Agenda item
Draft Financial Inclusion Strategy 2013 -16
To consider and comment on the draft strategy.
Minutes:
Louise Russell, Service Head Corporate Strategy & Equality, gave a detailed Powerpoint presentation which introduced and highlighted key points in the written report, informing the OSC of current work to develop the Tower Hamlets Financial Inclusion Strategy 2013-2016 (FIS) and presenting the initial draft of the Strategy for consultation, prior to adoption by the Tower Hamlets Partnership. The slides were also Tabled, a copy of which would be interleaved with the minutes. Maura Farrelly, Community Resources Officer - Advice and Anti- Poverty, was also in attendance to answer questions from the OSC.
A comprehensive discussion followed which focused on the following points:-
· Clarification sought and given as to:
Ø FIS objectives Theme 2 - 2.1 & 2.2 as to the efforts made to contact financial services (FS) organisations in/ near the borough and whether a positive relationship had developed. Whilst understanding the lead role of Toynbee Hall in this, consideration that more could be done in this area given the concentration of FS businesses in/ in close proximity to LBTH and their probable receptivity (post banking crisis) and expertise with products for the target group.
Ø The scale of funding for advice services regarding FS and FI, and large downscaling resulting in a shift from a publicity and information campaign to a national information system geared to the literate, which was not ideal.
Ø In context of FIS objective Theme 1 – 1.2, and the awareness that most related products were computer based, as to provision to improve computer literacy and community access to on line facilities. Consideration that the FIS could be strengthened by action points for further exploration of this aspect of FI.
Ø How the FIS was congruent with endeavouring to mitigate the social and public health impact of personal debt and also with introduction of personal budgets for residents receiving mental health services. Anti-Poverty Strategy be presented to a future OSC for its consideration in this context.
Ø The nature and depth of consultation with residents in development of the FIS and the proposals it contained for partnership working to promote FI.
Ø The consideration given when developing the FIS to linkage with the Gambling Policy currently being reviewed.
Ø Whether the implications of the FIS could be contained within existing budgets were there to be any sudden shift in policy from Government.
· Noting the gap in FS provision (and associated social implications) of the borough-wide ATM mapping exercise, consideration that the Council, as the largest landowner in the borough, could provide sites for ‘free withdrawl’ ATMs. Also that provision of free ATMs in One Stop Shops, housing offices and idea stores would help mitigate this aspect of exclusion from FS.
· Consideration that:-
Ø The approach of Council’s in Scotland, where on line access to ‘Pay Day Loan Companies’ had been blocked to their workforce/ Council establishments eg libraries, should be explored in LBTH if it were lawful. Clarification also sought and given on the Communications Strategy element within the FIS.
Ø The FIS should explore the potential for the Council to provide residents with a free pre-paid debit/credit card, possibly with incentivisation to pay by direct debit, so that those on low income could avoid the financial charges of commercial cards.
Ø The FIS was not aligned with the Mainstream Grant Programme, recently agreed by the Mayor, given the importance of FI in the context of Government welfare/ benefit reform and the concurrent reduction of advice centre funding in the Programme.
Ø The corporate social responsibility projects undertaken by Canary Wharf would be more beneficial if focussed on sharing financial expertise. Therefore the FIS could be strengthened with an initiative to put together a consortium of FS organisations to provide advice services.
Ø In the context of reduced MSG funding for advice connected with FI it was worth exploring the potential for local FS businesses to plug the funding gap, even if temporarily, as the Voluntary Sector (VS) organisations had a track record in advice provision and were trusted by local residents.
Ø In the context of a delay in Government introduction of a benefit cap from March/ April to June 2013, it was important to keep residents informed/ engaged and forstall the onset of any complacency.
· The importance of:
Ø Simple signposting for residents on what to do if they encountered difficulty due to welfare reform changes/ impact on benefits, was emphasised in the context of the major impact on Tower Hamlets of the new Government benefit cap, and the need for effective management so that advice services weren’t swamped. Noted that initiatives were underway to address this. However concern expressed at the current levels of resident awareness, and in this context the need for bad debt provision by the Council and a preparedness to review the recent changes to processes and funding in this area.
Ø A fair and impartial approach by the Council and partner RSLs to meeting housing need was emphasised and the need to focus efforts on gaining public trust.
The Chair Moved and it was:-
Resolved
1. That the contents of the report, and draft Financial Inclusion Strategy 2013-2016, attached at Appendix 1, be noted; and
2. That Officers be requested to take account of the OSC comments and suggestions to strengthen the Strategy.
Action by:
Louise Russell (Service Head Corporate Strategy & Equality)
Supporting documents:
- Financial Inclusion Strategy Consultation (2) DG1712121350pm, item 6.2 PDF 66 KB
- Financial_Inclusion_Strategy_04 12 121, item 6.2 PDF 775 KB
- Appx 2 Draft Financial Inclusion Strategy Equality Analysisv2, item 6.2 PDF 443 KB