Minister Announces £145m Fund to Boost Financial Inclusion

Government minister Lord Freud has announced a £145m fund to develop and subsidise financial inclusion schemes as part of the introduction of Universal Credit.  He confirmed that the government has approached the financial community to develop products like jam jar accounts to help people budget under the single payment system. Freud called Universal Credit a "social revolution" and emphasised the opportunity to improve financial inclusion among the population, brought about by direct payments to households, not landlords. Freud said that ministers are keen to avoid bracketing people as "vulnerable". Instead he said the government wants to segment people into groups, from those who need little support to move from the current system to Universal Credit, to those who will be unable to change without significant assistance.  Read more on the Guardian website.  

“Community Land Trusts Are Answer to Affordable Housing Crisis”

An innovative community-based model of land and property ownership can form a crucial part of a national strategy to tackle the crisis in affordable housing, according to a study produced by a leading research centre based at the University of Salford.  The report into Community Land Trusts (CLTs) by social and financial inclusion research unit Community Finance Solutions concludes that they have proved themselves as a viable way to build affordable homes and that such schemes can be expanded significantly to provide a sustainable part of the Government’s localism agenda.  A CLT is a charity or not-for-profit organisation which owns land and property for the benefit of a community and as a resource for future generations, rather than for market speculation. Over the last decade more than 80 CLTs have sprung up in both rural and urban areas.  Read more on the Salford University website.

Homelessness Fears for Almost Three Million Renters

National debt charity Consumer Credit Counselling Service (CCCS) has said it fears a rise in homelessness as almost three million renters have been found to be financially vulnerable. New research commissioned for the charity by the Financial Inclusion Centre has identified 2.9 million renters as in rent arrears or struggling to pay their rents. The charity expects the numbers of renters seeking help from it to rise and is concerned that many will end up homeless as a range of budget pressures such as high inflation, welfare benefit and tax changes as well as wage freezes will leave more people unable to save. It says that, unlike many homeowners, renters have not benefited from historically low interest rates. Read more on the CCCS website.

Improving Financial Inclusion and Capability in Social Housing

Sponsored by the Money Advice Service and Barclays, this publication includes the latest positive practice in financial inclusion, shares the lessons CIH have learned in helping to develop this work and considers some of the challenges the sector faces in helping their tenants manage their money. Download a copy from the CIH website.

Debt Advice Scheme Saved

Ministers have scrapped plans to discontinue a scheme aimed at helping people stay out of debt following intense lobbying from the National Housing Federation and other campaigners. The Financial Inclusion Fund provides free face-to-face debt advice to vulnerable people with acute financial problems. The Federation warned of the impact cutting this vital service could have on thousands of low income families and their concerns were voiced in the national press. The Government has now announced a reprieve for the fund which costs £27m per annum, backtracking on plans to make over 500 redundancies. Debt advisers funded through the scheme help 100,000 people with complex debt issues each year, including representing clients' interests to lenders. The 500 specialist debt advisers, based in Citizens Advice offices and community halls around England and Wales, had already been sent redundancy letters as the Government planned to terminate funding for the scheme at the end of March. Read more on the NHF website.

Multi-Million Fund For Vulnerable Likely To Be Scrapped

A £190m fund which provides hard-up families with free debt advice, low cost loans and access to bank accounts is likely to be scrapped this year as the government continues its radical public spending cuts. Ministers have failed to offer any reassurances that various financial initiatives to help low-income households, such as The Financial Inclusion Fund, The Growth Fund and Saving Gateway, will be continued beyond the end of March. These schemes have provided thousands of families with easy access to affordable credit and financial help, encouraging people to develop sensible money-handling skills and saving habits. The NHF fears that the axing of these funds will have a widespread impact and could ultimately leave many people across the country at risk of falling into the hands of predatory loan sharks and deepening levels of debt. Read more on the NHF website.

Councils Increase Benefit Payment Frequency

Several local authorities in the north east are to pay housing benefit every two weeks instead of four, to help tenants avoid eviction. Councils in North Lincolnshire, North East Lincolnshire and Hull have proposed the changes after a report showed some benefits claimants are falling behind on payments. The councils have found that many tenants are spending their rent on other things and are risking eviction. By increasingly the frequency of the benefit, it is hoped that tenants will have better control over their finances. The councils hope to reduce the time spent on resolving landlord complaints, and reduce the number of people presenting themselves as homeless. Read more on Inside Housing.

CIH Launches Financial Inclusion Network

The Chartered Institute of Housing has launched a financial inclusion network to help housing professionals prevent their tenants falling into debt. The Practice Network on Financial Inclusion is the first forum of its kind for housing providers to share good practice. Backed by the Financial Services Authority and Barclays, the network will share ideas and initiatives which help tenants open bank accounts, access affordable credit, obtain money advice and become more financially aware. It will be open to housing workers, credit union staff and money and benefits advisors. Find out more on the Inside Housing website.

Helping East Midlands Tenants Stay In The Black And In Their Homes

A debt specialist with more than a decade’s experience is helping social housing tenants in the East Midlands balance their books. Gary Greaves has been appointed financial inclusion officer at East Midlands Housing Association (EMHA). One of his priorities is working with tenants who cannot afford to pay their rent, as a result of redundancy for example, to help them stay in their home. The need for such expert support is highlighted by figures which show the region’s unemployment rate for those aged 16 plus rose from 5.9 to 7.3 per cent between May and July last year. Since joining the social landlord, Gary has created an up to date directory of credit unions and advice agencies in the region and produced a series of customer information leaflets containing this information. Read more on the 24dash website.