External provider social loans: Joining-up financial inclusion and social fund reform.

This article examines the way in which policy has been developed in relation to the recent reforms to the Social Fund, in particular the ‘‘external provider social loan’’ scheme; policy that has now found its way into the Welfare Reform Act 2009. It then outlines and comments on the relevant statutory provisions in the Act and discusses a number of issues arising from these reforms. The article concludes that: the DWP’s consultation in December 2008 was unfortunately a hurried affair; there remain more radical proposals to join up a reformed social fund within the financial inclusion agenda; a full evaluation will only be possible when the details of the scheme appear following further consultation; and, the Government would be wise to rethink its current plan to disapply the social fund review processes to the external provider social loans.