Dave Roberts Economic Policy Team Leeds City Council

1. Corporate Debt and Regeneration Policies Dave Roberts Economic Policy Team Leeds City Council

2. Corporate Debt Policy Where we were: • Almo inspections • Corporate Debt pilot initiative • Exclusion to Inclusion Research 2004 – financial exclusion in two speed Leeds • 2005, analysis 1,000 debtors with more than 3 years Council Tax arrears, owing approx £4 million in Council debts. • Review philosophy

3. Opening the Door Partner Involvement in Drafting Policy • CAB and Advice Agencies • Credit Union • ALMOs • Customer Services

4. Revised approach • Residents with 3 years Council Tax debts • Reviewed support practices • Debt prioritisation and advice • Partnership working – advice agencies

5. Policy initiatives and implementation Corporate Debt Liaison Group • Debt awareness publicity initiatives • Staff presentations and briefings • Multiple debt referral process • Benefit maximisation and debt / money advice • Information sharing

6. Corporate Debt and Social Landlords Maxine Stavrianakos Income Unit Manager Sheffield Homes

7. In the Beginning • Cross Party Support • Led by the Chief Executive • Closing the Gap • The Partnership • Financial Inclusion & Neighbourhoods • Corporate Debt Approach

8. Today • Financial Inclusion Consortium • Corporate Financial Inclusion Group- Corporate Debt Group • RSL Financial Capability Group • DWP Financial Inclusion Champions • Corporate Plan Priority 10/11

9. Today - 2 • The objective of Strengthening Sheffield's Economy by increasing dependence of individuals upon benefits and undermining the capacity of people to start up businesses, access training and learning • Developing Successful Neighbourhoods by entrenching the gap between the most deprived communities and other parts of the city as the recession impacts most significantly upon those in poverty or with low skills levels

10. Today - 3 • Efforts to create Inclusive Healthy Communities as those people experiencing financial exclusion experience poorer mental health and wellbeing and sometimes greater reliance on prescribed drugs • The work of partners to make Sheffield a Great place to Grow Up as households experiencing financial distress are less likely to create environments in which young people can focus on learning and skills

11. Housing The way we were: • 1997 debt in Sheffield and to the City Council not a big issue – gross rent arrears £8m • In 2001 gross rent arrears rose to £19.8m • No combined debt procedure, no rent arrears procedure • Debts looked at in isolation • Good working relationships between officers of different Directorates

12. Housing - 2 • Fundamental aim – to improve the financial circumstances of vulnerable people • Partnership Working- Local Authority, ALMO, Voluntary Community and Faith Sector • Established named contacts • Joint Training • Prescriptive Arrears Policy & Procedure • Sensitivity Procedure

13. 2009 onwards • Consolidated Team – “Prevention not Cure” • Money Advice Officers • Early Support Function • Affordability interviews • Negotiation • Promoting Direct Debit and Insurance • Quitting Interviews • On line referrals • Dedicated Advice worker • 2010 - Gross arrears £10.2m

14. Economic Impact Dave Roberts Economic Policy Team Leeds City Council

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

16. The Regeneration Agenda • Credit Union Affordable Credit • Interest Savings, £1.8m (low income families) • Debt and Money Advice • Increase household income, £1.7m • Housing Business Case • £8,500, cost to evict a family

17. Economic Impact Research • Undertaken by Salford University • Linkages between financial inclusion initiatives and economic regeneration • Survey of 527 recipients of: • Debt Advice • Credit Union Services • Welfare/Benefits Advice

18. Financial Inclusion Interventions Studied • Leeds City Council • Welfare Rights Unit • Corporate Debt Unit • Benefits Service • Leeds Debt Advice Agencies (MAP) • Social Housing Providers • Leeds City Credit Union • Utility company (npower)

19. Input-output modelling • Quantify the income per beneficiary • Family Resource Survey (FRS) data estimate how service users would spend money • Use Regional Development Agency (Yorkshire Forward) input-output tables • Develop multiplier model software to calculate impact

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

21. Estimates are conservative • Didn’t measure impact of generalist advice services • Didn’t measure the financial impact on health services • Avoided double counting • When choices/estimates made – always conservative

22. Key Survey Results

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

24. Stress Levels Change in stress levels about financial matters

25. Overall costs & benefits

26. Arriving at Economic Impact (1)

27. Arriving at Economic Impact (2)

28. Concluding remarks • Financial inclusion should be viewed holistically – Don’t Cherry Pick • Involves national public expenditure • Valuable regeneration vehicle • Illustrates what local authorities can achieve but need national action to solve problem

29. Contact details Dave Roberts Leeds City Council Economic Policy Team 0044 (0)113 247 4724 www.leeds.gov.uk/fi financial.inclusion@leeds.gov.uk Maxine Stavrianakos Sheffield Homes 0044 (0)114 205 2527 maxine.stavrianakos@sheffieldhomes.org.uk