Voluntary Action Rotherham

Affordable Credit and Banking Services

Making sure Rotherham's most vulnerable individuals can access affordable credit and banking services is a key priority for the team. Partners, Front Links Workers or anyone working with financially excluded individuals might be interested in some of the following initiatives.

Credit Crunch Loans -This scheme is to provide loans to the residents of Rotherham, who are in or about to go into financial hardship including mortgage arrears, rent arrears orother financial difficulties. Borrowers would also be given access to a competitive saving scheme.

Loans* are available up to £1,500 per successful household, although this limit can increase to £2,500 in exceptional circumstances. Loans will be provided for periods of up to two years at an interest rate 19% APR. Currently handled by Rothersave Credit Union 

Growth Fund - Provides affordable loans to financially excluded people. Currently being handled in Rotherham by Laser Credit Union.

Rent in Advance - This is a partnership between RMBC homeless section, ROBOND and Laser Credit Union to provide bonds and loans for homeless people to access private rented accommodation.

Banking services - A partnership under negotiation between Rotherham Credit Unions and HBOS to provide bank account services (including cash card, direct debits etc) for credit union members.

Direct benefit payments - Credit union members can have their benefits paid directly to the credit union, and their loan and savings payments deducted automatically. This scheme is being operated by Laser Credit Union.

Advice provision

Face to face debt and money advice is key to helping people deal with and overcome financial problems. A number of agencies in Rotherham are working hard to make these services available to vulnerable individuals free of charge. Some of the initiatives we've been involved with are listed below.

Financial Inclusion Fund - Funds have been made available from the government to recruit and train debt advisors. Rotherham Citizen's Advice Bureau has been able to employ staff to help people with their debt problems.

Advising on Debt training course - This course, to be run through Rotherham Advice and Information Network (RAIN), is accredited through the National Open College Network. Details of the next available course can be found on the RAIN website.

Financial capability learning opportunities

Presently the team has a full time financial capability coordinator working with partners including 2010, Children's Centre and Probation Services. Key to her role is identifying how best to coordinate and deliver training for partners that can improve individuals financial knowledge, confidence and awareness, to be able to make more informed financial decisions. If you feel your clients might benefit from this training you can contact carol at This e-mail address is being protected from spambots. You need JavaScript enabled to view it  or on 01709 511171.

2010 - Partnership with rent arrears officers. Providing conditional financial capability training sessions for first time residents.

Financial capability sessions - This is a partnership with Barnsley CAB, Rotherham's Children's Centres, Laser Credit Union and Rotherham CAB to deliver financial capability training sessions to residents of Chesterhill area in Rotherham.

Eastwood and Springwell Gardens Neighbourhood Management Pathfinder - This is a one year project run through Laser Credit Union:

• Schools work - To create long term link with Clifton School on the subject of financial capability.
• Work with South Yorkshire Probation Services and HM Prison Service Doncaster and Young Offenders Institution - To raise awareness of and provide training in financial inclusion.

• Work with Registered Social Landlords - To raise awareness and provide training for staff of Northern Counties Housing Association and South Yorkshire Housing Association

Other Initiatives

Financial Services Authority (FSA)

• Schools work - The Personal Financial Education Group (PFEG) is delivering teacher training to secondary schools supporting the introduction of Financial Capability into the curriculum. The aim is to create links with all schools as they commence the teaching of Financial Capability.
• New Parents - The FSA's guide for new parents is distributed to prospective new parents via midwives and to a wider audience through Children's Centres. The aim is to maximise awareness of its availability and use through established media channels.
• Workplace - A free educational programme for employees is run by the FSA. The aim is to identify and introduce suitable employers to the programme.
• Work with intermediaries - Supporting the new parents and workplace initiatives above the FSA has produced training materials for these intermediaries working with targeted groups. Training courses are also available for individuals working with groups such as those Not in Employment, Education or Training to help them deliver Financial Capability education. The aim is to ensure these groups are aware of, obtain and use the resources available to them.
• Consumer information - All of the FSA's work is supported with a range of consumer guides and the Money Made Clear website. The aim is to increase awareness and use of all of these free resources through partner organisations.

Now let's talk money campaign
The Department of Work and Pensions' Now let's talk money campaign aimed to raise awareness of the impact of financial exclusion on people's lives through building partnerships, awareness raising events and training. The project was terminated in July 08 to be replaced by the Financial Inclusion Championsinitiative (to be piloted in Scotland) . This scheme aims to engage local authorities more in financial inclusion, promote take up of the Growth Fund and focus on increased take up of insurance services.

Loan shark initiative
An additional resource for Rotherham Trading Standards, and others in the region, the Loan Shark Initiative is funded through Central Government. Its role is to raise awareness of illegal lending, secure prosecutions and help customers to access legal sources of affordable credit, face to face money advice and other forms of support.

Savings

• Savings Gateway - This is a government initiative successfully piloted elsewhere and to be rolled out nationally in 2010. It aims to provide cash incentives for financially excluded people to save regularly. Credit unions are well placed to become approved service providers. A factsheet has been produced for intermediaries which can be downloaded here.