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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How the Lib Dems learned to love all-women shortlists

Yes, the sitting Lib Dem MPs are mostly white, middle-aged middle class men. But the party's not taking any chances. 

I can’t tell you who’ll be the Lib Dem candidate in Southport on 8 June, but I do know one thing about them. As they’re replacing a sitting Lib Dem (John Pugh is retiring) - they’ll be female.

The same is true in many of our top 20 target seats, including places like Lewes (Kelly-Marie Blundell), Yeovil (Daisy Benson), Thornbury and Yate (Clare Young), and Sutton and Cheam (Amna Ahmad). There was air punching in Lib Dem offices all over the country on Tuesday when it was announced Jo Swinson was standing again in East Dunbartonshire.

And while every current Lib Dem constituency MP will get showered with love and attention in the campaign, one will get rather more attention than most - it’s no coincidence that Tim Farron’s first stop of the campaign was in Richmond Park, standing side by side with Sarah Olney.

How so?

Because the party membership took a long look at itself after the 2015 election - and a rather longer look at the eight white, middle-aged middle class men (sorry chaps) who now formed the Parliamentary party and said - "we’ve really got to sort this out".

And so after decades of prevarication, we put a policy in place to deliberately increase the diversity of candidates.

Quietly, over the last two years, the Liberal Democrats have been putting candidates into place in key target constituencies . There were more than 300 in total before this week’s general election call, and many of them have been there for a year or more. And they’ve been selected under new procedures adopted at Lib Dem Spring Conference in 2016, designed to deliberately promote the diversity of candidates in winnable seats

This includes mandating all-women shortlists when selecting candidates who are replacing sitting MPs, similar rules in our strongest electoral regions. In our top 10 per cent of constituencies, there is a requirement that at least two candidates are shortlisted from underrepresented groups on every list. We became the first party to reserve spaces on the shortlists of winnable seats for underrepresented candidates including women, BAME, LGBT+ and disabled candidates

It’s not going to be perfect - the hugely welcome return of Lib Dem grandees like Vince Cable, Ed Davey and Julian Huppert to their old stomping grounds will strengthen the party but not our gender imbalance. But excluding those former MPs coming back to the fray, every top 20 target constituency bar one has to date selected a female candidate.

Equality (together with liberty and community) is one of the three key values framed in the preamble to the Lib Dem constitution. It’s a relief that after this election, the Liberal Democratic party in the Commons will reflect that aspiration rather better than it has done in the past.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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