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If you are struggling financially, help is supposed to come from local Councils and the Government. This is known as local welfare assistance or provision. Part of this is the budgeting loan. If you have been claiming income related benefits for at least 26 weeks, you can apply for a loan to help cover the cost of your rent, clothes, furniture, hire purchase debts and more. In London, this can sometimes be provided in physical form to residents in urgent need who are going through the transition of unemployment to employment. The total sum which is allocated to London as part of this scheme is £27 million and it has been revealed today that the Government is planning to cancel it.
Until 2013, the needs of desolate citizens were looked after by the provision of crisis loans and grants as well as budgeting loans. However, this money is to disappear completely after initially being reduced, although the demand for the services is increasing. The proposed end for the funding was put into the national local Government finance settlement for 2015/16.
However, London Council is fighting back by compiling a report detailing exactly how the funding helps people. The report lists a number of imaginative schemes across the boroughs where projects have been put in place in partnership with Credit Unions to help benefits claimants to prepare for the arrival of Universal Credit, as well as help and advice on budgeting for people struggling to find work or on a low income wage. Before this scheme, over 8000 benefits claimants in London did not have bank accounts, however this number has diminished since the projects began.