FUNDS are in place for the expansion of a ‘made in Tenbury’ scheme that is pioneering a new way of helping vulnerable people in financial difficulties.

The Tenbury NILS scheme is receiving national recognition and has already caught the eye of Tenbury MP, former Treasury Minister and now Minister for Defence Procurement, Harriett Baldwin.

Mrs Baldwin, whose West Worcestershire constituency includes Tenbury, has backed the project.

The administrator of the Tenbury NILS scheme, Laura Forbes, says that the need for the scheme is as great as ever.

“We want people to understand that we are to help people with financial difficulties,” she said.

“The funds are available and we can help stop people getting caught up in a spiral of debt and misery.”

She said that, for too many people, the only option available might appear to be a loan with very high interest rates perhaps from a ‘loan shark'.

“These can quickly turn into a disaster with missed repayments that can all too soon turn a debt of a few hundred pounds into one of several thousands,” said Laura Forbes.

“We already have customers in Tenbury and the local area but know that there are more people that we could be helping. There is an office in Ludlow that we are looking to expand if we can get the volunteers and we have also opened up in Leominster.”

She said that mostly it was not a case of people being profligate or irresponsible but simply needing to buy essentials for everyday life.

The NILS scheme is completely different to any other loan that is available even from credit unions.

People are able to borrow sums of up to £400 worth in value for essential items.

This can include white goods such as cookers, freezers or washing machines as well as school uniforms or even computer equipment for school work.

However, a major difference with the NILS scheme is that no money actually changes hands.

Once a loan is agreed, the NILS scheme will purchase the item on behalf of the customer from a local supplier where possible and so this helps to keep the spending in the Tenbury area and provide a boost for the local economy.

People agree to make repayments at a level that they can afford which might be as little as £1 a week and the loan is usually for a year although it can be longer.

There is no interest or administration charge and so all that is paid back is the amount that has been borrowed.

The NILS scheme say that there has not been a major problem with people not making the repayments and that this is because they are set at a realistic level that can be afforded.

Some of the customers are in receipt of benefit and borrowers sign an agreement that would enable the NILS scheme to recover money from the Department for Work and Pensions.

However, this is only activated as a very last resort.