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POLICY OFFICERS NETWORK

FINANCIAL INCLUSION:

“SPEND TO SAVE”

DWP Financial Inclusion Champions Team for London

DWP Financial Inclusion Programme Manager Su Holmes

9 July 2010

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FINANCIAL INCLUSION

• What is it?

• What resources are freely available?

• What is the business case for FI?

• How will FI meet the “SPEND TO SAVE” test?

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AIMS for this presentation

• London Local Authorities use the Financial Inclusion Toolkit

• Senior Officers and key Elected Members attend the 15 September Financial Capability Conference at Canary Wharf

• London LA Policy Officers take a view on Financial Inclusion going forward

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KEY TO ACRONYMS

• Financial Inclusion: appropriate financial products and services (FI)

• Financial Capability: the ability to choose them and use them (FC)

• Financial Inclusion Champions: DWP funded project 2009-11 (FICs)

• Consumer Financial Education Body: was FSA consumer education section (CFEB)

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FI and FC

• FI is Financial Inclusion

• FC is Financial Capability

• FI includes FC

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Key Financial Products and Services

• More people with a fully transactional bank account (BBA not POCA)

• More people with access to Affordable Credit

• Promote Saving (Credit Union, Save Xmas)

• Promote home contents insurance

• Access to Debt Advice should be free, reliable, timely and confidential but will not usually be face to face

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FI RESOURCES

• London Local Authorities FI Toolkit

• DWP Financial Inclusion Champions Team for London – free to London LAs

• CFEB Regional Managers - ditto

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FREE RESOURCES FOR FI

• London LA Financial Inclusion Toolkit to download from London Councils website

• http://www.londoncouncils.gov.uk/services/financialinclusionprogrammeforlondon/fitoolkit.htm?showpage=2

• Based on the work of the national DWP

Financial Inclusion Champions LA sub-group

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What is in the LA FI Toolkit?

• How to contact FICs and CFEB

• Leeds City Council Research

• FI Self assessment checklist

• Text for business case

• Booklet for Elected Members

• Blackpool Strategy

• Cross-London LA email contact lists

• Summary sheets, service by service

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Free FI resources for London LAs

London DWP FI Champions Team:

• Advice

• Expertise

• Contacts

• Exclusive access to:

FI Need and Provision Mapping at Ward LevelBasic Banking Statistics at LSOA Level

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THE BUSINESS CASE FOR FI

• FULLY SET OUT IN ITEM 4 OF THE FINANCIAL INCLUSION TOOLKIT:

• http://www.londoncouncils.gov.uk/services/financialinclusionprogrammeforlondon/fitoolkit.htm?showpage=2

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FI Business Case Summary

1. Equalities

2. Good for the Economy

3. Provides efficiencies in terms of cost

4. Mitigates the effects of recession

5. Promotes personal and household well-being

6. Increases community safety

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FI and Equalities

• People who are financially excluded cannot access LA services on equal terms

• People facing discrimination are also significantly more likely to be Financially Excluded:

http://www.londoncouncils.gov.uk/services/financialinclusionprogrammeforlondon/fitoolkit.htm?showpage=2

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Efficiencies in terms of cost

a) Housing issues

b) Payment Methods

c) Reduced call on public services

d) Greater organisational effectiveness

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Spend to save on Housing Issues:

RSLs promoting FI report benefits from:

• reduced arrears

• fewer repossessions

• reduced loss of income from voids

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Spend to save on Payment Methods

• Housing Benefit Offices seek to get claimants “banked” to reduce cost of individual payment methods: ID issues; FC issues

• Council services that are designed to be paid for remotely cannot be accessed by residents without a payment card: promote take up and use of a fully transactional bank account

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Reduced call on public services

• Homelessness services

• Health problems related to debt

• Child protection issues related to low or no budgeting skills in household

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Organisational Effectiveness

Financial Inclusion Action:

Develop a coordinated and realistic approach to corporate debt collection so that staff in different departments don’t compete for same small pot of disposable income

Increased effectiveness – staff time not wasted, better value from payroll spend

Financial Inclusion Action:

Provide equal access for Financially Excluded residents by applying Equalities Impact Assessment; provide awareness training for frontline staff

Increased effectiveness – pressure on frontline staff reduced; absence levels due to sickness fall; better value from payroll spend

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AIMS for this presentation

• London Local Authorities use the Financial Inclusion Toolkit

• Senior Officers and key Elected Members attend the 15 September Financial Capability Conference at Canary Wharf

• London LA Policy Officers take a view on Financial Inclusion going forward

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A FINANCIAL for ALL LONDON

CAPABILITY LOCAL

CONFERENCE AUTHORITIES

To be held on Wednesday 15 September 2010

At the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS

Keynote speaker: CFEB Chief Executive Tony Hobman

Full programme to be advised 16 July 2010.

There will be two delegate places per authority, provided free of charge, for this full day event (including lunch) which will feature workshops and information stalls as well as a range of speakers.

Enquiries to London Councils DWP Financial Inclusion Programme Manager: Su.holmes@londoncouncil.gov.uk or to CFEB Regional Manager: garry.hunter@moneymadeclear.org.uk

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Aim: Policy Decision on FI

Will Financial Inclusion feature in:

• Local Economic Assessment?

• Work and Skills Plan?

• Child Poverty Action Plan?

And so reach officer work plans going forward?

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Public Service Funding Cuts:

Before deciding whether FI is a “Spend to Save” item going forward:

• Access the LA Financial Inclusion Toolkit • Use the DWP FI Champions (stats and mapping)• Use the CFEB Regional Managers (publications and training)• Allocate places at FC Conference15 September at high level

FI and FC :

• Call for Officer Time Only

• Add value to other services

• Benefit the whole community

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FINANCIAL INCLUSION – SPEND TO SAVE

Presentation to the London Policy Officers Network Meeting held at London Councils on 9 July 2010

Su Holmes, DWP Financial Inclusion Programme Manager at London Councils, 59½ Southwark Street London SE1 0AL

Su.holmes@londoncouncils.gov.uk 020 7934 9912

Part of the DWP Financial Inclusion Team for London