Managing finances before and after release Christopher Stacey | Head of Projects & Services 24 th May 2012

1. Presentation given at Action for Prisoners’ Families seminar: Coming Out: putting families at the Putting Families at the heart of resettlement. London: 24 May 2012. www.prisonersfamilies.org.uk Breaking the Cycle of Financial Exclusion & Re-offending Managing finances before and after release Christopher Stacey | Head of Projects & Services 24th May 2012

2. Aim of today • About Unlock • Discuss ‘the cycle’ – Time is Money • Explore some of the practical solutions • Discuss the ongoing policy developments

3. The Cycle

4. (Pre) Sentencing • Loan sharks driving crime • 60% in financial trouble before prison • More than 50% turned down by banks • 10x more likely to have borrowed from shark • 1/4 (4/5 shark borrowers) threatened for debt • Courts • Unpaid fines/confiscations from £920 million (05/06) to £1.3 billion (08/09) • Community sentences vs. Prison

5. “I did it to get money to pay off my bills. I regretted it from the moment I agreed to do it. But there was no other way at the time to pay my debts. I tried banks. I’d already asked my mum for far too much.”

6. Going to Prison • Loss of income and accommodation • 1/3 lose a job, benefits closed down • Lack of needs assessment (focus on risk) • 3/4 never asked about their finances in prison • OaSys section ‘non-mandatory’ • Loss of communication / no information • Severed from financial life • Families confidence down (debt up)

7. Going to Prison “There’s no help once you are inside. At induction the officers make sure you aren’t getting any benefits and that’s all. They used to be more helpful five years ago than they are now. Now it’s just, “There’s your cell, there’s your prison sentence. Get on with it.”

8. Serving a Prison Sentence • Financial responsibility removed • Average wage of £7-£12 per week (min £4) • Cannot pay creditors, support family or save • Cashless canteen • Credit problems • More than 50% had debts, 2/3 over £1000 • Housing arrears, crisis loans and court fines • Removal from electoral roll • Effect on families

9. Serving a Prison Sentence ‘I have to ask my personal officer, “How much have I spent and how much have I got left?” I don’t even know how much I’ve got in my private account.’

10. Serving a Prison Sentence • Poor access to banking • 1/3 no account, of which 1/3 never had one • 3/40 could manage their account directly • Overdrafts, accounts suspensions • Mixed financial capability • Confident budgeting but not with services • Advice is valued • 3/4 never asked/advised about finances • 8/10 who had advice said it was useful

11. Serving a Prison Sentence “I didn’t know if I had to change my address or if I could keep it at my home address. It wasn’t easy to find out what you could and couldn’t do.”

12. Leaving Prison • Lack of money on release • 60% money problems major worry on release • 50% “quite a problem”, 1/6 “major problem” • 64% felt debts had worsened • £46 discharge grant, finance gap, Social Fund • Stable employment and accommodation • Arrears barrier to accommodation • Bank accounts: ID, bankruptcy • Insurance discrimination

13. Life as a Reformed Offender • Some exclusion recedes… • 92% reformed offenders now had an account • 40% kept up with bills (4% in real financial trouble) • None had borrowed from a loan shark • …some stays • 4/5 said insurance was harder to get • Employment “[The ROA] affected my ability to get a job and still does, as more organisations undertake CRB checks”

14. Practical Solutions

15. The 6 As – a matrix approach • Bank Accounts • Income • Credit, Debt & Saving • Financial Management • Insurance • Assessment • Awareness /Aspiration • Ability • Advice • Advocacy • Access

16. Banking • Maintaining contact with accounts • Joint accounts • Others managing the account • Reconnecting with accounts • Opening new accounts • Custody: UNLOCK national project • Community: Ignore the ‘offender’ label?

17. Income • Prisoners Earnings Act – challenge? Pay to families/saving? • Day one mandate to Work Programme – claim for JSA starts before release – still finance gap • Strong links between JC+ and other providers • Ensure all monies taken on discharge

18. Credit, Debt & Saving • Ask questions about existing debt, financial commitments, family situation • Referral to specialist debt agency • Identify and contact creditors – keep them up to date • Engage with illegal money lending teams • Affordable credit information for families • Explain the how and why of saving • Credit unions (see later)

19. Financial Management • Prepare for Universal Credit • Early assessment: training, money advice and/or debt advice? • Link practical capability with basic skills • Promote money awareness to all • Include the family & link to local services • Explore mainstream independent provision • Explore potential of peer supporters

20. Insurance • Existing policies – people in prison ‘residing’ • New policies • Download information and list of providers from www.unlock.org.uk & make copies • Integrate insurance information into other services e.g. financial capability training • Disclosure questions (see next)

21. www.disclosurecalculator.org.uk • Find out when convictions become ‘spent’ • ROA is complicated • Available to buy for use in organisations

22. Policy developments

23. Banking • UNLOCKing Banking • 2005: 2 prison pilot • 2013: National coverage (circa 120 prisons) • Leaders: Co-operative Bank, Lloyds Banking Group (Halifax), Barclays • Developers: HSBC, Santander

24. Insurance • UNLOCKing Insurance • Development of specialist broker panel (1 to17) • ABI Industry Guidance & UNLOCK Guidance • Rehabilitation of Offenders Act (Spring 2013) • Disclosure & Representation Act (April 2013) • Mortgages • Used to just be a problem of insurance

25. Credit Unions • UNLOCKing Credit Unions • 14 credit unions working with 16 prisons • 8 credit unions working with housing associations, probation and charities in the community • Hotspot in Yorks and Humber • Products: Savings, current, affordable credit • One credit union opened over 100 accounts • Prisoners, family members, staff • A link with the community

26. www.unlock.org.uk