- Area:
- Yorkshire and the Humber
- Programme:
- Improving Financial Confidence
- Release date:
- 22 8 2012
Big Lottery Fund today announces millions in funding to five partnership projects to help prevent an estimated 13,000 vulnerable tenants living in social housing across Yorkshire and Humber from falling into a spiral of debt.
Each of today’s projects will provide timely support and early intervention to 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 Improving Financial Confidence initiative across England, of which £3.7m is shared among the five Yorkshire and Humber 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.”
Evidence* shows an estimated 310,000 people borrow £120m each year from loan sharks on which they repay £450m. It is estimated that the associated stress, health issues and family breakdown linked to this debt crisis is costing the state £43m annually. And 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**.
Wakefield and District Housing(WDH) project, Cash Wise, is awarded £586,253 to work with 750 young people aged 18 to 24 who are first time tenants or are in pre-tenancy stages to help them with financial management so they are better able to budget and effectively manage their tenancies, and are less likely to fall into debt.
Hull and East Riding Citizens Advice Bureau Ltd project, ‘ Quids in,’will use £993,199 to work with partners to engage new and first time tenants in financial inclusion support through improved and more joined up service provision. The project will also provide volunteering opportunities for tenants to become peer mentors to share knowledge and experience. CAB will work with up to 15 organisations per year to improve and standardise financial support services, who will all work towards a locally recognised quality mark.
Lesley Thornley, Chief Executive, Hull and East Riding Citizens Advice Bureau said: “At a time when people are struggling to make ends meet, the Big Lottery Funding will allow us to support over 10,000 new social housing tenants in the next five years to prepare for their tenancy, manage their money and make sure they get the best deals available to them. This programme will build people's confidence and skills so that they can use that knowledge in all aspects of their life to make informed choices about money and bills.”
The Sick of Being Skint (SOBS) project led by Pennine Housing 2000 will use £600,000 over four years todeliver a comprehensive programme of financial capability training and support for young people and first time social housing tenants across Calderdale. It will help would-be tenants to choose appropriate and affordable accommodation and signpost people to relevant advice and support services. The project will reach hundreds of tenants living in rural areas with financial advice road-shows. Financial skills training will also be offered to young people leaving care and those not in education, employment or training.
The Sheffield ‘Brass Tactics’ Project led bySheffield Citizens Advice Bureau Debt Support Unit willuse £931,285 to improve the financial skills of first time tenants through homemaker events, tenant-led campaigns, face to face assistance and volunteer money support workers called Budget Buddies. The project will work with hundreds of first time social housing tenants to provide initial advice and support on household budgeting, benefits appropriate financial services and products.
Also delivered by Sheffield Citizens Advice Bureau isSheffield Vulnerable Peoples’ Financial Confidence Programme. The £614,855 project will address the financial confidence and capability of first time social housing tenants living with mental health issues and people who have been granted asylum, providing intensive one to one support at pre-tenancy stage on benefits, budgeting and appropriate financial products. The project also intends to increase the number of target beneficiaries maintaining their tenancies successfully by at least 60 per cent.
Vanessa White, Big Lottery Fund Head of the Yorkshire and Humber 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 Yorkshire and Humberside.
“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
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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.
- * 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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