1. Using Prepaid Cards for Direct Payments
The National Prepaid Cards Network
Colin Whitehouse
Chair – National Prepaid Cards Network

2. 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
The Members Only area contains documents submitted by local authorities, access is restricted to public sector members and network organisations
It’s all free!

3. 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

4. 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

5. 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….

6. 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

7. 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

8. 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

9. 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

10. Questions?