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Minister rebuffs 'loan sharks' claim

Updated on 21 December 2008

By Channel 4 News

A junior minister pledges interest will not be charged on money borrowed from the social fund. Jane Dodge reports.

The government has denied planning to charge annual interest rates of up to 27 per cent for loans to some of Britain's poorest people - despite appearing to champion the idea in a consultation document.

After the Conservatives accused the government of "acting like loan sharks", a junior minister tried to dismiss the row as "a misunderstanding".

Samira Ahmed is joined in the studio by Conservatives Shadow Work and Pensions Secretary, Chris Grayling.



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