Freud: New Financial Products to Help Universal Credit Claimants Manage Money

Ministers are calling for a range of suppliers to explore the feasibility of new financial products to help benefit claimants budget and manage their money.

The Government expects interest from a wide range of financial providers, including high street banks, mobile phone operators and pre pay card providers.  Lord Freud, Minister for Welfare Reform, said:

    "Accounts that provide people with extra budgeting services could help to ensure people’s essential bills are covered – helping them to build up their credit rating and break the cycle of financial exclusion.” As part of the criteria any potential new accounts must have a series of essential features to help people on low incomes to budget, but the final design will be left open to the market to devise, including:

    *Support for claimants to budget and manage their money

    *Regular payments for housing and other main bills

    *Options for multiple income streams from work and benefits

    *Access to all claimants, irrespective of credit history

    *Options to build up a credit rating

    *Availability to people once they have moved off Universal Credit

Read more on the DWP website.

Tackling the Poverty Premium in Social Housing

Many households in the UK are starting to feel the economic squeeze as job losses, pay freezes, soaring train fares, energy price wars, housing slumps and rising food prices take their toll in austerity Britain.  But what about the poorest of households, facing a poverty premium for the same basic essentials we all need? The Guardian recently called for housing providers to do more to help residents to manage their finances through education, as well as enabling access to cheaper products and services in order to prevent welfare reform measures from overwhelming poorer households.  The Big Lottery Fund's improving financial confidence initiative aims to do just this, targeting those identified as the most affected by financial exclusion; social housing tenants moving in and out of work and first time tenants or young people in social housing. The Big Lottery is investing £31.7m in 37 partnership projects across England to enable housing providers and voluntary sector organisations, local authorities and financial service providers, to prevent an estimated 150,000 of the most vulnerable social housing residents from falling into a spiral of debt.  Read more on the Guardian website.

Financially Excluded Social Housing Tenants to Benefit From £30m National Lottery Fund

The National Lottery has set up a £30m fund to help tenants manage their money. The scheme, which will focus on tenants in the 69 regions with the highest levels of financial exclusion, will target young residents, those in unstable employment and first time tenants. The Improving Financial Confidence Scheme will be delivered will be delivered by charities and housing associations, and will advise people about financial services and managing money more effectively.

Living on the Edge: Financial Exclusion and Social Housing

Financial exclusion is a growing concern for an increasing number of citizens and organisations which help those on low incomes with money management and debt problems as austerity economics begin to bite. The ‘Living on the Edge’ report seeks to add to the growing evidence base about the extent of financial exclusion and debt problems within such communities. The report is based on a major interview survey with social housing tenants in the Midlands undertaken by the Human City Institute. It explores financial exclusion within the social housing sector, including debt levels, economic activity and propensity to save, as well as seeking tenants’ views on how social housing providers could help alleviate financial exclusion among their tenants. Download a copy of the report from the HCI website.