The DWP Financial Inclusion Team

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The DWP Financial Inclusion Team

• Mick Johnson and John Cray

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Who are the financially excluded?

• Many people on low incomes and benefits do
  not have bank
• accounts
• They rarely make any savings
• They may have bad credit histories or no
  credit history at all
• They cannot access normal low-cost credit
• No access to other financial services such as
  low-cost home
• contents insurance policies

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DWP Financial Inclusion Policy Team

• Develops and delivers cross Government policy
• Works with the National Economic Committee of the
  Cabinet
• Member of the national Consumer Issues Group (No
  10, HMT, BeRR)
• Makes credit available in a competitive market
  place during the credit
• crunch to support economic growth
• DWP champions the cause of vulnerable consumers
• Provides affordable credit through commercial
  contracts with over 100
• credit unions and social enterprise
  organisations
• Defeats loan sharks and high interest door step
  lenders

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What is the Growth Fund?

• A joint HM Treasury/DWP initiative to
  increase the availability of
• affordable personal loans made by third
  sector lenders e.g. Credit
• Unions and Community Development Finance
  Institutions.
• A practical opportunity for people who would
  otherwise turn to the
• expensive alternative credit market to have
  access to loans at
• affordable rates.
• Instant loans not previously available
  through credit unions.
• A sum of money available for personal loans
  the things people
• need to borrow money for because they cant
  always manage to
• save.

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What we deliver the Growth Fund

• 80 million 5 year project ends March 2011
• 100 credit unions contracted to serve
  vulnerable consumers in over
• 300 towns and cities across GB
• 160,000 affordable loans worth 66 million made
  to vulnerable people
• Unique partnership with third sector delivering
  cross Government policy
• Third sector expertise used to make and recover
  loans
• Loan fund is recycled to serve consumers for
  years to come
• Massive consumer saving on loan interest rates
• Popular consumer service in poorer communities

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Growth Fund Delivers Government Policy

• Its a success extra 18.75 million in the
  Budget
• Supports the economy through provision of credit
• Supports vulnerable consumers financially
• Develops sustainable credit unions and
  sustainable services
• Provides essential training and development for
  credit unions
• Introduces banking services for people without
  accounts
• Hits Government targets to serve red and amber
  alert areas
• Puts people in touch with savings and home
  contents insurance

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Growth Fund the reality
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Real money remains in the community
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Comparison for a Loan of 500 over 52 weeks
betweena Credit Union and the leading doorstep
lenders
Compare for yourself
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Financial Inclusion Champions

• 12 million project championing financial
  inclusion and creating strategic delivery
  partnerships in urban and rural communities
• Engaging Local Authorities at Cabinet and
  Director level and working with Local Strategic
  Partnerships to put inclusion at the centre of
  Local Area Agreements (LAA) and local service
  delivery
• Engaging banks at director level to serve those
  without accounts
• Developing financial services for Muslim
  consumers
• Engaging social landlords and the insurance
  industry to sell home contents insurance

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Financial Inclusion Champions

• 17 Regional, sectoral and national Champions
  teams
• Over 4000 key organisations engaged and
  registered on
• bespoke now lets talk money website
• Showcases DWP as champion of the vulnerable
  consumer
• Popular project and campaign with new and
  existing partners
• now lets talk money is a recognised brand
  which encourages local
• authorities, social landlords, and key partners
  to promote inclusion
• Achievement targets for champions to ensure value
  for money

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Want to know more?

• Please take the time to look at our web sites
• Growth Fund
• http//www.dwp.gov.uk/advisers/growthfund/
• Now Lets Talk Money
• http//www.nowletstalkmoney.com/

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Closing Comments

• A Strategic Future for Financial Inclusion
• John Cray