- Area:
- West Midlands
- Programme:
- Improving Financial Confidence
- Release date:
- 22 8 2012
A West Midlands based Citizens Advice Bureau which dealt with a 62 per cent increase over three years from people seeking financial advice, today receives close to one million from the Lottery to protect vulnerable people from debt.
Coventry CAB is one of five projects in the region to benefit from Big Lottery Fund (BIG) funding that will help social housing tenants become more financially aware and more confident in money management as well as better able to access financial products and services, rather than relying on payday loans or doorstep lenders.
Money-saving expert Martin Lewis is backing BIG’s £31.7m nationwide Improving Financial Confidence initiative, of which £4.3m is shared among the five West Midlands projects, all working with groups at most risk of financial exclusion; social housing tenants moving in and out of work, first time and young tenants.
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.
“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 across the country 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.”
Coventry CAB, today awarded £988,756, saw 2,000 social housing tenants last year, an increase of 62 per cent over a three year period. It has found tenants choose non-priority debt repayments over rent, utilities or even food and heating. Their project entitled ‘Sorted' - your home, your money, your future will help more than five thousand social housing residents sustain their tenancies and mange their money better. Coventry CAB will work with Groundwork West Midlands, Whitefriars Housing, Midland Heart Housing and Coventry City Council to deliver the project which will involve tailored packages of support on a one-to-one and group basis.
Charley Gibbons, CEO of Coventry CAB said: “Evidence gathered from individuals seeking advice at the CAB shows that the pressures facing new tenants who, without affordable credit options, must furnish their home, establish utilities, arrange insurance and budget for un-anticipated costs. Often, tenants address this by borrowing from high interest lenders or hire purchase furniture companies without understanding the crippling rates at stake.
“Since the IFC Programme was launched, considerable changes to the welfare benefits system have been announced which will significantly change the way in which people in social housing will manage their money. This project will be essential to help people through these changes, and provide additional support where it is most needed.”
As well as home visits, the ‘Sorted’ project will involved creating a purpose built replica flat and training facility. A reception and office space will provide an area for one-to-one support and computer access. The group training area will be used for practical activities such as DIY and using utility meters. People will also learn how to furnish a flat cheaply and how to cook healthily on a budget. A project helpline will be established and tenants using the project will be encouraged to take on community champion roles. Tenants will be encouraged to complete e a start-up pack and receive a good tenant certificate, which will become recognised among housing providers giving tenants more choice in finding a home.
Whitefriars Housing Group found that 67 per cent of 18 to 25 year olds and 53 per cent of tenants from black and minority ethnic groups have problems furnishing their homes, with many struggling to heat and light their homes.
Mick Rawson Chair of Whitefriars Housing Group said: “We have been working in close partnership with Coventry CAB and Groundwork to design a project that will assist our customers. This scheme will give advice to our new tenants when moving into their home and also help young customers with budgeting and managing their finances. It’s fantastic news.”
Wolverhampton Citizens Advice Bureau receives £568,984 for the Better off in Wolverhampton project that aims to support nearly three thousand social housing tenants to maintain tenancies through access to advice and information. The CAB will work with Wolverhampton Homes, Midland Heart, Bromford Housing, Heantun Housing, Illegal Money Lending Team, Wolf Savings and Loans, P3 Charity, YMCA, African Caribbean Community Initiative and Wolverhampton City Council.
Peer mentors will be recruited to engage young people within social housing estates to access one to one and group sessions focusing on financial capability, either delivered within the community or at the CAB. Social media will play a role in reaching young people, with Twitter and Facebook used to disseminate information about financial products and services. Videos will be posted on YouTube demonstrating money saving advice or ‘how to’ information. And events, using ideas from popular television shows such as Wolves Den and Cash Factor Challenge will be used to bring tenants together to share experiences.
Craig Alford, Development Manager, Wolverhampton CAB said: “The Big Lottery Fund will make a fantastic contribution to the work of Wolverhampton Citizens Advice Bureau and will allow us to work in new and innovative ways with partners such as the City Council and a wide range of social landlords and their tenants. At this time of economic recession and unprecedented welfare reform there has never been a greater need for services that can support tenants in making informed choices about their future finances and economic well being. Our project called “Better Off in Wolverhampton” will put tenants in the driving seat allow them to share their knowledge and experience of managing and overcoming the many financial challenges they face as they strive to be Better Off in Wolverhampton.”
Other projects to receive IFC funding today include Ashram Housing Association Limited, awarded £999,134 to work with 6,000 young first time tenants in Birmingham, to complete a self assessment and develop a structured personal development plan that will include learning around budgeting, benefits and affordable financial services. Black Country Housing Group Limited receives £992,075 to establish a Financial Service Hub to reach 8,000 tenants, teaching them how to manage their finances and how to access support. And £780,702 will enable Stoke on Trent CAB and partners to reach more than 5,000 tenants, including hard-to-reach groups such as survivors of domestic violence, to help them make financial decisions and able to access affordable products and services.
John Taylor, Big Lottery Fund Head of the West Midlands region, said: “We wanted to find a way to prevent debt from starting or getting worse for people on very low income or benefits. BIG’s funding will ensure that social housing providers, advice providers and local authorities can work together to improve the financial confidence of communities most in need across the West Midlands.
“Recent changes in legislation, such as the benefits cap and the introduction of Universal Credit - whereby benefits payments go to the head of the household rather than directly to the landlord, mean there is even more pressure on tenants to take responsibility for managing their finances. This means today’s investment could not come at a more imperative time.”
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.
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