Vulnerable people who are suddenly facing unexpected costs will be able to get more support from the council.

Havering Council has this week invited local companies and business to work with it to help deliver emergency loans and payments for local people.

The new scheme will operate from April 2013 instead of the current Social Fund programme, which is currently run by the Department of Work and Pensions.

The new service is aimed to help people who are unable to access credit through a bank or building society and in addition, people will be offered help and support to prevent such incidents happening again.

Cllr Steven Kelly said: “We don’t expect people to get hand outs but we do need to help those who unexpectedly face short term hardship. We don’t want to force people to go to pawn brokers or pay day loan shops where they can spiral into continuing financial difficulties.

“These are difficult times and sometimes people can find themselves in problems that can feel that they are spiralling out of control. We would ask that from April anyone in this situation to come and talk to us early on so that we can see what options are available.”