29 April, 2020 Open access
29 April, 2020 Open access
Letter to Chancellor also recommends launch of emergency hardship fund to cover basic needs in addition to existing £500 million council tax hardship fund
Charities and financial inclusion bodies have offered their support to the government and local authorities in delivering emergency hardship funds to households during the coronavirus (COVID-19) outbreak.
In a letter to Chancellor Rishi Sunak, Responsible Finance (which represents community development finance institutions) and co-signatories including Turn2us, the Centre for Responsible Credit, and Community Finance Solutions, say that -
'We are writing to offer out support to ensure that vulnerable people and low-income families do not incur high levels of unsustainable debt or slip into hardship as a result of financial shocks caused by the coronavirus pandemic.'
The organisations go on to say that, while they welcome the government's swift action to support households during the pandemic, many people are facing stark drops in income whilst they navigate the 'helpful yet complex' government support packages, or are 'slipping through the cracks entirely', and that -
'The affordable credit sector has a strong track record of working in partnership with local institutions to transform the lives of their customers. In these circumstances they can serve as the one-stop-shop to help Local Authorities assess and triage vulnerable consumers with the most appropriate product. This collaborative approach can not only help local authorities and government fill the gaps in delivery in the short-term, but create a more inclusive affordable credit sector, increasing overall access to fair options in the long-term.'
In addition, the letter recommends -
For more information, see Charities and financial inclusion bodies offer support to Government in delivery of emergency hardship funds from responsiblefinance.org.uk
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