1
East Dunbartonshire Financial Inclusion
Strategy 2014-2017
2 1 Foreword
As Chair of the East Dunbartonshire Community Planning Partnership I am pleased to present our new Financial Inclusion Strategy 2014-2017. This Strategy identifies how partner
organisations will work together to assist people and communities in responding to the increasingly challenging financial environment.
The Community Planning Partnership’s Single Outcome Agreement already highlights our commitment to reduce inequality and this Strategy is a core element in enabling us to do just that. We also want to build on the excellent services already being delivered by a wide range of partner organisations.
In this increasingly challenging economic environment, there is a need to put this Strategy into practice to support the people and communities of East Dunbartonshire. Pressures on
household budgets and the impact of the welfare reform agenda only serve to increase the need for a coordinated response from the Community Planning Partnership. We also recognise that the broader effects of dealing with financial difficulty can have a wider impact, for example on people’s health and employability prospects.
This Strategy also focuses not just on dealing with the consequences of exclusion but also looks at the causes. We will deliver a range of developmental and preventative services that will seek to stop problems before they arise. We also want to make our services as accessible as possible to ensure that they can be utilised by as many people as possible.
Through this Strategy the East Dunbartonshire Community Planning Partnership is underlining its commitment to reduce inequality, in all its forms across the area, and recognises that financial inclusion is central to that commitment.
Councillor Rhondda Geekie
Chair, East Dunbartonshire Community Planning Partnership Leader, East Dunbartonshire Council
3 2 Introduction
The East Dunbartonshire Financial Inclusion Strategy (EDFIS) builds on the extensive work to promote financial inclusion being delivered through a range of individuals and organisations across the public, private and third sectors. The financial environment has changed considerably over the last ten years, both at a local and national level. This Strategy recognises that change and sets out:
• The Community Planning Partnership’s (CPP) outcomes for the delivery of financial inclusion services and advice
• The most appropriate organisations to deliver specific aspects of financial inclusion, and
• An analysis of the local and national financial environment.
This Strategy is not about one organisation but represents a joint commitment to increase financial inclusion through partner organisations working at both a strategic and operational level. It provides an overarching framework for all organisations to integrate at a local level to provide a solution for all the people and communities across East Dunbartonshire.
This Strategy also recognises the considerable expertise and resources that exist across East Dunbartonshire from the East Dunbartonshire Council, East Dunbartonshire Community Health Partnership, Citizens Advice Bureau, Strathkelvin Credit Union, East Dunbartonshire Voluntary Action, local groups and a wide range of other people and organisations. This issue also affects a wide range of people and communities1, with the potential for the most negative impact to be felt by the following groups:
• Households on low and insecure income and / or receipt of benefits
• Single parents
• Social tenants
• Refugees and asylum seekers
• Over 60s
• Young people between 18 and 24
• People with disabilities or additional learning needs
• People affected by homelessness
• Victims of domestic violence
Yet the current financial climate has seen an increasing number of people affected in the following groups who may find they are coping with:
• Negative equity / repossession
• Low / nil savings
• Asset rich, income poor
• High levels of debt.
1
4 3 Strategic Context
East Dunbartonshire Single Outcome Agreement
The East Dunbartonshire Single Outcome Agreement is the core strategic plan for the area. It clearly articulates the Partnership’s vision for the area (Figure 1) and our two long-term outcomes that are underpinned by six medium-term local outcomes (Figure 2).
Figure 1 – East Dunbartonshire Single Outcome Agreement – Vision Statement
Working together to achieve the best with the people of East Dunbartonshire
Figure 2 – Our local outcomes
Our long-term (5 to 10 year) outcomes are:
• We have reduced inequality and disadvantage across East Dunbartonshire
• Our communities are more engaged in the design and delivery of services
We will work towards the achievement of these long term outcomes seeking to implement the following 3-year outcomes:
• East Dunbartonshire has an expanding economy with a competitive and diverse business and retail base
• Our people are equipped with knowledge, skills and training to enable them to progress to employment
• Our children and young people are safe, healthy and ready to learn
• East Dunbartonshire is a safe and sustainable environment in which to live, work and visit
• Our people and communities enjoy increased physical and mental wellbeing and health inequalities are reduced
• Our older population are supported to enjoy a high quality of life and our more vulnerable citizens, their families and carers benefit from effective care and support services.
5
The SOA highlights the strong tradition of partnership working in East Dunbartonshire whilst also acknowledging that there are still many challenges to address. The SOA sets out a core set of strategic principles that will assist the CPP in meeting these challenges, including:
• Prevention
• Community Engagement
• Workforce Development / Leadership
• Managing Performance
The SOA also recognises that:
“In a time of continuous resource constraint, the Council and partners need to make the most effective use of available resources to deliver these long-term improvements and reduce the disadvantage which exists in several of our communities”.
By identifying the links between this Strategy and our SOA, we are acknowledging that this Strategy is not solely about providing people with quality advice and information services, but also about recognising the impact of financial inclusion across a range of issues including health and employment.
Welfare Reform
The Welfare Reform Act received Royal Assent on 8 March 2012. The Act introduced a wide range of reforms to the benefits and tax credits system.
The changes took effect from April 2013 and this implementation process will continue until the end of 2017. Although there are timelines for the changes taking effect, there remains a degree of uncertainty over the actual income that residents may lose and the bigger impact that welfare reform as a whole may have upon families and communities.
The main changes are being / or still to be implemented are:
• Restrictions applied to the amount of Housing Benefit that social and private sector tenants receive.
• A maximum limit on the amount of benefits that workless households will receive.
• Council Tax Benefit being abolished and replaced by local schemes.
• Social Fund being reformed and replaced by new DWP schemes and localised schemes.
• Disability Living Allowance being replaced by Personal Independence Payment.
• Universal Credit replacing various working age in and out of work benefits.
• Revision of Discretionary Housing Payment budgets and guidance.
• Introduction of a DWP Single Fraud Investigation Service (SFIS).
In response to this reform agenda both the Council has established a Welfare Reform Group to coordinate our response and involves a wide range of services and organisations.
6 Local and National Context
There are also a number of associated strategic developments at a national and local level that influence the development of this strategy. At a national level these include:
• The Scottish Government response to the Commission on the Future Delivery of Public Services, with its emphasis on outcome delivery with Community Planning Partnerships leading service integration in their areas through further development of Single Outcome Agreements
• The Scottish Government’s Child Poverty Strategy for Scotland 2014-2017 that identifies outcomes around maximising household resources, improving children’s wellbeing and life chances and well designed, sustainable places
• The on-going financial pressures faced by all public sector organisations
• The Agreement on Joint Working on Community Planning and Resourcing that sets out how CPPs will draw on the “totality and breadth of resource in order to improve local outcomes for communities and to ensure that the individual and collective decisions of partners are in the best interests of communities and the public sector as a whole”
• The outcome of the national review of Community Planning and Single Outcome
Agreements with its primary aim of ensuring that community planning is fit for purpose to support implementation of the four pillars of public service renewal set out by the Scottish Government in its response to the Christie Commission recommendations
• The Community Empowerment Bill that identifies the new statutory duties placed on community planning partners
• The impact of the Public Bodies (Joint Working) (Scotland) introduced by the Scottish Government
• The implementation of the Audit Scotland Assurance and Improvement Plans for each council that are based on a shared assessment of scrutiny risk involving local representatives of the main scrutiny bodies (the Local Area Network). The aim of the shared risk assessment process is to focus scrutiny activity where it is most needed and to determine the most proportionate scrutiny response over a three year period.
At a local level these include:
• The Council’s Transformation Programme, that sets out how the organisation will respond to current and future local and national challenges
• The local impact of the national Police and Fire reform, with the establishment of Police Scotland and the Scottish Fire and Rescue Service
• The Council’s Strategic Performance and Planning Framework that supports the implementation of the strategic priorities and local outcomes set out in the East
7
Dunbartonshire Single Outcome Agreement. It is developed through a vision for East Dunbartonshire, which was agreed with community planning partners, together with a core set of values
• The on-going service demand challenges with regards to our demographics, e.g. an increasing elderly population
• The Council’s Corporate Charging Policy that seeks to provide a consistent approach to charging for services that supports the reduction of inequality and achievement of our local outcomes
• Persistent inequalities in terms of health and socio-economic outcomes
• The establishment of the local intergrated adult health and social care model
8 4 East Dunbartonshire Financial Profile
With a population of around 105,000 East Dunbartonshire is in the mid-range of Scottish local authorities in terms of population and covers 77 square miles. It comprises a mixture of urban and rural areas that includes the settlements of Bearsden, Bishopbriggs, Kirkintilloch,
Lennoxtown, Lenzie, Milngavie, Milton of Campsie, Torrance and Twechar.
East Dunbartonshire has been recognised as one of the best areas to live in Scotland2 however major inequalities do exist across the authority and there are pockets of deprivation where the quality of life falls below the national average.
The area has eight datazones which fall into the top 25% most deprived in Scotland; these datazones are located in Hillhead, Lennoxtown, Auchinairn and Milngavie (Keystone / Dougalston).
The most deprived area in East Dunbartonshire remains Hillhead, certain parts of which are among the 5% most deprived areas in Scotland according to the Scottish Index of Multiple Deprivation 2012 (SIMD). Twenty-eight percent of the population of Hillhead are classed as income deprived compared to 7% of the population across East Dunbartonshire as a whole and in certain areas of Hillhead close to 40% of the population are classed as income deprived. Inequalities are also apparent when comparing dependence on out of work benefits or child tax credit. In Hillhead 72.1% of the population are dependent on these benefits, 51.1% in
Auchinairn and 50% in Lennoxtown compared to 15.5% in Lenzie South and 30.8% of East Dunbartonshire as a whole.
Our research also tells us that:
• East Dunbartonshire has higher levels of employment than the Scottish average with 79.1% of the working age population classed as economically active, higher than the Scottish average of 77.1%. There are however specific areas within East Dunbartonshire where unemployment is higher than the national average. In the Hillhead area of Kirkintilloch 21% of people are classed as employment deprived compared to the East Dunbartonshire average of 8% and the Scottish average of 12%.
• Although the child population is predicted to fall over the coming years the last five years. Therefore it is vital that vulnerable children can access the services and support they need. Recent child poverty estimates at Ward level identifies 23% children are estimated to live in poverty in Ward 8. This is over twice as many as the East Dunbartonshire average of 10% and almost 5 times that of the Bearsden North and South Ward averages of 5%.
• There has been a significant growth in pay day lending. For example, one national payday lender charges 5,853% APR for a £150 loan over 18 days. Locally, the CAB advise that they know of 61 local clients who have a total of £156,292 owing to payday lenders for the period
2
9
1st April 2013 to mid-September 2013. Some of them have multiple debts with payday lenders, with as many as 14 to 15 loans for one person to different companies.
This research can also be supplemented with further information from the East Dunbartonshire Citizens Advice Bureau, which identifies that across the area during 2012/13:
• There were 15,907 ‘level 1’ enquiries, with over half relating to benefits, tax credits and national insurance advice and 21% relating to debt advice
• The total amount of debt dealt with was approximately £5.2m, with the main areas being credit cards (25.6%), mortgages (16.2%) and personal loans (13.8%)
• The total amount of client financial gain was approximately £2.4m. National research also tells us that3:
• In 2011/12, there were 710,000 individuals living in relative poverty in Scotland compared to 780,000 in 2010/11, a drop of 70,000 individuals. The number of individuals living in poverty fell from 15 per cent to 14 per cent between 2010/11 and 2011/12, although this is not a statistically significant change. This follows a decrease in the number of individuals in relative poverty in 2010/11, with a 6 year period of little change in poverty levels prior to that.
• The percentage of children living in relative poverty fell from 17 per cent to 15 per cent between 2010/11 and 2011/12, which represents a reduction of 20,000 children from 170,000 children to 150,000 children. This change is not statistically significant. This follows a decrease in the number of children living in relative poverty in 2010/11, with little change in the 6 year period prior to that.
• In 2011/12, there were 420,000 working age adults living in relative poverty in Scotland compared with 440,000 in 2010/11. This is a decrease from 14 per cent to 13 per cent between 2010/11 and 2011/12, although this is not a statistically significant change. This represents a reduction of 20,000 working age adults, and follows a decrease in the number of working age adults in relative poverty in 2010/11, following a small increase in the number of working age adults living in relative poverty between 2006/07 and 2009/10.
• 140,000 pensioners were living in relative poverty in 2011/12, a decrease of 20,000 pensioners since 2010/11. This is a reduction from 16 per cent to 15 per cent between 2010/11 and 2011/12. This change is not statistically significant. The percentage of pensioners living in relative poverty has remained largely unchanged since 2008/09, following a decrease in 2007/08.
• In terms of income inequality, the percentage of income received by the lowest 3 income deciles in 2011/12 was 14 per cent, unchanged from 2010/11. This percentage has remained at between 13 and 14 per cent since 1998/99.
3
The Scottish Government Statistical Publication (June 2013) – Poverty and Income Inequality in Scotland: 2011-12
10
• The equivalised median income in Scotland in 2011/12 was £436 per week, net income. This compares to £437 in 2010/11. The equivalised median income in Scotland generally
recorded annual increases in value up to 2009/10 (£461 per week) before decreasing in 2010/11.
• No statistically significant changes were observed between 2010/11 and 2011/12 to the absolute poverty levels.
Local information around the impact of the welfare reform agenda tells us the following for financial year 2013/2014:
Scottish Welfare Fund
Details of Crisis Grants from April 2013 to end March 2014 are as follows:
• 1,195 applications were received, with 834 awards made. This equates to a rate of 69.8%.
• The amount of the awards totals £54,216.21, which represents 57.2% of the annual Crisis Grant budget.
• 99.6% of all applications decided within the 2 working day target set by Scottish
Government, and 96.3% were decided on the date received. The average time to decide an application was 1.2 days.
• 14 first tier reviews had been received by 31st March 2014, 7 (50%) were revised to make an award.
• 1 second tier review had been received by 31st March 2014, which was not revised to make an award.
Details of the Community Care Grants from April 2013 to end March 2014 are as follows:
• 493 applications were received, with 334 awards made. This equates to a rate of 67.8%.
• The amount of the awards totals £250,977.67, which represents 103.7% of the annual Community Care Grant budget
• 100% of applications were decided within the 15 working day target set by Scottish Government, and 74.9% were decided on the date that all information required to make a decision was received. The average time to decide a complete application was 4.8 days.
• 19 first tier reviews had been received by 31st March 2014, 11 (57.9%) were revised to make an award.
• 1 second tier review had been received by 31st March 2014, which was not revised to make an award.
The total amount awarded across the two funds comes to £305,193.88, which equates to 90.6% of the total budget of £336,815.
Size Restrictions
As at the 31st March 2014, there were 526 households that had one or more bedrooms over their DWP deemed needs. This includes:
11
• 352 Council tenants – with 274 having 1 bedroom over requirements (78%), the remaining 78 have 2 or more bedrooms over requirements (22%).
• 174 Housing Association tenant households – with 153 having 1 bedroom over requirements (88%), the remaining 21 have 2 or more bedrooms over requirements (12%).
Council tenants who have a restriction applied have arrears totalling £97,074.73. However £55,303.66 of this is from 1st April 2013, as some tenants has arrears prior to the restriction and / or did not receive the maximum Housing Benefit.
Council Tax Reduction (CTR)
The Council did not have any cases referred to the Council Tax Reduction Review Panel in 2013/14.
There were 6,119 residents in receipt of CTR as at 31st March 2014, receiving reductions totalling £4,754,476.
Benefit Cap
Current data tells us that:
• There were 12 households capped during implementation from 15th July 2013.
• There are now 4 households capped as: 5 found work and 3 had a change in circumstances resulting in the household income being below the cap thresholds (moved to a tenancy with a lower rent/other benefit income reduced or changed).
• Of the 4 households capped as at 31/03/14: 2 are Council tenants, 2 are private sector tenants.
• Benefit Cap weekly amounts depend on the household circumstances. The highest cap applied was £209.37, the lowest was £11.05.
• The 4 current households capped have a weekly cap amount ranging from £20.15 to £58.65.
• The DWP and the Council continue to try to engage with those affected by the Cap. However, only 1 claimant affected has applied for, and been granted, DHP to date. Personal Independence Payment
The latest available figures issued by the DWP (from November 2013) indicate that at that time there were 2,890 East Dunbartonshire residents aged 16-64 receiving payments of Disability Living Allowance.
As at 31st March 2014, CAB have helped 298 people apply for PIP since its introduction in June 2013. To date, 44 awards have been recorded as made, 11 unfavourable decisions have been requested to be reconsidered and will be heard as appeals. 2 other appeals have been heard, 1 of which was successful.
Universal Credit
There is still no indication of when East Dunbartonshire will be included within the planned roll-out. However it is anticipated that this will not be before 2015.
12
As at 31st March 2014, there were approximately 3,500 working age Housing Benefit claimants who are expected to migrate to Universal Credit by 2017.
Discretionary Housing Payment (DHP)
An analysis of the Fund in 2013/14 indicates that:
• 899 applications were made from April 2013 to March 2014 (compared to 248 for the same period in 2012/13).
• As at end March 2014, 450 awards were made totalling £202,666, representing 75.1% of total budget.
13 5 Consultation Feedback
Consultation has been a key element in the development of this Strategy. A range of
organisations were engaged in its development and examples of their feedback is in included under the following categories (and replicated as noted from each consultee to ensure transparency):
Access to Services
• Further utilising Council Hubs to have a presence from relevant organisations. Council could also utilise the Hubs to deliver and distribute welfare fund and crisis grants. Having a one stop shop takes pressure of other premises that would result in an increased range of organisations having more capacity to deliver. Hubs could play a crucial role and become a network of locally based advice services. In addition staff employed in Hubs could be trained and up skilled to be able to provide basic advice and information.
• More locations offering public access computers for individual use.
• Target EDC employees through cascading and promoting where to get help and advice through wage slips and EDC news.
• Examine the opening hours of organisations (where feasible) to assist a range of client groups.
• Look at assisting and supporting the expansion of local credit unions to meet increasing demand.
Joint Working
• Seek to promote better partnership working between agencies and organisations.
• Ensure that the Welfare Reform Group have greater purpose and have in attendance all relative bodies and services.
• Better co-ordination of partnership agreements with the voluntary sector. More work to be done on how we present information to people.
• Lots of targeted work going on which can be a problem, as there are lots of hidden poverty which is undetected due to emphasis on targeting. Partners should seek to improve their data / information to ensure that targeting is increasingly effective.
• A framework is required to give roles and direction to those agencies involved.
• Social work and NHS staff need to have clear roles and have better defined responsibilities with regard to financial wellbeing.
Communications / Awareness / Education
• There needs to better campaigning and awareness raising. There is a perception that many people not claiming benefits they are entitled to such as older people. (CHP to provide data).
• All frontline staff either in voluntary sector or local authority should be up to date on benefits and welfare reform to be able to give basic information and advice, or to signpost service users to the most appropriate organisations who can provide direct support in terms of benefit or financial advice.
• Seek to work with young people regarding financial literacy.
14
• More publicity around alternative banking providers (e.g. Credit Unions)
• Better promotion of services provided across the entire voluntary sector. Expanding Financial Inclusion
• More preventative work with young people in schools. CAB currently do some presentations in schools but do not have the capacity to increase this service.
• More advice available from local banks on cheaper banking products?
• How to help the most vulnerable to access bank accounts? Safety
• Issues of extortion in within the area a growing concern.
• Would benefit from input from trading standards regarding legal and illegal money lending. Information
• Carry out a needs analysis and map current activity in order to map what exists and identify gaps in provision or services.
• Has the introduction of Strathkelvin Credit union drawn any business away from the 12 money shops which have appeared in Kirkintilloch high street in recent years?
15 6 Current Activity
The purpose of this chapter is to provide a brief overview of the current level of financial inclusion activity across East Dunbartonshire. This is not however an exhaustive list but aims provide a summary of the breadth of services that all partners are delivering. Table 1 and the information provided in chapter 5 enables the Partnership to assess where we are and set out where we are going over the next two chapters of this Strategy.
Table 1 – Summary of Current Activity Organisation / Service Summary of Activity East Dunbartonshire Citizen’s Advice Bureau
• Welfare Benefits advice –This service begins with an initial enquiry and supports the client through the following features when appropriate; dealing with enquiries, performing benefit checks, income maximisation, representing clients at appeal and assistance with form filling.
• Money Advice Service – This service deals with enquiries around debt issues advisors give practical advice around single debt and multi-debt issues contacting lenders and requesting a freeze on interest and charges while a solution is worked on. CAB are registered for Debt Arrangement Scheme (DAS) and can sign off bankruptcy certificates. CAB has two approved money advisors.
• Outreach service – This service offers CAB services to those who may not be able to access the main office in Kirkintilloch. Currently there are 4 outreach locations, Hillhead Family Centre, Twechar Healthy Living Centre, Auchinairn Community Centre and Lennoxtown Health Clinic. East Dunbartonshire Citizens Advice Bureaux work in partnership with the following agencies and organisations:
- East Dunbartonshire Council – Housing, Rent Arrears Team, Social Work
- Carers Link
- Housing Associations
- East Dunbartonshire Food Bank
- Health Clinics, Hospitals the Beatson and MacMillan
- Most Voluntary sector agencies will signpost or refer to CAB Foodbanks • The Kirkintilloch Foodbank is open for business operating three
afternoons per week. There is a referral process and food parcels will only be given out with a referral voucher from an authorised agency. That said anyone who presents at the Foodbank will be given something to eat while an appropriate referral agency is identified and an
appointment made with them. The Foodbank is run by the Kirkintilloch Baptist Church and is supported by East Dunbartonshire Council rent costs and insurances are subsidised by the council. There is now a Foodbank in Milngavie (two afternoons per week) and plans to open a new Foodbank in Auchinairn in early November 2014.
16 East
Dunbartonshire Food Co-ops
• Volunteering opportunities for local people, teaching new skills and knowledge and building confidence improving employment prospects.
• Providing access to fresh, local, affordable fruit and vegetables.
• Promoting good food choices and advising on cooking for families on a budget.
• East Dunbartonshire Food Co-op work in partnership with the following agencies and organisations
- East Dunbartonshire CHP Health Improvement Team - East Dunbartonshire Voluntary Action
EDC
Employability and People Development
• Provide support to improve people’s employment prospects
• Signpost to CAB for advice and assistance with benefits
• Provide Lift Off Grants for clothing, travel and other costs associated with attending interviews. (Up to £50)
• Outreach work in partnership with CAB
• Literacy and Numeracy services
• IT courses to assist with searching for jobs online and filling out online job applications. In addition IT courses to enable people to shop around for the best deals, e.g. energy comparison, insurance comparison, grocery shopping and using vouchers.
• ESOL (English for Speakers of Other Languages)
• Budgeting course – this has been piloted in Hillhead family centre and interest from other agencies has been identified.
• Opportunities for all – Services for young people - EMA assistance and advice
- Activity Agreements - Positive Achievements
- Moneywise
Strathkelvin Credit Union
• The Credit Union use clients’ money to run our services and reward our members, not pay outside shareholders. Once clients have established a record as a reliable saver the Credit Union will also lend money at low interest rates. This can help those who can’t get access to ordinary bank products and can be a welcome alternative to payday loans or doorstep lending.
• Strathkelvin Credit Union is run entirely by volunteers. The Credit Union previously operated in Hillhead Community Centre and has recently relocated to shop front premises in Kirkintilloch town centre.
• The Credit Union offers services to anyone who lives and/or works in East Dunbartonshire, the services on offer are;
- Savings
- Loans
• The credit union work operates outreach services and works in partnership with CAB, and Hillhead Housing Association.
17 NHS Greater
Glasgow & Clyde
• The NHS has contact with people as part of their rehabilitation and self-care pathway and therefore an opportunity to support people’s wider social needs. To develop inequalities sensitive health service NHSGGC wishes to skill health practitioners to understand the social issues and structural inequalities facing their patients, support patients with these and have the capacity to refer them to appropriate services. Current evidence shows that the health inequality gap is widening and the current economic downturn is likely to worsen the situation for our most
deprived communities and excluded groups; including women, black and minority ethnic people, disabled people, homeless people, refugees and asylum seekers. Financial exclusion is a growing concern in this context and so more needs to be known about the role of financial inclusion interventions in improving health.
East
Dunbartonshire CHP
• Financial Inclusion is a key aspect of the Joint Health Improvement Plan
• Addressing financial exclusion is one of the CHP’s priorities in addressing health inequalities. Those groups who are financially excluded are most likely to be living in or deprived and rural communities and poor. The impact of poverty on health is well documented and includes:
o Poorer maternal health o Increased parental stress
• The financial inclusion programmes, which include the Healthier, Wealthier Children and Older People’s Income Maximisation initiative, aim to improve health by encouraging residents to maximise their income and benefits, whilst our Smoking Cessation and Income Maximisation programme encourages smokers to improve their health through quitting and improve their wealth through starting a Savings Account.
Housing Associations (Big Lottery)
• Welfare Rights Service – A full time member of staff. It has been identified that in this economic climate this resource requires to be doubled.
• Tenancy Support Service – Support to tenants around issues of debt management, budgeting ill health and disability and employability.
• Money Advice and Financial Education Officer, this is a new service run by Hillhead Housing Association, Antonine Housing Association and
Strathkelvin Credit Union to provide advice similar to CAB. Financial Education will be provided either in small groups or one to one sessions.
• Hillhead Housing Association work in partnership with the following agencies and organisations:
- Antonine Housing Association - Strathkelvin Credit Union - The Mungall Foundation
- East Dunbartonshire Citizens Advice Bureaux
18 EDC Social
Work
• Fieldwork and casework including income maximisation, benefit checking and assistance with filling out forms but this is only if time permits, if not then client is signposted to CAB.
• Staff undertakes training from CAB on welfare reform.
• Social Work department work in partnership with CAB.
EDC Housing • Allocations policy was changed in 2012 to mitigate impact of welfare reforms by prioritising those tenants finding themselves in an under-occupation situation and awarding additional points
• An on line mutual exchange system has been introduced to assist tenants to move via Homeswapper which can also assist mitigate
under-occupation situations and address overcrowding at the same time
• The housing service operate an incentive to move scheme to encourage those in under occupation situations to move to smaller accommodation freeing up properties for larger families with a small financial assistance to help with moving
• Housing Officers and Welfare Reform Officers seconded in to assist have been carrying out more face to face visits which helps inform tenants, encourages them to seek assistance and to pay due rent.
• The rent arrears policy is being revised to ensure the policy is distinct from procedures. This revision will include welfare reform changes and specifically under-occupation procedures while building in additional checks with social work to ensure that all assistance possible it being provided. Special circumstances will also be factored into the policy as part of mitigation activity.
EDC Revenue & Benefits
• Maximising the income of residents via the administration of Council Tax liability and related discounts and exemptions, Council Tax Reduction, Discretionary Housing Payments, Housing Benefit, Non Domestic Rates and related relief and exemptions, and the Scottish Welfare Fund Crisis and Community Care Grants.
• Collection and negotiated recovery of income due to the Council for Council Tax, Non Domestic Rates and Sundry Debtor accounts and Housing Benefit overpayments.
• Allocation and reconciliation of income received by the Council to appropriate accounts and ledgers.
• Prevention and detection of fraud.
• Staff undertake training from Revenues and Benefits Policy Adviser on welfare reform.
• Revenues and Benefits work in partnership with CAB, Customer Services, DWP, Housing, Job Centre Plus, Social Work and other departments and organisations as required.
19
EDC Education • Financial inclusion forms an essential part of a pupils experiences during their educational career. Nursery, early years, primary and secondary schools have implemented the national initiative, Curriculum for Excellence. Financial capacity / education are developed and form an integral context for pupils to learn about numbers. Pupils’ learning ranges from raising awareness of how money is used, to researching and
comparing financial products. These skills are developed within the class and experiences are embedded in real life context such themed weeks in primary school e.g. “money week”, visits to shops, materials produced by banks, themed park projects, managing budgets, taxes etc. Older pupils can choose to enhance their financial education through SQA
qualifications such as Personal Finance as well as the traditional subjects such as business management, accountancy and economics.
• In summary pupils have opportunities to develop their skills related to financial inclusion. These skills are developed in a variety of context and specialisation in the latter parts of the school curriculum enables more advanced aspects of personal and financial inclusion to be realised. Christians
Against Poverty (CAP)
• Partner churches fund this programme which originated in England. It is a similar service to CAB but they carry out their services in people’s homes, debt counselling and education are delivered along with assistance opening a clean bank account. The service is registered with Debt Arrangement Scheme and can sign off bankruptcy certificates. There are also money management courses available to teach people how to budget and make their money go further. This organisation provides a very in depth service and currently has no waiting list so can see referred clients almost immediately. Debt counselling is delivered by trained debt coaches to assist people with taking charge of their finances and reclaiming control.
20 7 Opportunities and Impacts
The development of this Strategy enables all partner organisations to promote, develop and deliver a range of financial support services that promote inclusion across East Dunbartonshire. However there are also a range of opportunities for partners to further improve information and resource use.
Based on the consultation feedback and the analyses of current activity, these opportunities set out in Table 2 form the basis of our approach to financial inclusion, as identified in the following chapter and the action plan attached as Appendix 1.
Table 2 – Potential Opportunities
Opportunity Impact
Ensure that all partners take account of the local and national context and the outcomes agreed within the SOA
A more integrated approach to financial inclusion across a range of partner organisations (including those without a financial basis)
Given that a Welfare Reform Group is already in place, the remit of the group should be expanded to become the main group for implementing this financial inclusion strategy, and strengthening links to Partners delivering Joint Health Improvement priorities
Reduce / eliminate duplication and that the membership can be extended / refined to incorporate all necessary groups
Use partner resources to undertake a needs / impact assessment to inform level and nature of resources required
Greater understanding of need and impact of financial support services, ensuring resources are targeted effectively Ensure all agencies are aware of each service
offering to maximise referrals to most appropriate organisation
Improved understanding of the range of financial inclusion activity taking place across East Dunbartonshire to provide a coordinated approach across all providers Ensure partners support all people and
communities, with an emphasis on reducing inequality and engaging with hard to reach groups
Better support for all residents through a range of accessible financial support services and products
Promote transparency and accountability across partners to monitor progress on implementation of Strategy
Progress reports on attached financial inclusion action plan be reported every six months to the Community Planning Partnership Board and respective partner organisation committees and / or boards
21
Furthermore, there are a series of messages for all partners in this Strategy that include:
• Services can be improved through increased joint working and resource use across partner organisations
• Financial inclusion underpins our long term outcomes within the SOA around reducing inequality
• This Strategy will enable the Partnership to collate the key elements of our joint approach to financial inclusion within one action plan
• Financial inclusion is a major contributor to people’s overall health and wellbeing
• Existing partnership groups can be used (e.g. Welfare Reform Group) to implement the associated action plan to reduce duplication.
There are also a wide range of benefits associated with promoting and supporting financial services that promote inclusion as highlighted in Table 3 below:
Table 3 – Financial Products and Benefits
Service Financial Inclusion Benefit
Affordable Credit Reduces negative impact of high cost pay day loan credit Reduces impact of illegal lending
Enables consumers to meet emergency needs Financial Advice People provided with access to a range of services
Improvements in financial wellbeing potentially impacting overall health and wellbeing
People increasingly able to manage financial activity
Insurance Reduced risk of financial loss through insurance not being in place Provides a degree of security for consumers
Bank Accounts Allows people to manage their money more effectively
Allow for direct debit bill payments, with potential to reduce annual cost of household bills
Employers can pay wages directly into account
22 Savings Accounts Provides an alternative to credit
Can assist consumers smooth spending and build up reserves (if budget allows)
23 8 Moving Forward
To ensure that the EDFIS is the overarching framework for the area we need to firstly define what we mean by financial inclusion (Figure 3).
For the purposes of this Strategy, financial inclusion is defined as: Figure 3 – Definition of financial inclusion
Access for individuals to appropriate financial products and services. This includes people having the skills, knowledge and understanding to make best use of those products and services. Financial exclusion is often a symptom of poverty as well as a cause. (Scottish Government 2005)
With this in mind, the following outcome identifies what we want to achieve with the people of East Dunbartonshire:
“The people and communities of East Dunbartonshire can improve their financial wellbeing through increased confidence and high quality financial advice, support and education services”.
It is also recommended that to underpin this Strategy and our work towards achieving this outcome, the priorities and objectives of all participating organisations are aligned to the definition in Figure 3 above. This can be achieved through the following:
• All partners adhering to the local outcomes within the SOA, the financial inclusion outcome stated above with their emphasis in reducing inequality
• Clarifying the roles and responsibilities of all service providers involved with this Strategy
• Improving co-ordination and integration of services at a local level to reduce duplication and improve allocation of resources to meet need
• Addressing the needs of specific client groups through recognising the links across a range of services, e.g. the impact on mental health as a direct result of financial exclusion
• Ensuring equality of access to financial advice services
• Implementing a clear monitoring and evaluation framework to measure progress against our outcomes and priorities (Appendix 1: Action Plan)
24
Furthermore, this Strategy sets out a number of clear messages for all community planning partners, financial service organisations, people and communities, these include:
• The need to evidence continued support for financial inclusion services across East Dunbartonshire
• The further development of financial inclusion services are informed by the need to improve the targeted allocation of partner’s joint resources
• Increasing financial inclusion is a key element in reducing overall inequality (as set out in our SOA)
• That this Strategy provides one overarching framework for all partner agencies to work under
• Emphasising the need for effective performance monitoring, evaluation and reporting arrangements to effectively measure the success of financial inclusion services
• That the provision of financial inclusion services should be available through all delivery channels to ensure accessibility for all
• Partners should articulate the need to increase financial inclusion, where relevant, within their respective strategies and plans.
This Strategy also recognises the different stages of intervention that exist to provide a better understanding around what we are trying to deliver, i.e.
• Preventative – services that prevent financial exclusion from arising, e.g. financial literacy and education services
• Reactive – services that deal with immediate financial difficulties, e.g. food banks, crisis loans
• Developmental – services that focus on supporting people through a longer term
development process, e.g. advice on budgeting and support from other ancillary services such as housing and social work.
This approach is highlighted through Figure 4 below and is reflected within the attached action plan in Appendix 1.
25 Figure 4 – Financial Inclusion Approach
Performance Monitoring and Evaluation
The Welfare Reform Group will assume responsibility for the overall delivery of the financial inclusion action plan (taking cognisance of Joint Health Improvement financial wellbeing indicators). Progress reports will be submitted every six months to the Community Planning Partnership Board, and participating organisations will also be expected to submit this report to their respective Committees and / or Boards.
That said, it is expected that the Strategy will be delivered by a wide range of agencies, people and organisations. An approach that reflects the partnership nature of this Strategy and a recognition that the outcomes cannot be achieved by any one organisation.
The Welfare Reform Group will also seek to develop a set of indicators that will seek to measure accessibility, uptake and participation in financial inclusion services. This exercise will be
completed through a review of current information and also benchmarking with our peers. It is anticipated that the results of this review will be reported at the first six monthly progress review. However an initial draft of indicators are attached in Appendix 2 (with targets to be agreed and reported in the six month progress report as identified above).
26 9 Conclusion
This Strategy sets out how the East Dunbartonshire Community Planning Partnership will seek to improve financial inclusion across all people and communities within the area. A core element of our SOA is a commitment to reduce inequality and this cannot be achieved without ensuring that financial inequality is also addressed.
This commitment is underpinned through the following outcome for this financial inclusion Strategy:
“The people and communities of East Dunbartonshire can improve their financial wellbeing through increased confidence and high quality financial advice, support and education services”.
The Strategy also recognises that it cannot be delivered by any one organisation but through a range of expertise across the public, third and private sectors. This will be achieved through enhancing the role of the current Welfare Reform Group to oversee the implementation of the Strategy with regular progress reports submitted to the Community Planning Partnership Board. The membership and title of the Welfare Reform Group will also be amended to reflect this change.
The Strategy also recognises that financial inclusion cuts across a range of activity, hence our approach being consolidated under three main areas of work, i.e.:
• Developmental
• Reactive
• Preventative
It is also intended for this Strategy to evolve over time to meet the continuing pressures faced by people in the current economic climate, specifically around the continued impact of the welfare reform agenda. Therefore updates to the Strategy will be presented for approval as appropriate.
27
Appendix 1 – Action Plan
Preventative
Improvement Action How will we measure progress
What does improvement look
like?
Increase financial awareness through developing a programme of communications and awareness raising on financial inclusion.
Targeted financial inclusion advice focusing on the main areas of life transition, i.e.:
• Education – through targeted awareness programmes and promotion of credit union services
• Home – household budgets and associated expenditure
• Employment – addressing the needs of people both in and seeking employment
• Retirement – addressing the needs of people no longer in work, e.g. asset rich / income poor, in receipt of care, impact of medical conditions
Number of referrals received Number of referrals reporting a positive outcome
Total amount of financial gain through the referrals above
Increasing number of people maximising their income
Increase uptake and awareness of affordable credit through, for example, through local credit unions
Number of people accessing credit union services
Number of credit union saving accounts opened
People do not use payday lending services and increase availability and access to credit unions
Seek to develop a co-ordinated approach to financial literacy services across all partner agencies to increase accessibility
Number of people accessing financial literacy courses (including within schools)
Increased levels of financial awareness and literacy
28
Number of schools participating in financial projects /
programmes Develop holistic financial support assessments across Council services and partners
(a one-stop cross-agency referral solution) For example;
Application for school meals / Clothing Grants utilises information held by other teams to prevent income information having to be provided more than once to the Council, and allows for other potential grants/support to be offered to the resident by the Council/CAB
Reduction in the number of instances people are asked for the same information
Increase number of vulnerable people receiving income maximisation review
Services provide and share information to ensure that information is only presented once Improved access to income maximisation services
29
Reactive
Improvement Action How will we measure
progress
What does improvement look like?
Support vulnerable and hard-to-reach groups access appropriate financial support services (including those affected by financial harm, i.e. those using illegal lending routes)
Ensure all partners work to develop methods for engaging hard to reach groups and also that services are accessible and appropriate
Number of referrals from partner organisations to advice and support services Financial Inclusion is included within CPP Place Based approach to reducing inequalities
Support and advice services are accessible to all
Enhanced Partnership approach to combat inequality, through CPP and partner development / business plans
Increase access to financial inclusion within targeted communities through a range of relevant financial agencies within the Council’s Hubs and outreach services (including the development of Local Support Services)
Number of partners and services utilising Council Hubs / outreach services
Increased accessibility of service
Develop comprehensive communications plan that seeks to raise awareness around entitlement and potential financial support, e.g. Discretionary Housing Payments
The development of the plan
Increased awareness of range of financial support and advice
Ensure take up of welfare benefits and 'in work' benefits.
Continue welfare benefits and advice services working to engage with vulnerable groups, encouraging partnership work across the services.
Number of people accessing advice services over potential eligibility for claims
People claiming their full entitlement
30
Developmental
Improvement Action How will we measure
progress
What does improvement look
like?
Develop an agreed strategic approach for financial inclusion
Ensure this Strategy is approved by all participating organisations / agencies through their relevant Board and / or Committees
All agencies report date when this Strategy is approved
All agencies adopt the strategy
Increase the remit of the current welfare reform group to absorb all aspects of financial inclusion with responsibility for implementing this strategy and this action plan and associated action plans (a Financial Inclusion Steering Group)
Coordination and implementation of strategy and action plan with regular progress reports submitted to Policy & Resources Committee and also to the Community Planning Partnership Board.
Coordinate Third Sector Welfare Reform Group to effectively deliver financial inclusion services across East Dunbartonshire
Council lead officer to report progress and areas for action to Transformation Board This will also include reviewing membership and also approving a terms of reference.
Through a six-monthly self-evaluation questionnaire completed by all group members around topics such as effectiveness, resources, joint working.
The group have the right organisations attending and progress in the implementation of this action plan can be evidenced
Undertake a comprehensive needs analysis and detailed list of current service provision (that will also assist in identifying ‘hidden poverty’, e.g. asset rich, income poor and wider health and wellbeing issues compounded by financial poverty)
Through the availability of data that supports planning and resource allocation
The publication of a comprehensive analysis that supports
31
Use all current information to map the level of service provision across the authority. This will be underpinned by a robust needs analysis that will subsequently inform policy and resource allocation to support and promote financial inclusion
Identify local and / or national research that evidences the impact of financial poverty
this Strategy
Financial inclusion to be promoted on CPP Partner websites and in publicity leaflets and associated documents
Create a ‘financial inclusion web page’ which gives residents information on the services available from all partner agencies.
Create sign-posting information that details where residents that are in financial difficulty can go to get advice
Development of webpage and associated publications and number of participating partners Number of modern apprenticeships and internship opportunities provided by Partners Number of volunteering placements offered / provided A comprehensive source of financial information and support for East Dunbartonshire residents CPP staff are supported to access income maximisation services CPP staff wellbeing evidenced within strategic partner participation with Healthy Working Lives plans and reviews.
33 Appendix 2 – Draft Indicators
The following are intended to form the basis of the development of a set of performance indicators that will supplement the progress though the action plan.
• Number of tenants in rent arrears (both Council and Housing Associations)
• Number of tenants with Council Tax arrears (both Council and Housing Association)
• Insolvency rates per 10,000 of the population
• Percentage of residents concerned by their levels of personal debt (would require an annual survey)
• Number of people registered with a credit union
34 Appendix 3 –Associated Strategies and Plans
Note: Accompanying text is direct quote from each document / website.
Child Poverty Strategy for Scotland 2014-2017 (Scottish Government)
This revision of the Child Poverty Strategy for Scotland builds on the actions already taken under the 2011 Strategy.
• We continue to aspire to a Scotland where no child is disadvantaged by poverty
• We continue to focus our efforts on tackling the underlying causes of poverty relating to material resources and children’s outcomes
Although progress has been made since 2011 against the targets set out in the Child Poverty Act 2010 (the Act), there remain far too many children in Scotland living in poverty and there is concern that progress is becoming increasingly difficult to maintain.
Healthier, Wealthier Children (NHS Greater Glasgow and Clyde)
This aims to contribute to reducing child poverty by helping families with money worries. The project is working closely with antenatal and community child health services to target pregnant women and families with young children experiencing, or at risk of, child poverty, as costs increase and employment patterns change around the birth of a child.
The project will offer income maximisation advice for families experiencing child poverty and will aim to prevent families from falling into child poverty by working with health and early years services to identify families at risk at an early stage. Consequently the main service groups targeted for providing referrals to Healthier, Wealthier Children income maximisation services will be, in the first instance, midwives and other antenatal service staff, health visitors, oral health and breastfeeding advisers, parenting support workers, and early education staff.
