Mike Hancock News
MP slams Government over news that 82,000 people have been turned down in the South East for crisis loans
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
Share this page:
