I am pleased to announce changes to the discretionary loans scheme from 3 April 2006.We have greatly simplified the rules for determining the size of the maximum budgeting loan amount that can be offered to eligible applicants. There are now only three rates that can be offered: one for single people; one for couples without children; one for families with children.The complex "double debt" rule is abolished so that those applicants with existing budgeting loan debt have more help available to them. This, and the simpler rules for determining size of the maximum budgeting loan, means that applicants will understand better the help that is available and when they can access it.We have increased the overall limit on loan amounts that any applicant can borrow from the social fund. At the same time we are reducing the highest loan repayment rates and giving applicants longer to repay their loan debt.Also from 3 April 2006, budgeting loan applicants will benefit from being able to have more savings before any budgeting loan award is affected. The capital limit is doubled to £1,000 (under pension age) and £2,000 (pension age).Overall this is a significant package of changes. Also, in making loans more affordable and easier to access, we aim to help people avoid alternative high cost lenders.

http://www.theyworkforyou.com/wms/?id=2006-03-30a.111WS.6