State loan charge plan criticised

The proposals would see credit unions taking control of crisis lending

Politicians from all parties have criticised a government proposal to charge interest on emergency state loans given to the UK's poorest people.

Among them were senior Labour MP John McFall, who called it "a joke" and former-Labour leader Lord Kinnock, who said the idea was "going nowhere".

Conservative William Hague said it was "astonishing and outrageous" and the Lib Dems branded it "harsh".

The government said the loans, run by credit unions, would be "affordable".

The social fund currently extends