Post by nickd on Feb 1, 2011 21:49:20 GMT 1
Whats happening with FIF
As posted by Rich on Ilegal n Jan 26, 2011
"Hi folks,
Not strictly a legal aid issue i know- but it impacts on clients potentially significantly hence this post. For those not familiar with FIF (Financial Inclusion Fund) - its an income stream set up by the previous government and has been running 5 years. Its targeted at reducing financial exclusion and income has been provided to a range of projects and initiatives. One of the major areas is face to face money advice. A significant share of the income sits with CAB but other agencies receive income too. The total programme team across the country amounts to about 480 staff in various money advice related roles in various agencies.
Initially it was set up for a two year period then a further 3 followed (there or there abouts). That second period is about to expire on 31st March 2011. Most agencies I believe have prepared for the worst and making the assumption that the income will cease. The difficulty arises in so far as there appears to be no clear statement as to what is happening. On the one hand questions in the house of commons suggest its finishing, but there are other statements around that suggest that there is some sort of negotiation still taking place. There have also been communications from the network orgnaisations suggesting that something is still on going. Here is some stuff taken from Parliament:
Quote:
Financial Inclusion Fund
Treasury
Written answers and statements, 24 January 2011
Sam Gyimah (East Surrey, Conservative)
To ask the Chancellor of the Exchequer what plans he has for the future of the Financial Inclusion Fund.
Hansard source (Citation: HC Deb, 24 January 2011, c116W)
Karl Turner (Kingston upon Hull East, Labour)
To ask the Chancellor of the Exchequer what plans he has for funding the Financial Inclusion Fund after April 2011.
Hansard source (Citation: HC Deb, 24 January 2011, c116W)
Mark Hoban (Financial Secretary, HM Treasury; Fareham, Conservative)
"The Financial Inclusion Fund will close at the end of March this year.
The Government will work closely with industry and other stakeholders to ensure that tackling financial exclusion remains a high priority."
Is this an issue for many of us that frequent this site? What views/thoughts? If this ends will there be an impact on the consumption of your Debt Legal Help NMS if you have any?"
Rich poses some very valid questions. Government are categoric in what they say about this vital funding being pulled in March. whilst they seem to acknowledge that financial exclusion is a high priority - they seem to pin their hopes on tacking financial exclusion as the solution - but have they really understood the problem?
What is meant by financial exclusion?
Is it not those who face the prospect of rising mortgages, job losses, debts which never reduce through punitive interest - who face the biggest exclusion of all?
People can be ruined by debt, it's an epidemic, it's not all feckless borrowing. It's a problem which needs a solution, there are thousands who face debt; debt the banks label as toxic. Yet the real toxicity starts with those facing unpaid bills, broken finances, enforcement action - and for many people there will be repossession of their homes.
For some it's just too late to educate them on better financial management - what's needed is proper debt advice given by people who are specialists in their field - only with the right degree of help can people be helped to rebuild their lives. It's crucial that we do what we can to tackle this problem - it's an irrelevance to make judgements over why people are in financial difficulty - it's solutions which are needed - not judgements. Proper advice helps people find a solution, there's no other remedy to this problem.
As posted by Rich on Ilegal n Jan 26, 2011
"Hi folks,
Not strictly a legal aid issue i know- but it impacts on clients potentially significantly hence this post. For those not familiar with FIF (Financial Inclusion Fund) - its an income stream set up by the previous government and has been running 5 years. Its targeted at reducing financial exclusion and income has been provided to a range of projects and initiatives. One of the major areas is face to face money advice. A significant share of the income sits with CAB but other agencies receive income too. The total programme team across the country amounts to about 480 staff in various money advice related roles in various agencies.
Initially it was set up for a two year period then a further 3 followed (there or there abouts). That second period is about to expire on 31st March 2011. Most agencies I believe have prepared for the worst and making the assumption that the income will cease. The difficulty arises in so far as there appears to be no clear statement as to what is happening. On the one hand questions in the house of commons suggest its finishing, but there are other statements around that suggest that there is some sort of negotiation still taking place. There have also been communications from the network orgnaisations suggesting that something is still on going. Here is some stuff taken from Parliament:
Quote:
Financial Inclusion Fund
Treasury
Written answers and statements, 24 January 2011
Sam Gyimah (East Surrey, Conservative)
To ask the Chancellor of the Exchequer what plans he has for the future of the Financial Inclusion Fund.
Hansard source (Citation: HC Deb, 24 January 2011, c116W)
Karl Turner (Kingston upon Hull East, Labour)
To ask the Chancellor of the Exchequer what plans he has for funding the Financial Inclusion Fund after April 2011.
Hansard source (Citation: HC Deb, 24 January 2011, c116W)
Mark Hoban (Financial Secretary, HM Treasury; Fareham, Conservative)
"The Financial Inclusion Fund will close at the end of March this year.
The Government will work closely with industry and other stakeholders to ensure that tackling financial exclusion remains a high priority."
Is this an issue for many of us that frequent this site? What views/thoughts? If this ends will there be an impact on the consumption of your Debt Legal Help NMS if you have any?"
Rich poses some very valid questions. Government are categoric in what they say about this vital funding being pulled in March. whilst they seem to acknowledge that financial exclusion is a high priority - they seem to pin their hopes on tacking financial exclusion as the solution - but have they really understood the problem?
What is meant by financial exclusion?
Is it not those who face the prospect of rising mortgages, job losses, debts which never reduce through punitive interest - who face the biggest exclusion of all?
People can be ruined by debt, it's an epidemic, it's not all feckless borrowing. It's a problem which needs a solution, there are thousands who face debt; debt the banks label as toxic. Yet the real toxicity starts with those facing unpaid bills, broken finances, enforcement action - and for many people there will be repossession of their homes.
For some it's just too late to educate them on better financial management - what's needed is proper debt advice given by people who are specialists in their field - only with the right degree of help can people be helped to rebuild their lives. It's crucial that we do what we can to tackle this problem - it's an irrelevance to make judgements over why people are in financial difficulty - it's solutions which are needed - not judgements. Proper advice helps people find a solution, there's no other remedy to this problem.