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Awareness raising presentation
- 2. Understand what financial inclusion is Recognise the impact it has on people’s lives Understand your role in addressing financial inclusion Have a knowledge of the resources and specialist services which are available Know how to signpost and refer effectively
- 3. Time to find out what your money personality is?
- 4. A household income that is 60 % or less of the average (median) household income. (Single person £129pw, Single parent one child £179pw, couple 2 children £321pw) 3.5 million (27%) children below line 7.9 million (21%) working age adults below line 1.6 million (14%) Pensionable age adults below the line (2011 /12 figures after housing costs)
- 5. All about ensuring everyone has the opportunity to access financial services and products needed to participate fully in modern-day society.
- 6. Access to mainstream financial services Financial capability Accessible financial and debt advice Income maximisation Access to affordable credit and savings
- 8. The ability of individuals to understand their own financial circumstances, along with the motivation to take action.
- 9. A household is in fuel poverty if they spend 10 % or more of their net income on energy costs. Severe fuel poverty is classed at 20 % or more
- 11. Welfare Reforms / Benefits Advice Grants - Discretionary Assistance Fund, Water Assist, Energy grants Utilising recycling / Reuse schemes (CREST / Freecycle) Enterprise, volunteering and back to work schemes How much in benefits and tax credits goes unclaimed within Conwy and Denbighshire? £76.8 million!
- 12. In groups take 5 minutes to discuss how financial inclusion fits into your role. Situations when you might encounter citizens with an issue Any previous experiences you’ve had around financial inclusion issues
- 14. In group’s A, B and C ◦ Group A – 5 minutes to discuss what factors might make someone at risk of experiencing financial inclusion issues ◦ Group B – 5 minutes to discuss the benefits of and barriers to financial inclusion ◦ Group C – 5 minutes to discuss the impacts of financial exclusion
- 16. Offer basic support Signpost Refer
- 17. Signposting Is about the citizen taking (or being given) the responsibility for contacting other organisations to help them resolve their problem. Support from the worker may involve identifying what the problem is, discussing alternative sources of help and providing necessary information Referring Is about the worker taking active responsibility for contacting another organisation to organise necessary support for the citizen
- 18. Identify financial inclusion issue Identify more complex issue (debt / benefits) Identify low level issue Offer Support Discuss options and provide signposting information If consent is given make referral to appropriate organisiation Revisit – what is the outcome? Is further support required?
- 19. Low Level Provision (Level 1) Information services, e.g. signposting, and providing information for the client to pursue such as leaflets or verbal information. Medium Level Provision (Level 2) Advice services e.g. benefit eligibility check. Help with form filling. High Level Provision (Level 3) Specialist advice, e.g. due to a client’s multiple and complex needs or in-depth pieces of work specialist legal knowledge is required to resolve the issue. :
- 20. Organisations to refer to Citizens Advice Bureau Conwy Conwy Councils Welfare Rights Unit Conwy Councils Benefits Unit Conwy Councils Council Tax Unit Citizens Advice Bureau Denbighshire Denbighshire Welfare Rights Team Denbighshire Revenues and Benefits Benefits Advice Shop Shelter Cymru North Wales Credit Union
- 22. Banking – all the benefits of regular bank range of different accounts for different needs Savings – (Payroll deduction, Christmas Club Accounts, Child Trust Funds) - dividends paid instead of interest average 1.5% Loans – minimum borrowing of £50 - £10,000 very competitive guaranteed best rate on £2000 - £7000 loan.
- 23. “APR stands for the Annual Percentage Rate of Charge. You can use it to compare different credit and loan offers. The APR takes into account not just the interest on the loan but also other charges you have to pay, for example any arrangement fee. All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender”
- 24. £400 loan over 30 day • Wonga you repay £527.15 (5853% APR) • Credit Union repay £404.63 (@26% APR)
- 25. Welsh Government fuel poverty scheme If a property is F or G rated and someone in the home is on means tested benefits they qualify for improvements Call 0808 808 2244 or visit www.nestwales.org.uk
- 26. Free impartial, independent advice on money matters Online advice and resources Telephone support Face to face appointments can be arranged Downloadable templates and resources Phone: 0300 330 0520 Email:moneyadviser@citizensadvice.org.uk Web: www.moneyadviceservice.org.uk
- 27. Welsh Government supported Digital avenue for the Discretionary Assistance Fund Advice and guidance on money matters
- 28. Turn2us are a charitable service which helps people access the money available to them – through welfare, benefits, grants and other help. Accessible website has been designed to help you find appropriate sources of financial support, quickly and easily, based on your particular needs and circumstances. Contact – Pat Cripps pat.cripps@elizabethfinn.org.uk 01676 541 654
- 30. An introduction to financial inclusion When to signpost and when to refer Access to advice and services • Mapping exercise • IT provision • Additional signposting Information Income maximisation • Welfare reforms overview • Grant information • Benefit Rates • Fuel Poverty Financial capability • Budget sheet • Cost of credit • Priority / priority debts • Bailiffs Useful Links Glossary Visit www.moneymadeclear.org to download updates
- 31. In groups pick a short case study each and based on the information provided outline the action you would take
- 32. Sign Post Refer Minor issue Engaged in process Person will not consent to a referral More complex and /or serious issue Person not recognising that there is an issue / problem. Additional needs Confident that the person will act on information given Motivated to take action Consents to referral being made It is not always black and white as to whether you should signpost or refer. Here are some considerations to support your decision making:
- 33. On post it notes As a result of attending todays session how will you put it into practice?
Editor's Notes
- Introduction / Housekeeping About this project ….. ESF funded supported by Welsh Government Joint Conwy and Denbighshire LSB venture The joint local service board is made up of key service organisations such as Local Authorities, Police, Health, Fire, Housing, Llandrillo college therefore all these organisations have recognised the key role financial inclusion plays in service delivery The fact that the LSB are supporting this project recognises the importance of financial inclusion and that all workers within these organisations have a responsibility (and permission) to address it. The main aims of this project are to: Improve strategic co-ordination and collaboration across Conwy and Denbighshire Improve access to quality financial inclusion information and advice services Improve existing services, not create new ones As we will see FI is a really broad area, this short session is very much that will give you an overview and hopefully the tools / resources you need to find out more. This project is being viewed as a pilot across Wales. It is vital that we get your frontline worker perspective of what is happening and the impacts of financial inclusion issues that you’re encoutering out in the field. This gives us the opportunity to feed this back to the Local Service Board and to Welsh Government to hopefully influence change and decision making.
- Important to highlight that some of the issues we are going to cover today can and do effect anyone so some of what we cover today may be relevant to your personal circumstances, or those of family and friends. If anyone have any issues please catch up with me during the break or at the end of the session. Only share what you are comfortable with and please can everyone respect confidentiality. On that front it’s worth mentioning that what we cover today will hopefully be of benefit on a personal level, able to offer advice to friends / family Also today is a 2 way process …. we want feedback from you of you experiences out in the field, extremely valuable to the project What we won’t cover … Financial Advice is regulated. To offer specialist advice around debt you need a consumer credit license and insurance. Benefit’s advice is a complex area that is constantly subject to change. It’s important that as front line workers that you are clear on the boundaries and parameters around the support you can offer …. Also this recognises your time constraints
- Money has it’s obvious uses … enables us to provide for our basic needs and wants. We often have a quite a complex relationship with money, there is a link with our emotions and how we feel about ourselves. This quiz is just a bit of fun but does give us chance to reflect on our personal attitude towards money which we can then be mindful of when in a work situation. Quick introductions around the table, name, where you’re from, what you do If you’re happy to share … are you a debt collectors delight / day to day debtor / Smart spender / Careful controller or a Squirrel? Favourite thing you like to spend money on and thing you most begrudge splashing cash on?
- Ultimately financial inclusion is a means to tackling poverty so to begin with lets define what poverty is Eradicating Child Poverty by 2020 continues to be a Welsh Government priority and it is the focus of other programmes such as Flying Start, Families First and Communities First Poverty premium The poorest families pay higher prices for basic necessities like gas, electricity and banking. The costs that poor families bear in acquiring cash and credit, and in purchasing goods and services can amount to what is called a ‘poverty premium’ of £1300 a year. This has increased 20% since 2007!! (Save the Children 2010) The Joseph Rowntree Foundation estimates it costs 20 – 30% more to achieve a basic adequate standard of living in rural areas Biggest welfare reforms for the last 60 years, and a struggling economy: Welsh Government predicts there will be a 600 m reduction income 2014 – 2015 and the Institute of Fiscal Studies – lone parents will lose 8.5% of annual income by 2015. 3 X the amount the average childless couple will lose. Trussell Trust foodbanks demand has tripled since 2011 / 2012
- A definition from HM Treasury Financial Inclusion not just about getting people to budget and accessing financial services in the traditional sense More fundamental and multifaceted - people don’t have enough money to live on, have poverty of opportunities and poverty of services. Financial Inclusion is the means to tackling POVERTY, with financial inclusion mitigating and providing a proactive solution to poverty Work undertaken by CAB and Legal Services Research Centre (LSRC) in to the outcomes of advice shows positive, social, health and economic outcomes. Return on investment, quantified potential savings at: Why is it important? The person you’re supporting will be better equipped to maintain tenancy / secure housing Develop rapport and a positive relationship with the citizen Reduced stress around financial situation will enable focus on other issues, improve health and relationships in the home Create more community cohesion £1 spent on housing advice saves £2.34 £1 spent on debt advice saves £2.98 £1 spent on welfare benefits advice saves £8.80 £1 spent on employment advice saves £7.13
- Useful to consider Welsh Government’s five core themes identified in the 2009 Financial Inclusion Strategy focus Income Maximisation– FI is not just about getting people to budget better. It might mean more people bought out of fuel poverty because they’ve accessed welfare advice. Access to affordable credit and loans might mean more people borrowing at reasonable rates with credit unions and more loan sharks reported to the Illegal Money Lending unit Accessible financial and debt advice, might mean more people accessing the advice, advocacy and information services they need sooner and before crisis point. Financial Capability and Literacy might mean more people digitally included to manage bills and identify lowest rates. Access to mainstream financial services might mean more people managing in goings and out goings through a bank account with a local credit union, and keeping money in the local economy Liverpool John Moores University has evaluated The Co-operative Bank and its work at Forest Bank prison in Salford between 2007 and 2009. Only 39% of those who opened a bank account have reoffended: the national reoffending rate of prisoners serving sentences of less than 12 months is 59.9% Franklin, Chief Operating Officer of The Co-operative Financial Services, said: Not having an account can jeopardise job opportunities, make obtaining rented housing more difficult and complicate access to education grants. In addition it can make claiming benefits difficult
- Jargon and terms we’re not sure of can affect confidence in addressing FI so just going to clarify a few commonly used terms
- Understanding and able to budget Priority debts Baliffs true / false from pack Cost of credit Understanding APR
- Widely recognised that we have the coldest, dampest homes in Europe! Consumer Focus Wales study highlights that 34% of Households in Wales are in fuel poverty. Fuel poverty (like all poverty) can have a significant impact on health and wellbeing. It can cause poverty related illnesses – low birth weight, respiratory diseases, winter deaths… Increased slips, trips and falls, mental health and an increased risk of fire through the use of inappropriate heat sources Impacts: Massive health impacts affects circulatory and respiratory system and arthritus - deaths in cold homes are 3 x as likely In 2011 Consumer Focus estimated that 425,161 households are in fuel poverty – 33.5% of all households in Wales Average household energy bill in 2012 was £1250 Satisfactory heating regime is between 18 - 21c Key considerations are: Energy efficiency of the property The cost of energy Household income Rurality is an issue as many properties of old, solid wall construction and off grid no mains gas. There are Energy Best Deal workshops taking place from October delivered by Pennysmart / CAB Communities First are putting on NEA sessions in Kinmel Bay, Peulwys and Llandudno
- With introduction of Universal Credit and the move towards job search’s needing to be online. In addition many banks and utility orgs are pushing for online billing, etc 2 considerations around accessibility … can the necessary equipment be accessed and is there the necessary skill level Estimated 35% of adult population digitally excluded in Conwy and Denbighshire Why is it important – social isolation 75% of over 75’s living alone feel isolated Money – Shopping online and paying bills electronically can save upto £560 Work – 90% of jobs will require ICT skills by 2015, 38% of unemployed people aren’t online Government savings – 1.8 billion by providing services digitally In your packs there are details of IT facillities throughout Conwy and Denbighshire Projects include: Communities 2.0 funded CVC project Digital Denbighshire Digidol – Alex Fairclough – 01824 702441 / 0788 591 0953 CVSC Ceri Quirk Taster sessions, training and cvscc workshops Digital inclusion resources – Niace www.learnmyway.com – free online courses www.getonline@home.org charities and individuals on certain benefits can get refurbed internet ready computers from £99
- Important to remember that benefits advice is a specialist area so you will be referring to CAB, BAS or Welfare Rights when there is an issue £35m per year total Denbighshire under-claim and underpayment The UK Government’s intention is to reduce net welfare spending in the UK by 18bn pa8 (a total of £39,180,000,000 over the 5 year period 2010 to 2015), People on low incomes consistently fail to claim all the benefits and tax credits that they are entitled to Excellent grants checker on the turn 2 us website – lots of niche grants DAF replacing the old social fund and is managed by Welsh Government Discretionary Assistance Fund – payments / in kind support to people in urgent need Emergency Assistance Payments / Individual Assistance Payments
- So now we are hopefully clear on what financial inclusion is, in groups can we take 5 minutes to discuss how it impact on your role. Any common / emerging themes Challenges
- In addition there are numerous projects and organisations seeking to address poverty – so many that it’s confusing as a worker to know who is doing what Here is a Film featuring frontline worker and citizen perspectives which we captured at our ‘Big Event’ and at Communities First Energy Matters Event over the summer. Ask for thoughts / views on the film
- Feedback from group discussion Financial inclusion issues often arise as a result of a change in circumstance such as a relationship breakdown, ill health, death of a partner or loss of a job – so when we consider that it’s easy to see how everyone including ourselves could be at risk. Impacts Increased poverty and social exclusion Link with poverty and chronic ill health is well documented – low birth weights, respiratory problems, dental problems, heart problems. Mental health (British Household panel survey university of Essex 2010) In Wales over 50% risk of mental health issues if you are unemployed or long term sick / disabled
- Just to reiterate here we are not expecting you to undertake a specialist advice worker role – need to remember boundaries of your role. Reminder as mentioned at the beginning – FI is the responsibility of everyone. If you have been given the time to come along to the session today that is confirmation that your organisation sees the benefits of you addressing financial inclusion Offer support – depending on your role, you might be able to run through a basic budget sheet sheet, use an online ‘better off’ calculator, if their washer machine has broken down you might recommend a visit to the local reclaim centre as opposed to going to Brighthouse. It maybe that you recommend the input of another organisation and signpost giving after a discussion about what the issue is. So you might signpost to NEST if the person is having problems heating their home and you think they might be eligible for the NEST scheme. Or if you are aware someone uses doorstep lenders you may introduce them to the Credit Union and explain the services they offer, the possible benefits and provide information on the times / locations of collection points. If the person has a more complex / serious issue after discussion and their agreement you may to decide to refer. If someone discloses they are falling behind with the rent and are accumulating debts you might refer to CAB. Not dramatically increasing workload something that can be fitted in alongside your ‘day job’ and can result in supporting you in your role
- Important to distinguish between the 2 Different approaches with different outcomes. Time and place for both Reasons to signpost or refer The problem falls outside the workers area of expertise or out of target group (ie specific needs deaf / homeless / older person) Capacity issues Important considerations include Trust – need to do what has been agreed Current up to date information
- Judgement call based on needs of citizen Considerations will include nature and severity of the issue How motivated the individual is Questioning skills / non judgemental attitude are essential need to recognise that there is a stigma attached to financial issues Consent from the citizen Capability of the citizen (basic skills needs, additional needs, how digitally included they are, etc Current support in place ie Benefits Advice Shop will not undertake work with a client if they have already commenced an appeal with CAB and vice versa
- There is more information in your packs on organisations you can signpost to, but it’s not exhaustive. We want to highlight some key organisations / resources you can signpost to
- Credit unions are financial co-operatives, owned and controlled by the members that save with them. They are regulated, like banks, by the Financial Services Authority, so money is protected by the Financial Services Compensation Scheme. Credit unions are social enterprises, so for the benefit of the community. North Wales credit union is recognised as one of the leading credit unions in the UK. They offer a wide range of financial products including: Savings accounts (Christmas savings, adult savings and junior savings). Pay a dividend on savings. 1.5% average dividend. Child Trust Funds are no longer available, but the CU still hold the CTFs that were opened and these can still have deposits paid in to them. They are no longer offered as a product. Affordable Loans – loans up to £10,000 with competitive rates. Minimum loan £50. Bank account (Credit Union Current Account) Payroll deduction schemes where staff can have money deducted form their salary and transferred to a savings account at the CU. Free life insurance on savings and loans. The credit union is not just for those who are financially excluded, it’s for everyone! Have a look at their website: www.northwalescu.co.uk If you’re not already a member, join now!!
- Worth mentioning .. Beware when monthly interest is quoted .. Makes rate sound a lot lower – 2% monthly interest is 27% APR – there are converters available on moneysaving expert site You don’t necessarily get the advertised apr – (representative APR means that 51% of successful applicants get that rate Need to watch out for automatically added insurance / payment protection Compound interest impacts upon savings and borrowing – basically you are earning / paying interest on the interest …so it accelerates debts and savings.
- Different ethos and culture of organisations also a factor. continuous payment authorities (CPAs). An in depth analysis by CAB of 665 payday loan customers who contacted the charity’s consumer service between January and June 2013 found that 32% (201 people) had complaints about CPAs. Of these: 9 in 10 could have grounds for a complaint to the Financial Ombudsman Service. 1 in 5 were already in financial difficulty or on a debt management plan. 1 in 6 had money taken without their authorisation. 1 in 6 said that the payday lender used a CPA to take more money than they had originally agreed.
- As mentioned before we have the oldest, hardest to heat homes in Europe Nest is the Welsh Government’s fuel poverty scheme. It aims to help reduce the number of households in fuel poverty and make Welsh homes warmer and more fuel-efficient places to live. If you’re worried about the cost of heating your home, you can call 0808 808 2244 free from a landline or a mobile phone. Our friendly advisors can give advice on: Saving energy Money management Making sure you’re on the best fuel tariff for you; And whether you are entitled to any benefits to boost your income You may also be eligible to receive home improvements at no cost to you, to help make your home warmer and reduce the cost of your energy bills. Rick Ward the area manager will come and speak to you / your organisation further about the services provided and there is more information in the packs
- I could give you a big long list of websites who are able to offer various services … often best to refer to Money Advice Service an independent service set up by the government. Has a raft of resources including calculators (savings, baby costs calculators, budget check, divorce / separation calculators), death of a partner, comparison tables, letter templates, video clips on lots of topics ie taking over the purse strings after your partner dies), budget planners Not regulated so cannot give specific financial advice
- Training is available for organisations on how to use the website benefits calculator, etc.
- Play Illegal Money Lending Unit film. Important to differentiate between payday loans which are legal and licensed with illegal money lending / loan sharks which is criminal activity – anyone who is lending money without a license Target the most vulnerable in society They team will come along to give a talk to your organisation on request. They will act on any information not matter how vague and although Cardiff based spend a lot of time up here in the North. As the loan is illegal the victim is no required to pay it back. Full victim protection package is offered.
- These packs are your own please working documents so will be updated. If it helps write on the divider tabs so you can navigate them more easily
- Feedback in pairs
- After today how are you going incorporate FI into your roles. On post it notes Challenges of addressing FI in your role Enablers to addressing FI in your role Encourage refection on how learning / resources are going to be implemented in role barriers / benefits
- Feedback is really important to the project, so please take a few minutes out to complete the form, still at pilot stage so you comments will channelled into developing the session. Evaluation Forms 12 week evaluation / FIT Logs Case studies – Opportunity to highlight your work, set examples of best practice and will potentially feed into influencing social policy Unless you have indicated otherwise you will be getting our e updates Request case studies We will be revisiting you in 12 weeks