Government to push ahead with axing emergency support fund

The government is proposing to push ahead with plans, announced earlier in the year, to end central funding for local welfare assistance schemes, which are managed by local authorities, by next April. This is despite the government saying recently that it would reconsider the decision after legal action, backed by charities, was launched.

The schemes are designed to help get struggling families and young people back on their feet and prevent temporary financial crises spiralling into debt and destitution.

Proposals state that councils will be given the option of retaining their schemes by finding the money from elsewhere.

However a Local Government Association survey found that almost three quarters (73 per cent) of councils would either end or scale back their local scheme if the funding was abolished.

The proposals have come as a disappointment to children's charities, which had hoped the government would backtrack in light of the threatened legal action.

Matthew Reed, chief executive of The Children’s Society, described the proposed move as “a cut too far”.

“At a time of increasing child poverty, high levels of problem debts, and cuts to support for families, it is more important than ever that local welfare assistance schemes are available to help families in crisis,” he said.

“Without these schemes, families will have to choose between going without basic essentials to keep their family safe and healthy – such as food or heating – and turning to high cost credit or payday loans, plunging them into a debt trap.

“The government should think again and make sure all local authorities have dedicated funding to provide this vital safety net.”

The consultation is open until 21 November 2014.