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Child poverty: Loans scheme fails poorest families

1 min read
A Government anti-poverty scheme is failing to help the poorest families, according to research published last week.

The Joseph Rowntree Foundation report says that the Social Fund, whichprovides grants and loans to low-income or benefit-dependent householdsto help them pay for necessary or emergency expenses, is actuallyincreasing poverty among some households.

The research calls on the Government to overhaul the fund to ensure thatits contribution to tackling poverty and social exclusion can bemaximised.

Many participants had applications refused or received only partialawards.

There was confusion about how grants and loans were awarded, with manybelieving that their chances of success were down to luck, the researchfound.

Many of those who could access funds felt the rate at which they had topay back loans was often too high. The lead author of the report, KateLegge of the University of Nottingham, said families with children foundit particularly difficult to meet any loan repayments.

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