Boost for low income families
A new, automatic online service will help some of the UK’s eight million financially vulnerable households which currently miss out on £16 billion in benefits they are due.
Not-for-profit lender Scotcash said its new benefits calculator, provided by Inbest, an award-winning fintech, will automatically compare the actual benefits people receive with the benefits they are entitled to, based on their specific circumstances and financial situation.
The calculator is integrated within Scotcash’s online affordable loan application process and notifies customers about any unclaimed benefits before guiding their applications. It will help people in households who are unaware of their entitlement, wrongly assume they are not eligible or think an application is too complicated.
The feature is already helping loan applicants to top-up their salaries with their benefits entitlement, reduce their bills, apply for smaller amounts of credit, repay their loans more comfortably, and build savings in the future.
Sharon MacPherson, CEO of Scotcash, said: “Financial insecurity is expected to be a bigger reality for more people as a result of the end of furlough, increased utility bills and higher national insurance contributions so it’s more important than ever people claim everything they are entitled to. We are delighted to enhance our existing customer support with this much needed new service.”
Manu Peleteiro, co-founder of Inbest, said: “We believe that partnering with companies that offer complementary services is the most efficient way to reach people that are missing out on their benefits. We are super proud of the impact that this partnership is making on Scotcash customers, so far we’ve identified that 70% of loan applicants were missing on average £465 each month on benefits.”
The impact is even bigger for households with children, who can claim additional benefits of £565 per month they currently don’t.
“Affordable credit can be a lifeline for people who have difficulty accessing mainstream sources, such as banks and building societies,” added MacPherson, “but Scotcash has always been more than just an ethical lender and determined to help customers build their financial well-being. If they don’t access the benefits they are due, people can end up in worse financial situations. We’re thrilled to see the immediate impact this calculator is having on our customers’ lives.”