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.
 

Shazia Awan
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I'm a Welsh Asian - so why doesn't the Welsh Assembly have a box for me to tick?

A bureaucrat's form clumsily equates being Welsh with being White. 

As someone born in Caerphilly, who grew up in Wales, and is learning Welsh, I feel nothing but Welsh. I am a proud Welsh Asian – and yet the Welsh Assembly appear to be telling me and many like me that that’s not an option.

An equalities form issued in Wales, by the Welsh Assembly, that does not have an option to identify as non-white and Welsh. What kind of message does this send, especially at a time of public worries about integration? Sadly, I am not so surprised at this from an institution which, despite a 17-year history, seems to still struggle with the very basics of equality and diversity.
 
By the omission of options to identify as Welsh and Asian, Welsh and black, Welsh and mixed heritage (I could go on), the Welsh Assembly's form has told us something wider about the institutional perception of our diverse communities in Wales. There are options on the form for "Asian or Asian British Indian" and "Black or Black British Caribbean", to give but two examples. And also for "White British", "White Irish" and "White Welsh". But not for "Asian Welsh", or "Black Welsh". Did it not occur to anyone that there was something wrong? 

It seems like a monumental error by the Welsh Assembly Commission, which designed the form, and a telling one at that. 

A predominantly white institution (there are two non-white Assembly members out of 60 and there has never been a female Black, Asian or minority ethnic Assembly member) has dictated which ethnic group is deemed to look Welsh enough to tick their box (for those of us Welsh Asians, it seems the only box to tick is that most Orientalist of descriptions, "Other"). 
 
Over the summer, meanwhile, we saw the First minister of Wales Carwyn Jones rather clumsily assemble his Brexit advisory group. This group was made up of predominantly white, middle aged men, and not a single person from a black, Asian and minority ethnic background. It seems that despite the box ticking exercises, the First Minister is taking advice from his “White Welsh” group. 
 
And it matters. The Welsh Assembly was established with a statutory duty to promote equality in Wales. In June, 17 out of 22 local authority areas in Wales voted Leave. Post-referendum, our proud Welsh BAME communities have been affected by hate crime. The perpetrators wish to draw a distinction between "them" and "us". Our national parliament is doing nothing to challenge such a distinction. Does it really think there are no non-white Welsh people in Wales? 

In Wales, we have a huge sense of overwhelming pride in what it means to be Welsh, from pride in our rugby and football teams, our language, to our food and our culture. Many friends over the years from different backgrounds have come to Wales to either study or work, fallen in love with our country and chosen to make it their home. They identify as Welsh. The thing about those of us who are Welsh and proud is that we understand that we are stronger in our diversity and stronger together as a Welsh nation. It’s a shame that our Welsh Assembly is not operating with that same sense of understanding that we have in our communities in Wales. 
 
No doubt the nameless form creator simply copied a format seen elsewhere, and would argue the omission is not their fault. Yet in these tense times, such an omission seems to arrogantly suggest Welsh is something exclusively White. 
 
The Welsh Assembly has a long way to travel on the road to creating a fairer society. From these kind of blunders, it seems clear that it is not even off the starting line. 
 
Shazia Awan is an equality activist and Consultant advising on equality and diversity issues. She is launching Women Create, a social enterprise to help women and young people from disadvantaged backgrounds into enterprise and employment. She  is Vice President of the Council for Voluntary Youth Services in Wales, is an Ambassador to Show Racism the Red Card and she was the first Asian woman to address a Welsh Tory party conference. 

 

Shazia Awan is an equality activist. She is launching Women Create, a social enterprise to help women and young people from disadvantaged backgrounds into enterprise and employment. She is Vice President of the Council for Voluntary Youth Services in Wales and she was the first Asian woman to address a Welsh Tory party conference. You can follow her @shaziaawan.