How debt, low financial resilience and poverty creates vulnerability
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Sarah Lambert, Affordability Assessment Sales Manager for Policy in Practice, delivered this presentation to the IRRV Yorkshire & District Association Vulnerability Seminar on Wednesday 27 November 2019. The seminar theme was Treating Customers with Respect and Dignity by using Data Analytics for Decision Making and Making a Better Treatment Route. Sarah has always been passionate about ensuring customers are at the heart of an organisation and its people, delivering first class service to consumers when they are facing financial and mental health pressures in their lives. In this presentation Sarah covered: - Consumer debt and vulnerability - What makes someone vulnerable? - The impact on vulnerable people in debt of Universal Credit and Brexit - How specialist data partners can help identify vulnerability, target and engage support and track change - The impacts of indebtedness For more information visit www.policyinpractice.co.uk, email hello@policyinpractice.co.uk or call 0330 088 9242
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How debt, low financial resilience and poverty creates vulnerability
- 1. Sarah Lambert Policy in Practice IRRV How debt, financial resilience and poverty creates vulnerability
- 2. We make the welfare system simple to understand, so that people can make the decisions that are right for them We help people toward independence by making government policy simple to understand
- 3. 3 Give the best support you can to help people
- 5. • 17.2% of consumers are over indebted, and only around a third seek debt advice • Council tax debt is now the biggest reason people seek debt advice • The debt advice sector has a gap in supply - 600,000 people can’t access debt advice when they need it • The average consumer in problem debt has 6 creditors • 25-34 year old adults are 4 times more likely to be in problem debt • 9 million adults regularly use credit cards, overdrafts or borrow money to buy food or pay bills because they’ve run short of money Consumer debt and vulnerability
- 6. What makes someone vulnerable?
- 7. 777 The impact on vulnerable people in debt of: Universal Credit Brexit
- 8. 5
- 9. • 1.6 million people on Universal Credit today • A further 1.6m people moving onto Universal Credit this year • 2 million people moving on through ‘managed migration’ from 2020 Key recommendation: The DWP and councils can identify these pressure points, and act proactively to prevent hardship and ease the transition to Universal Credit. Universal Credit is rolling out fast
- 10. The average amount of income after costs for low income households is £452/month. • With a deal, income after costs falls by £100 per year (on average) • Under a no deal scenario, which looks unlikely, income after costs falls by £250 per year • However, unemployment and a weaker economy driving austerity could lead to Brexit impacting incomes by as much as £1400 / year The impact of Brexit CPI is forecast to hit 3.7% due to devaluation, plus a further 1% impact on costs due to tariff / non-tariff barriers Unemployment + 0.3% with a deal Unemployment + 2.6% with no deal
- 12. How specialist data partners can help EngageIdentify Track people who need your support the most the impact of policy and effectiveness of interventions your residents with targeted support
- 13. • Reduced costs of enforcement and improved collection rates • Reduced evictions, in turn reducing care costs for children and the direct impacts of moving schools • Improved wellbeing and better mental health outcomes. Less anxiety and depression, lowering costs to the NHS from GP involvement / medication costs • Preventing suicide The impacts of indebtedness
- 14. 141414 The power of data-led strategies to reduce poverty
- 15. Household data + advanced analytics
- 16. Calculator and LIFT Dashboard • Our Affordability and Benefits Calculator is an outcome-focused tool that helps your support you customers out of poverty and hardship • The dynamic calculator for businesses and customers provides a full income and expenditure compliant to industry standards • The self serve functionality has embedded links allowing customers to easily make applications for the support they are eligible for • Used by 10,000 consumers daily, available on Gov.uk and via our client base • Shows where customers could be overspending and where they could reduce outgoings • The LIFT Dashboard uses household level datasets to identify vulnerability so you can target support where it’s needed most • Track change over time to see what interventions are working Tools to help you identify vulnerability, target support and track change
- 17. 16,934 low income households in Neath Port Talbot
- 18. 2,596 are in council tax arrears
- 19. 1,255 owe more than one month’s council tax
- 20. 205 of them are impacted by welfare reform
- 21. 59 of whom face an ongoing cash shortfall
- 22. … and seven will be worse off under Universal Credit
- 23. www.policyinpractice.co.uk Thank you Sarah Lambert sarah@policyinpractice.co.uk 07525 202603 Ashleigh Legge ashleigh@policyinpractice.co.uk 07900 516274
- 24. A team of professionals with extensive knowledge of the welfare system who are passionate about making social policy work We help over 80 local authorities use their household level data to identify vulnerable households, target support and track their interventions Our benefit calculator engages over 10,000 people each day. We identify the actions people can take to increase their income, lower their costs and build resilience