Dan Whitworth, a reporter known for his insightful field reports, dives into the impact of the Household Support Fund, sharing a heartfelt success story from a young recipient. Tim Rooney, CEO of Salad Money, sheds light on how excessive gambling is impacting loan applications, revealing that a third of applicants are being turned down. Peter Marland discusses the critical role of local authorities in distributing aid and the challenges posed by new fraud protection regulations. The conversation also touches on potential tax changes the government might implement.
The Household Support Fund's extension showcases the government's commitment to aiding vulnerable households, with personalized support being crucial for individual transformation.
A concerning third of loan applicants were denied due to excessive gambling, highlighting the need for responsible lending practices that address gambling addiction risks.
Deep dives
Emergency Support for Households
The extension of the Household Support Fund provides an additional £500 million in emergency assistance for vulnerable households, signifying a significant governmental commitment to combating financial crises. Many local councils and charities appreciate this move, yet they emphasize the necessity for ongoing preventive measures to avoid future hardships. One standout case involves a service user named Sam, whose situation dramatically improved due to assistance from Disability Stockport, allowing him to access medical appointments and avoid homelessness. This personalized support exemplifies how targeted financial aid can transform lives, but the challenge remains in ensuring equal access across different regions.
Challenges of Gambling and Credit
A significant number of loan applicants are being rejected due to excessive gambling, raising concerns about the spiraling nature of gambling addiction and its impact on financial stability. Salad Money, a social enterprise, reported that over a third of people applying for loans faced denial mainly due to high gambling expenditures, with many spending well above 10% of their income on gambling activities. One recovering addict, Ali, shared his harrowing journey from gambling small amounts to incurring massive debts, which often pushed him to the brink of financial ruin. This predicament underscores the urgent need for effective safeguards in lending practices that take gambling habits into account to protect both lenders and borrowers.
Taxation Strategies Amid Budget Constraints
As the government prepares for its upcoming budget, capital gains tax emerges as a potential target for reform, particularly in light of Labour's agenda to raise funds to address a significant financial shortfall. Discussions suggest that aligning capital gains tax rates with income tax rates could raise additional revenue from wealthier individuals, which brings its own set of controversies and debates about double taxation. Public sentiments indicate varied opinions, especially concerning the effects of such changes on those with second properties and investments. These complexities highlight the delicate balance the government must strike between generating revenue and maintaining public support amid scrutiny over taxation changes.
Hundreds of millions of pounds has been made available from the government for local authorities across the UK to spend on those most in need of financial help. Known as the Household Support Fund it's made up of £421 million for councils in England with another £79 million for devolved nations. Dan Whitworth meets Sam, who's 28 and got help from the fund via Stockport Disability.
A new report analysing the finances of people on low incomes who apply for loans has found a third were declined because of 'excessive gambling'. Salad Money is a social enterprise, providing credit to people earning between £25k and £35k per year. It says that out of 170,000 people who applied for loans in the first three months of this year, a third were turned down. We'll hear from the CEO of Salad Money, Tim Rooney.
The consultation which could mean fraud victims who lose more than £85k won’t get their money back when new refund rules come into force in October.
And what tax changes could the government make in its first budget? We’ll discuss Capital Gains Tax and how it might be impacted.
Presenter: Felicity Hannah
Reporter: Dan Whitworth
Researchers: Catherine Lund and Jo Krasner
Editor: Jess Quayle
(First broadcast 12pm Saturday 7th September 2024)
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