New social fund helps poorest find credit
A new social fund has been announced by work and pensions secretary David Blunkett that will help those on low incomes in the UK find credit.
Mr Blunkett claims that the fund will stop people having to resort to loan sharks for credit, which normally plunges them deeper into debt.
It is also hoped the fund will encourage people to save more, particularly for their old age.
The minister has announced that £210 million will be put into put into the Social Fund, which will give credit to those who have previously found it difficult.
A further £36 million will be allocated for not-for-profit lenders and credit unions.
Saving rules will also be changed to allow those receiving jobseekers allowance to have up to £16,000 in the bank, and those on income support to possess £6,000.
'Financial inclusion programmes will be crucial to overcoming child and family poverty and I'm committed to engaging with this inclusion agenda in imaginative new ways,' Mr Blunkett said yesterday.
The government estimates that adding £36 million to the fund could see tens of thousands of people gain access to cheaper sources of credit. | 
