- Area:
- South West England
- Programme:
- Improving Financial Confidence
- Release date:
- 22 8 2012
Money saving expert Martin Lewis is backing a multi-million pound Big Lottery Fund announcement today aimed at preventing thousands of the most vulnerable people living in social housing across the South West from falling into the debt trap.
Big Lottery Fund (BIG) today announces £2.9m funding that will help tenants in Bristol and Plymouth to 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 – and 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.
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.”
Places for People Neighbourhoods in Bristol has been awarded £999,832 to deliver its project, ‘Pennywise Bristol - making your money work better for you’.
The four-year project will support both first time tenants and tenants moving in or out of employment through services and educational activities aimed at managing those transitions and building the financial confidence of tenants to ensure more sustainable tenancies.
The project aims to reach almost 4,400 people, through sub-projects such as:
- Savvy shoppers, spenders and savers – including small group and one to one workshops for tenants focused on gaining a better understanding of their financial situation and managing their finances. Topics will include budgeting, bill payments, maximising income, an explanation of credit.
- Shock absorbers - a series of groups sessions focusing on managing finances during times of change such as leaving employment, illness or pregnancy.
- Solidarity - the training of frontline staff to easily identify vulnerable tenants and provide appropriate support to them. Additionally, the recruitment of PennyWise Bristol mentors who will publicise the project locally and run workshops for tenants.
The project’s partners are: Avon (including Citizen's Advice Bureau and Bristol Debt Advice centre); Bristol Housing Partnership (including BCC; BCHF; Knightstone and Sovereign); Financial Services Research Centre at Bristol University; Job Centre Plus; Bristol Credit Union and Bristol City Council.
Statistics from the five social housing partners who developed the bid estimated there were over 1,600 new social housing tenancies in 2010/11 in Bristol and of these approximately 25 per cent (400) were failing within first 12 months due to rent arrears, and a further three per cent (48) resulted in evictions.
Steve Mather, Neighbourhoods Director at Places for People, said: "This opportunity is great news for Places for People and we look forward to helping social housing tenants in Bristol to manage their money more effectively to become savvier shoppers, spenders and savers. Working with a partnership of social housing providers and advice agencies from across the city will enable us to deliver the right services at the right time to the people who will benefit most."
Mum-of-two Carrie Butcher, 44, was supported by Places for People partner Knightstone, following the breakdown of her 24-year marriage, resulting in homelessness. Ms Butcher, who moved into a new social housing complex in Bristol this year, cares for her mentally ill 25-year-old daughter, and runs a CV and job club for the tenants. Her son, 22, is studying computer science at Cardiff University and surviving on his student loan.
She said: “I had support to get my life back on track. There were funds available to set up our own social enterprises. It’s a brand new community so we also had to start from scratch – lots of people didn’t know each other. I set up the job club, there is also a social club, a crafts club and it’s very important for people’s sense of self-worth as lots of people aren’t earning.
“I’m lucky I’m able to do some voluntary work which is very good. I have a degree in social welfare and fortunately, due to the support network I have in Bristol, getting a job in this is actually a realistic proposition. It’s my aim when my daughter is better. I would like to be helping and training people to help themselves in their communities. In the current financial climate, people are finding it very difficult.”
A four year project led by 1625 Independent People in Bristol seeks to improve the financial skills and knowledge of young people in social housing by building their financial confidence and capability, addressing psychological driving factors and ultimately changing their behaviours. Through their Lottery grant of £995,860, the Cashpoint initiative will seek to help young people to take control of their finances, deal with future challenges and be equipped to understand and access financial products such as bank accounts and savings.
The project will employ workers and train young people to be peer mentors and educators, using real stories with the consequences and learning from mistakes.
The project aims to support 3,000 young social housing tenants, through strands such as:
- A texting service to alert young people of rent and other issues.
- The development of an online 'Money MOT' tool to assess the changes in attitudes of young people towards money management.
- An online and print magazine to be researched and co-produced by young people, focusing on financial capability, appropriate banking and financial services.
- Financial confidence activities based on enterprise activities, supported by local businesses and linking into local employability initiatives.
- Youth Awards, giving young people some financial responsibility to develop community based projects. These will either be developed around their own interests and/or making a difference within their area.
Dom Wood, Chief Executive of 1625 Independent People, said: "Our experience tells us one of the most common reasons young people starting out on their own get into financial difficulty is down to not knowing how to manage their money, budget or get help. This potentially leads to eviction, further homelessness and serious debt problems.
“The majority of young people in social housing are on very low wages or Job Seekers Allowance, and many have never taken a serious look at their finances and how they can make ends meet. It's hard for anyone to manage on a low income, but when you're young and possibly dealing with complex family issues, trauma or low literacy levels as many young people in social housing are - it's particularly difficult. This money will help us to support young people through these difficult financial times and promote a healthy attitude towards personal financial stability.”
The project’s partners are The Princes Trust, Barclays Bank, Royal Bank of Scotland, and Places for People, Bristol Debt Advice Centre, Learning Partnership West, National Illegal Money Lending Team, Bristol Credit Union, Bristol CAB, Clean Slate, ASDAN and Bristol City Council (BCC).
According to 1625 Independent People, young people in represent the highest proportion of Bristol’s population who are in arrears, at 38% per cent, rising to 86 per cent in supported housing. The project’s own consultation with 77 young tenants in social housing also found that 30 per cent had been approached by loan sharks and 64 per cent had gone without food because they couldn’t afford it.
Plymouth Citizens Advice Bureau’s project, Wis£er Wonga, aims to ensure young social tenants across Devonport and Stonehouse in Plymouth gain practical skills and experience of managing their own budgets, thanks to their Lottery grant of £864,210. Giving young people a sense of responsibility, the initiative will help 550 young people to deliver community and leisure-based events, while others will offer their views at neighbourhood groups and social housing boards, or mentor young people like themselves. The project aims to reduce the number of young people losing their tenancies by 25 per cent. The project’s partners are Independent Futures, The Zone and Plymouth City Council.
Plymouth Citizens Advice Bureau currently sees 2,250 new clients each month with 43.8% of those enquiries relating to debt.
Ann Kinahan, Director, Plymouth Citizens Advice Bureau, said: “This is a very exciting development opportunity representing a real chance to make a difference to the lives of up to 1,500 young people in social housing in Plymouth’s most deprived neighbourhoods. We hope our work will result in a large number of young adults confidently working their way through life’s challenges and being happy to contribute to the success of their community.”
Mark Cotton, BIG’s Head of the South West region, said: “For people or communities on very low incomes or benefits, we wanted to stop the spiral of debt from starting or getting worse, and equip individuals with the knowledge and confidence to tackle future challenges.
“This targeted investment aimed at people experiencing financial exclusion will work with social housing providers to gain access to some of the most vulnerable people in England, and help those most in need.”
Figures released this month by the Insolvency Service* show there has been close to a 10 per cent surge in debt relief orders since the same quarter last year. And the latest Department of Work and Pensions Family Resources Survey** published in June shows that 16 per cent of people on the lowest income (less than £100 a week) still do not have access to a bank account – compared to just three per cent of the general population. Some 14 per cent of young people do not have an account.
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.
- * Debt relief orders are an alternative to bankruptcy for people who do not own their own home on low incomes with £50 or less disposable income per month and with debts of less than £15,000. The number of debt relief orders made in the last quarter is almost 8,000. The latest Insolvency Service statistics can be found here: http://www.insolvencydirect.bis.gov.uk/otherinformation/statistics/201208/index.htm
- **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
- ***A consortium led by the National Housing Federation (NHF) produced the scoping document that helped inform the development of IFC. It is accessible here http://www.biglotteryfund.org.uk/prog_improving_financial_confidence_scoping_document.pdf
- **** Department for Business Innovation & Skills Interim Evaluation of the National Illegal Money Lending Project – Fina report – the evidence base. Policis, 2010
http://www.policis.com/pdf/Illegal_Lending/BIS%20IML%20Evaluation%20Summary%20Report%20Final%2008102010.pdf
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