News from Sheffield Labour

Big Society let down, say Sheffield’s Labour MPs

Financial Inclusion Fund axe could lead to more people being sent to court because of debt.

Sheffield’s Labour MPs have condemned moves by the Treasury to slash specialist debt support for individuals finding themselves in financial trouble.

The unit in Sheffield in last year helped individuals who had a total of £25.6m of debt and prevented the loss of 110 clients’ homes and successfully negotiated 655 payments plans.

The MPs fear that without this advice many more vulnerable people will now end up in court, losing their homes and facing bankruptcy.

Commenting, Angela Smith MP said: “In Penistone and Stocksbridge many people are losing their jobs because of this government. It now obvious with this broken promise that this Tory led government is not interesting in helping these people by continuing Labour’s policy of helping people who find themselves in crisis situations. The removal of this sort of funding is short sighted and will cost more in the long run as people are taken to court.

It’s also clear that for the Tories the Big Society is just a slogan. This Tory-led government won’t even fund tried and tested debt advice services and its support for the voluntary sector is just a cynical ploy to shore up its crumbling support in the country.”

Brightside and Hillsborough MP, David Blunkett MP, whose constituency covers some of the most deprived areas of Sheffield said: “In opposition, David Cameron promised to make the banks pay for debt advice following a major national inquiry by Otto Thoresen. This is yet another broken promise, but this time in the middle of a crisis for those hit by the double whammy of the recession and the government’s own response in cutting services, cutting benefits, and then cutting the advice to those most affected.”

Sheffield Heeley, Meg Munn MP said: “We know that debt advice makes a real difference to people struggling to manage. This Government is turning its back on the most vulnerable in our society.”

The news of the withdrawal of the funding could not have come at a worst time, with news that jobless figures are up as public sector workers lose their jobs and figures show the economy is again sliding into recession. Now is the time to be putting in schemes like the Financial Inclusion Fund not withdrawing them, say the MPs.

Other news from Sheffield Labour

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• Sheffield Labour unveil new Cabinet - 9 May 2012
• Cameron promises one thing, Cities' Minister another - 30 April 2012