Financial Inclusion Partnership | Lincolnshire Credit Union

Working together to improve financial resilience

What is financial inclusion?
Financial inclusion is a state in which everyone has the capability and opportunity to access appropriate, desired, financial products and services in order to manage their money effectively and participate fairly and fully in modern day society.

There are two elements to financial inclusion; good financial decision making and access to suitable products and services.

Good financial decision making is based on:

• Financial literacy or a basic understanding of financial concepts.

• Financial capability; the knowledge, skills, confidence and motivation to manage your money well. This includes having numeracy and literacy skills, understanding financial products and being able to use them, planning your finances and seeking out information and advice. Financial capability is increasingly important as the range of financial products becomes more complex. The need for financial education is continuous throughout people’s lives as their personal circumstances and the market change.

Access to suitable financial products and services includes:

• Appropriate bank accounts, basic home insurance, savings, affordable and responsible credit.

• Free and impartial money advice.

Consequently providers play a vital role in promoting financial inclusion.

Financial inclusion – why does it matter?
Financial Inclusion is essential for anyone wanting to participate fully and fairly in everyday life. People outside mainstream financial services suffer many disadvantages.

Those who are financially excluded may:

• Pay more for utilities, unable to access Direct Debit discounts.

• Pay more for goods and services and have less choice.

• Pay extremely high rates of interest to doorstep lenders or high cost credit providers, or face extortion, intimidation and violence at the hands of illegal lenders or ‘loan sharks’.

• Have unmanageable levels of debt.

• Lack the financial buffer small savings provide, or the security of simple insurance, making unexpected financial pressures either difficult or impossible to manage.

• Be unable to access free and impartial debt advice, that can help avoid financial distress.

• Suffer poor physical and mental health, family breakdown and social isolation, with interventions designed to increase wellbeing being undermined.

Financial exclusion marginalises people and acts as a barrier in their lives. It reinforces social exclusion and exacerbates poverty. It can be a barrier to employment; people who are financially excluded may find it hard to get a job as more employers require bank accounts for credit of wages. Lack of financial resilience in the form of savings may make the gap in income between receipt of benefits and payment of wages unmanageable in the transition from unemployment to work.

Financial exclusion is therefore not just an individual problem; a whole community can suffer from its impact. The impacts of exclusion are not just financial but also affect education, employment and housing and levels of aspiration. With links to unemployment and crime and interdependence with health and wellbeing the cost of financial exclusion is high to individual households affected and society as a whole.

The Lincolnshire Financial Inclusion Partnership

Who are we?
The Lincolnshire Financial Inclusion Partnership is an established group which has been effective in bringing together a range of willing and experienced partners to promote and raise the profile of financial inclusion in a world of competing priorities.

Partners represent a diverse range of organisations from all sectors; public, private and voluntary. They share a common goal of ensuring that everyone in Lincolnshire has the capability and opportunity to access appropriate financial services and products needed to participate fully in society.

The partnership is funded by partner organisations and agencies many of which utilise their own resources to achieve our common aims. Our partnership is continually developing and our current partners include those from debt and money advice providers, credit union, local authorities, housing associations, charities, training providers, retail banking and financial services.

• Financial literacy or a basic understanding of financial concepts.

Our current partners are:

• Addaction
Addaction support adults, children, young adults and older people to make positive behavioural changes. Whether that's with alcohol, drugs, or mental health and well being, we’re here to help people improve their lives in ways they never thought possible.
http://www.addaction.org.uk

• Age UK Lincoln
We are an independent local charity aimed at supporting those over 50. We offer a multitude of services ranging from Cleaning, personal care and befriending though to insurance, benefit reviews and numerous social activities and day trips in our three day centres. We operate across Lincoln City and the neighbouring villages.
http://www.ageuk.org.uk/lincoln/

• Barclays Lincolnshire

• Christians Against Poverty
http://www.restorelincoln.org.uk (restore services including mentoring and furniture project)
http://www.actstrust.org.uk (charity page which also links to the Energize Project)
http://www.capdebthelp.org (national page for CAP with postcode checker for CAP support - debt, money, job club)

• City of Lincoln Council and North Kesteven District Council - 2013 Shared Revenue and Benefits Service
http://www.lincoln.gov.uk
http://www.n-kesteven.gov.uk

• L&H Homes
We are a leading provider of affordable homes for rent and sale, as well as a specialist provider of retirement leasehold houses, and care and support services. We operate across Lincolnshire and also in the East Midlands, West Midlands and the East of England.
https://www.landh.org.uk/

• Department for Work and Pensions (DWP)
The Department for Work and Pensions (DWP) is responsible for welfare, pensions and child maintenance policy. As the UK’s biggest public service department it administers the State Pension and a range of working age, disability and ill health benefits to over 22 million claimants and customers.

• Community Lincs
Community Lincs is a community development charity based in Lincolnshire whose activity is driven and shaped by the people it supports. Our mission is to make a positive difference to the lives of Lincolnshire people. Fundamentally everything we do is directed towards giving people the skills, resources, connections and confidence to help them deliver a better future for themselves and the people they care about.
http://www.communitylincs.com

• Citizens Advice
We aim to provide the advice people need for the problems they face and improve the policies and practices that affect people's lives. We provide free, independent, confidential and impartial advice to everyone on their rights and responsibilities. We value diversity, promote equality and challenge discrimination.
http://www.citizensadvice.org.uk

• Waterloo Housing Group
Waterloo Housing Group provides and builds social housing and affordable new homes across the Midlands and Lincolnshire. We manage more than 20,000 homes across central England, including around 7,000 properties in Lincolnshire. We also manage the housing register for social housing in the East Lindsey area of the county.
http://www.waterloo.org.uk
http://www.homesdirect.org.uk (To apply for housing)

• The Humberside, Lincolnshire & North Yorkshire Community Rehabilitation Company Limited
The CRC is responsible for the management of low and medium risk offenders in custody and the community, with the key aim of reducing re-offending, protecting the public and reducing victims of crime. This is achieved through robust risk assessment and risk management and delivery of rehabilitative interventions by the CRC and an extensive range of partners.
http://www.hlnycrc.co.uk

• Payplan
PayPlan offers a fresh approach to dealing with financial difficulties. We are proud to be the UK’s largest provider of free debt solutions, including debt management plans and Individual Voluntary Arrangements or IVAs.
http://www.payplan.com/

• Lincolnshire Community Foundation
We manage, grant aid and facilitate charities and social enterprises from the Humber to the Wash.
http://www.lincolnshirecf.co.uk/

• Lincs2Advice
Helping people in Lincolnshire to access advice and guidance from a network of quality assured providers.
http://www.lincs2advice.org.uk

For further information about the Lincolnshire Financial Inclusion Partnership please contact one of the FIP Joint Chairs:

• John Eames at Lincolnshire Credit Union JEames@lincscreditunion.org.uk

• Lorraine Palmer at Learning Communities lorraine.palmer@learning-communities.co.uk

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In The News

07/01/2016 - Lincolnshire Partnership wins Stop Loan Sharks award
FIP receive a Highly Commended Award for their outstanding endeavours in raising awareness of the crime of illegal money lending.
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