill returns to the House of Lords on Wednesday.

A spokesperson for the Department for Work and Pensions said: ‘We’re reforming the social fund because it is too complex and poorly targeted.

‘Local authorities are best placed to deliver this support and will ensure that it goes to those most in need.

‘People will now benefit from local knowledge and wider support services.’

Readers' comments (4)

Comments are only open to subscribers of Inside Housing

Already a subscriber?

If you’re already a subscriber to Inside Housing, your subscription may not be linked to your online account. You can link your subscription from within the My Account section of the website and clicking on Link My Account.

Not yet a subscriber?

If you don't yet subscribe to Inside Housing, please visit our subscription page to view our various subscription packages.

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up



  • Thousands rally to end housing crisis

    17 March 2015

    Some 2,500 people from more than 300 organisations will gather in Westminster for the Homes for Britain rally this afternoon to call for an end to the nation’s housing crisis.

  • Housing in crisis


    Housing may have dropped down the election agenda, but the housing crisis continues to grow

  • Estates for kick starter loans revealed

    3 December 2014

    The four estates set to benefit from a £150m pot of loans to kick start regeneration have been identified in today’s autumn statement.

  • Crisis loans rescued from crisis

    30 September 2014

    Mike Spencer reflects on the charity Child Poverty Action Group’s recent win on funding for low income families in a crisis

  • ‘LOBO’ loans must be declared

    18 September 2014

    Scottish regulator asks housing associations to flag risky loans


  • Job interviews in housing: outside the box

    20 August 2014

    Some social landlords believe a traditional interview is not the way to find the best candidate for the job. Simon Brandon reports on how Bromford Group is using role-playing games to get to know prospective employees

IH Subscription