Agenda item

(To receive a report by Lynne Faulder, Financial Inclusion Officer, which provides information and overview on Financial Inclusion activity, the financial inclusion challenges facing Lincolnshire as well as the local context, key drivers and priorities)

Consideration was given to a report which provided the Committee with information and an overview on financial inclusion activity, the financial inclusion challenges facing Lincolnshire as well as the local context, key drivers and priorities.

The Committee was guided through the report and received a brief presentation which provided further information in relation to the following areas:

·         Financial exclusion – some of the impacts

·         Who is financially excluded

·         Financial inclusion – information, advice and support

·         Financial inclusion – challenges include:

·         Next steps and future priorities.

Members were provided with the opportunity to ask questions to the officers present in relation to the information contained within the report and presentation and some of the points raised during discussion included the following:

·         It was highlighted that the adverts for pay day loans, some with interest rates of 1500% were contributing to issues around finance.

·         It was commented that in libraries there were advice centres and surgeries which provided advice on applying for universal credit as well as access to computers.  An additional pot of funding had also been allocated to Citizens Advice to help people having issues in applying for universal credit.

·         In terms of tackling financial exclusion, it was acknowledged that there had been issues and problem, but the relevant organisations were now coming together to take a collaborative approach.

·         It was queried whether this issue was around 10-20 years ago, and whether it had got worse, and if it would still get worse in the future.  Members were advised that the issue of financial exclusion had always been there, but the recent financial crash had placed people in new territory financially, and the banking sector was only just starting to relax. 

·         In terms of numbers it was not thought that a significant improvement would be seen in the immediate future.  However, the more work that could be carried out collaboratively, then there was a better chance of things improving. 

·         It was noted that this subject was getting more time and attention on the national agenda.

·         It was suggested whether a lot of financial problems started at home, with the lack of emphasis placed on the importance of saving, and the need for instant gratification for people who wanted the latest gadget was another issue.  however, it was acknowledged that this was not the cause for all people with financial issues, and there was an element of the population in dire poverty and they needed as much help as possible.

·         It was clarified that the people being financially excluded were not those who were being reckless with credit cards etc. that was a different issue.  However, it was agreed there was definitely a need for more education programmes in relation to finance.

·         It was commented that one area where regulation was needed was those companies whose interest rates (whether loans or credit cards) were extortionate, and there was a lot of bad practice within this industry.  It was queried what could be done to challenge this.  Members were advised that work could be done to influence the national agenda, and the authority was leading on the Financial Inclusion Partnership and so had access to the knowledge and intelligence of people within those communities so that this could be added to the national debate.

·         There was further support for education on finance matters in schools.

·         Whilst it was important that these lenders were challenged, there was also a need to ensure that there was an alternative offer, and that was what time and energy was going into developing.  For example, Lincolnshire Credit Union offered affordable and reasonable loans.  There were also charitable organisations who could offer reconditioned white goods.

·         It was queried how people on benefits accessed their benefits, and it was reported that in order to receive benefits, people needed to have a bank account of some sort.  However, some were not accounts that people would have by choice (e.g. may have poor interest rates and also may have charges associated with them).  A lot of people with problems accessing bank accounts would have accounts at the post office with just a cash card facility.

RESOLVED

            That the report and associated comments be noted.