1. Partnership with the Credit Union Widening Access to Affordable Credit

2. Southway’s Affordable Loan Scheme Using social lending to support digital inclusion

3. Why we developed the loan scheme Greater need for affordable credit due to: Economic climate, uncertain job market and welfare reform changes (No reserve funds available for a home emergency) Withdrawal of Social Fund – replaced by City Council Welfare Provision Fund (£30) Increase in numbers turning to high interest /Payday lenders (More problem debt) Credit Union loans often lend too little or already have one and not repaid enough to get another

4. The Scheme The Partnership Southway – Fund the scheme £50,000 and refer eligible tenants ( No eviction authorised, no ASB injunction, no overdue gas checks) 1 loan per household. Credit Union – administer /process loans – paid £30 fee per loan.

5. Products ‘Southway Solutions’ - Intended for home emergencies ( car repair, cooker breakdown). £100 - £300 Repayment periods 3 mths – 36 mths 42.6% APR (can migrate to CU loan at 26.8% if maintain regular repayments) No credit check Same day payment if all paperwork in order and present at Credit Union by 2pm.

6. ‘Right Track’ Buys tenants out of other high interest loans. £300 - £1000 (same repayment periods) Credit checked For those being supported by the Advice Services Team - Part of a money management plan to put finances back on track. If owe too much to be helped - referred to debt advice

7. Using affordable credit and Credit Union partnership to support digital inclusion

8. The Digital Divide a third of households in the UK don't have the internet 1 in 4 adults in the UK have never used the internet

9. 49% of people without access are in the lowest socio-economic groups (DE) 70% of people who live in social housing aren't online [Martha Lane Fox, Digital Inclusion Champion]

10. 38% people not online are also unemployed £560 The amount digitally excluded households are missing out on per year from not shopping and paying bills online

11. 80% of government interactions with the public take place with the bottom 25% of society, 15% of people living in deprived areas have used a government online service or website in the last year, compared to 55% nationally

12. Need for Digital inclusion projects to respond to Welfare Reform changes Approx two thirds of working age Southway tenants are claiming benefits so need to: Prepare for DWP moving to a ‘digital by design’ service (On-line claiming, claim updates). Use Universal Job Match to comply with ‘claimant commitment’ and avoid sanctions

13. Tenants will therefore need to: Be computer literate Have access to computer equipment Have access to the internet The Internet is increasingly important to access advice, information and support services

14. ‘Internet Savvy’ Access (to equipment /internet) Skills and confidence to use equipment Motivation – the internet creates interest and has financial / social gains All the above been referred to as: ‘Effective Access’

15. Course Features Group of 10 – 14 learners 12 x 3 hr sessions (1 day a week) Optional extra session for exam Southway pay 50% of cost for refurbished laptop for completing the course (£101) Learners save £101with the Credit Union each week, then qualify for a loan if any left to pay. Use same laptop for the course (stored between sessions until paid for).

16. Course Content Banking on line Paying bills /switching suppliers/comparison Buying /selling on-line Emailing / Skype Benefit claiming – form filling Job searching Creating/ uploading CVs Useful sites for info /advice /saving money (CAB, TurntoUs, Gumtree, Freecycle etc)

17. Additional Gains Become more engaged with the Credit Union Social gains – form friendships /maintain contact with others in group, friends and relatives abroad – Email /Skype More confident –want to do more courses /volunteer Helped with other issues – debts, benefits, grants, finding work, getting bank accounts, referral to the loan scheme.