Amid the fury, the closure of the social fund is a quiet tragedy

This government, the most radical in recent times, is laughing at us, writes Carl Packman

Welfare reform has been a huge part of the national conversation this week, but one under-reported move by the government will see community care grants and crisis loans, which were paid through job centres as part of a centralised social fund package, end.

Instead local authorities will now have unspecified funding for alternative provision – boosting the worry that help for the most vulnerable will be subject to a postcode lottery.

While people in receipt of benefits will face more challenges, and almost certain crises, the money sources they can apply for as a last resort are being squeezed. From the bedroom tax, caps on the amount they can receive, and a real term cut after benefits are capped at 1%, measured alongside a rising cost in living, government policy is disproportionately impacting the most vulnerable, especially disabled people who make up one third of social fund claimants.

A new report looking at the localisation of the social fund, by the Centre for Responsible Credit, notes that “Many local authorities are implementing tight eligibility criteria and their assistance is less likely to involve cash payments, with in-kind support such as food parcels and voucher schemes used in their place.”

According to Damon Gibbons, the author of the report, though some local authorities are keeping something akin to the social fund, many are not proposing to put anything in its place, which will inevitably lead to the reduction of support for those in crisis. 

With no state provision, the likelihood that payday lenders and other high cost credit suppliers will benefit is dramatically increased. 

The Social Fund was introduced in 1987, during the Thatcher days. Norman Fowler, who served as a member of Margaret Thatcher’s cabinet from 1981 to 1990, instituted what came to be known as the ‘Fowler reforms’ of the social security system, under which the social fund was introduced.

The fund, set up for those who could not withstand financial shocks or who have little or no savings, could be applied for through government to fund various one-off payments such as funerals or larger items such as furniture. 

Because of problems such as delay, many critics said the fund needed reform. But adding further proof that this coalition government is in many ways more radical than the Conservative government of the seventies and eighties, its future existence is compromised. 

In her book Hard Work, Polly Toynbee re-told her hardship at applying from her local authority for a social fund loan. After making her application she was told she would have to wait several weeks for it. For recipients this meant weeks without money for necessities, and when it did come in it was less than she had applied for. To be sure the social fund needed reforming – but not in the way that this government has done it. 

This is a dangerous move, not only because it removes part the state's duty to provide for the most vulnerable in society, but because it boosts the possibility of more bad consumer debt when all other options are off the table. 

At such radical moves by the establishment, we have to level equally radical demands back at it. The social fund should be immediately reinstated and centralised, so as to avoid the trappings of a postcode lottery. Government needs to reform the fund so it is fit for purpose, helping families in the face of severe financial shocks. Policy makers should seriously consider making the social fund something that operates through a credit union, which would increase credit union funding and do more to highlight its social importance.

This government, the most radical in recent times, is laughing at us, while the media responds painting welfare claimants are feckless. Radical demands from citizens and consumers can and must counteract this, and that time is long due.

Photograph: Getty Images

Carl Packman is a writer, researcher and blogger. He is the author of the forthcoming book Loan Sharks to be released by Searching Finance. He has previously published in the Guardian, Tribune Magazine, The Philosopher's Magazine and the International Journal for Žižek Studies.
 

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Is defeat in Stoke the beginning of the end for Paul Nuttall?

The Ukip leader was his party's unity candidate. But after his defeat in Stoke, the old divisions are beginning to show again

In a speech to Ukip’s spring conference in Bolton on February 17, the party’s once and probably future leader Nigel Farage laid down the gauntlet for his successor, Paul Nuttall. Stoke’s by-election was “fundamental” to the future of the party – and Nuttall had to win.
 
One week on, Nuttall has failed that test miserably and thrown the fundamental questions hanging over Ukip’s future into harsh relief. 

For all his bullish talk of supplanting Labour in its industrial heartlands, the Ukip leader only managed to increase the party’s vote share by 2.2 percentage points on 2015. This paltry increase came despite Stoke’s 70 per cent Brexit majority, and a media narrative that was, until the revelations around Nuttall and Hillsborough, talking the party’s chances up.
 
So what now for Nuttall? There is, for the time being, little chance of him resigning – and, in truth, few inside Ukip expected him to win. Nuttall was relying on two well-rehearsed lines as get-out-of-jail free cards very early on in the campaign. 

The first was that the seat was a lowly 72 on Ukip’s target list. The second was that he had been leader of party whose image had been tarnished by infighting both figurative and literal for all of 12 weeks – the real work of his project had yet to begin. 

The chances of that project ever succeeding were modest at the very best. After yesterday’s defeat, it looks even more unlikely. Nuttall had originally stated his intention to run in the likely by-election in Leigh, Greater Manchester, when Andy Burnham wins the Greater Manchester metro mayoralty as is expected in May (Wigan, the borough of which Leigh is part, voted 64 per cent for Brexit).

If he goes ahead and stands – which he may well do – he will have to overturn a Labour majority of over 14,000. That, even before the unedifying row over the veracity of his Hillsborough recollections, was always going to be a big challenge. If he goes for it and loses, his leadership – predicated as it is on his supposed ability to win votes in the north - will be dead in the water. 

Nuttall is not entirely to blame, but he is a big part of Ukip’s problem. I visited Stoke the day before The Guardian published its initial report on Nuttall’s Hillsborough claims, and even then Nuttall’s campaign manager admitted that he was unlikely to convince the “hard core” of Conservative voters to back him. 

There are manifold reasons for this, but chief among them is that Nuttall, despite his newfound love of tweed, is no Nigel Farage. Not only does he lack his name recognition and box office appeal, but the sad truth is that the Tory voters Ukip need to attract are much less likely to vote for a party led by a Scouser whose platform consists of reassuring working-class voters their NHS and benefits are safe.
 
It is Farage and his allies – most notably the party’s main donor Arron Banks – who hold the most power over Nuttall’s future. Banks, who Nuttall publicly disowned as a non-member after he said he was “sick to death” of people “milking” the Hillsborough disaster, said on the eve of the Stoke poll that Ukip had to “remain radical” if it wanted to keep receiving his money. Farage himself has said the party’s campaign ought to have been “clearer” on immigration. 

Senior party figures are already briefing against Nuttall and his team in the Telegraph, whose proprietors are chummy with the beer-swilling Farage-Banks axis. They deride him for his efforts to turn Ukip into “NiceKip” or “Nukip” in order to appeal to more women voters, and for the heavy-handedness of his pitch to Labour voters (“There were times when I wondered whether I’ve got a purple rosette or a red one on”, one told the paper). 

It is Nuttall’s policy advisers - the anti-Farage awkward squad of Suzanne Evans, MEP Patrick O’Flynn (who famously branded Farage "snarling, thin-skinned and aggressive") and former leadership candidate Lisa Duffy – come in for the harshest criticism. Herein lies the leader's almost impossible task. Despite having pitched to members as a unity candidate, the two sides’ visions for Ukip are irreconcilable – one urges him to emulate Trump (who Nuttall says he would not have voted for), and the other urges a more moderate tack. 

Endorsing his leader on Question Time last night, Ukip’s sole MP Douglas Carswell blamed the legacy of the party’s Tea Party-inspired 2015 general election campaign, which saw Farage complain about foreigners with HIV using the NHS in ITV’s leaders debate, for the party’s poor performance in Stoke. Others, such as MEP Bill Etheridge, say precisely the opposite – that Nuttall must be more like Farage. 

Neither side has yet called for Nuttall’s head. He insists he is “not going anywhere”. With his febrile party no stranger to abortive coup and counter-coup, he is unlikely to be the one who has the final say.