1. Dawn Eckersley-Wright Stakeholder Manager – Affordable Housing Department of Work and Pensions

2. Indicators of Financial Exclusion  No access to bank account  Limited use of financial services such as insurance  Poor financial literacy  Debt including rent arrears  Problematic credit history  Reliance on extortionate credit  Lack of confidence, aspiration, mobility

3. The Cost of Borrowing £500 over 1 year: Nottingham Credit Union: £63.53 / £32.94 (26.8% / 12.7% APR) Provident Personal Credit : £325 (177% APR)

4. The reality: socially rented homes targeted by a range of lenders  Provident Personal Credit (177% APR)  Shopacheck (246.5% APR)  Greenwood Personal Credit (399.7% APR)  Vouchers, photographs, bedding, toys, towels, hampers, high cost car credit, BrightHouse, Cash Generator, high cost catalogues

5. Provident Personal Credit  A very popular service  Increasing customer base  20% of customers have a mortgage  1.5m customers/60% market share  £38.2m half-year profits  11,500 agents  Average loan = £330  Chief Executive Officer = Peter Crook

6. “Provident succeeds by offering simple transparent services to customers on average or below average incomes…some of whom may find it difficult to obtain other forms of credit. The service is popular for very clear reasons. It’s personal, friendly and flexible, and is well-suited to the needs of its customers” Provident Financial plc Annual Report and Financial Statements 2006

7. Typical doorstep credit customer Working age but not working Women aged 25-34 years old With children Socio economic grades D & E 50% have an income under £13,000 Renting from RSL in NW England, Yorkshire & Humber, Scotland & Wales Within the most disadvantaged neighbourhoods BMRB analysis for Competition Commission (2005) of 24,343 adults 15+

8. Policy context HM Treasury Pre-Budget Report 2004 ABC - Advice, Banking, Credit  £120m Financial Inclusion Fund  £6m debt advice outreach  £50m face-to-face debt advice  £42m Growth Fund (approximately 100 contracts)  £6m Credit Union capacity building  £5.4m “Now Let’s Talk Money”  £2.7m illegal money lending teams

9.  November 2006 – March 2008  Seconded Stakeholder Managers  Two phases  Working through agencies to reach public  Direct to public information

10. Aims of the campaign  Raise awareness of free face-to-face debt advice  Provide information about affordable credit  Encourage take-up of banking and insurance products  Develop financial capability

11. The Campaign in the Affordable Housing Sector  Specialist Stakeholder Manager  Advisory service  “Route map” and “toolkit” for providers  Central role of workshop model staff training/action planning  Train the trainer course  Excellent fit with internal initiatives / priorities

12. 1.Establish commitment at senior level 2.Identify staff capacity to lead 3.Explore evidence base to identify priorities 4.Map local partners (affordable credit / advice) 5. Undertake partnership development 6. Raise staff awareness and consult (workshop) 7. Develop “action plan” or “strategy” 8. Record progress, review, evaluate Route Map

13. The “Toolkit”  Based on workshop staff training / action planning model  Flexible branding  Session invitation  PowerPoint presentation (adjust to context)  Learning outcomes  Evaluation / feedback  Train the trainer course

14.  Corporate plan commitment to anti-poverty strategy / financial inclusion project  Staff training/consultation  Drafting of action plan  Partnership facilitation  On-going advice

15.  “Successful Tenancies Initiative”  Evidence base – failed tenancies  Geographical and demographical trends  Staff training / awareness raising  Working towards targeted interventions

16. The Approach  Builds on existing practice, procedure, priorities and guidance  Simple, unscientific and not mysterious!  Increases staff knowledge – develops motivation, builds capacity  Maximises customer contacts to convey information  Low cost – no investment required

17. The Future  Build on good practice – acceptance of approach  Continue advisory / training service?  Address Growth Fund gaps – changes to credit union legislation  Demonstrate role of sector in working with Government towards policy goals - dialogue  A sector agenda; not organisational agendas  Financial Inclusion Fund 2008 - 2011

18. Your response and questions