MP says 'people will go hungry and children will suffer'

Simon Danczuk MP

Rochdale MP Simon Danczuk says "people will go hungry and children will suffer" because the Discretionary Crisis Fund (DCF), which was set up in April 2013, will no longer be directly funded by the Department For Work and Pensions from April 2015.

The scheme will then be taken over by the Department for Communities and Local Government who will then determine general funding to local authorities.

It is currently unknown how much money Rochdale Council will receive from 2015. Once this is known, they can then decide if they can continue to fund the DCF scheme.

Rochdale Council only set up the fund last year after the government scrapped the old crisis loan system. Rochdale Council were then given around £1m to hand out themselves.

The fund currently helps residents in need and also supports Rochdale’s food bank.

Rochdale MP Simon Danczuk said: "Whilst all councils across the country could have done more to get this money to the most vulnerable people that need it, it just isn't right that the Tory-led Government are cutting the fund completely.

"There is no doubt that people will go hungry and children will suffer because this safety net is being removed. The only people who will benefit are loan sharks and pay day lenders."

In November of last year, Northgate Public Services, the company handed responsibility by Rochdale Council for handling the crisis fund in Rochdale were grilled by councillors. At that meeting it was revealed that between April and October, 1,560 people had applied for the fund. Of those applications only 669 people had received money from the fund.

A government spokesman said: “Councils will continue to provide support to those in their community who face financial difficulties or who find themselves in unavoidable circumstances.

“In contrast to a centralised grant system that was poorly targeted councils can now choose how to best to support local welfare needs within their areas.

“Government continues to provide support to local authorities’ through general funds as part of the Government’s commitment to reducing ring-fencing and ending top-down Whitehall control.”