The document discusses a project called Tackling Homelessness through Financial Inclusion (THFI) that aims to prevent homelessness by helping tenants access alternative banking through credit unions to ring-fence benefits for rent payments. The project also provides tenants with support services around budgeting, debt advice, and training to address both short-term rental arrears and long-term financial stability. Case studies show how credit union rent accounts in Wales have successfully increased rental payments and maintained tenancies.

1. Tackling Homelessness through
Financial Inclusion
Jocelle Lovell & Lucia Gillespie

2. You are made aware of an individual who has just
received a letter from their landlord. The letter
confirms 8 weeks arrears for non-payment of rent
and serves a notice seeking possession.
What would be the best way to support this tenant
to help them out of the position they are in, who
would you involve and how would this help them
in the longer term?
Group work

3. Scenario – possible outcomes
Person / Family Centred Approach
Short Term actions (symptoms)
Medium to Long Term support solutions (cause)
Debt
management
Review Tenant Arrears
and payment history
Review Tenant Income
and expenditure
Review Tenant needs
and expectations
1
Join the Credit
Union
Review Tenant/Landlord
position (any dispute?)
Tax Credits/Benefits
maximisation
Payment
Arrangement
Money Advice –
budgeting , debt and
savings plan –
MAS/CABEducation/Employment
Advice and Training –
Communities First
Support to pay the rent -
Credit Union Rent
AccountTenancy related Support
– Local Authority
/Landlord Tenancy
Support Officer
ActionReview SupportReferrals –
Money &
Debt advice/
Health /
training &
Employment
Specialist Support
referral
Food Bank
Shelter – Housing
Support and access to
individual case worker
Illegal Money Lending
Unit

4. Tackling Homelessness through Financial Inclusion
(THFI) project
Background
• Private Rented Sector - LHA Scheme - Direct Payments for some
• Welfare Reform – UC – Direct Payments for most
Key Aims - THFI
• Alternative banking services free to the tenant – CURA funded by L/L
• Protecting tenancies – ring-fencing benefits by agreement
• Access to CU products – low cost alternatives to high street
• Joint stakeholder approach – supporting financial inclusion and paying the
rent
• Extended information and support to Social Rented Sector
• Supports Welfare Reforms – Universal Credit Direct Payments

5. DWP direct payment demonstration project(May
2013) (http://www.dwp.gov.uk/docs/direct-payment-demo-figures-may-2013.pdf)
• “I would find it very hard if my children were hungry and the electric
gone, knowing I have money in the bank for rent, they go hungry or I
pay rent, very tempting not to pay rent and feed my children”
• “I suffer from substance abuse and would not be good on the scheme
as I’m in a lot of debt etc, why put temptation in front of my eyes. I
don’t want any more debt”
• Wakefield Council – other creditors had collected money from their
accounts prior to the funds being accessed for either electronic or
manual payment of rent

6. Credit Union Rent Accounts – Key Information
Credit Union Rent Account
• Free to the tenant – helps to ring-fence benefits at source to pay the rent
• Access to banking for those with poor Credit Rating ‘unbanked’ - UC does not
offer cheque payments (avoids loss of income – cash collection agencies)
• Builds good landlord/tenant relationships – maintaining longer term tenancies
• Can continue to be used under UC –supports UC Local Support Framework
(http://www.dwp.gov.uk/docs/uc-local-service-support-framework.pdf)
• Very small cost to landlord (approx £60.00 pa per tenant) - can avoid other
related costs (increased resources-rent collection, cash flow interruption, re-let
works, voids, eviction costs)
• Successfully used across Wales (NPT – increased rent collection rates)
• Some CU’s offering incentives for new landlords – Free rent accounts for 6
months

7. Case Studies.
Caerphilly landlord endorsees the rent account
And
Cardiff & Vale Credit Union support social housing tenant to repay
arrears.
‘

8. CURA – Examples of THFI Success
Caerphilly Council pilot:
• Introduction of local partnership arrangement (Smartmoney-Caerphilly Council/PRS
landlord forum)
• Council funding CURA for PRS tenants (first 6 months)
• Comprehensive Questionnaire developed to better understand tenants circumstances
• Scheme being used to provide financial services to the ‘unbanked’ and to ringfence HB
to protect PRS tenancies
• 21 visits, 8 signed up to CURA, 5 pending. 8 opened main stream bank accounts

9. Question
s
Contacts & Links
Jocelle Lovell (Financial Inclusion Project Manager) – 02920556193 /
Jocelle.Lovell@walescooperative.org
(Torfaen & Monmouth, Blaenau Gwent, Caerphilly)
(Swansea, Bridgend, Carmarthenshire, Ceredigion, Pembrokeshire)
Lucia Gillespie (Financial Inclusion Project Officer) – 02920556164 /
Lucia.Gillespie@walescooperative.org
Money Made Clear Wales: www.moneymadeclearwales.org
THFI Toolkit : www.walescooperative.org/thfitoolkit
Credit Unions: www.findyourcreditunion.co.uk