Budgeting support: Best practice ways to help low income households
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Over one fifth of UK households have less than £100 in savings to cushion themselves against economic shocks. With Christmas gone, frontline organisations anticipate more money related enquiries from people in need as they seek support with their household finances. In our first webinar of 2019 we talk to Marie Hardeman from the Guinness Group to hear what budgeting support they give to their tenants. With Donna Gallagher and Peter Carter, from Policy in Practice. To find out more visit www.policyinpractice.co.uk, call 0330 088 9242 or email hello@policyinpractice.co.uk.
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Budgeting support: Best practice ways to help low income households
- 1. Policy in Practice Budgeting support: Best practice ways to help low income households Wednesday 23 January 2019
- 2. Housekeeping • Audio check • Please ask questions • Polls, downloads and a survey • Finish by 11:30
- 3. Speakers Donna Gallagher Policy in Practice Marie Hardeman Guinness Peter Carter Policy in Practice
- 4. Agenda Introducing Policy in Practice Personal debt: the size and nature of the problem How Guinness Group help their tenants manage their money Software that can help Questions & answers with our speakers
- 5. We make the welfare system simple to understand, so that people can make the decisions that are right for them
- 7. 777www.policyinpractice.co.uk Poll: What do you find are the main causes of debt for your customers?
- 10. Debt: the scale of the problem • 8.3million estimated number of over-indebted people in the UK • 22% of UK adults have less than £100 in savings • 40% of reported debt problems in 2017-18 relating to debts owed to government, up from 21% in 2011-12 • £248 million, NAO estimate the minimum annual cost to public purse • £15 billion total outstanding mortgage arrears in 2018 • £18 billion estimate of personal debt owed to government, utility companies, landlords and housing associations • 4 in 10 estimated proportion of people in UK who cannot manage their money well day to day • 600,000 estimated number of people who need debt advice but are unable to access it Tackling problem debt, National Audit Office, August 2018
- 11. Proportion of debt problems reported to Citizens Advice, by debt Type
- 12. Unsecured debt per household rose to £15,400 in the third quarter of 2018. This was a rise of £890 on a year ago. A rise in unsecured debt in 2018
- 13. Total unsecured debt has risen to £428 billion. At 30.4% of household income, this is higher than before the financial crisis Unsecured debt as a share of Income
- 14. Triggers for problem debt • Redundancy • Unemployment • Illness and disability including mental health issues • Debt consolidation • Divorce/separation • Benefit changes (benefit cap, LHA, 2 children limit, self-employed) • Gap in benefit income (wait for UC, wait for WCA, sanctions) • Persistent low earnings - changes in employment structure - Freezing of working-age benefit support The key message from all research around debt is that most households are not protected from accumulating debt if they face a trigger situation
- 15. Supporting people to manage money Detrimental to people’s wellbeing – increase of stress, anxiety, time off work and relationship breakdown Debt is often hidden Problem debt negatively affects housing situations Debt needs to be controlled, split and prioritised Importance of lifting the debt burden Difference between Debt and Budgeting advice Range of support available for residents such as maximising income and completing income and expenditure
- 16. 161616www.policyinpractice.co.uk Poll: What are the main challenges your customers face when trying to budgeting?
- 22. WHAT NEXT? SELF SERVE ASSISTED SERVICE ENGAGEMENT CHOICECONVENIENCECONTROL
- 23. WHAT NEXT? SELF SERVE ASSISTED SERVICE ENGAGEMENT CHOICECONVENIENCECONTROL
- 25. 252525www.policyinpractice.co.uk Questions from the audience
- 26. Stay updated via our newsletter
- 27. Next steps Download Benefit and Budgeting Calculator flyer Download Example of household who’s situation has stabilised Short survey: • We value your feedback • Ask questions or clarifications • Request a look at our work and products Sign up to our next webinar: Data analytics: Who’s missing out on benefits in your area? Wed 20 Feb 2019 at 10:30
- 28. www.policyinpractice.co.uk Thank you Donna Gallagher donna@policyinpractice.co.uk Marie Hardeman Guinness Group Peter Carter peter@policyinpractice.co.uk hello@policyinpractice.co.uk office 0330 088 9242
Editor's Notes
- Analytics – Software – Policy
- What do you find are the main causes of debt for your customers? Overspending High interest charges Lack of financial knowledge Income shock Insufficient income
- Since 2011
- TUC reveal debt has hit a new record of £15,400 per household Unsecured debt per household rose to £15,400 in the third quarter of 2018 – a rise of £890 on year Includes consumer credt, student locans, pay day lending but excludes mortgates
- Money Advice Service
- Debt advice is first and foremost about getting people back in control of their finances to meet their essential needs and where possible other financial commitments. Budgeting support puts some people in a position where they can meet their obligations without further assistance. According to research commissioned by StepChange chronic and unmanageable debt is a driver of many financially and emotionally costly problems, including; mental health, increased likelihood of being NEET for children within financially-distressed families, relationship breakdown, an increased risk of children being taken into care, an increased need for temporary housing, and an inability to maintain employment. Consequently it tends to be an escalating and repeating problem, with more debt being taken on, if the underlying behavioural and circumstantial causes are not addressed.
- What are the main challenges your customers face when trying to budgeting? Expenditure exceeds income Prioritising debts Coping with the cost of living Reducing outgoings Improving their financial skills
- Guinness – National Housing Association. 65,000 homes. 140,000 customers. 165 local authority areas (let alone job centres) Customers – 3 different budget calculations, inconsistent approach and service. Different conversations depending on the intended outcome. Technology – no visibility internally, no future proofed model for self serve and digital platforms incl. mobile working Policy in Practice – 16 years local gov, Revs and Bens then evolved to include welfare and prevention – Croydon. Worked with Devan and Jade to analyse our data and the impact welfare reform, particularly UC would have on our customers Budget calculator in place but looking to branch out to HAs. Great opportunity to work together again. What attracted me to the calculator – one tool, better off scenario, action plan, self serve options
- How did we launch it. 3 services; lettings, CAT, CST. Working group, ops managers, team managers, advisors/officers. Demos, changes, testing. Launch/roll out – voyage, classroom environment with test cases, PCs, mixed groups Usage targets; lettings 100% affordability, CAT 75% arrangements, CST 100% referrals Incentives around targets Demonstrate benefits; better conversations, better lets, improved arrangements (sustainable), evidence at court, identify maximisation opportunities, appeals/reconsiderations Monthly then quarterly reviews; improvements, changes, usage etc.
- 55,752 completed assessments New to saved Budget advice Scenario caparison Affordability assessments. Arrears repayment plans. Staff engagement scores Conversational skills/solution focused/informed decision making Involved in the development and evolving use of the tool
- Self serve – do it! Assisted – more UC calcs, better off, action plans Use the data to focus our engagement
- Self serve – do it! Assisted – more UC calcs, better off, action plans Use the data to focus our engagement