Reduced fuel allowance could mean more loans
People may end up turning to short term loans if fuel programme cuts off some pensioners.
09:02 06 June 2013
Ed Balls has said Labour would cut winter fuel payments to wealthy pensioners to save nearly £100million on welfare spending. This would be expected to come into place if they were to win the next election.
Everyone has paid into the government with the expectation of receiving the benefits, but the benefits are now in danger of funds shortages within a matter of decades.
There has always been the option to give the allowances back if they are not needed, but the majority of people are retaining them. This either means that people need them, or refuse to part with the funds.
It’s easy to get used to a certain lifestyle, so even wealthy people may have run up expenses which make the fuel allowance helpful. If this is removed there could be an increase in loans and other services to try and compensate. Here are a few things to consider for short term loans.
- If you feel it is necessary to obtain a short term loan, approach banking institutions first to find out if you qualify, or if they offer such a product. Banks tend to have better interest rates for repayment on loans.
- If you aren’t able to find financial institutions that will give short term loans, or you do not qualify, you can try some alternative methods for getting loans. Certain shops have started lending smaller loans which could help you overcome a temporary rough situation.
- Use products such as payday loans as a last resort since the interest rates are extremely high and the repayments are also often high. If the payments are higher than your potential fuel bill, you might be better off trying to work out a payment plan with your utility company if possible.
- While fuel funding may be reduced, you may still be able to qualify for other programmes such as the social fund that could potentially help you with short term loans to help with living expenses on a temporary basis.