CAB FINANCIAL INCLUSION CONFERENCE

1. CAB FINANCIAL INCLUSION CONFERENCE “PREVENTION IS BETTER THAN CURE” THE CAERPHILLY APPROACH Sandra Isaacs (Rents Manager) Caerphilly County Borough Council

2. Financial Exclusion • Caerphilly is among the most deprived authorities in Wales • Analysis of Census wards in the Caerphilly borough to identify levels of financial exclusion • 30 out of 33 wards, score 4 and higher on a 1 to 7 scale with 1 being areas least financial excluded, to 7 being areas most excluded from mainstream financial services • 7 wards scored 7

3. “The Caerphilly Approach” • Financial health check completed at sign up. • All staff trained in basic welfare benefits • Work closely with the CCBC benefits department • Court Action the last resort • Accessible - use SMS text to contact tenants • Shelter surgeries throughout borough

4. Key initiatives • Money and Debt Advice clinics in partnership with CAB • Income maximisation • Welsh Water Assist • Take up of tenants contents insurance

5. Money and Debt advice clinic • Clinics held throughout the borough • Advice provided by CAB • CCBC staff maintain appointment lists • Appointments offered to tenants • Tenants given debt and budgeting advice

6. Key outcomes • Attendance rate high 70% • 41% of tenants had been issued with legal action • 74% of tenants maintained agreements • Nominated and a finalist in Institute of Money advisor best partnership award • Case studies in packs

7. Water Assist • CCBC collect water rates on behalf of Welsh Water • New Tariff introduced on 01/04/09 to help low income families and individuals with relevant medical conditions by offering reduced water charges • Water charges reduced to £250.00 for the year • Claims received in year backdated to April

8. Qualifying criteria The tenant or a member of the household is in receipt of relevant qualifying benefit or tax credits AND Either 3 or more children under the age of 19, are living in the household, for whom child benefit is claimed Or someone in the household has a medical condition that requires significant additional use of water

9. Take up campaign • Financial health check review – new tenants • List of tenants with 3 children or more • Assist tenants in completion of forms • CCBC confirms entitlement to Welsh Water

10. Key outcomes • 680 tenant currently in the scheme • 11/12 annual saving to those tenants of 150k • Average saving of £220.00 per year • Two tenants assisted in promotional video • Welsh Water feedback – Caerphilly has the highest number of successful applications

11. Income Maximisation – Social housing role • High proportion not claiming benefits they are entitled • Unclaimed benefits a major cause of rent arrears • Able to act as a trusted intermediary • Frequent contact enables us to actively target • All rents staff received basic welfare benefits training

12. Income maximisation • Tenants referred by rents staff • Triage system used • Better advice/better health appointment made • In house income maximisation officer • Home visits carried out • GIS system to be used to map enquiries • Take up campaigns at events

13. Key outcomes 2011 • Additional income generated for tenants 140k • Enquiries up by 50% in last 6 months • Tenants prefer face to face approach • Staff job satisfaction and morale high – arrears prevention based approach • Case Studies in packs

14. Tenant contents insurance • Since 1996 tenants contents scheme offered to tenants • Scheme provided through AVIVA • Annual insurance premiums collected 10/11 170k

15. Do tenants need home contents insurance? Low income households are more likely to experience fire, flood, water penetration or burglary than the average income household • 2 x as likely to be burgled1 • 30 x as likely to be a victim of arson2 • 8 x as likely to live in a high-risk flood area3 Sources (1) Crime in England and Wales 2008/2009, Home office. July 2009. (2) Tackling Arson, Home Office . April 2006. (3) Addressing Environmental Inequalities, Environmental Agency. October 2006

16. The Policy – keys points • New for old cover • Low minimum sums insured (starts at 7k for over 60) • No excess payments on any claim • Limited accidental damage cover for high risk items •  Payments can be made weekly with rent

17. Claims 8 month period - 116

18. Barriers • Considered to be too expensive • Self exclusion – people decide there is little point applying as they believe they would be refused • Carefree – believe insurance is only for those with something to worry about ie for people with large number of possessions • Confusion – people with poor financial capability can struggle to decode financial information • Mistrust of insurance companies

19. The Caerphilly approach to promotion of scheme • All front line staff trained • Scheme discussed with tenants at initial sign up as part of financial risk assessment • During one month and 3 month settling in visits • Each time a tenant is contacted i.e. either face to face or over the phone • Insurance road shows held at sheltered accommodation • GIS mapping used to target areas with low take up of tenants contents insurance

21. Why is take up high? • Tenants trust us as an intermediary rather than a direct relationship with the insurance company • Our scheme popularity travels by word of mouth, a form of recommendation people trust • Personal face to face approach • Key training provided to all front line staff

22. Key Outcomes • 24% of tenants are in the scheme • One of the highest percentage in UK • Tenants trust us as an intermediary rather than a direct relationship with the insurance company

23. And Finally……Caerphilly Approach – key themes • Partnership working • Removing barriers • Early intervention • Measuring Outcomes

24. Future challenge - Welfare Reform Act • Reduction in HB for tenants under occupying • tenant profiling exercise • GIS mapping of under occupation • Universal Credit – direct payments • work with credit unions

25. ANY QUESTIONS?