What's new!
November 2008
Financial Inclusion Champions Initiative
FISY have won the contract from DWP to deliver this initiative in South Yorkshire. The Champion Team will consist of a Strategic Champion; Eric Thompson and a supporting Champion who will be recruited shortly.
The initiative is intended to support the Government’s financial inclusion objectives through the development and implementation of local level action plans that will both support and inform all other areas of the Government’s financial inclusion policy. The Champions will work to build partnerships in order to stimulate the demand for, and the supply of, basic financial services for financially excluded people. The team will also work in partnership and cooperate with other teams across Great Britain.
The Government’s objectives across the three high level goals for financial inclusion policy are as follows:-
Helping people to manage their money day-to-day:
Increase access to and take up of transactional bank accounts (supporting progress towards the shared goal)
Encourage greater confidence in using direct debit payments (tying in with the Bankers Automated Clearing Services (BACS) campaign, and Financial Services Authority (FSA) financial capability initiatives) and wider use of bank accounts for day-to-day budgeting and money advice.
Helping people to plan for the future and cope with financial pressure:
Increase awareness of third sector lenders as an alternative to home credit/door step lenders/high interest lending.
Work to develop credible proposals for establishing new third sector lending provision in the high priority areas identified by Financial Inclusion Taskforce research.
Encourage greater habitual saving into formalised, secure products
Promote active engagement with Government supported saving schemes including the Child Trust Fund and Saving Gateway
Support the regional co-ordination of the Save Xmas campaign.
Monitor and feedback on the use of informal saving products, and
Increase the proportion of housing authorities offering insurance with rent or other appropriate home contents insurance scheme, and the take-up of these schemes.
Helping people to deal with financial distress:
Increase awareness of sources of free, impartial debt advice (Financial Inclusion Fund (FIF) funded and others)
Support the take up of preventative guidance including Money Guidance pilots in areas where they are operational
Form partnerships between debt advice agencies and local third sector lenders, and
Work in partnership with appropriate organisations including BERR’s illegal lending teams to combat illegal lending and do everything possible to ensure support and referral mechanisms are in place for victims.
If you would like to know more about this please contact Eric on 0114 276 0787 or email him on ericthompson@fisy1.co.uk
1st April 2008
Campaign to rid city of doorstep debt
A major citywide campaign is to be launched to fight the problems caused by high-interest doorstep debt in Sheffield
Moneyline Yorkshire is to be the beneficiary of a major campaign launched to fight the problems caused by high-interest doorstep debt in Sheffield. Sheffield City Council, is helping to lead the campaign targeting key businesses and individuals to raise the money. They will be asked to invest money in the Sheffield Investment Bond, which guarantees their money back after five years. The interest generated from the investments will be used to expand the Moneyline services. Tim Jones, Chief Executive of Citylife who will manage the bond explained that Moneyline Yorkshire offered a tried and tested model to build on.
For more information on the Sheffield Investment Bond go to www.sheffieldbond.org
At a launch event on Monday, October 17th at the refurbished City Hall, the new Sheffield Investment Bond was introduced to a high profile audience of the city’s businesses, public sector, church and community leaders. Individuals and employers were asked to invest money in the Sheffield Investment Bond with the guarantee of getting their money back after five years. The interest generated from the investments will be used to provide unique ‘joined-up’ services to those whose lives are blighted by debt. These services will include affordable loans, money advice and counselling and access to savings schemes.
Sir Robert explained: “Sheffield is a vibrant city which is now seeing the benefits of improved prosperity. However, a significant number of people still have to get by on very low incomes and it is these people who are particularly vulnerable to getting into debt. People in such extreme circumstances do not have the opportunity to borrow at an affordable low rate of interest and often have no access to a bank. It is estimated that about 25,000 households face extortionate rates of interest, which may be over 1,000%, charged by doorstep lenders who they can never hope to pay off.
“Debt is a very private issue - it brings with it feelings of shame and hopelessness and once people are trapped in a spiral of debt so many other problems can follow - stress-related health problems, deteriorating family relationships and in the worst cases this can lead to violence and intimidation. The Sheffield Investment Bond can be a powerful weapon in the war on debt. What we are suggesting is ‘tough love’ - to give people the knowledge and the support they need to get on their feet again and to help them return to a normal life.”
The Sheffield Investment Bond will be managed by the ‘Citylife’ charity to provide funds to expand the work of Moneyline Yorkshire. Tim Jones, Chief Executive of Citylife explained that Moneyline Yorkshire offered a tried and tested model to build on.
“Moneyline is highly successful in reaching ‘hard to reach’ families. But the demand is already overwhelming and there is a clear need to provide substantial funding to allow this work to expand in Sheffield. For instance, people wanting an interview for face-to-face money advice, prior to any loan offer, are currently facing a 12 week wait and they currently have no capacity for emergency cases,” he said.
Tim said that exclusion from mainstream financial services causes serious hardship for people on low incomes. “Unless you are in long term employment, long term residence at the same address and have a reasonable income, your only choice of lender may be a loan shark.”
He said it was important that people forgot their pre-conceived ideas “People talk about ‘loan sharks’ lending money at such high rates of interest, but it is important to realise that the people selling such loans may be the only helpful friendly face these people know of when it comes to borrowing money. The city of Sheffield needs to provide these people with an effective alternative.”
Sir Robert concluded: “This is our chance to take pride in our city by getting together to take responsibility for this problem ourselves. The money we can raise together through the Sheffield Investment Bond will be used in this groundbreaking citywide initiative to tackle this problem once and for all. We will work to free people caught in a cycle of debt and help them to help themselves to build a brighter future for their families and their communities.”
How can you help?
Businesses and individuals can help the campaign in a variety of ways: -
- Invest in the Sheffield Investment Bond
- Gift aid
- Payroll giving
- Donation
Case study 1
Jane’s husband left her with two children and growing financial difficulties. Needing £250 for compulsory school uniforms she had nowhere to go but the doorstep lenders.
Jane couldn’t cope with the repayments.
Her “friendly loan agent” rescheduled the debt – she’d paid over £800 but still owed almost the full £250.
Scared for her family’s safety, she “voluntarily” cut herself off from gas and electricity so she could pay the ever-rising cost of her doorstep loan. She and the kids suffered from frequent illness – some weeks candles were the only source of heat or light in the house; bread the only food.
Today, with debt advice and an affordable loan her life has, eventually, totally turned around. The “sharks” are gone, there’s safety and comfort for her and the kids – in fact she will soon complete the degree she subsequently started.
Case study 2
Even when people are working they can be penalised.
One person's fortnightly wage cheque from a fast-food outlet was £300. Without a bank account she had to pay a £25 cheque cashing fee!
The woman is now a member of the Sheffield Credit Union and is saving £50 a month.”