Transcript Financial Inclusion

Financial Inclusion
Gillian Draper
Social & Economic Regeneration
SE London Housing Partnership October 2010
A Definition of Financial Exclusion
“A lack of access to most or all of the
range of financial services enjoyed by
the majority of the adult population’
www.shgroup.org.uk
Key Elements of Financial Exclusion
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No access to bank accounts or limited use of accounts
Debts - including rent arrears
Lack of savings or home contents insurance
Problematic credit history - reliance on home credit
agencies
Lack of confidence in dealing with finances
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Some statistics
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60% of the financially excluded are social tenants
16% of social tenants have no bank account
Over 200,000 social tenants borrow from home credit
industry at rates of over 272% or higher
7.8m people in the UK are unable to access mainstream
credit
Only 32% of tenants are in paid work
Social Housing tenants have average annual income of
less than £12,000
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Labour Government Policy – Financial
Inclusion a key priority
2005 set up Financial Inclusion Taskforce and
Financial Inclusion Fund
(£120m for 2005-2008 and a further £130m for 2008-2011)
• Face-to-face and outreach debt advice
• Growth Fund for loans to financially excluded
• Credit Union capacity building
• Illegal money lending teams
2008 Treasury pre-budget Report - additional
• £5.85m for extension of telephone advice services
• £10m to extend face to face advice services
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Why Housing Associations are involved
in Financial Inclusion activity
Social and moral case
• Maximise personal income
• Decreases personal debt
• Offers opportunity for personal advancement
• Community benefit from more stable communities
Good business sense
• cuts rent arrears,
• reduces evictions and tenant turn-over
• cuts cost of staff time
• Reduces legal costs
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Southern Housing Group Response
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Group-wide Financial Inclusion Strategy approved
Internal team of Financial Inclusion Officers
External Contract with Community Advice Services
Limited (CASL) for advice to home owners
Supports development of Credit Unions and CDFIs
Partnership working with local advice agencies
Promotes take up of contents insurance
Developing a Fuel Poverty strategy
Promoting Financial Capability for residents
Links with Employment & Training initiatives
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The future….
Coalition Government
‘Reshaping the social housing landscape’
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Reductions in benefits and move into work
Ending of Financial Inclusion Fund initiatives
Impact of cuts on Third Sector
...challenging times!
www.shgroup.org.uk