Using Prepaid Cards for Direct Payments The National Prepaid Cards Network Colin Whitehouse Chair – National Prepaid Cards Network colin.whitehouse@prepaidnetwork.org.uk

National Prepaid Cards Network Independent network created in 2011 Over 850 local authority, central gov’t and health sector members Assesses sector requirements and captures best practice shares best practice, issues and problems for mutual benefit acts as an interface between the public sector and the suppliers Membership, events, support and website are free of charge to the public sector www.prepaidnetwork.org.uk The Members Only area contains documents submitted by local authorities, access is restricted to public sector members and network organisations It’s all free!

Prepaid Cards in the Public Sector At the end of August 2018 prepaid cards are being used by; 130 Councils over 20 Clinical Commissioning Groups Police, Charities and Social Enterprises Many councils are now using prepaid cards in multiple service areas almost always starting with adults and children’s services direct payments Councils and CCG’s have uploaded £312m onto prepaid cards so far this year

Popular applications Adults direct payments Authorities report savings of between 5% and 10% of their DP budgets by using prepaid cards Appointeeships / Court of Protection Children’s services Fostering, respite care, young people leaving care etc. Asylum seekers / no recourse Personal Health Budgets Cash replacement Some authorities are cashless, using prepaid cards in all departments Emergencies / instant issue

Advantages to service users Prepaid cards are generally available to all, regardless of financial circumstances many potential benefits to those financially excluded (20% of pop.) Removes the considerable worry of providing paperwork Access to better services and lower online prices (15% lower) Promotion of life skills / social inclusion Early notification of probable direct debit failure No need to carry and manage cash Can’t go overdrawn and incur costs Can more easily track spend and manage their own finances Helps the service user to better manage their own affairs Improved and more timely safeguarding ….there is overwhelming evidence that service users like using prepaid cards….

Advantages to local authorities Solves the problem of funds being held in service users’ own bank A/C’s Much easier proportional monitoring of spend Daily alerts and real time spend information It’s easy to claw back funds when necessary Spend can easily be monitored against the care plan and data used during service user meetings and reviews Improves authorities’ safeguarding capability Automates the audit trail Generates excellent management information spend data is available for analysis and reporting purposes The prepaid card is the property of the council service users sign an acceptable use agreement Replaces cash handling - cheaper, faster, safer and more secure Tighter integration between finance and front line social work

Some examples...there are many more A NE unitary authority can now produce a financial audit in seven minutes and they are used in ALL annual reviews A County Council saved £7.5m in the first year of using prepaid cards with no impact on service delivery Another saved £1.75m by carrying out a high balances exercise with no impact on service delivery Two unitary authorities have integrated prepaid cards with their financial systems and care systems and now have full operational dashboards showing their position at all times A city council has produced seven case studies illustrating how prepaid cards have directly improved the lives of appointees A London borough uses prepaid cards in all 14 departments and has closed all of its cash offices

Final thoughts There are currently two prepaid card framework contracts available to all UK public sector organisations It’s possible to be up and running within 4-6 weeks of signing a contract You remain in total control of your finances and fit the prepaid cards around how you want to operate Members identify service user resistance as the biggest red herring The network provides a safe forum to get started, you’re not going to do anything that hasn’t already been done by other members This isn’t new or risky, and you’re in a shrinking minority if you’re not taking advantage of the opportunities provided

Prepaid Cards – a few quotes “Prepaid cards are a great way to get things done, they’re easy to use and safer and more secure than cash” – London Borough “Prepaid cards allow us to focus on monitoring high-value processes, they allow all departments to manage more effectively” – County Council “Prepaid’’ is so much better for me, I don’t have to worry about it at all. I used to get real anxiety attacks, I couldn’t deal with the paperwork.” “…..for us it’s been a plus, ‘cause to manage it for my dad, I can show him statements and show him how everything’s paid” - Service Users

Questions?