Has anybody else read the DWP 'The Social Fund: A New Approach' consultation document? As far as I can see, the Government is proposing to make some quite substantial changes.

Their proposed scheme will charge interest, at up to 27% APR, and will be administered by organisations like credit unions . Community Care Grants will be scaled back.

The DWP press release did not mention that the new scheme would charge interest, nor that CCGs would be reduced in scope: http://www.dwp.gov.uk/mediacentre/pressreleases/2008/dec/emp114-011208.asp

The DWP consultation document is available here:
http://www.dwp.gov.uk/consultations/2008/social-fund-new-approach.asp

The deadline for responses is 23.12.08.

27% has to be better than 187%, which is what Provident Finance charges for its doorstep loans.

interesting that in the DWP's consultation on the Jobcentre Plus policy on advertising adult entertainment job vacancies that we publsihed to rightsnet news on friday it says ...

'The Cabinet Office Code of Practice on Consultation advises that a minimum of 12 weeks is appropriate for public consultations, unless there are good reasons for a shorter period.'

.... but that they launched the social fund consulation with a press release on 1 december with a three week turnaround ....

Yes, I noticed that Shawn, so I wrote to them as follows:

Please can you explain why it is that this very important consultation does not meet The Cabinet Office Code of Practice on Consultation, which advises that a minimum of 12 weeks is appropriate for public consultations, unless there are good reasons for a shorter period?

The curt reply I have just received is below:

Thank you for your message.

This is an informal consultation at an early stage of policy development. As such, it is very much in line with the Government Code of Practice on Consultation. We are at this stage seeking views.

We look forward to hearing from you again with your views.

Is it just me or have they completely not answered the question?

Though Provident can't take their loan repayments directly out of your benefit!

In 1991 when I did my dissertation on the loss of single item payments and the effects of the Social Fund on the clients of the Leeds and Moortown Furniture Scheme, one of my (angry) interviewees, from a Catholic church in Leeds, gave me my title "The Government as Money Lenders".

It may be cheaper than Provi and Shopacheck etc, but it may be coming true.

Wait until the Social Fund Catalogue drops on your clients' mats.

I wouldn't be surprised to see it; are 'authorised suppliers' still around taking thir vouchers from social services?

Row over state loan charge 'plan' - see coverage at http://news.bbc.co.uk/1/hi/uk_politics/7794334.stm

and "Minister's U-turn on interest charges for social fund after 'loan sharks' jibe" - see further coverage at http://www.guardian.co.uk/politics/2008/dec/22/government-social-fund-loans