Deprived families' fund review axed

Ross Watson
Monday, June 21, 2010

The government has revealed that it has scrapped the review of the Social Fund, which provides loans and grants to low-income families, despite criticism it is not meeting the needs of the most deprived.

The fund exists to help low-income families with one-off expenses, suchas new school uniforms and maternity grants. The previous government wasin the process of consulting on a review of the fund after child povertycampaigners said it failed to reach enough disadvantaged families.

But last week, in response to a parliamentary question, Liberal Democratwork and pensions minister Steve Webb revealed the government has noplans to make any changes to the conditions of eligibility for thefund.

A Department for Work and Pensions spokesman confirmed that the reviewof the fund has been stopped.

Family Action, the charity that provides support for vulnerablefamilies, was one of a number of organisations that responded to theconsultation, calling for more money to be invested in the fund. "Thefact is as the recession continues and people's borrowing options arereduced, the Social Fund becomes one of the few options left forvulnerable families," said Rhian Beynon, Family Action's head ofpolicy.

Beynon voiced concern that proposals in the review, including anincrease in advice and support for women fleeing domestic violence, havebeen dropped.

Family Action has traditionally offered grants to people who had beendenied money through the Social Fund. But it has been forced to turnmany families away this year due to limited funds, Beynon said.

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