Action for Prisoners’ Families Families of Older Prisoners Seminar 11 July 2013

1. Action for Prisoners’ Families Families of Older Prisoners Seminar 11 July 2013 www.prisonersfamilies.org.uk

2. The financial impact Christopher Stacey, Unlock

3. Financial issues for the families of older prisoners Action for Prisoners Families 11th July 2013 Christopher Stacey – Director (Services)

4. About today • About Unlock • Context • Policy issues • Practical information/advice • Issues for intermediaries

5. Unlock • Charityset up as an organisation in 1999, and registered as a charity in 2000, by people with convictions, including Stephen Fry • Staff 2 full-time and 2 part-time • Volunteers 6 - 10 • PresidentLord Ramsbotham • Trustee Board includes people with convictions

6. Objectives • People reaching their potential • Society enabling potential

7. Why? • 9 million + people in UK have a criminal record • 1 in 3 men (and 1 in 9 women) have a criminal record by the age of 56 • 1.5 million new convictions every year • 1.4 million (26%) of all claimants of out of work benefits were convicted of at least one offence in the last 10 years

8. Why? • Society asks criminals to become productive citizens; get educated, find work, support their family, pay tax. • People who reform themselves seek to do this • Law abiding people with convictions face long term discrimination and exclusion in the basics of life; e.g. work, housing, travel, financial services • Long-term discrimination means the end of a sentence is only the beginning of a life with a criminal record

9. What? • Vision: A society in which law-abiding people with convictions can reach their full potential • Approach: “Challenge, Inspire, Equip” • Activities: Information, Advice, Advocacy • Level: Individual, Organisational, Societal • Channels: Web, Email, Phone, Letter, Publishing, Speaking, Media, Face to Face

10. Context ‘Families of…’ and ‘Older…’ – two segmentations Little has been done for either on ‘finance’ Unlock’s focus….people (and their families) ‘moving on’ Issues covered are not comprehensive – based on the issues that we receive enquires about Justice Committee – Older Prisoners Written Evidence DWP response? More work to be done?

11. Policy issues – what we know so far Time is Money (2010) Involved a survey of family members (29/144) Download from unlock.org.uk

12. Specific issues for families of older prisoners • Access to a bank account • Reconnecting with existing accounts / opening new ones • Joint accounts • Others managing the account? • Access to savings accounts (for pensions) • Insurance for families while family members in prison • Income • Families income down (debt up) - pensions • Wages while in prison – not working • Sending money into prison - costs

13. Bank Accounts

14. Common Issues Lost contact with account during sentence Standing Orders and Direct Debits set up – no money going in Lack of access to account by account holder or family member Unsure how to open an account – joint accounts? Difficulty meeting banks’ ID requirements Difficulty meeting banks’ other requirements

15. Managing an existing account • Status of the account • Restraint Order • Confiscation order • Third Party Debt Relief Order • Account dormancy

16. Managing an existing account Control of the account Third Party Mandates - giving access to family members / close friends Process varies between banks Usually involves a form being signed and sent (not always possible by post) – sometimes visit to a branch is required

17. Setting up a new account • Basic bank accounts • For people in prison, usually an arrangement in the prison they are in (when near to release) • Identification used is template in PSI 44/2011 • Useful as preparation for release (and when working-out)

18. Savings / credit unions Good option for people with long time until release Way to save for family members Opening processes varies between banks Credit unions a good option – ABCUL website Also useful for affordable loans on release

19. Paying money into a prison account • Prisons encourage postal orders / Can also send a cheque • For public prisons, made payable to ‘HMPS’. Include recipients full name, prison number and senders details. Private prisons vary. • Secure Payment Service - Altcourse, Birmingham, Doncaster, Dovegate, Lowdham Grange, Oakwood, Parc, Thameside • Processing Fee: 1% + 55 pence • Card Payment Fees: 2.5% of total amount + 20 pence • £10 amount + 1% (processing percentage fee) = £10.10 • £10.10 + £0.55 (processing fixed fee) = £10.65 • £10.65 x 2.5% (card payment percentage fee) = £0.27 + £10.65 = £10.92 • £10.92 + £0.20 (card payment fixed fee) = £11.12

20. Insurance

21. Why is it important? • Insurance can be a legal requirement • To drive a car or ride a motorbike (motor) • To hold a mortgage (buildings) • To employ people (employer’s liability) • It can help when the unexpected happens • Replacement items after burglary (contents) • If a business causes an accident (public liability)

22. Issues Most mainstream companies have blanket policies towards people with unspent convictions Covers ‘anybody normally residing in the household’, such as partners and children If in prison for length of policy, not normally an issue (unless linked in other ways, such as joint mortgage holder)

23. What to disclose? Since April 2013, only have to disclose if asked If asked, only ‘unspent’ convictions under the Rehabilitation of Offenders Act 1974 Convictions that are ‘spent’ never have to be disclosed, even if there is a question

24. When to disclose? When you get quotes and take out insurance You do not have to disclose any convictions you get during a policy until renewal, unless there is an explicit condition in your policy.

25. What do most companies do when you disclose? Refuse to offer you insurance Want to charge you more Impose special terms Cancel an existing policy Refuse to pay any new claims Seek to get back money from previous claims. Continue your insurance up until renewal What if you don’t disclose?

26. Where to get insurance Unlock has a list of specialist brokers Some well-known insurers may provide some types of insurance with some convictions Take extra care if an insurer does not ask questions about criminal convictions Get written proof you have disclosed your conviction or that they do not need to know

27. Income (Pensions)

28. Pensions • State pension • National Insurance Act 1911 – not eligible while in prison • If on remand, it’s suspended pending outcome • Can make back-payments for up 6 years of NI contributions • Partners are eligible for pension credit if aged over 60 – Pension Credit Claim Line (0800 99 1234) • Private pension • Depends on terms of pension • Can continue to be paid into account • If become eligible while in prison, often need an account in own name

29. Release/temporary release If receiving benefits as a family, need to inform them May be able to get support while family member on resettlement licence Apply for state pension before release – Pension Service (local pension service)

30. Other funding options • Prisoner Funder Directory • Contains charities providing grants to individuals • Also covers people released • Examples include educational materials • Credit unions – affordable credit for people on release and their families

31. Mortgages

32. Common issues Unlikely to be an issue for most Insurance is required to secure / maintain Mortgage companies are increasingly asking a question about criminal convictions They also ask about address histories

33. What to do No need to proactively disclose convictions If a provider asks about convictions, all unspent convictions must be disclosed Conveyancers may pass information on Use a ‘whole of market’ mortgage broker Use a specialist insurance broker Check existing mortgages and any requirements to inform of changes

34. Issues for intermediaries

35. What you can do • Find out what a client’s needs are • Gather information about their finances • Establish their financial goals • Identify priorities and options • “Getting a bank account should be your first step” • Identify types of product • “Basic bank accounts don’t require a credit check”

36. What to avoid • In the areas of Borrowing, Protection (insurance), Savings & Investments, you cannot: - • Recommend product types • “I think that a unsecured loan would be best.” • Identify specific products • “I think you should consider a Barclays Cash Card Account”

37. Referrals Don’t be afraid to help but don’t get sued! Can you answer the question confidently? Is someone else is better placed to answer the question? Do you need a qualification, license, regulatory authority or liability insurance? Build up a local and national network Find out who the experts are and follow up

38. FBD Matrix • Map problems against types of solution • Assessment • Awareness /Aspiration • Ability • Advice • Advocacy • Access

39. FBD Matrix

40. FBD Matrix

41. Contact details – Me / Office Christopher Stacey | Director (Services) Email: christopher.stacey@unlock.org.uk Phone: 01634 247350 ext. 202 Mobile: 07557 676433 Office details Write: 35a High Street, Snodland, Kent, ME6 5AG Phone: 01634 247350 Email:enquiries@unlock.org.uk Web:www.unlock.org.uk & @unlock2000

42. Contact details - Helpline Online Info Hub: www.unlock.org.uk and click ‘Information Hub’ Web tool: www.disclosurecalculator.org.uk Online forum: forum.unlock.org.uk Helpline Phone: 01634 247350 (Press 1) Email: advice@unlock.org.uk Fax: 01634 247351 Write: Unlock, 35a High Street, Snodland, Kent, ME6 5AG

43. Action for Prisoners’ Families Families of Older Prisoners Seminar 11 July 2013