As welfare reforms roll out across Britain, Wales Co-operative Centre Financial Inclusion Project Manager Jocelle Lovell discusses the changes.
A recent survey has highlighted that in Wales nearly two fifths of private and portfolio landlords were not prepared for upcoming changes in Welfare benefits and the subsequent effect it may have on their rental income.
Startlingly, a seperate pilot conducted by the Wales Co-operative Centre and Caerphilly County Borough Coincil suggests that private sector tenants are just as poorly informed and prepared as their landlords.
Welfare reform will affect the way that all claimants, including those currently receiving housing benefits, receive their payments. Each household will receive the benefits they are entitled to in one single payment that will be monthly in arrears.
Many tenants of both private and social landlords will still say they they don't pay rent as they have never been in receipt of the money and have never had to make a physical payment. There are also many tenants who are digitally excluded, and have no means of accessing the online services that will help them manage better or do not have the skills to do so.
Budgeting is an issue for tenants who are currently used to receiving payments on a weekly or fortnightly basis. Many tenants existing within a cash economy may soon find themselves in difficulty.
People who are already in or living close to poverty line often don't want the temptation of having the rent money in their pocket. Most people faced with the choice of paying rent or feeding or clothing their children will ensure their children's immediate needs are met first.
The Welfare Reform and Universal Credit changes will be rolled out over the next few years. It is our belief that if more resources are put into pro-active methods of engagement with 'at risk' tenants now it would be far more effective and offer better value for money to the public purse than dealing with crisis intervention at a later date.
Following a piece of work carried out in partnership with Caerphilly County Borough Council, early findings suggest that four out of five tenants are still unaware of exactly how the reforms will affect them. At least half of the tenants surveyed to date had no access to on-line facilities.
Working in partnership with staff from the local authority we were able to explain the effects of the reforms to each tenant. Wherever possible, tenants were advised on applying for additional funding and referrals were made to other advice and support agencies in the area, including foodbanks. Of the tenants visited over half had struggled to pay bills such as rent and utilities and one in five had turned to door step lenders in the past year. Each of the tenants faced different challenges - paying bills, paying rent, buying food, or buying clothing for their children, but most were already struggling with their finances.
We need a range of solutions to meet the needs of different people. Nobody should be forced into using a product or service that isn't appropriate for them.
One of these solutions could be a Credit Union Rent Account as it offers peace of mind to the tenant that their rent will be paid and also removes the temptation to use the rent money to make up short falls elsewhere. Of the tenants visited 80% wanted to explore the idea of a Credit Union Rent Account as they felt it was the best way to protect their tenancy.
The Wales Co-operative Centre's Tackling Homelessness through Financial Inclusion project is workin with local authorities and landlords across Wales to promote this simple model.
In light of the changes to Welfare Reform and the cuts to public sector funding, there has never been a more important time for public, private and the third sectors to work more collaboratively in supporting people and tackling poverty.
Jocelle Lovell
Tackling Homelessness through Financial Inclusion Project Manager
Wales Co-operative Centre
30 Oct 2013
16 Oct 2013
The National Assembly for Wales will debate a Financial Education and Inclusion bill. Teej Dew, Financial Inclusion Programme Director at Wales Co-operative Centre, comments on policy and practical steps
Posted by
Unknown
Financial literacy (or financial capability) has never been so important. We as a society have always needed to know how to manage our money, but we are now living in a testing financial environment where the demands on our personal budgets are higher than they have been for many years.
For the long term, education our young people in what money is and how to make decisions about their finances is vital. In fact it's not just about finances, but about life choices. Choice like "do I get this mobile contract and if I do will that leave me short for the rent money?" can mean the difference between having a home and not.
Starting this thinking in school is necessary both because of its importance but also because many parents themselves struggle to manage family finances, so don't have the knowledge and skills to pass on to their children.
There are a number of elements on money included in the numeracy framework in Wales. We need to make sure this continues to be delivered and that that sparks off other conversations in the classroom about how money can be managed. There is support there for schools and although it is accepted there is always pressure on classroom time, schools need to take the lead in delivering the resources that have been provided.
In addition, there are many adults for whom dealing with their finances is a mystery. This results in them lurching from one inadvisable decision and its consequences to the next. This costs money, family life, opportunities and in some cases even jobs. More adults need to become financially capable.
In order to provide basic level guidance on managing money, the Money Made Clear Wales website has been set up with Welsh Government funding and the co-operation of the Money Advice Service in Wales. With links to expert advice and services, it is in use by the public and by agencies who sit with individuals to help them to make money choices. We would like to see far more people getting the benefit from this website as the feedback from real people, in real money problems has been overwhemingly positive.
The availability of appropriate finanical services is vital. A safe and trusted place to save, affordable credit, transactional services and affordable insurance products may seem accessible but to many they are out of reach. This goes hand in hand with financial capability. After all knowing about APR is not helpful if you have no choice but to borrow at high rates of interest?
At the same time what good is restricting payday lending if a person doesn't know enough about how to manage from one pay day and so needs to borrow as an emergency? If payday loans are not available people will just borrow from elsewhere, possibly from a loan shark.
Advice is key. We have excellent quality advice services in Wales and they are working further to co-ordinate themselves to help people wherever and whenever they need it. It is a challenge but the Welsh Government's Advice Services Review provides a framework for us all to work to.
Policy
The Wales Co-operative Centre welcomes any debate about personal finances that gets policy makers, service deliverers and the public thinking, talking and taking action about this issue.
In Wales, we have seen a change in the approach of service providers to financial inclusion over the last 2 years with a much better commitment to supporting people to make their finances work for them. There are a number of reasons attributable but we see local authorities, housing providers and Government all considering personal money and how people manage it differently.
There is some way to go and we would urge Government and public sector bodies to continue to work with their senior staff and service delivery staff on a way forward. For example having financial inclusion as part of the local authority's single integrated plan means nothing if the staff dealing with a homeless person have no understanding of why they can't set up a standing order to pay their rent.
In short, work is being done but we need this to continue and expand.
Practical Steps
Recognising that public resources are under pressure we would highlight a few practical steps that could be undertaken with relatively low financial commitment:
Financial education in schools needs to be continued. The Financial Education Unit has made a good start with integration into the numeracy framework, the production of materials and some training for teachers. We need to continue to this momentum with schools delivering and expanding conversations about money in other lessons. We also need parents to support this agenda, being aware and involved in conversations about money. For example, financial capability sessions for parents are held locally and in parallel with work at schools could be helpful.
Financial inclusion needs to be a strategic consideration but as explained this needs to be continued at an operational level. Customer facing staff should be trained in "problem noticing" and appropriate signposting.
Local authorities are in a prime position to make a difference on support for financial inclusion. Helping credit union advice and other third sector support services to co-operate and co-locate is of value both to the organisation and the public.
These are the things that will make a difference, legislated for or not.
Written by Teej Dew, Financial Inclusion Programme Director, Wales Co-operative Centre.
Mae llythrennedd ariannol (neu allu ariannol) yn bwysicach nag erioed. Fel cymdeithas, mae angen wedi bod arnom erioed i wybod sut i reoli’n harian, ond rydym bellach yn byw mewn amgylchedd ariannol heriol lle mae’r galw ar ein cyllidebau personol yn uwch nag y buont am lawer o flynyddoedd.
Yn yr hirdymor, mae addysgu ein pobl ifanc am yr hyn yw arian a sut i wneud penderfyniadau am eu materion ariannol yn hanfodol. Yn wir, nid ymwneud â materion yn unig mae hyn, ond â dewisiadau bywyd. Gall dewisiadau o’r fath olygu’r gwahaniaeth rhwng cael cartref neu beidio er enghraifft, ‘a ddylwn i gael y contract ffôn symudol hwn a phe bawn i, a fydd hyn yn golygu na fydd gennyf ddigon o arian ar gyfer y rhent?’.
Mae dechrau meddwl fel hyn yn yr ysgol yn hanfodol oherwydd ei bwysigrwydd a hefyd oherwydd bod nifer o rieni yn cael anhawster eu hunain i reoli materion ariannol y teulu, felly nid oes ganddynt yr wybodaeth na’r sgiliau i’w trosglwyddo i’w plant.
Mae nifer o elfennau ariannol wedi’u cynnwys yn y fframwaith rhifedd yng Nghymru. Mae angen i ni sicrhau bod hyn yn parhau i gael ei gyflawni a bod hyn yn tanio sgyrsiau yn y dosbarth ynglŷn â sut y gellir rheoli arian. Mae cymorth ar gael ar gyfer ysgolion ac er y derbynnir bod pwysau cyson ar amser yn y dosbarth, mae angen i ysgolion arwain y ffordd wrth drosglwyddo’r adnoddau a ddarparwyd.
Yn ogystal, mae ymdrin â materion ariannol yn ddirgelwch i lawer o oedolion. Mae hyn yn arwain atynt yn mynd o un penderfyniad gwael a’i ganlyniadau i’r nesaf. Mae hyn yn effeithio ar arian, ar fywyd teuluol, ar gyfleoedd ac mewn rhai achosion ar swyddi hyd yn oed. Mae angen i lawer o oedolion ddod yn fwy abl yn ariannol.
Er mwyn darparu lefel sylfaenol o arweiniad ar reoli arian, sefydlwyd gwefan Money Made Clear Wales drwy nawdd Llywodraeth Cymru a chydweithrediad y Gwasanaeth Cynghori Ariannol yng Nghymru. Trwy gyfrwng ei gysylltiadau â chyngor a gwasanaethau arbenigol, mae’n cael ei ddefnyddio gan y cyhoedd ac asiantaethau sy’n helpu unigolion i wneud dewisiadau ariannol. Rydym yn dymuno gweld llawer yn rhagor o bobl yn manteisio ar y wefan hon oherwydd mae’r adborth gan bobl go iawn a chanddynt broblemau ariannol go iawn wedi bod yn gadarnhaol dros ben.
Mae argaeledd gwasanaethau ariannol priodol yn hanfodol. Mae canfod lle diogel y gallwch ymddiried ynddo i gynilo arian, cael credyd fforddiadwy, gwasanaethau trafodaethol a chynnyrch yswiriant fforddiadwy yn gallu ymddangos yn hygyrch ond i lawer maent ymhell o’u cyrraedd. Mae hyn yn cyd-fynd â gallu ariannol. Wedi’r cwbl nid yw gwybod y cyfan am APR yn ddefnyddiol os nad oes gennych ddewis heblaw benthyg ar gyfraddau llog uchel.
Ar yr un pryd pa mor ddefnyddiol yw cyfyngu ar fenthyciadau diwrnod cyflog os nad yw’r unigolyn yn gwybod digon am sut i ymdopi o un diwrnod cyflog i’r llall ac felly bod arno angen cael benthyciad mewn argyfwng? Os nad yw benthyciadau diwrnod cyflog ar gael bydd pobl yn benthyg o lefydd eraill, o bosibl gan fenthycwyr arian didrwydded.
Mae cyngor yn hanfodol. Mae gennym wasanaethau cynghori o safon rhagorol yng Nghymru ac maent yn gweithio i gydlynu eu hunain i helpu pobl lle bynnag a phryd bynnag y mae arnynt angen cymorth. Mae’n her ond mae Adolygiad Gwasanaethau Cynghori Llywodraeth Cymru yn darparu fframwaith ar ein cyfer i weithio tuag ato.
Polisi
Mae Canolfan Cydweithredol Cymru yn croesawu unrhyw drafodaeth am faterion ariannol personol sy’n golygu bod gwneuthurwyr polisi, cyflawnwyr gwasanaethau a’r cyhoedd yn dechrau meddwl, siarad a gweithredu ar y mater hwn.
Dros y 2 flynedd diwethaf rydym wedi gweld newid yng Nghymru o ran dull y darparwyr gwasanaethau tuag at gynhwysiant ariannol â llawer mwy o ymrwymiad yn cael ei roi i gefnogi pobl i ymdrin â’u harian yn llwyddiannus. Mae nifer o resymau dros hyn ond rydym yn gweld awdurdodau lleol, darparwyr tai a’r Llywodraeth oll yn ystyried arian personol a’r modd mae pobl yn ei reoli’n effeithiol.
Mae tipyn o waith i’w gyflawni ac rydym yn annog y Llywodraeth a chyrff y sector cyhoeddus i barhau i weithio gyda’u staff uwch a staff sy’n darparu’r gwasanaethau ar y ffordd ymlaen. Er enghraifft nid yw cynnwys cynhwysiant ariannol yn rhan o gynllun integredig sengl yr awdurdod lleol yn golygu dim os nad yw’r bobl sy’n ymdrin ag unigolyn digartref yn deall pam nad yw’n gallu sefydlu gorchymyn sefydlog i dalu ei rent.
Yn gryno, mae gwaith yn cael ei gyflawni ond rydym angen i hyn barhau ac ehangu.
Camau ymarferol
Wrth gydnabod bod adnoddau cyhoeddus dan bwysau rydym yn dymuno amlygu rhai camau ymarferol y gellid eu cyflawni trwy ymrwymiad ariannol gweddol isel.
Mae angen parhau ag addysg ariannol mewn ysgolion. Mae’r Uned Addysg Ariannol wedi dechrau’n dda wrth integreiddio i’r fframwaith rhifedd, cynhyrchu deunyddiau ac darparu ychydig o hyfforddiant i athrawon. Mae angen i ni barhau â’r momentwm hwn gydag ysgolion yn darparu ac yn ehangu sgyrsiau am arian mewn gwersi eraill. Rydym hefyd angen i rieni gefnogi’r agenda hon, gan fod yn ymwybodol a chymryd rhan mewn sgyrsiau am arian. Er enghraifft, gallai sesiynau gallu ariannol ar gyfer rhieni a gynhelir yn lleol ac ar y cyd â’r gwaith yn yr ysgolion fod yn ddefnyddiol.
Mae angen i gynhwysiant ariannol fod yn ystyriaeth strategol ond fel yr esboniwyd, mae angen i hyn barhau ar lefel weithredol. Dylid hyfforddi staff sy’n ymwneud â’r cyhoedd o ran ‘sylwi ar broblemau’ a chyfarwyddo pobl yn briodol.
Mae awdurdodau lleol mewn sefyllfa ddelfrydol i wneud gwahaniaeth i’r cymorth ar gyfer cynhwysiant ariannol. Mae helpu undebau credyd, gwasanaethau cynghori a chymorth arall o’r trydydd sector i gydweithredu a chydleoli yn werthfawr i’r sefydliad a’r cyhoedd.
Rhain yw’r pethau a fydd yn gwneud gwahaniaeth, wedi’u deddfu ar ei chyfer neu beidio.
Ysgrifennwyd gan Teej Dew, Cyfarwyddwr Rhaglen Cynhwysiant Ariannol, Canolfan Cydweithredol Cymru
For the long term, education our young people in what money is and how to make decisions about their finances is vital. In fact it's not just about finances, but about life choices. Choice like "do I get this mobile contract and if I do will that leave me short for the rent money?" can mean the difference between having a home and not.
Starting this thinking in school is necessary both because of its importance but also because many parents themselves struggle to manage family finances, so don't have the knowledge and skills to pass on to their children.
There are a number of elements on money included in the numeracy framework in Wales. We need to make sure this continues to be delivered and that that sparks off other conversations in the classroom about how money can be managed. There is support there for schools and although it is accepted there is always pressure on classroom time, schools need to take the lead in delivering the resources that have been provided.
In addition, there are many adults for whom dealing with their finances is a mystery. This results in them lurching from one inadvisable decision and its consequences to the next. This costs money, family life, opportunities and in some cases even jobs. More adults need to become financially capable.
In order to provide basic level guidance on managing money, the Money Made Clear Wales website has been set up with Welsh Government funding and the co-operation of the Money Advice Service in Wales. With links to expert advice and services, it is in use by the public and by agencies who sit with individuals to help them to make money choices. We would like to see far more people getting the benefit from this website as the feedback from real people, in real money problems has been overwhemingly positive.
The availability of appropriate finanical services is vital. A safe and trusted place to save, affordable credit, transactional services and affordable insurance products may seem accessible but to many they are out of reach. This goes hand in hand with financial capability. After all knowing about APR is not helpful if you have no choice but to borrow at high rates of interest?
At the same time what good is restricting payday lending if a person doesn't know enough about how to manage from one pay day and so needs to borrow as an emergency? If payday loans are not available people will just borrow from elsewhere, possibly from a loan shark.
Advice is key. We have excellent quality advice services in Wales and they are working further to co-ordinate themselves to help people wherever and whenever they need it. It is a challenge but the Welsh Government's Advice Services Review provides a framework for us all to work to.
Policy
The Wales Co-operative Centre welcomes any debate about personal finances that gets policy makers, service deliverers and the public thinking, talking and taking action about this issue.
In Wales, we have seen a change in the approach of service providers to financial inclusion over the last 2 years with a much better commitment to supporting people to make their finances work for them. There are a number of reasons attributable but we see local authorities, housing providers and Government all considering personal money and how people manage it differently.
There is some way to go and we would urge Government and public sector bodies to continue to work with their senior staff and service delivery staff on a way forward. For example having financial inclusion as part of the local authority's single integrated plan means nothing if the staff dealing with a homeless person have no understanding of why they can't set up a standing order to pay their rent.
In short, work is being done but we need this to continue and expand.
Practical Steps
Recognising that public resources are under pressure we would highlight a few practical steps that could be undertaken with relatively low financial commitment:
Financial education in schools needs to be continued. The Financial Education Unit has made a good start with integration into the numeracy framework, the production of materials and some training for teachers. We need to continue to this momentum with schools delivering and expanding conversations about money in other lessons. We also need parents to support this agenda, being aware and involved in conversations about money. For example, financial capability sessions for parents are held locally and in parallel with work at schools could be helpful.
Financial inclusion needs to be a strategic consideration but as explained this needs to be continued at an operational level. Customer facing staff should be trained in "problem noticing" and appropriate signposting.
Local authorities are in a prime position to make a difference on support for financial inclusion. Helping credit union advice and other third sector support services to co-operate and co-locate is of value both to the organisation and the public.
These are the things that will make a difference, legislated for or not.
Written by Teej Dew, Financial Inclusion Programme Director, Wales Co-operative Centre.
Mae llythrennedd ariannol (neu allu ariannol) yn bwysicach nag erioed. Fel cymdeithas, mae angen wedi bod arnom erioed i wybod sut i reoli’n harian, ond rydym bellach yn byw mewn amgylchedd ariannol heriol lle mae’r galw ar ein cyllidebau personol yn uwch nag y buont am lawer o flynyddoedd.
Yn yr hirdymor, mae addysgu ein pobl ifanc am yr hyn yw arian a sut i wneud penderfyniadau am eu materion ariannol yn hanfodol. Yn wir, nid ymwneud â materion yn unig mae hyn, ond â dewisiadau bywyd. Gall dewisiadau o’r fath olygu’r gwahaniaeth rhwng cael cartref neu beidio er enghraifft, ‘a ddylwn i gael y contract ffôn symudol hwn a phe bawn i, a fydd hyn yn golygu na fydd gennyf ddigon o arian ar gyfer y rhent?’.
Mae dechrau meddwl fel hyn yn yr ysgol yn hanfodol oherwydd ei bwysigrwydd a hefyd oherwydd bod nifer o rieni yn cael anhawster eu hunain i reoli materion ariannol y teulu, felly nid oes ganddynt yr wybodaeth na’r sgiliau i’w trosglwyddo i’w plant.
Mae nifer o elfennau ariannol wedi’u cynnwys yn y fframwaith rhifedd yng Nghymru. Mae angen i ni sicrhau bod hyn yn parhau i gael ei gyflawni a bod hyn yn tanio sgyrsiau yn y dosbarth ynglŷn â sut y gellir rheoli arian. Mae cymorth ar gael ar gyfer ysgolion ac er y derbynnir bod pwysau cyson ar amser yn y dosbarth, mae angen i ysgolion arwain y ffordd wrth drosglwyddo’r adnoddau a ddarparwyd.
Yn ogystal, mae ymdrin â materion ariannol yn ddirgelwch i lawer o oedolion. Mae hyn yn arwain atynt yn mynd o un penderfyniad gwael a’i ganlyniadau i’r nesaf. Mae hyn yn effeithio ar arian, ar fywyd teuluol, ar gyfleoedd ac mewn rhai achosion ar swyddi hyd yn oed. Mae angen i lawer o oedolion ddod yn fwy abl yn ariannol.
Er mwyn darparu lefel sylfaenol o arweiniad ar reoli arian, sefydlwyd gwefan Money Made Clear Wales drwy nawdd Llywodraeth Cymru a chydweithrediad y Gwasanaeth Cynghori Ariannol yng Nghymru. Trwy gyfrwng ei gysylltiadau â chyngor a gwasanaethau arbenigol, mae’n cael ei ddefnyddio gan y cyhoedd ac asiantaethau sy’n helpu unigolion i wneud dewisiadau ariannol. Rydym yn dymuno gweld llawer yn rhagor o bobl yn manteisio ar y wefan hon oherwydd mae’r adborth gan bobl go iawn a chanddynt broblemau ariannol go iawn wedi bod yn gadarnhaol dros ben.
Mae argaeledd gwasanaethau ariannol priodol yn hanfodol. Mae canfod lle diogel y gallwch ymddiried ynddo i gynilo arian, cael credyd fforddiadwy, gwasanaethau trafodaethol a chynnyrch yswiriant fforddiadwy yn gallu ymddangos yn hygyrch ond i lawer maent ymhell o’u cyrraedd. Mae hyn yn cyd-fynd â gallu ariannol. Wedi’r cwbl nid yw gwybod y cyfan am APR yn ddefnyddiol os nad oes gennych ddewis heblaw benthyg ar gyfraddau llog uchel.
Ar yr un pryd pa mor ddefnyddiol yw cyfyngu ar fenthyciadau diwrnod cyflog os nad yw’r unigolyn yn gwybod digon am sut i ymdopi o un diwrnod cyflog i’r llall ac felly bod arno angen cael benthyciad mewn argyfwng? Os nad yw benthyciadau diwrnod cyflog ar gael bydd pobl yn benthyg o lefydd eraill, o bosibl gan fenthycwyr arian didrwydded.
Mae cyngor yn hanfodol. Mae gennym wasanaethau cynghori o safon rhagorol yng Nghymru ac maent yn gweithio i gydlynu eu hunain i helpu pobl lle bynnag a phryd bynnag y mae arnynt angen cymorth. Mae’n her ond mae Adolygiad Gwasanaethau Cynghori Llywodraeth Cymru yn darparu fframwaith ar ein cyfer i weithio tuag ato.
Polisi
Mae Canolfan Cydweithredol Cymru yn croesawu unrhyw drafodaeth am faterion ariannol personol sy’n golygu bod gwneuthurwyr polisi, cyflawnwyr gwasanaethau a’r cyhoedd yn dechrau meddwl, siarad a gweithredu ar y mater hwn.
Dros y 2 flynedd diwethaf rydym wedi gweld newid yng Nghymru o ran dull y darparwyr gwasanaethau tuag at gynhwysiant ariannol â llawer mwy o ymrwymiad yn cael ei roi i gefnogi pobl i ymdrin â’u harian yn llwyddiannus. Mae nifer o resymau dros hyn ond rydym yn gweld awdurdodau lleol, darparwyr tai a’r Llywodraeth oll yn ystyried arian personol a’r modd mae pobl yn ei reoli’n effeithiol.
Mae tipyn o waith i’w gyflawni ac rydym yn annog y Llywodraeth a chyrff y sector cyhoeddus i barhau i weithio gyda’u staff uwch a staff sy’n darparu’r gwasanaethau ar y ffordd ymlaen. Er enghraifft nid yw cynnwys cynhwysiant ariannol yn rhan o gynllun integredig sengl yr awdurdod lleol yn golygu dim os nad yw’r bobl sy’n ymdrin ag unigolyn digartref yn deall pam nad yw’n gallu sefydlu gorchymyn sefydlog i dalu ei rent.
Yn gryno, mae gwaith yn cael ei gyflawni ond rydym angen i hyn barhau ac ehangu.
Camau ymarferol
Wrth gydnabod bod adnoddau cyhoeddus dan bwysau rydym yn dymuno amlygu rhai camau ymarferol y gellid eu cyflawni trwy ymrwymiad ariannol gweddol isel.
Mae angen parhau ag addysg ariannol mewn ysgolion. Mae’r Uned Addysg Ariannol wedi dechrau’n dda wrth integreiddio i’r fframwaith rhifedd, cynhyrchu deunyddiau ac darparu ychydig o hyfforddiant i athrawon. Mae angen i ni barhau â’r momentwm hwn gydag ysgolion yn darparu ac yn ehangu sgyrsiau am arian mewn gwersi eraill. Rydym hefyd angen i rieni gefnogi’r agenda hon, gan fod yn ymwybodol a chymryd rhan mewn sgyrsiau am arian. Er enghraifft, gallai sesiynau gallu ariannol ar gyfer rhieni a gynhelir yn lleol ac ar y cyd â’r gwaith yn yr ysgolion fod yn ddefnyddiol.
Mae angen i gynhwysiant ariannol fod yn ystyriaeth strategol ond fel yr esboniwyd, mae angen i hyn barhau ar lefel weithredol. Dylid hyfforddi staff sy’n ymwneud â’r cyhoedd o ran ‘sylwi ar broblemau’ a chyfarwyddo pobl yn briodol.
Mae awdurdodau lleol mewn sefyllfa ddelfrydol i wneud gwahaniaeth i’r cymorth ar gyfer cynhwysiant ariannol. Mae helpu undebau credyd, gwasanaethau cynghori a chymorth arall o’r trydydd sector i gydweithredu a chydleoli yn werthfawr i’r sefydliad a’r cyhoedd.
Rhain yw’r pethau a fydd yn gwneud gwahaniaeth, wedi’u deddfu ar ei chyfer neu beidio.
Ysgrifennwyd gan Teej Dew, Cyfarwyddwr Rhaglen Cynhwysiant Ariannol, Canolfan Cydweithredol Cymru
3 Oct 2013
Teej Dew, Financial Inclusion Programme Director at Wales Co-operative Centre, writes about her thoughts on the news that Payday lenders are to face tougher restrictions
Posted by
Unknown
The UK's payday lenders have been warned that tougher regulation is on it's way, to protect consumers.
"Excellent" I hear you say, "that will sort them out"...
Unfortunately it won't. Changes that tighten things up are very much welcomed, of course. But removing a lending facility, however unplatable, doesn't remove the demand for that facility.
We hear that payday lenders will not be able to extend, or "roll over", loans more than twice - doesn't that mean that people will just yo-yo between lenders? They will just go elsewhere, that elsewhere unfortunately will sometimes be a loan shark and thats where the trouble really, really starts.
People who are struggling with payments will be told where they can get free debt advice - ask any credit union in the land and they will tell you that when people are in debt they often try to borrow money rather than getting the excellent help and advice out there that they need to sort out their situation.
So, why is this and what is to be done? It's about knowledge and capability. It's about helping people to make the behaviour change they need. It's about having the right products in place in an accessible way.
I recently heard, in my personal life, of a young people that had stolen £10,000 from his employer. "Didn't he realise he would get found out, why did he do it?" I asked. "Debt" was the answer. "A loan he couldn't pay because he was on sick pay and then payday loan after payday loan... he was desperate".
Financial capability, availability of credit and a change of money behaviour will work in the long term but we need to prevent people being caught in this trap now... and that is why I welcome this small but significant step in changing the regulation of Payday lenders.
The Money Made Clear Wales website is a great starting point for people wondering what to do about financial pressures. It provides basic guidance and links to the experts.
Written by Teej Dew, Financial Inclusion Programme Director, Wales Co-operative Centre
"Excellent" I hear you say, "that will sort them out"...
Unfortunately it won't. Changes that tighten things up are very much welcomed, of course. But removing a lending facility, however unplatable, doesn't remove the demand for that facility.
We hear that payday lenders will not be able to extend, or "roll over", loans more than twice - doesn't that mean that people will just yo-yo between lenders? They will just go elsewhere, that elsewhere unfortunately will sometimes be a loan shark and thats where the trouble really, really starts.
People who are struggling with payments will be told where they can get free debt advice - ask any credit union in the land and they will tell you that when people are in debt they often try to borrow money rather than getting the excellent help and advice out there that they need to sort out their situation.
So, why is this and what is to be done? It's about knowledge and capability. It's about helping people to make the behaviour change they need. It's about having the right products in place in an accessible way.
I recently heard, in my personal life, of a young people that had stolen £10,000 from his employer. "Didn't he realise he would get found out, why did he do it?" I asked. "Debt" was the answer. "A loan he couldn't pay because he was on sick pay and then payday loan after payday loan... he was desperate".
Financial capability, availability of credit and a change of money behaviour will work in the long term but we need to prevent people being caught in this trap now... and that is why I welcome this small but significant step in changing the regulation of Payday lenders.
The Money Made Clear Wales website is a great starting point for people wondering what to do about financial pressures. It provides basic guidance and links to the experts.
Written by Teej Dew, Financial Inclusion Programme Director, Wales Co-operative Centre
Subscribe to:
Comments (Atom)