| Make credit affordable for those that need it most |
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The Labour Party has always sought to lift people out of dependency, to give them the dignity of work, and to ensure they are self-reliant and can contribute to their family and the wider community. This was true of the 19th century, with the development of mutual societies, the Goose and Burial clubs, which one in ten of the population contributed to and were able to utilise. It was true of the early welfare state, which was based on an interdependence that offered support when needed, but on the understanding that people would take responsibility for their own well-being and future. Now is the moment for further bold and radical action in the face of the global economic downturn – to be there alongside those who need the kind of approach that only a Labour government can offer. There is no greater example than the issue of affordable credit. At any one time, 2.5 million people are stuck with perfectly legal, but breathtakingly high, repayment levels under home domestic credit; carefully orchestrated, well-organised repayments which, in the end, cost people as much as 180 per cent APR. At this moment, the need for affordable credit is greater than ever as people struggle to manage their budgets, to keep up payments and make ends meet. Whether in work or out, there are large swathes of our community who need credit at a rate they can afford to repay, good advice and money guidance, and the opportunity to open an account – often for the first time – and to build up at least a small nest egg to see them through difficult times. Our government needs to take a bold step: opening up, through the development of consortia at local and regional level, the chance of putting together funding from the private sector, the initiative of the voluntary and not-for-profit sector (including credit unions) and the role of the public sector, as well as the existing substantial resources that go through budgetary loans in the guise of the Social Fund. We must call upon all those of goodwill to come together and create the kind of consortia which can make a difference and for government from the Prime Minister down to make it possible. Too often in the past it was the most disadvantaged who were the victims of recession. Labour can do better. As part of making poverty history, of overcoming child poverty and of liberating people from dependence, we can come up with something radical, affordable and practical – but time is running out. We need to do it now. |
