Financial Inclusion Gillian Draper Social & Economic Regeneration SE London Housing Partnership October 2010

A Definition of Financial Exclusion “A lack of access to most or all of the range of financial services enjoyed by the majority of the adult population’

Key Elements of Financial Exclusion No access to bank accounts or limited use of accounts Debts - including rent arrears Lack of savings or home contents insurance Problematic credit history - reliance on home credit agencies Lack of confidence in dealing with finances

Some statistics 60% of the financially excluded are social tenants 16% of social tenants have no bank account Over 200,000 social tenants borrow from home credit industry at rates of over 272% or higher 7.8m people in the UK are unable to access mainstream credit Only 32% of tenants are in paid work Social Housing tenants have average annual income of less than £12,000

Labour Government Policy – Financial Inclusion a key priority 2005 set up Financial Inclusion Taskforce and Financial Inclusion Fund (£120m for and a further £130m for ) Face-to-face and outreach debt advice Growth Fund for loans to financially excluded Credit Union capacity building Illegal money lending teams 2008 Treasury pre-budget Report - additional £5.85m for extension of telephone advice services £10m to extend face to face advice services

Why Housing Associations are involved in Financial Inclusion activity Social and moral case Maximise personal income Decreases personal debt Offers opportunity for personal advancement Community benefit from more stable communities Good business sense cuts rent arrears, reduces evictions and tenant turn-over cuts cost of staff time Reduces legal costs

Southern Housing Group Response Group-wide Financial Inclusion Strategy approved Internal team of Financial Inclusion Officers External Contract with Community Advice Services Limited (CASL) for advice to home owners Supports development of Credit Unions and CDFIs Partnership working with local advice agencies Promotes take up of contents insurance Developing a Fuel Poverty strategy Promoting Financial Capability for residents Links with Employment & Training initiatives

The future…. Coalition Government ‘Reshaping the social housing landscape’ Reductions in benefits and move into work Ending of Financial Inclusion Fund initiatives Impact of cuts on Third Sector...challenging times!