6:59 AM
Vinay Singh
HARD-UP families are having their Asda shopping paid and delivered by Newcastle Council as a new way of dishing out crisis handouts.
Civic centre bosses have turned to online shopping to give pay-outs for those who have suffered an emergency and are awaiting benefits payments.
A Government cut in cash previously earmarked for crisis loans and a decision not to allow local authorities to claw back the pay-outs through benefit deductions means the money is unlikely to ever be paid back.
As such, some £222,900 will be handed out to hard-up families this year, and even this is said to be around £200,000 less than the council says it needs.
The handouts are made available to people who, for example, have signed on for Jobseekers Allowance but not yet started receiving money, or are going through an emergency.
News of the home delivery service comes as the benefits system comes under greater scrutiny, with Conservatives raising repeated questions over a “culture of dependency”.
Since the changes started last week the council has paid for shopping and other services to claimants going through a family emergency, a pay-out to residents whose family home was flooded and two victims of crime.
In the four days since the scheme was launched, 108 people have asked for money and 10 have been awarded support. Council bosses say ordering Asda shopping online is the best way to save money following the funding changes, with the supermarket chain largely using its cheaper own brand products. They stress that it cost just £2.50 for each delivery.
Former council leader Lord Beecham said the cuts in crisis loans would hit low-income families and the unemployed.
The Labour peer said: “What we are seeing here is a return to the 19th Century poor laws, we’ll have an almost postcode lottery from council to council for what help is available.
“The council has had its funding for this cut back to the 2005/2006 level, and that is going to mean a lot of people, low-income families included, are in some difficult positions.” He added that the Department for Work and Pensions appeared reluctant to make new benefit claimants aware that the crisis fund should be made available to help people survive until their benefits start being paid.
Newcastle Council has repeated fears that people will go without the help they need because of a lack of funding. Joyce McCarty, deputy council leader, said many could be turned away.
She added: “Many people are finding it very tough at the moment at a time when the Government is looking to make big changes to welfare benefits.
“We have been asked to devise new schemes to administer crisis loans and community care grants which we have done with great fairness. However, I fear that we will not have enough money to do this effectively.”
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