Introducing Financial Capability for DRO clients: the toolkit August, 2019 This presentation can be used as a foundation for your own; please feel free to add more slides and amend as you wish.

Why use this toolkit? The Financial Capability DRO toolkit has been developed during the DRO pilots that have been tested across the Citizens Advice network in 2015. Clients that are recommended to go down the path of a DRO are in a specific set of circumstances that are unlike the majority of other clients. This toolkit seeks to take advantage of that to apply relevant and targeted financial capability. During an intervention, if there is any capacity for a ten-minute financial capability element (due to referral to a centralised DRO admin office, for example) the advisor is recommended to use this toolkit. However, there is also no obligation to do so if an advisor wishes to use another resource.

What does the toolkit cover? The unique strengths of financial capability with DRO clients -  Clients often have good budgeting skills. Client problems often stem from a single, easily-identified life shock. Clients are very keen for a 'fresh start'. DRO's can only happen once in 6 years. Clients that are suitable for a DRO are often in that position because an obviously-identified reason: they frequently are aware of this before they even contact us. This toolkit uses that fact to make them see the relevance and importance of financial capability in their specific circumstances.

What sort of context can we use? Common life shocks are -  1 – Sudden unemployment 2 – Multiple HP agreements 3 – Council Tax Arrears 4 – Payday Loans and doorstep lenders 5 – Separating from a partner 6 – Changes in benefits 7 – Overpaid tax credits And for those clients where it’s just impossible to say for sure what caused their problem, the following two activities are generic and equally applicable. 8 – Keeping paperwork 9 – Life after a DRO

Practical use If an advisor can identify which of the 9 toolkit resources are most applicable to a client, they can then make clear to them that we can help them avoid the same problem occurring in the future, for the same reason. It’s not a cure-all, but it does raise awareness in the client. Critically, it relies on the unique inducement that a second DRO cannot be taken out for another 6 years. Summary – It relies on an advisor's judgment. The targeted resources can be printed out only as needed. Targeted financial capability will hopefully aid retention and encourage clients further.  Can be used to support broader financial capability programmes of work.

Recording on Casebook Each resource in the toolkit has some recommended AIC codes on them, as indicated. Advisers do not have to use these if they feel their particular intervention did not cover the recommended areas, but generally these codes will accurately reflect the intervention. Further advice on Citizens Advice evaluation methods is also included in the toolkit. The recommended AIC code is here

For any further information or feedback, contact us at Financial For any further information or feedback, contact us at Financial.Skills@citizensadvice.org.uk

The Financial Capability and Consumer Education Team Bas Diablos Financial Capability Development Lead Dominic Mukwamba Financial Capability Development Officer Mel McGinn Consumer Education Development Consultant Abby Samuel

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