An experiment to help 40 very low income families in Arnhem out of debt has run into trouble because few people are willing to take part, the AD reported on Monday.

The two-year trial was launched in April in an effort to “break the toxic spiral of poverty”, with city officials saying in the long run it would be cheaper to take over the debt of 40 to 60 families.

The money, some €700,000, is a gift from private associations. During the year-long preparations, the council found major creditors, such as energy firms and health insurers, were all prepared to lower the outstanding amounts in exchange for a lump sum.

But now it transpires that finding families is proving extremely difficult. City social affairs chief Mark Lauriks told the AD officials were often unable to make contact with people. “They kept their curtains shut,” he said. “That is how much people in this neighbourhood mistrust government. They are frightened that we are going to slap on new conditions, or ask they to pay it back.”

Lauriks said he understood the reluctance, given the recent childcare benefit scandal in which thousands of people were accused of fraud and forced to pay back thousands of euros, even though they had done nothing wrong.

Everyone in Immerloo II, the district where the experiment is taking place, knows a victim of the scandal, he said.

Nevertheless, the experiment will start in the coming week, and the first 10 families have had their combined debts of €249,000 cancelled without strings. Talks with other families are continuing.

Of that, some €110,000 is in the form of debts for government services – traffic fines, student loans and the tax office, Lauriks said.

In the meantime, other cities are watching the progress with interest. “This experiment might be unorthodox,” he said, “But everything else we have tried so far has failed.”