Imagine you have lost your job, and now you have no income. If you have been on a low wage, you may not have any savings to tide you over, so what would you do? Claim benefits? But there is a 5 week wait before you are even entitled to any benefits: 5 weeks when you are expected to survive, maybe look after your family & pay your rent, with nothing coming in.
Luckily you can use a food bank, & to avoid homelessness, and disconnection of your electricity, you could get an advance payment on your benefit; In fact the job centre will encourage you to apply, if you ask them how you are supposed to manage with nothing.
But what happens then? Your first benefit payment, which is calculated by the government to be the minimum amount a person needs to look after themselves and their family, is reduced to repay the loan that you have been given.
It doesn’t make sense!
The system has been proved to be driving people into poverty.
Money Advice Plus fully supports this campaign to :