Financial Inclusion Strategies

1
Financial Inclusion Strategies

• Building Financial Futures 3
• Thursday 7th February 2008
• Jane Woodford Manager
• Rotherham Credit Union Development Agency

2
What is it?

• . . . about ensuring everyone has the
  opportunity to access the financial services
  products needed to participate fully in
  modern-day society and the economy.
• HM Treasury Financial inclusion an action plan
  for 2008-11, Dec 2007

3
But what does it feel like?

• Not being able to take up a job because you
  havent got an account for wages to be paid into
• Paying twice or three times as much for goods and
  services as someone who can pay by direct debit
• Not being able to go out with friends and family
• Paying 400 for a cooker at Brighthouse on credit
  that costs 150 at Comet
• Putting your children straight into their pyjamas
  after school to save wear and tear on their
  clothes

4
Government context and strategy

• New round of funding 2008-11 a total of 135 m
• Advice services 76m
• Affordable credit 38m
• Financial inclusion champions 12m
• Plus
• Prisons 5m
• Saving for Christmas 2m
• Loan shark initiative extended

5
Progress so far

• Over 500 new advisers recruited and trained
• Over 66,000 people helped with their debt
  problems
• Over 46,000 loans made to financially excluded
  people
• 800,000 more financial excluded people with bank
  accounts

6
Leeds

• 2003 start
• 2004 research
• CU expansion
• Face-to-face debt advice increase
• 2007 illegal money lending initiative
• Beacon status
• Integration of FI strategy across all
  partnerships
• Beacon status

7
Sheffield

• Beacon status
• Financial inclusion consortium including LSP
  (Sheffield First)
• Partnerships including housing associations,
  credit union, debt support, schools workers, city
  bond scheme
• Extension of loan shark scheme

8
Barnsley

• Financial inclusion a priority
• Research
• Commitment to strategy - integration
• Commitment to action effective partnerships,
  sharing the work
• Sub-group structure

9
Rotherham

• Appointment of Financial Inclusion Co-ordinator
• Co-operation and co-ordination
• Broad based network
• Practical
• Regional and national links

10
Key points

• Financial inclusion very high on the agenda
• Integrated strategy
• High level champions
• Partnerships

11
Useful contacts

• janewoodford_at_rcuda.org.uk
• www.beacons.idea.gov.uk
• www.berr.gov.uk
• www.dwp.gov.uk
• www.financialinclusion-taskforce.org.uk
• www.leeds.gov.uk
• www.nowletstalkmoney.com

12
So what do you know?

• Total UK personal debt at Dec 07 was 1,409 bn
• Today there will be 77 house repossessions
• 305 people will be declared bankrupt or insolvent
• CAB will deal with 6,600 debt problems

13
What do we do now?

• 2008-2011the opportunity to make a difference