A recent comment by the LGiU into local assistence schemes suggests that most authorities are not making loans in their schemes but merely crisis payments. This is certainly the approach in Brent. When the DWP had a national scheme, they could recover loans by docking future benefit payments. Local authorities would have to send bailiffs round, and frankly you spend much more trying to get the repayment than the actual sum involved.
The result is that the amount of money available will be far smaller even as the need increases. Sadly, I don't think government minister care about that.
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