1. Practitioners’ briefing: The nature and extent of financial difficulty and what social landlords can do about it

2. Jim Fearnley Head of Research and Policy Money Advice Trust Support for People in Financial Difficulty

3. Aims of presentation Money Advice Trust – where we came from and what we do A snapshot of the overall current debt picture Social housing tenants and financial difficulty How RSLs can use MAT to support tenants Wider partnerships between RSLs and advice services and other agencies

4. Background to MAT Set up 1991 following government-commissioned report –Mortgage crisis –Rising levels of consumer debt Developing range of services –Service delivery –Training & second-tier support –Quality assurance –Policy and research –Fundraising –Common Financial Statement

5. Working in partnership with: Advice sector Government Credit sector Commercial debt advice sector Other charities How does MAT achieve its objectives?

6. Debt – the current picture Total consumer credit lending to individuals in July 2007 £214bn (increased of 5.3% in last 12 months Consumer credit lending grew by £1.1bn in July 2007. Average household debt in the UK is £8,856 (excluding mortgages). This figure increases to £20,600 if the average is based on the number of households that have some form of unsecured loan. Average interest paid by each household on their total debt c. £3,700 p/a (this equates to 9% of take home pay). Average consumer borrowing via credit cards, motor & retail finance deals, overdrafts and unsecured personal loans is £4,515 per average UK adult at the end of July 2007

7. Social housing tenants & debt (1) 2005 MORI debt report for DTI Social housing tenants: 62% of sample in arrears of credit commitments or household bills 44% of sample of those declaring borrowing “a heavy burden”, although were only 27% of sample overall

8. Social housing tenants & debt (2) Overstretched (Kempson, 2006) Those “seriously struggling & over-indebted”: above average numbers of LA & HA tenants Over ½ of those “struggling on a low income” are tenants in social rented sector (2.5 x national average) Impact of fuel bills highest on low-income households, including LA & HA tenants

9. How RSLs can use MAT’s service Refer tenants to NDL & BDL Negotiate training for staff Use Common Financial Statement Share good practice for wider dissemination Access data & other research information

10. RSLs & financial inclusion initiatives Training staff in ‘problem-noticing’ Referrals to & partnerships with advice services Contracting with external advice services Supporting tenants’ financial capability Credit unions and the savings culture

11. Your response