View
215
Download
1
Category
Tags:
Preview:
Citation preview
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
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.
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.
‘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
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
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]
38%people not online are also unemployed
£560The amount digitally excluded households are missing out on per year from not shopping and paying bills online
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
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
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
‘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’
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).
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)
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.
Recommended