Thursday, 20 September 2012

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.

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