News

Howard's Way.... a weekly column from the Rt. Hon. Michael Howard QC. MP. 

25 December 2008

No prizes doe identifying the most unseasonal act of the week.

This has to be the thoroughly misconceived Government proposal to charge interest of 26.8 per cent on loans from its Social Fund.

The Social Fund exists to help people with no other means of support to pay for some emergency crisis. An example would be the need to repair a broken boiler. It is there to provide a helping hand to those most in need of help at the time when they need it most.

A vigorous approach is taken to those who apply for help. I have had several people come to my Advice Centres who seemed to me to be genuinely in need but who have been refused help from the Social Fund.

And of course the help is given through loans which have to be repaid. But interest is not usually charged.

So it is hardly surprising that the proposal to charge this high rate of interest led to universal uproar.

The Government responded by blaming a “poorly drafted” consultation document. But the document was signed by a Government Minister who, we must assume, read it before signing it.

This was a very sad episode which, I think, the Government will come to regret.

On a happier note, last week I made my usual dawn pre-Christmas visits to the local postal sorting offices in Folkestone, Hythe and New Romney.

As arguments rage over the future of the Royal Mail we would do well to remember the tireless work done by our postmen and women.

I wish them and all of you a very Happy Christmas.