Link to this page: http://www.socialistparty.org.uk/issue/560/6698
From The Socialist newspaper, 10 December 2008
Crisis loans
The government's latest target in its privatisation of the welfare state is the Social Fund. This fund has been in place since 1988 when it replaced single payments, which were non-repayable grants, with a mainly loans-based system. However it at least provides interest free loans to some of the poorest in society, with reasonable repayment rates out of people's benefit.
Katrine Williams, PCS DWP Wales secretary, personal capacity
The government proposes outsourcing social fund loans to the voluntary or private sector. The three-week consultation period in the run-up to Christmas is an extremely tight timescale.
The government puts forward credit unions as the type of organisation that could deliver, as a way of making privatisation seem more palatable. However very few organisations could take on the provision of something as large-scale as the social fund. The potential privatisation has been made more appetising to private companies by allowing them to charge 1-2% interest on loans with the repayments being taken from people's benefit, as is the case with 90% of the loans currently. So this could be a licence to make money out of the poorest in society.
The government argues that the proposals would simplify the social fund system by combining budgeting loans and crisis loans but this seems to be more about making it easier to privatise the work. Also access to non-repayable grants would be much more limited under these proposals.
The social fund needs to be provided by the public sector. PCS members working on the social fund in the department for work and pensions are angry that this consultation paper has come out with no regard to their views on improving the service to the public. For instance there is no reason why PCS members could not provide an increased service by giving debt and budgeting advice as was originally provided when the social fund was introduced. Hard-working public sector workers who are busting a gut to provide a good service are fed up with being constantly undermined and undervalued.
The consultation paper is on the DWP website and comments can be sent to social.fund@dwp.gsi.gov.uk by 23 December.
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In The Socialist 10 December 2008:
Socialist Party NHS campaign
International socialist news and analysis
Queen's rep suspends Canada's parliament
Chicago workers occupy factory
Socialist Party editorial
Welfare 'reform' - fight these attacks
Socialist Party campaigns
Usdaw presidential election - support Robbie!
DNA evidence - Labour's draconian laws...
Jean Charles de Menezes Coroner restricts inquest verdict
Lewisham's Greens and the BNP 'supporters list'
Education fightback
Student struggle in Spain - time of revolt
60,000 march against education cuts in Dublin
Wales - the true extent of student debt exposed
Workplace news and analysis
PCS gains steps towards settlement
Militant response needed at ex-Visteon plant to save jobs
Unite against university attacks
Hospital trust offers pay cuts for Christmas
Environment and socialism
Water - essential of life or blue gold?
Socialist Party review
Socialism and left unity - a critique of the Socialist Workers Party
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