tackling homeless through financial inclusion from wales co-operative centre
TRANSCRIPT
Tackling Homelessness through Financial Inclusion
Jocelle Lovell & Lucia Gillespie
You are made aware of an individual who has just received a letter from their landlord. The letter confirms 8 weeks arrears for non-payment of rent and serves a notice seeking possession.
What would be the best way to support this tenant to help them out of the position they are in, who would you involve and how would this help them in the longer term?
Group work
Scenario – possible outcomes
Person / Family Centred ApproachShort Term actions (symptoms)Medium to Long Term support solutions (cause)
Debt managementReview Tenant
Arrears and payment historyReview Tenant Income and expenditureReview Tenant needs and expectations
1
Join the Credit Union
Review Tenant/Landlord position (any dispute?)
Tax Credits/Benefits maximisation
Payment Arrangement
Money Advice – budgeting , debt and savings plan – MAS/CABEducation/Employment Advice and Training – Communities FirstSupport to pay the rent - Credit Union Rent Account Tenancy related Support – Local Authority /Landlord Tenancy Support Officer
ActionReview SupportReferrals – Money & Debt advice/ Health / training & Employment
Specialist Support referral
Food Bank
Shelter – Housing Support and access to individual case worker
Illegal Money Lending Unit
Tackling Homelessness through Financial Inclusion (THFI) project
Background• Private Rented Sector - LHA Scheme - Direct Payments for some• Welfare Reform – UC – Direct Payments for most
Key Aims - THFI• Alternative banking services free to the tenant – CURA funded by
L/L • Protecting tenancies – ring-fencing benefits by agreement• Access to CU products – low cost alternatives to high street• Joint stakeholder approach – supporting financial inclusion and
paying the rent• Extended information and support to Social Rented Sector• Supports Welfare Reforms – Universal Credit Direct Payments
DWP direct payment demonstration project(May 2013) (http://www.dwp.gov.uk/docs/direct-payment-demo-figures-may-2013.pdf)
• “I would find it very hard if my children were hungry and the electric gone, knowing I have money in the bank for rent, they go hungry or I pay rent, very tempting not to pay rent and feed my children”
• “I suffer from substance abuse and would not be good on the scheme as I’m in a lot of debt etc, why put temptation in front of my eyes. I don’t want any more debt”
• Wakefield Council – other creditors had collected money from their accounts prior to the funds being accessed for either electronic or manual payment of rent
Credit Union Rent Accounts – Key Information Credit Union Rent Account
• Free to the tenant – helps to ring-fence benefits at source to pay the rent
• Access to banking for those with poor Credit Rating ‘unbanked’ - UC does not offer cheque payments (avoids loss of income – cash collection agencies)
• Builds good landlord/tenant relationships – maintaining longer term tenancies
• Can continue to be used under UC –supports UC Local Support Framework (http://www.dwp.gov.uk/docs/uc-local-service-support-framework.pdf)
• Very small cost to landlord (approx £60.00 pa per tenant) - can avoid other related costs (increased resources-rent collection, cash flow interruption, re-let works, voids, eviction costs)
• Successfully used across Wales (NPT – increased rent collection rates)
• Some CU’s offering incentives for new landlords – Free rent accounts for 6 months
Case Studies.
Caerphilly landlord endorsees the rent account
And
Cardiff & Vale Credit Union support social housing tenant to repay arrears.
‘
CURA – Examples of THFI Success
Caerphilly Council pilot:• Introduction of local partnership arrangement (Smartmoney-Caerphilly
Council/PRS landlord forum)• Council funding CURA for PRS tenants (first 6 months)• Comprehensive Questionnaire developed to better understand tenants
circumstances• Scheme being used to provide financial services to the ‘unbanked’ and to
ringfence HB to protect PRS tenancies• 21 visits, 8 signed up to CURA, 5 pending. 8 opened main stream bank
accounts
Questions
Contacts & Links
Jocelle Lovell (Financial Inclusion Project Manager) – 02920556193 / [email protected] (Torfaen & Monmouth, Blaenau Gwent, Caerphilly)
(Swansea, Bridgend, Carmarthenshire, Ceredigion, Pembrokeshire)Lucia Gillespie (Financial Inclusion Project Officer) – 02920556164 / [email protected]
Money Made Clear Wales: www.moneymadeclearwales.org THFI Toolkit : www.walescooperative.org/thfitoolkit Credit Unions: www.findyourcreditunion.co.uk