Laurie Russell explains how Lloyds Banking Group Money for Life programme is helping third sector staff and volunteers better manage their money
It doesn’t surprise me that the focus of the general election campaign was on growing the economy and ending poverty and low pay. But what saddens me, is despite Scotland being one of the richest countries in the world, one million people are living below the poverty line, with more families with children struggling financially.
The latest Poverty and Income Inequality in Scotland Report showed there has been a reversal in the trend of recent years, when deprivation levels have fallen, with 30,000 more children joining the ranks of the poor. It’s a shocking fact that families on a low income are still paying more for their basic goods such as gas and electricity than better-off families as they often need to borrow to buy or don’t get the direct debit discounts others take for granted. A Save the Children report in 2010 calculated that this annual poverty premium can amount to more than £1,280 for a typical low-income family.
So although more Scots may be in employment it doesn’t mean they are earning enough money to pay the bills or feed and clothe their children. Low paid jobs are leaving record numbers of working families in poverty and poor financial literacy across the country clearly shows that the young people and the unemployed need additional support.
Educating people so they can plan for the future is a crucial aspect of financial inclusion, which is why through the Lloyds Banking Group Money for Life programme the Wise Group has helped over 100 people in Scotland gain Open College Network accredited qualifications in Money Mentors, Teach Others and Teach Me courses over the last 12 months. The qualification gives them the skills to share their learning with hundreds of people from communities across Scotland who are most in need of financial help and guidance.
It’s a shocking fact that families on a low income are still paying more for their basic goods such as gas and electricity than better-off families
Laurie Russell, Wise Group chief executive
The Money for Life programme helps the financially excluded by demonstrating simple changes that can improve their money management, and reduce the risk of having to rely on costly payday loans or even loan sharks.
The qualifications are open to anyone working or volunteering for a non-profit or community-based organisation and provide the bespoke skills, knowledge and resources they need to deliver effective money management and to improve financial skills in the communities they work. This could be from basic budgeting, monthly spending and interest-rate payments to financial terms and conditions and warnings against the dangers of loan sharks.
Community workers, social housing providers and local authority staff who have gained the qualifications are then responsible for taking their new skills and training to other workers within their organisations and providing support and advice to improve the financial confidence of those communities most in need across Scotland.
Many of the people we work with have never received any financial education. This can leave workers vulnerable when it comes to budgeting and saving their money.
The programme is helping people understand how they can make their money go further, be equipped to cope with future money problems, and provide for themselves and their children with a brighter and happier future.
But now we know the outcome of the election, I hope our new leaders at UK and Scottish levels take action now to ensure we don’t see further increases in poverty in the future.
Laurie Russell is chief executive of the Wise Group.
