Again, a long post but no answers to the question. Are you a politician? haha. None of that answers how the government makes money and/or is a 'brutal loan shark' as you put it. Budgeting Loans are interest free. So again, what "low interest" loans are you referring to? If a person goes on to borrow from private firms, and purposefully commit fraud, that's the own daft fault and they deserve all they get. Hint - before you downvote and call me a Tory, I'm on PIP and ESA myself and have never resorted to fraud or massive APR loans even when I lost my home. The DWP and the war against the sick/poor sucks, but let's not make it something it isn't.