Mike Hancock CBE - Liberal Democrat MP for Portsmouth South

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Southsea
Hampshire
PO5 2SE

Tel: 023 9286 1055
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MP slams Government over news that 82,000 people have been turned down in the South East for crisis loans

30 January 2009

Mike Hancock, MP (Portsmouth South – Liberal Democrat) has today heavily criticised the Government for turning down one in three pensioners and families in the South East who apply for a crisis loan. He has slammed the news as “outrageous” and is demanding an urgent investigation by the Government minister responsible.

Applications for the loans, aimed at low-income families and pensioners unable to get credit elsewhere, rose by more than 63% last year to 289,330. The figures also come at a time when the Government is encouraging banks to increase lending.

Official Government figures obtained by the Liberal Democrat MP show that there were 289,330 applications for crisis loans in the South East – an increase of 111,900 (63%) on the previous year. The number of applications for crisis loans was the largest in the region since the scheme was established. However JobCentrePlus turned down 82,740 applications, almost a third of all received. This is the highest proportion in the last four years.

Mike Hancock commented: “By definition people who apply for crisis loans are desperate and have nowhere else to turn. These are mainly also for the absolute essentials for living. Yet the evidence for the past year is that more and more people will be turned away by Government run JobCentrePlus. This is outrageous and I have written to the Work and Pensions minister demanding an urgent investigation. The Government is demanding that the banks lend more, but here we have the Government doing the opposite of what it is telling them to do. The Government has got to practise what it preaches to the banks and make more cash available to families.”

Mike Hancock’s letter to the Secretary of State for Work:

Rt Hon James Purnell, MP
Secretary of State for Work and Pensions
Department for Work and Pensions
Caxton House
Tothill Street
LONDON SW1H 2NS

OUR REF: MA/CRISIS-LOANS

30 January 2009

Dear Secretary of State

I am writing to you today because it has come to my attention that a third of applications for Crisis Loans in the South East were turned down in the last year. This is the highest proportion for the last four years and comes at a time when applications rose 63% and of course also at a time of a difficult economic situation.

The Government has promised to do all that it can to help vulnerable people at this time. I am therefore writing to you today to launch an urgent investigation as to why so many application have been turned down. It seems that JobCentrePlus and the Government is doing the precise opposite of what it promised to do. I hope also that you will look that crisis loans are properly funded. By definition those applying for Crisis Loans are in a difficult personal financial situation and will find it difficult to manage if not granted a loan. Unfortunately many may well turn to loan sharks or suffer severe hardship.

I look forward to your reply saying that you will investigate this and that you will ensure that the Crisis Loan system is adequately funded.

Best wishes

Yours sincerely

MIKE HANCOCK CBE MP

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£10m to boost literacy – Clegg

Deputy Prime Minister Nick Clegg announced on Monday that there will be up to £10m additional support for Pupil Premium children who leave primary school without Level 4 literacy – the expected level.

In a keynote speech to teachers and school leaders, he said that the Education Endowment Foundation will be awarding the money to pilot projects to help disadvantaged pupils make the transition from primary to secondary school. The money will be targeted at struggling Year 7s from deprived homes.

“How can a child start secondary school unable to read with confidence?” declared Nick. “That is a basic building block of a good education and no child should begin the race so far behind the starting line. We need to do everything we can to help these children through this transition to get them up to speed.
“That is a responsibility the government takes extremely seriously. And I can confirm that the Education Endowment Foundation will shortly be inviting groups of local schools, in the areas that suffer most with this problem, to bid for extra funds for struggling Year 7s from deprived homes to help them get their reading and writing up to scratch. Extra ‘catch up cash’, if you like.
“We envisage that schools will want to use it for small catch up classes, or one-to-one tuition, or vouchers for literacy tuition that parents can spend. We will run a proper evaluation, sharing what works with all schools not just those areas taking part in these pilots. It’s likely this kind of targeted support is the best way to crack this problem – next year we’ll know.
“Of course, we hope as few pupils as possible need it, thanks to the Pupil Premium. And I know primary and secondary schools up and down the country are determined to make this work.
“Some are using the money for breakfast clubs; homework clubs; or to provide one-to-one-tuition. Some are funding counselling services, so troubled kids are in the right place, emotionally, to learn. Some are using it for educational visits to places like museums: the sort of experiences middle class children take for granted but poorer child might rarely enjoy.”

Nick also announced that he wants to “strike a deal between the Coalition government and our schools and teachers. Teachers who help these children unlock the doors that otherwise hold them back ... they are the key to an open and fair society ... the key to the opportunity Britain I am determined we build.”

The best teachers will be offered incentives to work in schools that have large numbers of disadvantaged pupils. The government will ask the School Teachers Review Body to look at giving other schools the same flexibility Academies currently have to use pay to hold on to the best teachers.

Also, from next year, there will be Pupil Premium Awards for the 50 schools that do the best to boost the performance of their poorest pupils and narrow the gap – with cash prizes of up to £10,000 for the best of the best.