IRRV Financial Inclusion Workshop

suzanne.wigmore@bristol.gov.uk

Strategic Financial Inclusion Champion Bristol and Gloucestershire…..

…………………..and ex Benefit Manager.

Objectives

• Understand what we mean by Financial Inclusion

• How Welfare Reform may affect FI issues and Revenues/Benefits Services

• Wider World Update

What is financial inclusion?

• Access to banking facilities• Access to affordable loans; alternatives

to high cost/ illegal money lending. • Increasing Financial Capability. • Provision and take up of Home

Contents Insurance• Access to face to face debt advice

Bank Account take up

• Any type of account 97%

• Current Account

– Generally 92%,

– Single Parent 82%

Literacy Levels

• England 16% Entry Level

• Understands short straightforward texts on familiar topics accurately and independentlyLevel expected of an 11-year-old (national curriculum levels 3-4)

Reforms• LHA capping and reduction to 30% of

Median

• Non dependant deduction uprating

• Shared room rate increased to 35years

• 10% rate cut for JSA claimants 12 months plus

• Universal Credit

Explanations• IT system letters

– Rent, LHA rate, eligible rent, anniversary date.

– Mass produced vs Manual

– Customer Service Centre

– Sample letters to LL’s, advice agencies etc

Payment of Small amounts• Increased Non-dep deductions, Council

Tax, 30% percentile top up, 10% JSA

• Standing Order

• Social Housing closing of cash offices

• Access to bank accounts

• Letter of ID

…End Cheque payment

• Expensive and time consuming

• Non receipt of cheque

• What does a claimant then do with it

• ID cards, cashing etc

• BACS

• LHA safeguard

Universal Credit

• Where is it going to be paid?

– Future of Post Office Card Account

– Money Management

– Recovery

– Payment to Social Housing providers

National Update

• FIF funding ends March 2011. Nearly 500 less debt advisors

• Ending of LA grant ring fence

• Child Poverty Agenda

• Worklessness

Locally

• Corporate Debt Policies

• Credit Unions – full coverage

– Financial Capability duty

– Easier access to banking

• Fin cap forums, working groups