- Area:
- East Midlands
- Programme:
- Improving Financial Confidence
- Release date:
- 22 8 2012
Money-saving expert Martin Lewis is backing a multi-million pound Big Lottery Fund initiative today aimed at preventing thousands of the most vulnerable people living in social housing across areas of the East Midlands from falling into a spiral of debt.
The Big Lottery Fund (BIG) today announces funding worth more than £2.5million to help tenants in Nottingham, Leicester and Boston become more financially aware, more confident in money management and better able to access financial products and services such as a basic bank account.
People without access to basic financial products are facing a poverty premium as they pay more for everyday services – not having a bank account can even act as a barrier to work as some employers require bank accounts for payment of wages or salaries.
A Department of Work and Pensions Family Resources Survey* published in June shows that 10 per cent of people on the lowest income (less than £100 a week) still do not have access to a bank account that enables direct payments – compared to just three per cent of the general population.
Martin Lewis, creator of MoneySavingExpert.com, said: “Disgracefully it costs more to be poor.The poverty premium means, from household goods to energy bills, things are more expensive for those with little cash as they need to borrow to buy or don’t get the direct debit discounts others take for granted.
Martin continued: “Sadly we still don’t have compulsory financial education on the curriculum, and even then, more will be needed to help the financially excluded. This is even more important as the universal credit means many on benefits will have to take greater control of their own money management.
“The Big Lottery Fund’s Improving Financial Confidence programme is a good step towards that and should provide help and information to 150,000 people who find themselves without access to products and services like bank accounts or contents insurance. Hopefully it will reduce the risk of desperation driving people into relying on costly payday loans or even loan sharks.”
One project receiving funds today is a partnership being led by Nottingham Community Housing Association which receives £999,449 to work with social housing tenants, particularly those aged 18-25 years old, over a five year period. The partnership, backed by Nottingham City Council includes all social landlords across the city including Nottingham City Homes. Other partners include Advice Nottingham, YMCA, Platform 51, Business in the Community and Nottingham Credit Union.
First time tenants will receive a financial confidence health check upon tenancy sign up and will receive resources detailing the financial services available. All beneficiaries will receive an information pack about services they can access in the area.
Those who require additional support will be offered one to one financial confidence interventions by trained financial inclusion officers. This will consist of advice and guidance about managing on a low income, budget planning, debt management, understanding credit, accessing financial services and products.
An online resource and smart phone application will also be created, and peer support and accredited training will be available to all new and existing social housing tenants under the age of 25.
Holly Dagnall, Business Operations Manager, Nottingham Community Housing Association, said: “Our partnership is delighted to have been awarded this funding.We aim to provide a joined up service across the city to help young people in social housing tenancies improve their confidence in money matters and access services that help financial management. We have asked young people what kind of help they need and we will be working with young people in Nottingham to ensure that the services we develop give the right help at the right time, keeping young people in their homes and reducing damaging and costly tenancy failure.”
Meanwhile, a partnership led by Leicester Housing Association receives £909,978 to work with up to 4,600 tenants over four years. The project will work with housing providers and staff across these organisations to develop the skills and resources to provide financial inclusion support for tenants across Leicester.
The project will provide face to face advice and support through their Positive Start programme and will establish group support sessions through the Made of Money programme which will include peer support and training tenants to become Financial Capacity Champions. Young first time tenants will also received tailored support.
Finally, Boston Mayflower receives £623,355 over three years to work with first time tenants, young tenants and tenants moving in and out of work. The project will provide financial health screening, signposting to additional support, outreach work and a helpline and website to help people manage their money and avoid financial difficulties.
Mick McGrath, Big Lottery Fund’s Head of the East Midlands region, said: “We wanted to find a way to prevent debt from starting or getting out of control for people on very low income or benefits. When you don’t have the confidence to work through the maze of modern money management, it can be tough getting the right support when it matters most. The right advice and support in hard times can become a much needed lifeline and today’s funding will ensure that social housing providers, advice providers and local authorities can work together to help improve the financial confidence of people most in need.”
Further Information
Big Lottery Fund Press Office: 020 7211 1888
Out of hours media contact: 07867 500 572
Full details of the Big Lottery Fund programmes and grant awards are available on the website: www.biglotteryfund.org.uk
Ask BIG a question here: https://ask.biglotteryfund.org.uk
Follow BIG on Twitter: www.twitter.com/BigLotteryFund #BIGlf
Find BIG on facebook: www.facebook.com/BigLotteryFund
Notes to Editors
- The Big Lottery Fund (BIG), the largest distributor of National Lottery good cause funding, is responsible for giving out 40% of the money raised for good causes by the National Lottery.
- BIG is committed to bringing real improvements to communities and the lives of people most in need and has been rolling out grants to health, education, environment and charitable causes across the UK. Since June 2004 BIG has awarded over £4.4bn.
- The Fund was formally established by Parliament on 1 December 2006.
- Since the National Lottery began in 1994, 28p from every pound spent by the public has gone to good causes. As a result, over £28 billion has now been raised and more than 383,000 grants awarded across arts, sport, heritage, charities, health, education and the environment.
- *The full Department of Work and Pensions Family Resources Survey can be found here: http://research.dwp.gov.uk/asd/frs/2010_11/frs_2010_11_report.pdf
Tags