Press Release
New advice services to help avoid cash crisis
6 February 2006
The Legal Services Commission has launched the first in a series of advice projects aimed at tackling financial exclusion. The potential benefits to the individuals affected and to the wider community range from opening up new prospects of employment to reducing child poverty and preventing homelessness.
The £6million of funding for the Money Advice Outreach projects is part of £120million Financial Inclusion Fund available over three years that has been allocated by the Government for a number of projects (see below for details).
The schemes are designed to enable people to access free face-to-face money advice. This advice is a vital part of the Government’s commitment to combatting financial exclusion along with helping people gain access to banking services and affordable credit.
Crispin Passmore, Director of the Community Legal Service, said: “All the projects focus on supporting some of the most vulnerable members of our communities. By ensuring that people who would not traditionally seek help obtain practical advice and assistance in addressing their money problems via these services we aim to enable them to play a fuller role in society.
“We will be working in partnership with a number of skilled and dedicated advice providers to ensure that people get the help they need to sort out their finances.”
Sharon (not her real name) had mounting debt problems, she was receiving income support and was not working because of pregnancy complications. She was receiving a small amount of money for rent from Housing Benefit, as she was privately renting. An A4e, an organisation specialising in delivering social change programmes, adviser was able to assist Sharon in obtaining discretionary housing payments on top of her original housing benefit.
Sharon also owed money for gas, water and electricity. The adviser was able to assist her in sorting out the debt so smaller payments could be made. In addition Sharon had a bank debt of £2,500. The adviser went with Sharon to the bank and the bank froze the account so no more interest would be added, and agreed small monthly repayments.
The services launched today will be run by four organisations in six distinct areas. They are:
St Ann’s Welfare Rights Advice Group, Nottingham.
St Ann’s will be offering advice will be offered in conjunction with local probation services, drugs rehabilitation programmes and other criminal justice initiatives in the local area, as well as in community centres and children’s centres.
Cambridge and District CAB
The CAB will be providing outreach services in hospitals, alongside community financial services, schools and at social housing providers. The project will also include one-off events which target specific client groups such as older people.
Macclesfield CAB
The CAB aims to tackle pockets of financial exclusion in what is otherwise an overwhelmingly affluent area. Settings for the project include a women’s prison, a customer contact centre (local authority run) and children’s centre.
A4e
A4e is an organisation which has previous involvement in financial exclusion work through projects such as Department for Work and Pensions’ Welfare to Work programme.
Their advisers will be working: in prisons throughout the South West of England; alongside JobCentre Plus locations and providers of ‘welfare to work’ and work-based learning in Wales (West Wales and the Valleys); and with people with housing problems in the North East (Northumberland and Tyne & Wear).
Later in the year the Commission will be announcing the other partners to be involved in delivery of the Money Advice Outreach projects.
Media information:
Dan Kellingley Tel: 020 7759 0415
Notes to editors:
The further £114million of the Financial Inclusion Fund will be used in the following ways:
·£45million will be used to support an increase in provision of free face-to-face money advice. This will be facilitated by the Department of Trade and Industry.
·£36million will be used to establish a growth fund to support the coverage, capacity and sustainability of third sector lenders e.g. Credit Unions, Community Development Finance Institutions and Industrial and Provident Societies. The fund will be administered by the Department of Work and Pensions.
·£10million will be available to provide support to administer a scheme whereby, under certain circumstances, lenders could apply for repayment to be made by deduction from benefit where normal repayment arrangements have broken down.
·£3million will be allocated to the Financial Inclusion Taskforce to enable them to pursue their objectives, including improving the knowledge base of financial exclusion issues.
·The remainder of the Financial Inclusion Fund will be used for ongoing support for the administration of these schemes.
Last updated: 28 December 2006