Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://www.socialistparty.org.uk/issue/561/6742

From The Socialist newspaper, 7 January 2009

Labour ministers' unsocial fund

NOT SATISFIED with attacking the benefits entitlements of the unemployed in the recent Welfare Reform Bill, the government proposed charging up to 27% interest on emergency state loans to claimants.

Simon Carter

Many elderly, disabled and unemployed people apply for emergency loans to replace a broken fridge or cooker, etc. These loans are then repaid from benefit payments. Prior to 1988 claimants could qualify for one-off, non-repayable grants.

Even an interest-free loan is a big financial undertaking from people struggling to survive on a pittance.

However, the government's consultation paper proposed outsourcing the social fund to credit unions: "Interest would be charged in return for these services but this would be at affordable rates compared to those charged by commercial lenders in the same market. We propose to set it at the maximum charged by credit unions of 2% per month (26.8% apr)."

Yet Gordon Brown has the hypocritical cheek to berate the banks for not passing on to customers the most recent reduction in lending rates!

This latest Labour bludgeon to strike the poorest and most vulnerable in society was the brainchild of work and pensions secretary James Purnell. Readers will recall that Purnell, in an earlier, crassly insensitive comment, lectured the unemployed 'not to use the economic recession as an excuse for not finding work'. Advice no doubt appreciated by the 75,000 people who lost their jobs in November!

The government, faced with a barrage of criticism over this outrageous proposal, has subsequently denied wanting to charge interest on social fund loans.

However, Kitty Ussher, a work and pensions minister, hasn't withdrawn the proposal of privatising the social fund and allowing credit unions to administer loans from the fund. But why would a credit union be prepared to offer interest free loans?

Like many of Labour's 'kite flying' proposals, the suspicion is that we haven't seen the last of this proposal.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 7 January 2009:

Stop the Slaughter in Gaza

Thousands protest against the Israeli onslaught


Socialist Party Marxist analysis

2009 - putting socialism back on the agenda


Socialist Party youth and students

Youth fight for jobs


Socialist Party campaigns

The great rail fares rip-off

Madoff with the money!

No festive joy for shop workers

Labour ministers' unsocial fund

Plutocrats lose

Make the poor pay


Celebrity Big Brother

Tommy Sheridan in Celebrity Big Brother


International socialist news and analysis

USA: Chicago factory workers occupation wins concessions


Socialist Party workplace news

For a fighting Usdaw leadership

South Wales: Workers vow to fight job losses

BT: reluctant vote for pension cuts

No redundancies at GSK!

Salford council: Equal pay, not pay cuts!


Environment and socialism

No to the toxic incinerator!


 

Home   |   The Socialist 7 January 2009   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Labour:

triangleThe fog of Brexit

triangleThe Socialist inbox

triangleMomentum's 'The World Transformed' blocks discussion on Liverpool council struggle

triangleThe struggle to transform Labour

triangleBlairites must go

Welfare rights:

triangleUniversal Credit delivers claimant misery

triangleGreenwich Unite criticises privatisation of welfare services

Unions:

triangleNSSN rally: militant trade unionists share ideas to win for workers

triangleTories in chaos - general election now!

triangleThe Socialist inbox

Unemployed:

triangleBig political strike against Finnish government's attack on unemployed

trianglePCS protest

Social Fund:

triangleCrisis loans

Reports and campaigns

Reports and campaigns

19/9/18

RMT

Strikers ready to up the ante over rail safety

19/9/18

Huddersfield

Huddersfield Socialist Party opposes racist EDL

19/9/18

Newcastle

Hundreds of Newcastle United fans attend Mike Ashley Out meeting

19/9/18

Leicester

Socialists and campaigners protest Leicester NHS cuts

19/9/18

Liverpool

March to save threatened Liverpool Women's Hospital

19/9/18

The Socialist

Join our Socialist sales drive for issue 1011

19/9/18

Liverpool

Liverpool airport workers demand decent pay

19/9/18

York

York health workers say no to privatisation

19/9/18

Birmingham

Birmingham home carers' protest demo

19/9/18

UCU

University pay ballot: vote yes for strike action!

19/9/18

Hull

Socialist Students campaigns at Hull freshers fair

19/9/18

Lewisham

Lewisham: binning the rates rise

19/9/18

Leicester

Leicester UCU fights redundancies

14/9/18

Prisons

POA walkout over government failure to make prisons safe

12/9/18

Students

Students unite and fight - free education now!

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: info@socialistparty.org.uk

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 0798 202 1969

East Mids: 0773 797 8057

London: 020 8988 8786

North East: 0784 114 4890

North West 07769 611 320

South East: 020 8988 8777

South West: 07759 796 478

Southern: 07833 681910

Wales: 07935 391 947

West Mids: 02476 555 620

Yorkshire: 0114 264 6551

ABOUT US

ARCHIVE

Alphabetical listing


September 2018

August 2018

July 2018

June 2018

May 2018

April 2018

March 2018

February 2018

January 2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999