Better Off Finance: January 2020

Tuesday 28 January 2020

The Women’s Organisation Praises Universal Credit Report Recommendations

The Women’s Organisation is welcoming recommendations in a new report into the impact of Universal Credit.

The study published last week, by the Resolution Foundation in partnership with the Liverpool City Region Combined Authority, has called on the government to make vital reforms including making Universal Credit more female-friendly. It says boosting work allowances for single parents and second-earners would boost their work incentives and increase household incomes.

As part of its research, the Foundation carried out in-depth interviews across the Liverpool City Region (LCR). The area was one of the first areas to receive Universal Credit, and a higher proportion of working-age families are on UC than across the country as a whole (31 per cent for LCR, compared to 24 per cent for the UK).

The interviews focused on recipients’ experiences of various aspects of the new system and uncovered a number of areas where further improvements are needed.

The report also said that they were almost universally positive about the other organisations that were supporting with financial or employment-related issues.

One of these is Better Off Finance, an innovative partnership led by social enterprise The Women’s Organisation and funded by Building Better Opportunities via the European Social Fund, along with the National Lottery Community Fund.

It helps people better manage their money, instil financial resilience and prepare and move into sustainable employment.

Its services include helping with benefits, ensuring people are receiving their full entitlement, and helping reduce debts to make peoples’ money go that bit further.

The initiative began in 2017 and so far it has signed up 1,174 people across the Liverpool City Region, with nearly two-thirds of them women. (64% female and 36% male. All were unemployed and 49% had a disability.)

Maggie O’Carroll, CEO of The Women’s Organisation, said: “Last week’s report shows the damaging effect which Universal Credit is having on our communities. While the roll out of Universal Credit may have been intended to simplify the welfare system, we have found that it compounds common issues for many of the most vulnerable who we work to support.

“Not only does it create a very real barrier for those who may wish to explore the route of self-employment to improve their own personal and financial circumstances, the one payment per household system poses an even greater threat to vulnerable women who may be at risk of domestic abuse. That’s why it’s so important that programmes like Better Off Finance are equipping people with the tools to become more financially mobile.

“We’re proud to be working with Citizens Advice across the Liverpool City Region on the delivery of Better Off Finance, which is helping those who are most vulnerable to take control of their finances, become more resilient and gain the all important confidence to take their next steps into sustainable employment”.

Maggie O'Carroll, CEO of The Women's Organisation

Among Better Off Finance’s success stories are Catharine Ramage, who left her teaching job due to ill health and was unemployed for seven years. Better Off Finance helped her become more financially savvy and regain control of her personal finances, saving £100 a month. Feeling empowered to take her next steps into self-employment, Catherine is now a small business owner.

She said: “My key worker gave me tools for life to maximise my income and minimise my outgoings. I always tended to bury my head when it came to this stuff – now I have the confidence to find and negotiate better deals for monthly necessities.

“Today, I am a business-owner running my own editorial business from home. My mentor made me feel like they really cared about helping me to improve my situation – not that they were just ticking boxes or trying to ‘push’ me back into work. They took the time to understand my circumstances and give me a personalised service. I feel really lucky to live in a city where these services are available to me”.

Metro Mayor of the Liverpool City Region Steve Rotheram said: “As it stands, Universal Credit disproportionately punishes the most vulnerable will leave a majority of families in our region worse off.

“I’ve been an opponent of UC since day one, but the reality is that this government aren’t going to scrap it. They have to listen to those on the frontline and undertake reforms like those suggested in our report to make things more manageable for people who are struggling.

“UC should offer a genuine safety net rather than forcing people to wait five weeks wait for a first payment and penalising them for finding work.”

Metro Mayor of the Liverpool City Region Steve Rotheram

To find out more about Better off Finance contact hello@thewo.org.uk or call 0151 706 8111.

Friday 24 January 2020

John turns his life around with Better Off Finance

There’s nothing worse than feeling out of control. When life begins to take a downward turn, the resulting domino effect can cause breakdowns of relationships, businesses, and ultimately, mental health.

62-year-old John’s* life began to spiral after his business began to fail. At the same time, his marriage started to disintegrate; due to the stress and anxiety he was under, he eventually became alcohol dependent, disengaged from his family, and withdrew from society, rarely leaving the house and neglecting to care for himself. As matters worsened and his mental health deteriorated, John began to suffer from suicidal thoughts.

Alcoholism and mental health issues often go hand in hand - people with mental health issues are twice as likely to develop alcohol dependency than the rest of the population. While many use it to numb negative feelings, in the long run alcohol greatly contributes to stress, anxiety and depression, meaning sufferers become trapped in an inescapable cycle of trying to treat a problem with the very thing that is causing it.

John was put in touch with the Better Off Finance programme by his housing association, who were assisting him in finding a cooker and using food banks. His situation had deteriorated to the point where he realised he needed help: he lived alone in a four bedroomed house, and found himself unable to deal with everyday matters. John came to the decision himself that he wanted to turn his life around and become alcohol-free, and so reached out for support.

Through Better Off Finance, John was assigned a Key Worker, who provided 1-2-1 support throughout his journey. During this period, John managed to clear his water arrears and create a new payment plan for future bills; he received a new washing machine, as his previous one had fallen into a state of disrepair; he reduced his mobile and TV package, and received support in creating a manageable budget for utility bills and monthly outgoings – something which he has never done before. A further grant has also been applied for to top up John’s current income while he is getting back on his feet.

As a result of the support from Better Off Finance and his Key Worker, things have been looking up for John. After getting his new washing machine through Better Off Finance and a new cooker from his housing association, he has started taking care of his appearance and eating healthily, which has had a huge positive impact on his wellbeing. In turn, this has led to him reaching out to his family and spending time with his grandchildren – along with support from a substance misuse charity, contact with his family has been a massive encouragement in his journey to becoming sober.

The change in John is clear: he’s more confident and sure of himself, and is managing independently. He’s recently gained a qualification in First Aid, something which he could never have imagined doing a few months ago.

He said: ‘The support and encouragement from my Key Worker has been amazing, and I can’t thank he enough for just listening and understanding my situation. I would urge anyone to access this service. It has been invaluable to me in realising that there is help if you want it, and it has started to build my confidence and self-respect back to what it used to be’.

About us:

Better Off Finance is offering residents of the Liverpool City Region who are currently unemployed (although don't have to be claiming benefits), a bespoke programme of support.

This support will be provided at a local community venue or at home if a participant prefers.

Each participant will be linked up with their own key worker who will support them to:

Improve their financial capability through 1-2-1 support and group work

• Access employability sessions within the programme

• Access a Level 2 Accredited ‘Money Mentor’ opportunity

• Progress into training and education opportunities

• Prepare and progress into sustainable employment.

Please contact us via our Facebook or Twitter pages to make a referral or for further information.

Better Off Finance is a programme jointly funded by The National Lottery Community Fund and European Social Fund as part of the Building Better Opportunities Initiative

Wednesday 22 January 2020

Energy Saving Week Tips

Turn off Standby appliances

Take a look around your home, how many appliances do you have on standby? TV, phone charger, microwave, lights? These devices draw power when plugged in and not in use. This is sometimes known as 'vampire power'. Each appliance may only account for £3 each year although, if you have 30 appliances on standby this amounts to £90 every year! Research from energy saving experts have also discovered that having appliances on standby may account for about one hundredth of all carbon dioxide emissions released into the atmosphere globally.

Turn down Temperatures

The washing machine is one of the most heavily used appliances in the home. A 7kg washing machine used 220 times a year will cost typically between £25 - £35 a year to run. In-fact, wet appliances account for almost 10% of typical household’s energy bills. To save energy, switch to low temperature 30-degree washes.

Money can also be saved by turning down the thermostat dial. Research from Energy Saving Trust shows that more than 60 % of the British public are making at least one heating control errors. Simply setting your thermostat from 24 C to 23 C, could save £75 a year to your annual energy bill.

Be Water-wise

Save water by turning off the tap while brushing your teeth or shaving, rather than running a constant stream. Studies have shown that we waste four gallons a minute. Doing this can save 200 gallons a week for a family of four!

Think twice before filling up your kettle to the brim. The average kettle holds 1.5 litres of water and uses about 0.1 kWh of electricity to boil for 3 minutes. That’s around 2.5 pence every time you boil a full kettle. The average British person drinks 884 cups of tea each year, this means that we spend over £20 every year boiling the kettle!