Financial Inclusion
What is Financial Inclusion
Financial Incluion is the access that people have to certain financial services. According to research about 2.8 million people are financially excluded in this country, of which 70% are housing association tenants.
You can be excluded in a variety of ways, you could be excluded due to location; due to high prices or excluded from the marketing of products in the first place. Similarly, an individual may not apply for a financial product because they expect to be refused. This may be due to previous experience, the experiences of others, or a belief that these products are not for people in their circumstances.
For example, people without a bank account are find it difficult to be eligible for the savings offered by energy or water companies because they need the account to pay bills by direct debit and to qualify for the cheapest way to pay. Therefore the people who can afford the services the least are the ones paying the most.
The Cost of Being Financially Excluded
There are significant costs attached to being excluded financially which can include:
- Higher charges for basic financial transactions due to a lack of access to a bank account and direct debit facilities
- Higher charges for credit
- Lack of access to certain products or services such as contract mobile phones
- Lack of security in storing and holding cash
- Barrier to employment due to requirements for a bank account for the payment of wages
- Built in financial exlusion due to a lack of banking or credit history
Priorities for Yorkshire Coast Homes
A number of different priorities have been identified by Yorkshire Coast Homes that will help the organisation achieve its aims of delivering financial inclusion to all of its tenants.
Access to Affordable Credit
Yorkshire Coast Homes supports the North Yorkshire Credit Union. The credit union is an organisation that helps people to save and borrow money in a manageable way and avoiding high interest rates charged by some lenders. It is particularly useful to people who do not have bank accounts.
Debt Advice
We support organisations such as Citizens Advice who offer debt advice. For example, Citizens Advice has now opened a surgery in Eastfield to offer debt advice to people in that area who may not have been able to get this advice before.
Pro-active Arrears Prevention
We work closely with our tenants to help them sort out any arrears they may have. Our arrears team offers guidance on money management, and will work closely with you to resolve any problems you may have with your rent.
Access to Bank Accounts
We are working with a number of banks and building societies to provide access to bank accounts for our tenants who feel they may be unable to access the high street services. This may be through Cash Card Accounts or Basic Bank Accounts, and guidance can be provided for anyone wanting to take up this offer.
Addressing Insufficient Savings
Through credit unions tenants will be able to access opportunities for savings that can work for them; saving as much or as little as they want, while also giving them access to loans and credit at affordable rates.
Fuel Poverty and Water Costs
We will endeavour to ensure that all of our properties are well insulated and where possible have cavity wall insulation and efficient central heating that should help to keep your house warm and energy efficient. We will promote any government initiatives that can help reduce your central heating costs and water rates.
