Embedding Financial Inclusion Employability Services

Transcription

1 Embedding Financial Inclusion in Employability Services Guidelines for employability services and advisers

2 Contents Introduction 3 1. Background 5 2. What financial inclusion advice should be delivered? 6 3. Options for the delivery of financial inclusion advice 8 4. Preparing employability advisers Raising financial inclusion issues with clients Recording, monitoring and evaluating Appendices 19 Appendix 1 - Financial Inclusion Monitoring and Evaluation Framework Appendix 2 - Financial Inclusion Monitoring and Evaluation - Guidance notes for Employability Advisers Appendix 3 - Client Referral Form 8. Financial Inclusion Training Pack Financial Inclusion Handbook for Employability Advisers page 2

3 Introduction As well as young people and lone parents, people who are out of work are most likely to be financially excluded and will often find themselves experiencing associated poverty. Gaining employment is regarded by the UK and Scottish Government as the main route out of poverty. This, combined with the pressures of the current financial and welfare reform climate, mean the need for financial inclusion advice to feature in any employability delivery is particularly crucial. These guidelines have been developed to help employability organisations plan, deliver and monitor financial inclusion advice within their employability programmes. The guidelines have been written in a way that allows employability organisations to dip in and out and to use the sections that are most relevant to their organisation and their current delivery of financial inclusion advice. Underpinning Principles Throughout the development of these guidelines, those involved consistently agreed that: financial exclusion impacts on individuals aspirations and opportunities to move towards and into education, training and employment gaining employment can improve people s chances of moving out of poverty Therefore it is reasonable to assume that access to financial inclusion advice within an employability service will enhance a person s chances of progressing into employment, staying in employment and ultimately moving out of poverty. It was also consistently agreed that financial inclusion advice is a specialist area and therefore delivery should only be carried out by specialists who operate to the Scottish National Standards for Information and Advice Providers. Based on all of this, the following principles about the delivery of financial inclusion within employability services were developed: financial inclusion advice should be an integral element of any employability activity and as such, everyone who uses an employability service should be informed of the financial inclusion advice available and have access to that support financial inclusion advice should be delivered by specialist organisations partnership arrangements form the basis for delivering financial inclusion advice within an employability service The Guidelines There are 9 sections in the guidelines: 1. Background This section details why and how the guidelines were developed and the definitions used. 2. What financial inclusion advice should be delivered? This section describes the areas and types of financial inclusion advice which potentially should be offered to clients. 3. Options for the delivery of financial inclusion advice This section describes the models of delivery which were in operation across Glasgow in 2010 along with a list of pros and cons for each model. 4. Preparing employability staff This section provides guidance on the role of Employability Advisers in relation to providing financial inclusion advice to clients. This section also relates to the Financial Inclusion Training Pack detailed further on. 5.Raising financial inclusion issues with clients Based on examples from Glasgow, this section offers suggestions on how Employability Advisers can explore financial inclusion issues with their clients. 3

4 6. Recording, Monitoring and Evaluating This section details a monitoring and evaluation framework which will allow Employability Services to analyse their provision and its impact on their clients employability over time. The section was developed by the Scottish Poverty Information Unit. 7. Appendices The appendices contain the monitoring and evaluation framework and a guidance document on the framework for Employability Advisers. develop Employability Advisers confidence and knowledge and enable them to more effectively explore the financial inclusion needs of their clients. The section was developed by Money Matters and GEMAP Scotland. 9. Financial Inclusion Handbook for Employability Advisers Although part of the guidelines, this is a separate document which has been designed to support the training and the content of the guidelines. The handbook should be distributed at the training and can be used by Employability Advisers in their day to day delivery. 8. Financial Inclusion Training for Employability Advisers This section contains a full Financial Inclusion Training Pack for Employability Services. It includes tutor notes, participant materials and lists the resources required. The training is a basic awareness session that will help 4

5 1. Background Financial Inclusion and Housing Information and Advice Services To meet the objectives of Glasgow City Council s Financial Inclusion Strategy , eight contracts were awarded for the provision of Financial Inclusion and Housing Information and Advice Services in each of the city s five Strategic Planning Areas and on a city wide basis*. These services are provided in locations that ensure the needs of the local population are effectively met, particularly vulnerable groups within that population. The services operate under the banner of the Glasgow Advice and Information Network (GAIN). Glasgow Works Glasgow Works was established in 2007 under the previous Labour Government s Department for Work and Pensions City Strategy Initiative. The aim of City Strategy was to enable city areas to shape the delivery and provision of training opportunities and employment programmes, giving them control over plans to tackle worklessness. Similar to the Financial Inclusion Strategy, Glasgow Works had, from 2008 to 2011, 5 contracts which were delivered by the 5 Local Regeneration Agencies** (LRAs) and which covered the same Strategic Planning Areas as the Financial Inclusion contracts. The approach delivered has ensured that more people have entered the employability pathway and over time, by working in partnership locally, more people have progressed towards and into employment. This approach recognised that many people who have been out of work for a long time or who have never worked will have barriers to address and may have a significant journey to undertake to progress towards and into employment. Barriers people experience often include financial issues such as unmanageable debt, not having a bank account and limited financial capability skills. To consider how to bring the two strategies and their delivery together, the Financial Inclusion Team and Glasgow Works, with funding from the Scottish Government, worked with the LRAs and GAIN to 2009 and 2010 to: Develop a better understanding of the delivery of financial inclusion advice within employability services Establish the scope for developing a more consistent approach to delivery across the city The development of these guidelines is the culmination of this work. Aims The guidelines aim to support employability services to develop: A better understanding of the role of Employability Advisers in delivering financial inclusion advice The confidence of Employability Advisers to discuss financial inclusion issues with their clients Professional financial inclusion advice within their employability provision through partnership working with specialist financial inclusion services Robust monitoring and evaluation systems and processes to help identify impact. Definitions The following definitions of the terms used throughout the guidelines are detailed below. The definitions are taken from the Scottish Standards for Information and Advice Providers, Financial Exclusion: the range of issues involved in people not accessing the benefit support that they are due, experiencing problematic debt, not accessing mainstream financial services and lacking financial capability. Financial Inclusion: is therefore defined as access for individuals to appropriate financial products and services. Financial Capability: is just one aspect of financial inclusion and can be defined as people s knowledge and skills to understand their own financial circumstances, along with the motivation to take action. It is about being able to deal effectively and confidently with: the day to day management of finances planning ahead (for retirement or unexpected events) efficiently selecting financial products and understanding these products knowing where and how to seek financial advice having the motivation to manage finances efficiently and effect change Financial inclusion is the main catch all term used throughout the guidelines to represent the full range of financial inclusion advice listed in section 2. *The new Financial Inclusion and Housing Information and Advice Services contracts for 2012 to 2015 will be based on 3 new Strategic Planning Areas in line with the social Work Services areas. Glasgow City CHP, Glasgow s Regeneration Agency and Housing & Council Tax Benefit Areas. **In April 2011, the 5 LRAs merged to become one agency - Glasgow s Regeneration Agency (GRA) 5

6 2.What financial inclusion advice should be delivered? This section covers the types of financial inclusion advice and the areas of which financial inclusion advice which should be delivered. The definitions are based on the Scottish National Standards for Information and Advice Providers. The standards are recognised as a quality assurance framework for information and advice services. It is important that employability services are aware of them. To see the full set of standards click on Types of Financial Inclusion Advice There are 3 types or levels of advice are as follows: Type 1: Active Information, Sign-posting and Explanation Providing information, sign-posting or referring the client to other sources of assistance, the explanation of technical terms or clarifying an official document, such as a tenancy agreement or possession order. Type 2: Casework Casework includes: Diagnosing all relevant issues and establishing a course of action on behalf of a client Making a judgement as to whether the client has a case that can be pursued Negotiating with third parties on the client s behalf Making an appropriate referral should the client require advocacy or representation Type 3: Advocacy, Representation and Mediation The principal activities include: Advocacy and representation- where the Financial Inclusion Adviser may prepare a case for the user and represent or speak on their behalf at a tribunal or court. Mediation- where the Financial Inclusion Adviser may act on behalf of the client by seeking to mediate between the client and a third party. Advice Areas he following 6 groups of financial inclusion advice are offered in Glasgow and are based on the Scottish National Standards for Information and Advice Providers: Money/ Debt Advice Assessment of client s financial circumstances, decision making and holding activity Preparing a client s financial statement which lists the clients income and expenditure Identifying and agreeing a client s options Negotiating with, and making offers to, creditors Having knowledge of diligence, diligence stoppers and court proceedings and to advise client appropriately on these Having knowledge of insolvency regulations, practices and processes, and to advise the client appropriately on these options Making an appropriate referral for further specialist advice where appropriate Welfare Rights Advice Advising clients on their eligibility for welfare benefits and assisting them to apply for these benefits. This includes assisting clients to make an appeal if a benefit application has been declined Conducting better off calculations to assess the client s financial position in employment compared with welfare benefits Having knowledge of the UK welfare benefits system. Having knowledge of the administrative structure of the UK benefits and tax credits systems Knowledge of the Department for Work and Pensions decision making, revision, supersessions and appeals processes, and to assist clients with these processes 6

7 Financial Capability Advice To provide clients with information and advice on: Budgeting skills and money management How to manage the transition from welfare benefits to employment Welfare benefits supported by a referral for specialist welfare benefits advice where appropriate The benefits of having a bank account; advice on how to effectively operate an account Affordable methods of borrowing money and promoting credit unions Avoiding debt and a referral to a Money Adviser where appropriate Housing Advice To provide information and advice to clients in the following areas: Housing and Council Tax Benefit Housing rights and options Rent or mortgage arrears Homelessness Eviction Discrimination Security of tenure and statutory tenancy rights Anti-social behaviour Employment Rights Advice To provide information and advice to clients in the following areas: Basic employment rights including contracts of employment, termination of employment, statutory rights and discrimination Redundancy and dismissal Grievances and disciplinary action Employment tribunals Legal Advice The provision of legal advice and representation in the following areas: Debt, money and tax Benefits and tax credits Housing and homelessness Employment Those involved in developing these guidelines recommend that all types and areas of advice are offered but anticipate that most activity will take place under money/ debt advice, welfare rights advice and financial capability. This leads to the question of who should deliver this support. The models of delivery which are in operation in Glasgow are detailed in the next section but it is useful at this point to clarify the role of the Employability Staff. Employability Advisers their role in delivering financial inclusion advice Our work suggests that Employability Advisers should not be expected to deliver financial inclusion advice but should be expected to have some general knowledge through which they are able to accurately and clearly explain what financial inclusion advice is on offer. This could be classed as type 1 information giving. Such information giving allows for discussion and exploration of what advice is needed which then allows for an appropriate referral to be made to a Financial Inclusion Advice Service. The delivery of further type 1, type 2 and type 3 advice should then be delivered by specialist Financial Inclusion Advice Workers because of the more intense level of knowledge, involvement, certification and supervision required. In summary, all the areas of financial inclusion advice should be on offer and employability staff should be equipped to give information on this advice, but beyond that they should refer to a specialist financial inclusion service. This therefore requires that a relationship with a Financial Inclusion Advice Service be developed to provide access to this specialist support. The options for delivery and access to this support are detailed in the next section. 7

8 3. Options for the delivery of financial inclusion advice Across Glasgow, several different models of delivery were observed, ranging from full time secondments from Financial Inclusion Advice Services to referral protocols and signposting. Most models had some form of partnership arrangement with a local specialist service and all models ensured that specialist advice could be accessed, therefore recognising the need for expertise. The table below provides a short description of each approach with some pros and cons of each as identified by the people involved in their delivery. Description Pros Cons Full time co-located secondment from a Financial Inclusion Advice Service Service level agreement Part time location of staff from Financial Inclusion Advice Service to Employability Services Employing Financial Inclusion Advice staff within the Employability Service Formal referral protocol with Financial Inclusion Advice Service Signposting to Financial Inclusion Advice Services Dedicated specialist support for clients Experienced staff with professional support and back up Facilitates communication Appointments can be fairly immediate so waiting times reduced Co-location means clients don t need to go to a different place which helps attendance rates Referral to specialist parent organisation is smooth Employability staff gain confidence and learning from Adviser and vice versa As above Less costly than full time secondments Dedicated specialist support Appointments fairly immediate Experienced staff with professional support and provision As above Dedicated specialist support for clients Communication is quick and accurate Appointments can be made quickly Employability staff gain confidence and learning from Financial Inclusion Adviser and vice versa All staff are clear on process and roles Allows monitoring of referrals, uptake and type of service used No costs Requires funding Financial Inclusion Advice Service must have capacity to second Requires specific funding Capacity may be more limited Requires funding The employability service will need to acquire a license Financial Inclusion Advice Staff may not have access to professional support and development Need to refer to specialist providers for more involved cases. Support isn t dedicated to the service so client may have to wait for an appointment Communication across services can be difficult No costs Less supportive for the client Support isn t dedicated Communication across services can be difficult May have to wait longer for an appointment 8

9 There was agreement from everyone involved in developing these guidelines that some form of dedicated provision was preferable but the cost implications and capacity were often barriers to this. There was agreement that employing Advice Staff directly into an organisation (as opposed to a secondment) had many benefits but that the requirement to purchase a consumer credit licence and the difficulty in providing professional support and supervision from within the employability service had made this a less attractive option. Should employability services chose the referral protocol option, a partnership agreement alongside the protocol should be developed to ensure it works effectively and is closely monitored and supported. This approach was taken in one area of Glasgow and it covered roles and responsibilities, main contact points, response times, recording mechanisms and data sharing. 9

10 4. Preparing Employability Advisers As outlined in section 3, it is recommended that Employability Advisers should only provide financial inclusion advice at type 1. In practice this means that, they should feel comfortable to raise the issue, have some general knowledge through which they are able to accurately and clearly explain what financial inclusion advice is on offer and then make a referral to the provision the Employability Service has organised. To prepare Employability Advisers to do this, it is recommended that Advisers take part in Financial Inclusion Training. This guide contains a Financial Inclusion Training Pack for Employability Advisers. Participating in the training will ensure that Employability Advisers will: 1. Understand the scale and magnitude of personal debt in the UK 2. Understand how debt can be a barrier to employment 3. Be able to define financial inclusion and the areas of financial inclusion advice 4. Be clear on the role that Employability Advisers have in delivering financial inclusion advice 5. Be equipped with new tools to help explore financial inclusion issues with clients 6. Know why financial inclusion advice is important in employability services In addition, it is recommended that any Employability Service which runs this training also include in their training: what the services chosen method of financial inclusion advice delivery is how to refer clients for this financial inclusion advice how to record the activity on their client management system The training pack contains a full step by step guide for tutors, participant materials and a list of resources required. The full pack is contained in section 8. There is also an associated Financial Inclusion Handbook for Employability Advisers which staff can use for future reference. It contains everything which the training covers. It should accompany these guidelines. 10

11 5. Raising financial inclusion issues with clients The mechanisms in place for raising Financial Inclusion issues with employability clients were explored. There was universal agreement that; it should be raised in the early stages of engagement with new clients and there should be triggers within assessment processes to ensure this happens when identified as a barrier, it should be reviewed to ensure it is being addressed when a client is making the transition into work, it should be mandatory to carry out a back to work calculation there should be multiple opportunities to raise the issue as it can take time for a person to feel comfortable to talk about their financial situation Employability Services should spend time considering where and when their processes allow for a discussion to take place. The following is a list of examples of all the points where clients have Financial Inclusion discussed with them when they accessed the LRAs/GRA. Some examples are recent developments which are based on GRAs involvement in developing these guidelines. Registration Example: When a person approaches GRA, they complete an initial registration form. The form captures basic information about the person which helps to ascertain their eligibility for specific programmes. It now also includes 3 trigger questions on financial inclusion. These questions are just triggers and are not viewed as prescriptive. They are only intended as prompts for exploring any need for financial inclusion advice. Employability Advisers use them in the way that is most comfortable for them. To help those with less experience, the 3 questions reflect the 3 most common areas that people seek financial inclusion advice for: Question 1 Do you have a bank account that wages could be paid into on starting work? This is intended to open up a discussion around financial capability Question 2 Do you need to have your entitlement to benefits or tax credits checked? This should allow a discussion to open up around welfare benefits Question 3 Do you have any money/ financial issues that you need help with? It is intended that this allows a discussion to open up around debts. Using these questions/groupings also helps staff to identify which area of support the person needs. The trigger questions are also detailed in the Financial Inclusion Handbook for Employability Adviser that accompanies the Financial Inclusion Training contained in these guidelines. Employability Advisers will normally be skilled interviewers but will be able to use the training and handbook to enhance their confidence and understanding of the financial inclusion discussion. Initial Assessment Example: The GRA Adviser and the client next complete a fuller Individual Needs Assessment Form. This form contains a list of 10 questions that the client rates between 1 and 10. One of the questions is Do you require benefits, debt or other financial advice to allow you to start work? A rating of 1 means I am not aware of what I am entitled to and I am experiencing financial difficulties and a rating of 10 would mean I am fully aware of my financial situation and have had a better off in work calculation. Rating this question helps to identify which stage the person is at and what support they require. Following this, the Employability Adviser will give a full description of what financial inclusion advice the service has to offer. 11

12 Action Plan and Review Example: When a person identifies financial issues as a barrier, it is recorded in their action plan. The Action plan is revisited at regular intervals and at the time when the person is preparing for entry into employment, the Employability Adviser will raise the issue of back to work calculations and in work benefits checks, along with the offer of budgeting/financial capability input. Financial capability support was viewed as crucial for people entering and sustaining employment. Aftercare Example: When GRA was delivering in-work support, Advisers completed an in-work action plan with clients who entered employment. It was recognised that the transition into employment is a difficult one in relation to managing money both at the point of beginning employment and over the following months. Also a year after entering employment can be a difficult time as tax credit levels can change. Referral Example: One LRA developed a referral checklist of the financial inclusion advice they offer through their local advice services. They found that clients were not always keen to discuss money concerns at a first meeting, but using the checklist and explaining the advice has allowed the Employability Adviser to fully detail all that financial inclusion advice can encompass. They found that the checklist was also another subtle way of raising the issue. The checklist has also allowed the client to better identify their needs because of the full explanation of each area of advice on offer. The checklist also lists the documents the client should bring along to the first meeting with the financial inclusion advice worker. This has enabled the time available at the first meeting to be utilised more effectively. GRA have recently developed this checklist further and have organised it around the 3 main areas of financial inclusion advice. This is helping with referrals and recording of the area of financial inclusion advice for which the client is being referred. The checklist can be found in Appendix 3 in section 7. All the examples above are opportunities available in a one to one setting. However, Employability Services could also think about what they offer within a group context that could enable financial inclusion to be discussed. In summary, this list is not exhaustive but does show that there are a number of opportunities and tools for exploring financial inclusion with clients. 12

13 6. Recording, monitoring and evaluation Before delivering any activity, Employability Services should set targets to help them to establish if they are achieving what they set out to. With the underpinning principles in mind, some examples are: All clients are offered financial inclusion advice at registration with the service. All clients receive a basic financial health check including a back to work calculation after registration with the service All clients at the later stages of work preparation receive a back to work calculation, back to work benefits check and are offered a financial capability session. 50% of clients will take part in financial capability group work 50% will be referred for specialist support. While financial inclusion is seen to make an important contribution to employability, there is little evidence to show the effectiveness of approaches or to draw lessons for good practice. This section details a recording and evaluation framework which aims to provide information on achievement of targets and the impact of financial inclusion on employability. The framework will also contribute to the development of a robust recording and reporting system that should: Show how financial inclusion advice contributes to progress in employability Document what types of financial inclusion advice is required or is being delivered Record progress in a user friendly and efficient manner Provide evidence of what models or approaches are most effective to inform practice and preferences for delivery Inform the approach to contracts for financial inclusion advice in Employability Services in the future The development of this monitoring and evaluation framework has reflected concerns that Employability Services may not be able to incorporate immediately an ideal level of monitoring. This framework therefore provides a set of core monitoring questions and some questions that should ideally be included or developed where possible to provide more comprehensive information. There are some aspects of developing this framework that may have implications for practice in employability and financial inclusion services, in particular in relation to information sharing. These issues are highlighted in the relevant sections below. Note: Each employability service should consider this framework within its own current monitoring and evaluation framework and select what is relevant and useful and should involve an expert in client management systems when exploring the practicalities of including the fields What should be included in monitoring? Some information recording is straightforward to identify and is likely already to be included within existing monitoring systems. This includes, for example, the characteristics of individuals and the stages of the employability pathway. They are important for analysis and comparison of data on financial inclusion advice. Profile Information This framework assumes that age, gender, disability, ethnic background, qualifications, income and benefit receipt are within existing monitoring systems. It is recommended that additional characteristics should be included, if not already in core monitoring since they are key considerations for analysis of data on financial inclusion advice. These are below. Profile/ Characteristics Employment status:the following list covers most categories of employment or economic status that are likely to arise, but this field should include the scope for multiple responses: What is the client s employment status? More than one description may apply (tick all the boxes that apply) a b c d e f g h i j Self-employed Full-time employed (working 30 or more hours per week) Part-time employed (working fewer than 30 hours per week) Unemployed and seeking work Student in school, further or higher education Government work or training scheme Carer, looking after children Carer looking after adult(s) Unable to work due to ill health or disability Other (tick box and describe status in space below) 13

14 Housing tenure: The following field gives the main options for housing tenure: What is the client s housing status? a Own home b c Part owner of home - part rent / part owner Rent from Council d Rent from Housing Association/Co-operative/ Charitable Trust e f g h Rent from private landlord Accommodation is tied to employment Not the householder live with parents or family Other (tick box and describe in space below) Family circumstances: Although single parenthood is often identified in monitoring, the following categories will provide more comprehensive information on family status. In addition, the number of dependent children and the age of the youngest child can be important considerations for financial inclusion advice. Family Type single, no dependent children single parent with one dependent child or more couple, no dependent children couple, one dependent child or more Number of dependent children Age of youngest child Employability Pathway A field reflecting the stages of the employability pathway is important for core monitoring and for analysis of the impact of financial inclusion work. The 5 stage model used in Glasgow includes the following (this will be different in areas that use 4 or 6 stage models): Stage 1: Positive Activity Stage 2: Work Preparation Initial Stages Stage 3: Work Preparation Later Stages Stage 4: In Work Short Term Support in Work Stage 5: In Work Longer Term Support in Work Offering financial inclusion interventions The framework begins with the following trigger questions as detailed in section 5. As stated in that section, they are not prescriptive and are only intended as prompts to review with the client any needs for financial inclusion advice. Employability Advisers can use them in the way that is most comfortable for them. Does the client have a bank account that wages could be paid onto on starting work? a Yes b No It is intended that this allows a discussion to open up around financial capability Does the client need to have entitlement to benefits/ tax credits checked? a Yes b No It is intended that this allows a discussion to open up around welfare benefits Does the client have any money/ financial issues that they need help with? a Yes b No It is intended that this allows a discussion to open up around debts. The questions allow the Employability Adviser to explore further any issues raised, depending on their experience and confidence to do so and will allow an explanation of the advice on offer then discussion on making a referral. The 3 groupings are also designed to help the Employability Adviser complete the appropriate fields below. Areas of Financial Inclusion Advice This section would be completed by the Employability Adviser. In relation to the type of financial inclusion advice needed, core monitoring should reflect the specific offer of a better off in work calculation (defined as an initial 14

15 exploration into whether a person will be better off in work) and a back to work calculation (defined as an accurate calculation of financial status on entering work and applying for tax credits etc when the person is about to start work) since these are the most obvious aspects of financial inclusion advice within an employability service. Employability Services should be interested to track the level of activity in these two areas. There are also a further six financial inclusion advice categories (from c below) covering: What financial inclusion advice is needed? (tick all that apply) a Better off in work calculation b c d e f g h Back to work calculation Money Advice Welfare Rights Advice Financial Capability Advice Housing Advice Employment Rights Advice Legal Advice Employability Advisers should know what each area encompasses. The training detailed further in section 8 will build this knowledge. Who delivers the Financial Inclusion Advice In Glasgow, 6 models of delivery of financial inclusion advice were identified, including 5 that reflected different partnership arrangements and levels of activity. Recording this is important for informing the effectiveness of each. The models reflect work done by the following: Who will deliver the financial inclusion work? (tick all that apply) a Employability adviser b c d e FI adviser employed by employability service Seconded, full-time, co-located FI Adviser SLA where different FI Advisers work out of ES premises Formal referral to Financial Inclusion Service Signposting and referral To complete this section, the date of referral should be recorded and information about the Financial Inclusion Service(s) the client has been referred to. This could be expanded to reflect a defined list of services with an others category as an alternative to the open text box example below. This field should enable recording of referral or signposting to more than one service too. Service referred/ signposted to Date Outputs This next section would be completed by the Financial Inclusion Advice Worker where they have access to the client management system which contains this framework or, in other circumstances, by the Employability Adviser. Note: This framework assumes that, in existing working arrangements between Financial Inclusion Advice and Employability Services, information sharing about clients is restricted and agreement to share information (with the signed consent of the client) is not gathered routinely, particularly when clients are signposted to external services. This section should record what advice work was done and at what type. The client management system should have the capacity to record multiple options for this category since several forms of financial inclusion advice may be needed. Individuals may require help from more than one source at a given point in time, so it will be important to ensure that work by each service can be recorded separately. Also it will be important for monitoring to be able to reflect that advice activity can have different outputs from the original intention of referral or signposting. The level of work carried out - Type 1, 2 or 3 reflects the approach to current advice standards in the Scottish National Standards for Information and Advice as follows Type 1: Active information, signposting and explanation Type 2: Casework Type 3: Advocacy, representation and mediation f Signposting to Financial Inclusion service For a more detailed description of the 3 types see section 2. 15

16 Most Type 3 advice will be delivered by specialists and our work showed that this was not delivered within the employability setting. The impact of different levels of advice work however, is an important consideration for informing future development of services. Therefore the recommendation for core monitoring is to identify the highest level of advice given within each area of advice, using a format that allows for updating (e.g. to allow for the most complex work to be recorded if it becomes necessary at a later date, such as representation at an appeal against a benefits decision). What was the highest level of advice (Type 1, 2 or 3) given in each area of advice? a Better off in work calculation b c d e f g h Back to work calculation Money Advice Welfare Rights Advice Financial Capability Advice Housing Advice Employment Rights Advice Legal Advice Type More information on outputs It is not the intention that this framework should replicate the level of detail that Financial Inclusion Advice Services may record in relation to their work with clients, but some more detailed recording of the nature of advice provided may be desirable to Employability Services, in particular, some more detail within each of the 3 main financial inclusion advice areas of Money/Debt Advice, Welfare Rights Advice and Financial Capability Advice. The fields below suggests some key categories for inclusion that recognise the importance of income maximisation through benefits claims, of resolving debt problems and improving financial awareness in moving towards employment. This field would allow scope to record other specific areas or types of activity that are of particular interest or relevance and should include the potential to record multiple entries. The following are key areas of work suggested for inclusion: Money/ debt advice a Guidance on how to manage debt b c d e f Help to reclaim bank / credit card charges Help with gas & electricity Issues Assist to open bank or credit union account Help with debt Other money/ debt advice (specify) Welfare Rights Advice g Review of Current Benefits h i j Assistance with benefits application for Disability living allowance Assistance with benefits application for Housing benefit and council tax Assistance with benefits application for Community care grant k Assistance with benefits application for other benefits (specify) l m n o p Benefit Advice: Disability living allowance Benefit Advice: Housing benefit and council tax Benefit Advice: Community care grant Benefit Advice: other (specify) Other welfare rights advice (specify) Financial Capability Advice q Assistance to open bank or credit union account r s t Help with budgeting/money management Suggest ways of reducing outgoings Other financial capability advice (specify) Note: Alternatively, to avoid duplication of information and data entry for workers, employability services should consider what information they require and secure an agreement from the Financial Inclusion Advice Service to be supplied with this at regular intervals. Progress and Outcomes Advice issues can take some time to be resolved. For example, it could take a year for a case to be completed or conclude in court or bankruptcy proceedings. In addition, the point at which an outcome is achieved may not always be clear. For example, a repayment 16

17 plan may be agreed, but break down at a future point or be reviewed, e.g. at the point of starting or preparing for work. Progress on Financial Inclusion Advice The framework includes a question to record the outcome or current progress for financial inclusion interventions. This also needs to reflect the source of information (whether the Employability or Financial Inclusion Adviser or, at appropriate stages of review, the client). Date of review/ update Review information provided by: a Client b c Employability Adviser FI adviser The outputs and outcomes to be recorded are very general. They reflect the stage of progress in relation to the clients needs rather than for each area of financial inclusion advice (except to the extent that better off in work and back to work calculations should be recorded where undertaken). However, the framework will record some progress and, in cases of referral or signposting, will identify the extent to which clients achieve access to the financial inclusion service. What is the stage of progress? a Client did not meet/ talk to adviser/ did not attend for interview b c d e f g h Better off in work calculation completed Back to work calculation completed Type 1 information/ advice completed (no ongoing casework) Advice or support provided decision pending Ongoing casework/ support Action completed/ case closed Outcome - brief description of outcome/ decision(s) made Finally, it is important to know whether the client thinks the outcome is positive (since this may affect views about moving towards work) so the client s perspective should be recorded at appropriate reviews, for example: Client s view of the intervention From the client s point of view was the financial inclusion intervention a successful b c d unsuccessful still ongoing unsure Identifying impact Overall, this framework seeks to improve information about the extent and nature of financial inclusion advice with employability clients, the impact of financial inclusion advice on progress towards employment plus the effectiveness of different models of partnership delivery. Combined with data already gathered within employability services, the framework should enable analysis to inform service delivery, policy and planning decisions. Employability Services are increasingly recording soft as well as hard outcomes to reflect progress in the employability journey (e.g. distance travelled relating to confidence, employability). In order to understand more about the impact of financial inclusion advice (and other relevant interventions) it will be important that these can be benchmarked against the outcome measures chosen within the Employability Service. For policy and planning purposes it will be important that, as far as possible, these are measured in a consistent manner across services. The existing data gathered from clients will enable comparisons to be made between groups and aid to understanding of the relative importance of financial inclusion advice for people with different characteristics or in different circumstances. Some examples of measurement of financial inclusion advice that can be drawn from the data gathered in this framework include: 17

18 The extent to which clients (and different groups of clients) accept or decline the offer of financial inclusion services or are already getting such support; The different types of financial inclusion advice that (different groups of) people need Using data on the stages of employability, the framework can help explore questions of differing needs for advice at different times and stages What associations there are between different kinds of financial inclusion advice and variations in outcomes among client groups The links between levels and types of financial inclusion advice and employability outcomes or progress through the pathway stages The data will also enable some analysis exploration of how financial inclusion may affect outcomes progress towards employment. There is potential to compare financial inclusion with other types of intervention for their links with hard and soft, intermediate and longer term outcomes for clients. Whilst it will be important to avoid assumptions about cause and effect with such data, they should be able to show the relevance and impact of the different partnership and delivery models. They may also be explored for their particular importance for key client groups and help services to ensure that vulnerable client groups are reaching the services they need. Whilst most of the information required in the framework will be provided by professional staff, the outcomes are important to understand from the client s perspective to provide some indication of how financial inclusion work is perceived to affect employment prospects. There is, of course, the potential for financial inclusion advice to slow progress as well as support successful transitions towards work, but this framework should enable some analysis of these circumstances to inform strategies and practice. The full framework is contained in section 7 along with a guidance document for staff. If you have any questions on the content of the framework contact Morag Gillespie, Scottish Poverty Information Unit on

19 7. Appendices Appendix 1 FINANCIAL INCLUSION MONITORING AND EVALUATION FRAMEWORK A. Profile/ Characteristics 1 What is the client s employment status? More than one description may apply (tick all the boxes that apply) a b c d e f g h i j Self-employed Full-time employed (working 30 or more hours per week) Part-time employed (working fewer than 30 hours per week) Unemployed and seeking work Student in school, further or higher education Government work or training scheme Carer, looking after children Carer looking after adult(s) Unable to work due to ill health or disability Other (tick box and describe status in space below) 2 What is the client s housing status? a Own home b c d e f g h Part owner of home - part rent / part owner Rent from Council Rent from Housing Association/Co-operative/Charitable Trust Rent from private landlord Accommodation is tied to employment Not the householder live with parents or family Other (tick box and describe in space below) Family circumstances 3 Family Type single, no dependent children single parent with one dependent child or more couple, no dependent children couple, one dependent child or more 4 Number of dependent children Age of youngest child 19

20 B. Offer of financial inclusion advice 5 Date of review/ update 6 Does the client have a bank account that wages could be paid onto on starting work? a Yes b No 7 Does the client need to have entitlement to benefits/ tax credits checked? a Yes b No 8 Does the client have any money/ financial issues that they need help with? a b Yes No 9 Is the offer of financial inclusion advice a b c d e Accepted Declined Not required at present but should be reviewed later Not applicable already had or currently getting financial inclusion advice Not applicable other reason (please specify below) 20

21 C. Financial Inclusion Advice Needed 10 What financial inclusion advice is needed? (tick all that apply) a Better off in work calculation b c d e f g h Back to work calculation Money Advice Welfare Rights Advice Financial Capability Advice Housing Advice Employment Rights Advice Legal Advice 11 What financial inclusion advice is needed? (tick all that apply) a Employability Adviser b c d e f Financial Inclusion Adviser employed by the Employability Service Seconded, full time, co-located Financial Inclusion Adviser Service Level Agreement where different Financial Inclusion Advisers work out of Employability Service premises Formal referral to Financial Inclusion Service Signposting to Financial Inclusion Service If response is 11a only, go on to question 13. If response includes 11b to 11f, complete Q12. Signposting and referral (including internal referral) 12 Service referred/ signposted to (alternative: predefined list plus other ) Service referred/ signposted to Date 21

22 D. Outcomes/ Progress of FI work 13 What was the highest level of advice (Type 1, 2 or 3) given in each area of advice? a Better off in work calculation b c d e f g h Back to work calculation Money Advice Welfare Rights Advice Financial Capability Advice Housing Advice Employment Rights Advice Legal Advice Optional additional fields a b c d e f g h i j k l m n o p q r s t Money/ debt advice Guidance on how to manage debt Help to reclaim bank / credit card charges Help with gas & electricity Issues Assist to open bank or credit union account Help with debt Other money/ debt advice (specify) Welfare Rights Advice Review of Current Benefits Assistance with benefits application for Disability living allowance Assistance with benefits application for Housing benefit and council tax Assistance with benefits application for Community care grant Assistance with benefits application for other benefits (specify) Benefit Advice: Disability living allowance Benefit Advice: Housing benefit and council tax Benefit Advice: Community care grant Benefit Advice: other (specify) Other welfare rights advice (specify) Financial Capability Advice Assistance to open bank or credit union account Help with budgeting/money management Suggest ways of reducing outgoings Other financial capability advice (specify) 22

23 Progress on Financial Inclusion Advice 14 Date of review/ update 15 Review information provided by: a Client b c Employability Adviser Financial Inclusion Adviser 16 What is the stage of progress? a Client did not meet/ talk to adviser/ did not attend for interview b c d e f g h Better off in work calculation completed Back to work calculation completed Type 1 information/ advice completed (no ongoing casework) Advice or support provided decision pending Ongoing casework/ support Action completed/ case closed Outcome - brief description of outcome/ decision(s) made Client s view of the intervention 17 From the client s point of view was the financial inclusion intervention a successful b unsuccessful c still ongoing d unsure 23

24 Appendix 2 FINANCIAL INCLUSION MONITORING AND EVALUATION FRAMEWORK Guidance Notes for Employability Advisers The following notes aim to assist Employability Advisers (and financial inclusion advisers where relevant) to complete new questions relating to financial inclusion interventions. The questions have been developed in a draft framework that aims to record financial inclusion interventions for employability clients in a more systematic way. The framework reflects existing relationships between financial inclusion and employability services. It is recognised that there is potential to achieve more comprehensive information or data sharing through different working arrangements, but these are likely to take time to develop. A. Profile/ Characteristics (questions 1-4) These questions aim to help with understanding how financial inclusion work affects employability for people in different circumstances. Although a lot of information is gathered already, some factors that may have strong links with financial exclusion may not be recorded in a systematic way in current employability monitoring frameworks. The additional questions describe employment or economic status (question 1), record housing tenure (question 2) and detail family circumstances and the number and ages of children (questions 3 and 4). 1 What is the client s employment status? More than one description may apply - tick all the boxes that apply a Self-employed b c d e f g h i j Full-time employed (working 30 or more hours per week) Part-time employed (working fewer than 30 hours per week) Unemployed and seeking work Student in school, further or higher education Government work or training scheme Carer, looking after children Carer looking after adult(s) Unable to work due to ill health or disability Other (tick box and describe status in space below) 2 What is the client s housing status? a b c d e f g h Own home Part owner of home - part rent / part owner Rent from Council Rent from Housing Association/Co-operative/Charitable Trust Rent from private landlord Accommodation is tied to employment Not the householder live with parents or family Other (tick box and describe in space below) 24

25 Family circumstances 3 What type of family situation is the client in single, no dependent children single parent with one dependent child or more couple, no dependent children couple, one dependent child or more 4 Number of dependent children Age of youngest child B. Offer of financial inclusion advice (questions 5-9) This section should be completed each time an offer of financial inclusion advice is made The framework includes three questions (questions 6-8) that act as triggers to ask clients about some common issues in financial inclusion work. These are intended only as prompts to review with the client any needs for financial inclusion support and advisers should use an approach to asking about financial inclusion needs that is consistent with the needs of the particular clients or client groups that they work with. Asking about financial inclusion needs may be most important at key stages, such as the initial interview and when people are considering or have taken an offer of employment. However, it may also be relevant at other stages of review. 5 Date of review/ update 6 Does the client have a bank account that wages could be paid into on starting work? a Yes b No 7 Does the client need to have entitlement to benefits/ tax credits checked? a Yes b No 8 Does the client have any money/ financial issues that they need help with? a Yes b No 25

26 Question 9 aims to record the extent to which the offer of financial inclusion services is picked up through employability services, already in use or declined. This may need to be updated if the client s view changes at a later date 9 Is the offer of financial inclusion advice a b c d e Accepted Declined Not required at present but should be reviewed later Not applicable already had or currently getting financial inclusion advice Not applicable other reason (please specify below) C. Areas of Financial Inclusion Advice (questions 10-12) This section should be completed by the Employability Adviser. This section describes financial inclusion advice needs and who will do it. This section needs to be completed in relation to each financial inclusion service that provides support or receives a client through referral or signposting arrangements. For example, someone may need help with a better off in work calculation that is provided by the employability adviser, help with a housing problem from Shelter and help with a problem debt from a financial inclusion advice service. In relation to the type of financial inclusion advice needed, core monitoring should reflect the specific offer of a better off in work calculation and a back to work calculation since these are the most obvious aspects of financial inclusion advice within an employability service. Employability services should be interested to track the level of activity in these 2 areas. There are a further 6 headline financial inclusion advice categories covering: Advice Categories (question 10) In addition to the 6 main advice categories this field includes specific offers of a better off in work calculation and a back to work calculation. These are included since they will always be offered at key stages of the employability pathway. In the case of the back to work calculation, everyone entering work should be offered this service. In most circumstances, the financial inclusion advice to record will be obvious. However, the following provides some guidance on how to categorise some areas of information and advice: Financial Capability Advice includes e.g. financial education and budgeting or money management advice and support this can include individual or group work Help with any welfare benefits should be categorised as welfare rights advice. This would include, for example, housing benefit. Money advice covers any help that is needed with debts e.g. help to negotiate with creditors. 26

27 10 What financial inclusion advice is needed? (tick all that apply) a Better off in work calculation b c d e f g h Back to work calculation Money Advice Welfare Rights Advice Financial Capability Advice Housing Advice Employment Rights Advice Legal Advice Who will deliver the financial inclusion advice? (question 11): These options reflect the 6 different models of financial inclusion and employability partnership working across Glasgow that reflect different partnership arrangements and levels of activity. Recording this is important for informing the effectiveness of each of the models. You will be told which your organisation operates when you undergo financial inclusion awareness training 11 Who will deliver the financial inclusion work? (tick all that apply) a Employability Adviser b Financial Inclusion Adviser employed by the Employability Service c Seconded, full time, co-located Financial Inclusion Adviser d Service Level Agreement where different Financial Inclusion Advisers work out of Employability Service premises e Formal referral to Financial Inclusion Service f Signposting to Financial Inclusion Service If response is 11a only, go on to question 13. If response includes 11b to 11f, complete question 12. Signposting and referral (including internal referral) 12 Service referred/ signposted to (alternative: predefined list plus other ) Service referred/ signposted to Date 27

28 D. Outcomes/ Progress of Financial Inclusion Advice (questions 13-17) This section would be completed by Financial Inclusion Advice Workers who have access to the client management system which contains this framework or, in other circumstances, by the employability adviser. Individuals may require help from more than one source at a given point in time, so it will be important to ensure that work done by each service is recorded separately. This record may need to be updated on review to reflect progress. Also it will be important for monitoring to be able to reflect that advice activity done may be different from the original intention at the time of referral or signposting. At question 13, advisers should record which areas of advice were provided (see notes for question 10 above) and at what type. The three types/levels of advice reflect the following levels of work provided: Type1: Active information, signposting and explanation includes oral and written information, explanation of forms etc, but not passive information provision such as leaflets on display Type 2: Casework includes diagnostic interviews to identify all relevant problems or issues and identifying if there is a case to pursue. This level also includes e.g.: setting out options for the client to pursue or act upon, practical help with letters or forms, negotiating with third parties; supporting individuals to make their own case. Type 3: Advocacy, representation and mediation - includes a range of further actions arising from casework and may arise from referral from another organisation/ adviser. This advice type includes advocacy and representation (e.g. prepare a case for the user and represent or speak on their behalf at a tribunal or court) and mediation (acting on behalf of the user by seeking to mediate between the user and a third party) Most Type 3 advice will need to be referred or signposted for specialist help, but the impact of different levels of advice work is an important consideration for informing future development of services. There is further information available about the level of advice in the Scottish National Standards for Information and Advice (page 7): 13 What was the highest level of advice (Type 1, 2 or 3) given in each area of advice? a Better off in work calculation b Back to work calculation c Money Advice d Welfare Rights Advice e Financial Capability Advice f Housing Advice g Employment Rights Advice h Legal Advice 28

29 Example: a client is referred to an advice service - the service gives the client information about a problem a private rental tenancy (type 1) and representation for a benefits claim which is refused, involving the client in making an appeal (type 3 advice). The client also needs a back to work calculation (type 2), so the following would be a record of the advice service s work: a What was the highest level of advice (Type 1, 2 or 3) given in each area of advice? Better off in work calculation b Back to work calculation c Money Advice 2 d Welfare Rights Advice e Financial Capability Advice 3 f Housing Advice g Employment Rights Advice 1 h Legal Advice Optional additional fields It is not the intention that this framework should replicate the level of detail that advice services may record in relation to their work with clients, but some more detailed recording of the nature of advice provided is desirable. In particular, some more detail within each of the 3 main financial inclusion advice areas of Money/Debt Advice, Welfare Rights Advice and Financial Capability Advice may be desirable. The framework suggests some key categories for inclusion that recognise the importance of income maximisation through benefits claims and of resolving debt problems or improving financial awareness as barriers to moving towards employment. This field would allow scope to record other specific areas or types of activity that are of particular interest or relevance and should include the potential to record multiple entries. The following are key areas of work suggested for inclusion 29

30 a b c d e f g h i j k l m n o p q r s t Money/ debt advice Guidance on how to manage debt Help to reclaim bank / credit card charges Help with gas & electricity Issues Assist to open bank or credit union account Help with debt Other money/ debt advice (specify) Welfare Rights Advice Review of Current Benefits Assistance with benefits application for Disability living allowance Assistance with benefits application for Housing benefit and council tax Assistance with benefits application for Community care grant Assistance with benefits application for other benefits (specify) Benefit Advice: Disability living allowance Benefit Advice: Housing benefit and council tax Benefit Advice: Community care grant Benefit Advice: other (specify) Other welfare rights advice (specify) Financial Capability Advice Assistance to open bank or credit union account Help with budgeting/money management Help with budgeting/money management Other financial capability advice (specify) Progress on Financial Inclusion Advice The outcome (or stage of progress if not completed) should be recorded or updated on review. The date of review should be recorded at question 14. The source of the information should be recorded at question 15 this may be important if the client and the financial inclusion adviser have a different understanding of the stage to work is at. 14 Date of review/ update 15 Review information provided by: a Client b Employability Adviser c Financial Inclusion Adviser 30

31 The stage of progress should be recorded or updated on review at question 16. Please note the following: Some financial inclusion advice, particularly type 1 advice, may be completed on the same day as it is first recorded. Advice issues can take some time to be resolved. For example, it could take a year or more for a complex case to be completed or conclude in court or bankruptcy proceedings so, during a review, a record of progress should be made. The advice or support provided - decision pending category will generally apply to situations where a claim or other representations have been made with or on behalf of the client, but there is no other ongoing casework in relation to that issue. An outcome may not always be clear: for example, a repayment plan may be agreed, but break down at a future point or be reviewed, e.g. at the point of starting or preparing for work. In these circumstances the option of ongoing casework/ support should be used. 16 What is the stage of progress? a Client did not meet/ talk to adviser/ did not attend for interview b c d e f g h Better off in work calculation completed Back to work calculation completed Type 1 information/ advice completed (no ongoing casework) Advice or support provided decision pending Ongoing casework/ support Action completed/ case closed Outcome - brief description of outcome/ decision(s) made Client s view of the intervention Once an outcome is known, it should be recorded (from the client s perspective) at question 17 - this is important since it may affect views about moving towards work. 17 From the client s point of view was the financial inclusion intervention a successful b c d unsuccessful still ongoing unsure 31

32 Appendix 3 CLIENT REFERRAL FORM Client Name: Appt Location: Appt Date: Appt Time: Assistance Required Evidence Required at Appt Financial Capability: Do you have a bank account/credit union account that wages could be paid into on starting work? Assistance to open bank or credit union account Proof of Identification Help with budgeting/money management Incoming monies benefit info etc and outgoings bills etc Suggest ways of reducing outgoings Evidence of all outgoing bills etc Welfare Rights Advice: Have you had your benefits/ tax credits checked? Review of current benefits Benefit letters, books and bank statements Assistance with benefit applications:- Disability living allowance Housing benefit and council tax Community care grant Other specify: Proof of all benefits in receipt of at present Proof of disability All info relating to rent & council tax Evidence of reason required Benefit Advice:- Disability living allowance Housing benefit and council tax Community care grant Other specify: Proof of all benefits in receipt of at present Proof of disability All info relating to rent & council tax Evidence of reason required Back to work benefit check Better off Calculations Help reclaim bank / credit card charges Help with gas and electricity Issues Guidance on how to manage debt Help with debts Hours of work and rate of payall rent & council tax information Proof of all incomings and outgoings Money/Debt Advice: Do you have any money/ finance issues that you require help with? Bank statements and credit letters Gas and/or electricity bills Letters for amount owed, bank statements etc Bill, statement from each creditor Adviser Signature: Date: Client Signature: Date: 32

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34 Financial Inclusion Training for Employability Advisers Tutor s Pack

35 Contents Introduction Exercise 1: Exercise 2: Exercise 3: Exercise 4: Exercise 5: Exercise 6: Ice Breaker Debt Quiz Definitions Exercise Financial Inclusion Knowledge Grid Financial Inclusion Knowledge Builder Raising Financial Inclusion Issues Scenario Workshop Exercise 7: Financial Inclusion Knowledge Grid 2 Evaluation 35

36 Introduction This section contains a Tutor s training pack for Employability Services to use with their Employability Advisers. The training was written by Money Matters and GEMAP Scotland and is designed to provide Employability Advisers with a basic understanding of financial inclusion. Learning Outcomes At the end of the session, Employability Advisers will: 1. Understand the scale and magnitude of personal debt in the UK 2. Understand how debt can be a barrier to employment 3. Be able to define financial inclusion and the areas of financial inclusion advice 4. Be clear on the role employability staff have in delivering financial inclusion advice 5. Be equipped with new tools to help explore financial inclusion issues with clients 6. Know why financial inclusion advice is important in Employability Services Contents: Each exercise in the pack contains a step by step guide to delivery, the handout materials for participants and a list of resources needed. There is also a Financial Inclusion Handbook for Employability Advisers that accompanies this pack that should be distributed to each participant. Important: It is recommended that this training be delivered by a Tutor with a good knowledge of financial inclusion advice and services. If you have any questions about the training, contact: Tony Quinn, GEMAP Scotland on Geraldine Cotter, Money Matters on

37 Exercise 1: Ice Breaker Aim: The aim of the ice breaker is to set the scene and encourage some initial discussion. Learning Outcomes: Participants will understand the scale and magnitude of personal debt in the UK and begin to understand how debt can be a barrier to employment Resources required Flipchart Markers Debt quiz handout Pens/pencils Tutor answer sheet Time: 20 minutes Tutors notes 1. Introduce the session by explaining the aim and learning outcome of the icebreaker. 2. Begin the icebreaker by asking participants to guess what the national consumer debt is. 3. Encourage an auction by asking for improvements on the last bid, e.g if last figure mentioned is 100 million then ask for other bids. 4. Write the bids on the flipchart. 5. Run this for a couple of minutes asking the group for higher and lower bids and encouraging friendly competition. 6. End this part of the exercise session by telling participants that the answer will be revealed after the next part. 7. Distribute the debt quiz handout. 8. Explain that all questions are true or false and ask participants to complete. Allow 5 minutes. 9. Ask participants to swap papers for marking. 10. Read out the answers and explanations. 11. Ask for the scores giving praise and gentle joking as appropriate. 12. Return to national consumer debt questions, ask participants if they want to amend their answers up or down based on the quiz. 13. Reveal consumer debt answer. 14. Finish off by repeating that the purpose of the exercise was to show participants the scale of personal debt in the UK. 37

38 Participants materials Debt Quiz True False? 1. Britain s personal debt is increasing by 1m every hour 2. 1 in 10 people are borrowing from Doorstep loan or similar companies 3. 82m will be spent online today 4. The UK accounts for 25% (a quarter) of all the credit cards in circulation in Europe 5. Every week each household in the UK spends 346 on utility bills, weekly shopping, rent and other bills 6. A third of all groceries we buy today will end up in the bin 7. One in ten people are borrowing money just to pay household bills 8. 1 in 10 people in the UK are relying on winning the lottery as a financial plan 9. It costs an average of 26 per day to raise a child credit/debit card transactions will happen every minute today. GEMAP

39 Debt Quiz Answers 1: False Britain s personal debt is increasing every 4 MINUTES 2: False 1 in 4 people are borrowing money from a doorstep lender or similar company, often feeling they have no other options open to them. 3. True 82 Million will be spent online today. 4: False The UK accounts for 55% for all the credit cards in circulation in Europe. People often hold more credit cards than they can afford to pay off. 5: True Every week each household in the UK spends 346 on utility bills, weekly shopping, rent and other bills. An average figure of domestic spending. 6: True A third of all the groceries we buy today will end up in the bin. A reflection of money wasted age in the UK. 7: False 1 in 5 people are borrowing money just to pay household bills. 8: True 1 in 10 people in the UK are relying on winning the lottery as a financial plan. This is NOT a sound financial plan. 9: True It costs an average of 26 per day to raise a child. This equates to 9000 per year per child. 10: False 372 credit/debit card transactions will happen every SECOND today. A glimpse of the UK s spending culture. Consumer debt stands at 1.4 trillion pounds 39

40 Exercise 2: What is Financial Inclusion? Aim: For participants to demonstrate their common understanding of financial inclusion Learning Outcome: Participants will be able to define financial inclusion Resources Flip chart & flip chart paper Marker pens Pens Post-its Financial Inclusion Handbook for Employability Advisers Time: 20 Minutes Tutor notes 1. This is a group participation exercise, where participants collective understanding of the term financial inclusion is explored. 2. Write on the flip chart, in large writing Financial Inclusion 3. Ask the participants if they have heard of the term before. 4. Ask the participants to write down on post-its what they understand by the term Financial Inclusion, the participants can generate as many ideas as possible. 5. Ask the participants to place the post-its on the flipchart around the term Financial Inclusion 6. Read out the comments on the post-its (you do not need to read every one, as numbers may prohibit this) 7. There will be certain common themes that emerge so with the group begin to categorise them into: a. Financial capability b. Welfare rights c. Money advice 8. There may be some which do not fit into any category which is fine but the Tutor should emphasise there are no absolutes or wrong answers. 9. Draw the participants attention to the shared knowledge they already possess 10. Ask the participants if they have any questions/ comments/surprises from the list. 11. Encourage participants to air their views for reflection and discussion. 12. Finish by distributing the Handbook and drawing participants attention to the definition on page 4. 40

41 Exercise 3: Financial Inclusion Knowledge Grid 1 Aim: This is exercise measures the current knowledge base of participants Learning Outcome: Participants will have assessed their level of knowledge Resources Pens Knowledge grid Time: 10 minutes Tutor notes 1. Explain that this is a self-assessment and it s not about being right or wrong. 2. Explain the purpose of the grid is to identify Advisers knowledge of financial inclusion and its constituent parts. 3. Explain that the grid will be re-issued at the end to measure any gain in knowledge over the session. 4. Hand out the grid to the participants and explain to them how to score the grid i.e. they should rate their level of knowledge under the headings of: Financial capability Welfare rights Money advice With 1 being no knowledge and 5 being expert knowledge. 5. The knowledge of each Adviser will be varied. Some will not have heard of some of the terms reassure them this is okay. 6. Ensure that participants have filled out all of the grid. 7. Collect the grids and thank the participants for completing the grid. Additional Information The knowledge grid can be used to track the progress of individual participants by asking them to write their names at the beginning. This can also be done anonymously for tracking group progress. Whatever method is chosen, it should be repeated for knowledge grid 2 at the end of the session 41

42 Participants Materials Knowledge Grid 1 Please rate your level of knowledge of each of the terms below with 1 being no knowledge and 5 being expert knowledge Financial Capability Budgeting Banking Savings Cost of credit Credit repair Utility options Understanding debt Welfare Rights Benefit check Benefit applications Benefit reviews Representation at benefit appeals Better off in work calculation Back to work calculation Money advice Repayment proposal Token payments Debt write off Debt arrangement scheme Protected trust deed Bankruptcy Low income low asset (LILA) Debt prescribed 42

43 Exercise 4: Financial Inclusion Knowledge Builder Aim: To demonstrate the large range of financial inclusion advice available Learning Outcomes: Participants will become familiar with the three main areas of financial inclusion advice and what financial inclusion advice services do Participants will know their role in relation to delivering financial inclusion advice Resources Working knowledge of financial inclusion services Knowledge builder hand out Pens/paper Time: 30 minutes Tutor Notes The Tutor must be familiar with financial inclusion services and the knowledge builder handout, or should have a Financial Inclusion Advisor at least present or taking this exercise. 1. Explain that this exercise is designed to: raise awareness about the 3 areas of financial inclusion services available show the benefits of these to the client show how they assist the employability of clients allow participants to familiarise themselves with the handbook clarify the role of Employability Advisers in relation to financial inclusion advice. 2. Write on the flipchart Repayment Proposal 3. Ask the participants if they have heard of this before. 4. If group have heard of it then ask them to define it. 5. If no one has heard of it then ask the group to volunteer suggestions as to what it is. 6. The group should have reached some conclusion that it is a mechanism to repay creditors. Note this on the flipchart. 7. Ask the group what they think a client will need to get a repayment proposal with their creditors. 8. The group may then come up with a range of suggestions, but ensure disposable income and spare money are mentioned. 9. Break the participants into sub-groups and ask them to do the following tasks generate a list of the type of debts that could be paid using a repayment proposal e.g. rents, council tax and credit cards generate reasons on how this could support the client s journey into employment. 10. Bring the groups back together and ask them to report back. 11. Distribute the handout and ask them to consider their work in relation to the information in the handout ie how relevant is the information, how useful is it, how might they use it? 12. Go through the handout explaining each group of financial inclusion advice. 43

44 13. Describe that the handout can be used as a quick reference guide to help Advisers better explain the types of services on offer. 14. Ask them for their thoughts. 15. Emphasise that this exercise is about introducing the areas of advice available via financial inclusion services, and that Employability Advisers are not expected to have a high level of knowledge but enough to explain what s on offer to their clients so that theclient can decide what they need and the Employability Adviser can make an effective referral. 44

45 Participants Materials Financial Capability What does client need How will this be achieved Learning outcomes Supporting Employability Actions Timeline Budgeting Client need to understand concept of Budgeting Clients to undertake budgeting modules Clients will understand the importance of budgets & how they can construct their own personal budgets Clients able to plan their own finances as a result of budgeting module, less risk of financial pitfalls Client referred into budgeting workshops Client referred into budgeting workshops Banking Client needs to open and understand their Bank Account Bank Account opened, following Bank process map, client also undertakes Banking module Client understands how Bank Account operates and understands the benefits of Banking ie standing order and direct debit Client has an operational account which wages can be paid into. Client can be sign posted to bank or an appointment made at the bank and accompanied Referral into programme and Account opened within 6 weeks Savings Clients encouraged to examine attitudes towards savings Client will undertake savings module and encouraged to open credit union account via process map Client will learn the benefit of regular savings. Develop their savings plans. Client will understand how credit unions operate Client will develop savings plans which can help in times of financial difficulty Client can be sign posted to credit union or an appointment made at the credit union and accompanied Referral into programme and Account opened within 6 weeks Cost of Credit Clients encouraged to examine credit options and comparative costs Client will undertake credit module Client will understand concepts such as APR and how this translates to their own use of credit Clients will be encouraged to use affordable credit options and avoid excessive credit sources which could threaten future stable employment patterns Client contacted to see if they have changed current borrowing practices Referral into programme & Client contacted at 12 week point 45

46 Welfare Rights Their current income and circumstances One to one assessment of entitlement Possible additional income Potential negative outcome Typical benefit types How this supports employability Benefit Check Information on current family circumstances and current income Financial Inclusion Adviser will do a benefit calculation and may ask some additional questions to identify any further entitlements Confirmation that current income is accurate and may identify additional entitlements Additional benefits may be a disincentive to moving from benefits to employment Welfare benefits Ensuring correct entitlement to welfare benefits may ensure entitlement to in-work benefits if client commences employment Benefit Applications Personal information, national insurance number, current income etc. Financial Inclusion Adviser will complete the relevant benefit application and may make a request for backdate Entitlement to additional benefits Additional benefits may be a disincentive to moving from benefits to employment Mainly welfare benefits Ensuring correct entitlement to welfare benefits may ensure entitlement to in-work benefits if client commences employment Reviews/ Appeals National insurance number, a copy of the decision letter and to be within the relevant timescale for review or appeal Financial Inclusion Adviser will request a review and/or appeal of the relevant benefit May lead to original negative decision for benefit claim being overturned Client may not want to look at moving from benefits to work until outcome of their review and/or appeal is decided Mainly welfare benefits Ensuring correct entitlement to welfare benefits may ensure entitlement to in-work benefits if client commences employment Representation Client usually has to appear in person at tribunal. May need evidence to support case at tribunal hearing. Financial Inclusion Adviser will meet with client for pre-tribunal discussion and will represent client at tribunal hearing Negative decision may be overturned. May result in positive outcome and backdated award of benefits. Can take a long time for tribunal to be heard and Client may not want to look at moving from benefits to work until outcome of tribunal hearing is decided. It can be extremely stressful for individuals awaiting a tribunal hearing and also appearing before tribunal panel. Mainly Welfare benefits Ensuring benefit entitlement is pursued to the logical conclusion may result in entitlement to inwork benefits if client commences employment Better off in-work calculation Information on current family circumstances and current Income. Approximate anticipated salary and number of hours. Financial Inclusion Adviser will do an in-work calculation based on approximate anticipated salary and hours and will show entitlement to in-work benefits e.g. tax credits, housing and council tax benefit etc. Financial Inclusion Adviser will do calculations and show a comparison to their current financial circumstances so client is better informed. If the calculations for in-work benefits are less than anticipated, the client may be hesitant about moving from benefits and into employment. In-work benefits Ensuring that the client has information regarding the financial changes helps to prepare them for moving from benefits and into employment. It may also better inform on the number of hours that they may work in order to ensure the best financial outcome. Back to work calculation Information on current family circumstances and details of actual salary and number of hours to be employed. Financial Inclusion Adviser will do a return to work calculation based on salary and hours and will inform on entitlement to all in-work benefits. Client will be informed as to what their income and outgoings will be and can budget accordingly. If the calculations for in-work benefits are less than anticipated, the client may be hesitant about moving from benefits and into employment. In-work benefits Ensuring that the client has information regarding their income and expenditure should prevent possible problems e.g. with rent arrears whilst awaiting housing benefit award notification. Being financially prepared should assist with more sustainable employment. 46

47 Money Advice What does client need How is it achieved Pros Cons Typical debt types How this supports employability Repayment proposal Some disposable income Negotiation with creditors Manageable repayments agreed with creditors Can take a long time to repay and interest can still continue Non priority debts Avoiding possible diligence once client starts working Token Payments Minimal disposable income Negotiation with creditors Manageable repayments agreed with creditors Is usually only a short term solution and interest can still continue Non priority debts Avoiding possible diligence once client starts working Debt write off Good cause for this request Negotiation with creditors No further repayments are required Is a difficult request to get a creditor to accept Non priority debts The client is likely to have additional requirements to support the good cause for this request but once the debt is written off there are no financial barriers to employment as a result of this Debt Arrangement Scheme (DAS) Disposable income Financial Inclusion Adviser makes an application to the Debt Arrangement Scheme Administrator. The majority of the creditors have to agree to the DAS or if no majority agreement then referred to DAS Administrator for decision. Protection from court enforcement, bankruptcy and loss of your home and the opportunity to freeze interest, fees and charges You must have more than one debt. The debt must be repaid over a reasonable period of time. Your name will be on a public register Priority & nonpriority debts Name being on a public register may be a barrier for some employers. Conditions of DAS stipulate that you must have regular contact with your Financial Inclusion Adviser usually every 6 months unless a change of circumstances. Prescribed Debt To have heard nothing from creditor during 5 year period Financial Inclusion Adviser will check that the client meets all the relevant obligations and will write to creditor No further liability for the debt Client will have to confirm that they had not moved address and confirm that they have not had contact or made contact with the creditor during the period in question Nonpriority debts Once letter received from creditor confirming that they will no longer pursue the debt, a credit check should be sought as a poor credit rating can have a detrimental effect on moving into employment. Protected Trust Deed (PTD) Disposable income Referral by Financial Inclusion Adviser to Insolvency Practitioner. The majority of the creditors have to agree to the PTD. Once the trust deed has become protected, creditors can take no further action to recover the debt or take legal action. The PTD will generally last for 3 years. After the 3 years your credit rating, and therefore your ability to access credit, will have been affected significantly by a trust deed. The trust deed will remain visible on your credit record for a period of six years from the date that it started. Missed payments before the start of the trust deed, and any default notices issued by your creditors, will also remain on your credit record for six years. These issues will affect credit availability and the terms upon which credit might be offered Priority & nonpriority debts If financial circumstances change during this 3 year period then the amount of repayments or the duration of the PTD may be affected. Individuals in certain types of profession may not be able to enter into a Trust Deed without jeopardising their professional status. Credit rating will be affected and this may prevent applying for certain employment where a good credit rating is essential. Bankruptcy Low Income Low Asset (LILA) 100 is required to be paid to the Accountant in Bankruptcy Financial Inclusion Adviser will assist with the completion of the Low Income Low Assets (LILA)/ Bankruptcy application If no change in circumstances then Debt liability ends after one year. For the LILA, you have to meet the low income test i.e.be in receipt of income support, income-based jobseekers allowance or working tax credits or a gross wage of no more than a week If clients financial circumstances change during the year of Bankruptcy/LILA then payments may have to be made for 3 years Priority & nonpriority debts If financial circumstances change during the 1 year period then a contribution may be required and although the bankruptcy ends after I year the contribution payments will continue for 3 years. This may deter someone moving into employment until after the 1 year is complete. Individuals in certain types of profession may not be able to enter into a Bankruptcy without jeopardising their professional status. Credit rating will be affected and this may prevent applying for certain employment where a good credit rating is essential. 47

48 Exercise 5: Raising Financial Inclusion Issues Aim: To discuss how Advisers raise financial issues with clients To reinforce learning about the 3 main areas of financial inclusion advice To introduce the handbook and how to use it Learning Outcomes: Participants will be more confident to explore financial inclusion issues with clients Participants will be familiar with how to use the handbook Resources Handbook Flip chart Flip chart pen and paper Pens and paper Time: 30 minutes Tutor Notes 1. Introduce this session by explaining the aim and learning outcomes. 2. Ask Advisers how and when they currently explore financial inclusion with clients. 3. Note their answers on the flipchart. 4. Emphasise that this exercise is not about developing a script for Employability Advisers, but to introduce some prompts and reference materials to help the Adviser to cover all of the financial inclusion services available to the client. Some Advisers will be experienced in these discussions and some less so this is a chance to share experiences and develop ideas for future practice. 5. Distribute the trigger questions and ask each group to study them. 6. Ask for one volunteer from the group to ask the Tutor the financial capability trigger question. 7. The Tutor s reply should be yes. At this point there will be a pause and the Tutor should ask the volunteer if there is anything else they wish to ask about financial capability. The response will likely be no so the Tutor should point out that the trigger question alone does not cover financial capability fully but is simply the start of a discussion. 8. Refer to the handbook which contains the trigger question and further prompts. 9. Explain that the purpose of the prompts is to encourage a dialogue about different aspects of the client s finances. 10. Ask participants to compare these prompts with their current practise outlined on the flipchart. Encourage them to record any further prompts that participants are using, in their handbooks. 11. Ask participants What are the key services we should think about for clients regarding Financial Capability? 12. Encourage them to look at the handbook for answers. This will help them become familiar with the handbook. 13. Note answers on flipchart and repeat for Money Advice and Welfare Benefits. 48

49 14. Ask participants to break into sub groups of 3 and ask them to explore the handbook noting: how they feel about the trigger questions noting good and bad points. how they feel about the handbook how they will use it 15. Ask for feedback from each group 16. Finish by ensuring everyone is familiar with the handbook. 49

50 Participants Materials Financial Inclusion Trigger Questions Financial Capability Do you have a bank account/credit union account that wages could be paid into on starting work? Welfare Rights Advice Have you had your benefits/tax credits checked to ensure you are receiving your full entitlement? Money/Debt Advice Do you have any money/financial issues that you need help with? 50

51 Exercise 6: Scenarios Aim: To use new learning and start to apply it in real situations. Learning Outcomes: Participants will be able to identify what type of intervention is needed and how it can support employability Resources Flipchart, paper & pens Paper & pens Handouts Time: 1 hour Tutor Notes 1. Explain to the group the purpose is to take the learning and start to apply it in real situations. 2. Explain that participants can use the Handbook as they work through scenarios. 3. Split the group into sub groups of Provide each of the groups with a different scenario. 5. Write the following on the flipchart: discuss the client s circumstances identify what area of intervention is needed and what the desired outcome would be discuss how this will support the person s employability consider at what stage of the employability pathway these interventions should take place 6. The group should note their answers and points for feedback. 7. Allow ten minutes for discussion. 8. Provide the groups with the second handout for their scenario explaining that there is a change in circumstances and ask the group to answer the flipchart questions again. 9. Allow ten minutes for discussion. 10. Provide group with the third handout for their scenario and explain that this represents the clients six month review and that again new circumstances are present. 11. Ask the group to repeat the flipchart questions again. 12. Ask each group to feedback. 13. Conclude exercise with open invitation to comment on the whole process and explaining the purpose was to show that financial inclusion should be addressed throughout the process of gaining and sustaining employment. 51

52 Participants materials Handouts Scenario 1 Handout 1 Client profile Client is referred for employment advice and support. Single Person in receipt of Employment and Support Allowance Aged 26 No children Has some debts to various creditors but not sure how much and maybe some to Provident and maybe some rent Has Post Office account 52

53 Scenario 1 Handout 2 The client has been offered a post at minimum wage, for 30 hrs per week, (NMW = 5.93 per hour July 2011) She is thinking about moving home and taking on a private let She is keen to know her financial options 53

54 She is now six months into employment. Scenario 1 Handout 3 She reveals at her review that she feels no better off in work because most of her salary is being paid to creditors and debt repayments. She is considering quitting her job. 54

55 Scenario 2 Handout 1 Client Profile Client is part of a married couple, both of whom are unemployed They live in rented accommodation from a local housing association They have two children, a son aged 4 and a daughter aged 17, both children live at home Client indicates at interview that he may have Council tax arrears 55

56 Scenario 2 Handout 2 Client is now job ready He has offer of a job at per hour His daughter is now 18 and leaving school to start work next week She will continue to live at home 56

57 He is now 12 months into employment Scenario 2 Handout 3 He indicates that he is finding it difficult to make his money stretch He feels that he is maybe over-committed Currently his finance agreement for his car is in arrears His store card is also in arrears His overdraft facility has been breached The Bank is threatening to downgrade his account 57

58 Exercise 7: Knowledge Grid 2 Aim: To measure the growth in knowledge of participants Learning Outcome: Participants will be able to demonstrate their growth in knowledge Resources Knowledge grid Pens/papers Flip chart/paper/pens Tutor Notes 1. Re-issue the knowledge grid (this should be a clean/new copy). 2. Participants should again write their names on the grids if this is the chosen method of tracking (see below Additional Information). 3. Ask participants to re score the grids as before. They should rate their level of knowledge under the headings of: a. Financial capability b. Welfare rights c. Money advice With 1 being no knowledge and 5 being expert knowledge. 4. Collect in the completed grids. 5. Ask participants if they were aware of any changes to their scores. 6. Explain the purpose of re-doing the grid is to measure the growth in knowledge of participants and this will be used to evaluate the effectiveness of the training. 7. Thank the participants for completing the grids. Additional Information The knowledge grid can be used to track the progress of individual participants by asking them to write their names at the beginning. This can also be done anonymously for tracking group progress. 58

59 Participants Materials Knowledge Grid 2 Please rate your level of knowledge of each of the terms below with 1 being no knowledge and 5 being expert knowledge Financial Capability Budgeting Banking Savings Cost of credit Credit repair Utility options Understanding debt Welfare Rights Benefit check Benefit applications Benefit reviews Representation at benefit appeals Better off in work calculation Back to work calculation Money advice Repayment proposal Token payments Debt write off Debt arrangement scheme Protected trust deed Bankruptcy Low income low asset (LILA) Debt prescribed 59

60 Exercise 8: Evaluation Aim: To gain participants views of the session Learning Outcome: Participants will have scored how far they have achieved the learning outcomes. Tutor s notes 1. Distribute the evaluation form and ask the participants to complete 2. Tutors should feel free to amend the evaluation to suit their purposes. 3. Allow 5-10 minutes. Resources Evaluation form Pens/papers 60

61 Participants Materials Financial Inclusion Training for Employability Advisers - Evaluation Form Thanks for participating in today s session. Please take the time to fill in this evaluation form to enable us to further develop the session for future participants. Please rate how far you have achieved the learning outcomes with 0 being not all and 10 being full achieved. 1. Understand the scale and magnitude of personal debt in the UK Understand how debt can be a barrier to employment Be able to define financial inclusion and the areas of financial inclusion advice Be clear on the role that Employability Advisers have in delivering financial inclusion advice Be equipped with new tools to help explore financial inclusion issues with clients Know why financial inclusion advice is important in Employability Services Giving participants a chance to consider how to develop their practice Please turn over. 61

62 What did you find to be the most helpful about the training session? What did you find least helpful about the training session? How might this be improved? What other support do you need to ensure you are confident to speak to clients about financial inclusion issues? Many thanks for taking the time to complete this evaluation. 62

63 Acknowledgement These guidelines were developed by Glasgow City Council s Glasgow Works Team and Financial Inclusion Team, Glasgow s Regeneration Agency, Scottish Poverty Information Unit, Money Matters and GEMAP Scotland with funding from the Scottish Government. Glasgow s Advice & Information Network 63