£4m boost in battle to keep tenants out of debt

The economic downturn has seen more people struggling with debt and the Big Lottery funding is aimed at those seen as most vulnerable – social housing tenants moving in and out of work as well as first time and young tenants.

Two Citizens Advice Bureaux in Hull and Sheffield will share the bulk of the money, with housing projects in Wakefield and Calderdale also benefiting.

Hull’s Quids In project, which has been awarded £933,000, is aiming to recruit an army of volunteers – up to 150 eventually – to help thousands of tenants to learn how to manage their money over the next five years. CAB says the average level of debt they encounter is £13,500.

Nationally it is estimated that 310,000 people borrow £120m each year from loan sharks on which they repay £450m.

Chief executive Lesley Thornley said: “It’s about building knowledge, skills and understanding financial products and services so people can make informed choices. We are developing a wide range of training, both non-accredited and are also working with Hull College to develop an accredited programme.

“There’s no financial capability training in our education system; people are expected to learn it and acquire it through life, but if you don’t have family who have experience to teach you how to mange your money, or friends or colleagues, people don’t know who to turn to.”

In Hull, the main social landlord is the council and from January people taking on a new tenancy will be encouraged to take up the offer of support from the CAB.

Ms Thornley said: “Lots of people on very low incomes don’t have bank accounts and they don’t have insurance, they work on a cash system, they pay more for gas and utilities because they can’t access direct debit and they pay by meters which cost more.”

The largest chunk of the money, more than £1.5m, is being spent in Sheffield, where more than £930,000 is going on the CAB’s Debt Support Unit, which will advise and support hundreds of first-time housing tenants with household budgeting, finding the right financial services and benefits.

Sheffield CAB’s Vulnerable Peoples’ Financial Confidence programme has been awarded more than £600,000 to work with people with mental health problems and those who have been granted asylum.

Wakefield and District Housing project Cash Wise has been awarded £586,253 to teach 750 people aged 18 to 24 who are first time tenants or are in pre-tenancy stages how to budget.

The Sick of Being Skint project led by Pennine Housing 2000 will use £600,000 over four years to help young people and first-time tenants across Calderdale. The project will take financial advice road-shows to rural areas and deliver financial skills training to young people leaving care and those not in education, employment or training.

Martin Lewis, creator of MoneySavingExpert.com, said: “Hopefully it will reduce the risk of desperation driving people into relying on costly payday loans or even loan sharks.”

Vanessa White, from the Big Lottery Fund, said: “Recent changes in legislation, such as the benefits cap and the introduction of Universal Credit – whereby benefits payments go to the head of the household rather than directly to the landlord, mean there is even more pressure on tenants to take responsibility for managing their finances.”