How will the government administer the proposed changes to the crisis loan system?
While the fact that the government is suggesting interest charges approaching 30% for crisis loans in the UK has attracted a serious backlash from government MPs, there would appear to be worse to come. It has been revealed that the government is currently investigating contracting out the service to official "loan companies" which many MPs are describing as "loan sharks".
There is a suggestion that this is the thin end of the wedge and once the system has been contracted out, or to put it another way privatised, this will spell the end of central government in many parts of the UK. Political observers believe these types of moves are more akin to the Conservative party but even they have suggested they would never charge crisis loan recipients interest when you consider their financial position already.
Some MPs are suggesting that Gordon Brown and his inner cabinet have literally lost contact with the UK electorate because if this move goes through it would force further hardship on millions of UK families, many of whom by definition could well be Labour supporters. This on top of the 10p tax band debacle has seriously damaged the Labour governments voting support from many low-income families in the UK.
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