Financial Inclusion Team Financial Inclusion Conference South Tyneside Charlie Reavley DWP Financial Inclusion Team

Financial Inclusion Conference South Tyneside Promoting Financial Inclusion  Set up in 2004 by HM Government to promote Financial Inclusion and tackle over indebtedness.  Financial Inclusion Taskforce  £120m Financial Inclusion Fund (FIF)  Promoting face to face debt advice  Improving supply of affordable credit via the Growth Fund  Working to increase number of people with bank accounts

Financial Inclusion Team Financial Inclusion Conference South Tyneside Access to affordable credit Growth Fund  Given their key role in the wider Financial Inclusion agenda Treasury invited DWP to manage the Growth Fund (GF)  GF intention was to use Credit Unions and CDFIs to improve access to affordable and responsible credit  GF allocated £36m in December 2004 as lending capital and revenue costs to deliver loans

Financial Inclusion Team Financial Inclusion Conference South Tyneside  What is the Growth Fund?  A joint HM Treasury/DWP initiative to increase the availability of affordable personal loans made by third sector lenders e.g. Credit Unions and Community Development Finance Institutions.  A practical opportunity for people who would otherwise turn to the expensive alternative credit market to have access to loans at affordable rates.  “Instant” loans – not previously available through credit unions.  A sum of money available for personal loans – what people need to borrow money for because they can’t always manage to save.

Financial Inclusion Team Financial Inclusion Conference South Tyneside Growth Fund  £36m allocated in 2005  Initial project started September 05  Bidding Jan-Mar 06  First Contract agreed June 06  Further £6m allocated in March 2007  Further £38m allocated in December 2007 for period 2008 to 2011  Further £18.75m (DWP core funding) for

Financial Inclusion Team Financial Inclusion Conference South Tyneside Funding support to contractors Lending capital Revenue costs e.g. Staff salaries Premises improvements Marketing & promotion IT solutions Credit referencing costs

Financial Inclusion Team Financial Inclusion Conference South Tyneside Growth Fund Between June 2006 and July 2010 Growth Fund contractors have: Considered over 318,000 loan applications Approved in excess of 270,000 loans With a total value of almost £118 million Average loan value £432

Financial Inclusion Team Financial Inclusion Conference South Tyneside Growth Fund website fund More background List of all providers Up to date figures