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Bronwyn Twizell Strategic Financial Inclusion Champion Northumberland Tyne and Wear

Bronwyn Twizell Strategic Financial Inclusion Champion Northumberland Tyne and Wear. Leeds City Council Sheffield City Council South Tyneside Council.

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Bronwyn Twizell Strategic Financial Inclusion Champion Northumberland Tyne and Wear

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  1. Bronwyn Twizell Strategic Financial Inclusion Champion Northumberland Tyne and Wear

  2. Leeds City Council Sheffield City Council South Tyneside Council

  3. “As we enter a period of increased economic, social and environmental uncertainty, the consequences of the obsession with growth have become clear: a financial system increasingly disconnected from the real economy, unsustainable levels of debt and the strain placed on the planet by our high-consuming lifestyles” New Economics Foundation

  4. Angela Rai Leeds - 0113 247 5126 Eric Thompson Sheffield – 0114 276 0787 Lynne Owen South Tyneside - 0191 424 6414

  5. Financial Inclusion in Leeds Dave Roberts Economic Policy Team Leeds City Council

  6. Origins of the initiative • Initiative started early 2003 • Research undertaken 2004, including 410 households surveyed • Findings: • Cash based economy • Higher dependency on door step lending • Serious debt problems

  7. Partnership • 50 Partner Organisations Inc - Debt Advice Agencies, Credit Union, Landlords • Credit Union Affordable Credit Scheme • Network of Debt Advice Agencies • Expansion CU Branch Network

  8. Economic Impact and Regeneration • £3m to £9.5m “Excess” interest paid by Leeds residents Comparison Neighbourhood Renewal Funding • £8.4m NRF for 2004/5

  9. The Regeneration Agenda • Credit Union Affordable Credit • Interest Savings, £1.8m (low income) • Debt and Money Advice • Income maximisation, £1.7m • Housing Business Case • £8,500, cost per eviction

  10. Economic Impact Research • Linkages between financial inclusion initiatives and economic regeneration • Survey of 527 recipients of: • Debt Advice • Credit Union Services • Welfare/Benefits Advice • Telephone interviews • Clients from last six months (MAP), current clients for others

  11. Financial Inclusion Interventions Studies • Leeds Benefit Service • Leeds MAP • Connect Housing • ENEHL • Leeds Corporate Debt Unit • Leeds City Credit Union • npower • Leeds Welfare Rights Unit

  12. Business Intervention Model • Client survey • Partners performance management information • Audited accounts • Estimation • Didn’t measure impact of generalist advice services

  13. Survey Input-output model Economic impact Benefits Business intervention model Economic impact Costs Return on investment Methodology

  14. Input-output modelling • Uses Yorkshire Forward’s input-output tables • Quantified the income per beneficiary • Using 2005-6 FRS estimated how service users would utilise money • Adjusted for external expenditure & inward commuters • Use input-output tables to calculate distribution of spending • Developed multiplier software to calculate impact

  15. Key Survey Results

  16. Key Survey Results

  17. Amount better off

  18. Borrowing Decisions Credit union respondents needing £250 in a hurry *Note – Debt advice sample number reduced from 11% to 3%

  19. Overall costs & benefits

  20. Stress Levels Change in stress levels about financial matters

  21. Arriving at Economic Impact (1)

  22. Arriving at Economic Impact (2)

  23. Concluding remarks • Financial inclusion should be viewed holistically – Don’t Cherry Pick • Involve public expenditure & not investigated whether spending elsewhere will produce a better return • Valuable regeneration vehicle • Research shows what local authorities can achieve but need more fundamental changes if going to solve problem • Appendices

  24. Contact details Further information Leeds City Council Economic Policy Team 0044 113 247 4724 www.leeds.gov.uk/fi financial.inclusion@leeds.gov.uk

  25. Financial Inclusion in Sheffield Eric Thompson DWP Strategic Financial Inclusion Champion for South Yorkshire

  26. Key differences in Sheffield • Facilitated by Sheffield City Council • Led by the 3rd Sector • Community Banking Partnership model • Sheffield Investment Bond • Advice Consortium • Proactive role of ALMO

  27. Recent developments • Commissioning of Debt Prevention research • Recognition this undermines deliver of the City Strategy • Recognition of the need to work with those already engaged with the agenda locally

  28. Other thoughts • There is a need to link into other key initiatives such as Champions • Look at potential to work regionally and sub regionally • Learn from others – there is no need to re-invent the wheel • Be prepared to be in it for the long term – there isn’t a short term fix

  29. Eric Thompson DWP Strategic Financial Inclusion Champion for South Yorkshire Financial Inclusion Services (Yorkshire) Ltd 6 The Gallery, Castle Market, Sheffield, S1 2AJ Mobile: 07749094689 Email: ericthompson@fisy1.co.uk

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