CHC MONEY ADVICE PROJECT SURVEY FINAL REPORT

Transcription

1 CHC MONEY ADVICE PROJECT SURVEY FINAL REPORT DATE: February 2013 JOB REF: Presented to: Presented by: Clare Williams Housing Services Policy Officer Community Housing Cymru Group RMG:Clarity Trefor House Galdames Place Ocean Park Cardiff CF24 5RE

2 CONTENTS 1.0 Background and Objectives Background Methodology Statistical Note Executive Summary Customer Survey Stakeholder Survey Stakeholder Focus Group Case Studies Customer Survey - Key Findings Awareness of Moneyline Cymru Awareness of the Money Advice Project Using the Money Advice Project Satisfaction with the Money Advice Project Stakeholder Survey - Key Findings Awareness of Moneyline Cymru Likelihood of Recommending Moneyline Cymru Referring to Moneyline Cymru The Money Advice Project Stakeholder Focus Group - Key Findings Customer Case Studies Key Conclusions Appendix One: Customer Questionnaire Appendix Two: Stakeholder Questionnaire Appendix Three: Statement of Reliability Appendix Four: Customer Survey Tabulations Appendix Five: Stakeholder Survey Tabulations Appendix Six: Stakeholder Focus Group Topic Guide Appendix Seven: Case Studies

3 1.0 BACKGROUND AND OBJECTIVES 1.1 BACKGROUND Community Housing Cymru required an independent organisation to undertake an evaluation of the Money Advice Project that is funded by the BIG Lottery fund. The intent was to provide evidence of wider long term benefits of providing money advice at the point of a loan application and also provide continuity and improvement in key areas of work. The objectives of this research project included: Sampling 10% of customers who have benefited from the range of money advice to evaluate project progress, key achievements and total gains including financial or beneficiaries; Providing individual case studies following the progress of individual beneficiaries to evaluate longer term; Assessing the impact on the delivery of the service with regards to financial literacy beneficiaries, including project volunteers; Assessing the impact on key stakeholders such as Moneyline Cymru, social landlords and other advice agencies 1.2 METHODOLOGY Several different methods using both quantitative and qualitative techniques were employed during this research. Table 1 shows the stages involved and brief project details. Table 1 Stage Method Customer Telephone Survey Customer Face to Face Interviews Stakeholder Telephone Interviews Stakeholder Online Survey Stakeholder Focus Group Research Objective To establish key achievements and financial gains and benefits to the service. To establish key details about the Money Advice Project to provide CHC with in depth written case studies. To determine the impact the Money Advice Project has had on key stakeholders and advisory services in Wales. Same as Stage 3. The survey was set up online to give stakeholders involved with Stage 3 the chance to complete the survey online if they so wished. Held with representatives from housing associations, charities, advisory services and credit unions, to establish levels of awareness of the Money Advice Project, and how it has impacted on the business. Fieldwork Dates 1/8/12 to 10/8/12 24/9/12 to 29/9/12 23/8/12 to 6/9/12 23/8/12 to 6/9/12 24/10/12 Interviews Achieved No online completions 1 group 3

4 1.3 STATISTICAL NOTE All percentages in this report have been rounded to whole numbers. The data in this report is therefore subject to rounding errors. Where combined figures are stated they are accurate, although they may not match the sum of the appropriate figures in the charts. In some cases, for the customer survey, statistically significant differences between different demographic categories (age, gender, SEG) are commented on. To ensure that the categories used have a large enough base to be statistically significant the SEG categories used were C/C2 and D/E, and the age groups used were 18-34, and 45+. Only 5% of the respondents were over 65 (9 people), so it is not possible to test whether those over 65 have different views to those under 65. The chi-square test has been run on all the figures and where the results are significant (p 0.05) they are noted. If a significant difference is not noted it can be taken that there is no statistically significant difference in that case. A full set of tabulations for the customer and stakeholder surveys are provided as appendices to this report; these show the detailed results for each question, including the composition of the semi-open ( other ) responses. 4

5 2.0 EXECUTIVE SUMMARY 2.1 CUSTOMER SURVEY 83% of respondents had heard of Moneyline Cymru The most common reason for accessing the service was to obtain a loan (55%) Recommendation from a friend or family member is the main way in which respondents heard of Moneyline Cymru Over three-quarters of respondents (77%) would be likely to use a telephone service A third of customers claimed not to have heard of Money Advice o 14% of respondents were referred to the Money Advice Project by Moneyline Cymru The most common reasons for initially contacting or being referred to Money Advice were bill help and the Warm Home Discount (37%) and debt reduction (36%) o Debt reduction (42%) is the main way people have benefitted from the Money Advice o Project Most people received help for what they went to Money Advice for, as well as additional help in other areas Almost three-quarters of respondents felt that the services provided by Money Advice have either already helped them access mainstream financial services or will help them do so in the future 38% of customers were referred by a loan officer at Moneyline Cymru to a Money Advice adviser o All of those people thought the referral system was effective The main reason that respondents thought the referral system was effective was because of the quick service The majority of respondents (69%) were very satisfied with the level of service received from Money Advice o A further 20% were quite satisfied Over half of customers reported having received telephone advice o Just under half have had sessions Four-fifths of respondents felt that their stress levels have reduced because of the Money Advice Project o Stress reduction is linked to being very satisfied with the service provided by Money Advice Over a third of respondents thought that Money Advice could also offer help completing benefit forms 2.2 STAKEHOLDER SURVEY 92% of the stakeholders had heard of Moneyline Cymru The most commonly known services offered by Moneyline Cymru were loans (65%) and money advice via a third party (45%) Nearly three-fifths of stakeholders said their organisation works with Moneyline Cymru and CHC Approximately three-fifths of stakeholders are likely to recommend Moneyline Cymru to their service users o Just over half of stakeholders have recommended/ signposted someone to Moneyline Cymru Over half of the recommendations to Moneyline Cymru were to obtain a loan o Just under a third were to obtain advice on how to reduce debt Nearly three-quarters of stakeholders knew that CHC provides money advice The great majority of stakeholders thought that a responsible lender should offer money advice to its customers Almost half of the stakeholders are likely to refer someone to the Money Advice Project A fifth of stakeholders have recommended CHC s Money Advice Project to service users 5

6 2.3 STAKEHOLDER FOCUS GROUP All participants were aware of Moneyline Cymru and of the reasons why it was set up There was some concern that the interest rates offered by Moneyline Cymru have increased significantly and that Moneyline Cymru encourages customers to take out further loans Stakeholders like the comprehensive service offered by Moneyline Cymru Some participants were not aware of the difference between Moneyline Cymru and the Money Advice Project Money Advice and Moneyline Cymru sharing offices is a cause of confusion for some Some participants thought that Money Advice needed to be better publicised to both the public and other organisations o Re-branding was suggested as a solution to this Some participants have had difficulties with the referral process and being able to speak to the right people/ having calls returned More offices (or more central offices), pop-up offices/ surgeries and home visits were all suggested as ways of improving the service Stakeholders agreed that the Money Advice helps to improve people s lives Stakeholders believe that every person who applies for a loan from Moneyline Cymru should be given money advice and a benefits check 2.4 CASE STUDIES A wide range of people have used Moneyline Cymru and the Money Advice Project o There is not one particular demographic that uses the service more than others There are various ways in which people have got into difficult financial situations: o Raising children o Illness/ health problems o Job loss o Relationship break-up o Bereavement Most of these events are both unforeseen and unforeseeable People like the fact that loans are only given when it is in the best interest of the customer and that advice is given when it is more appropriate The recipients of the money advice are now more financially stable and consequently less worried and stressed 6

7 3.0 CUSTOMER SURVEY - KEY FINDINGS 3.1 AWARENESS OF MONEYLINE CYMRU All respondents were asked whether they had heard of Moneyline Cymru; 83% had, whilst the remainder (17%) had not. Customers who were aged between years old were significantly more likely to have heard of Moneyline Cymru (94%), compared to those aged (83%) or 45 years or above (74%). Those who had heard of Moneyline Cymru were then asked why they decided to access the service; the most common reason was to obtain a loan (55%), followed by obtaining advice on reducing debt (34%). At 10%, the next most frequent reason for accessing Moneyline Cymru was Welsh Water debt. Recommendation from a friend or family member is the main way in which respondents heard of Moneyline Cymru (34%), followed by a flyer or leaflet (23%). 11% heard about Moneyline Cymru through another organisation whilst 6% heard about it online. Figure 1 shows that a telephone service operated by Moneyline Cymru could be very successful, with 77% of respondents being likely to use it; however 23% would not use such a service. Older customers (45+) are significantly more likely to not want to use a telephone service (32%) than those who are (15%) or (18%). This shows that whilst many people would use a telephone service, there is a minority of people, particularly older customers, who would still prefer face-to-face contact with Moneyline Cymru. Figure 1 Q4. If Moneyline Cymru operated a telephone service, how likely would you be to use this approach? 10% 13% 36% 41% Very likely Quite likely Quite unlikely Very unlikely Base: All respondents (165) 3.2 AWARENESS OF THE MONEY ADVICE PROJECT Figure 2 demonstrates that there seems to be some confusion about the exact demarcation of Moneyline Cymru and the Money Advice Project, with 33% of customers claiming not to have heard of Money Advice and 12% not remembering being referred to the Money Advice Project. That so many of the respondents (all of whom have used the Money Advice Project) claim not to have heard about the project shows that more effort needs to be put into the branding of the service and differentiating it from Moneyline Cymru. 7

8 Figure 2 Q5. How did you first hear about the Money Advice Project? Referred by Moneyline Cymru Referred by Welsh Water/ Dwr Cymru Recommended to me by a friend 12% 12% 14% Referred by another organisation 5% Leaflet Advert Haven't heard of Money Advice Project/ only heard of MoneyLine Cymru Don't know/ can't remember being referred to this project 2% 2% 12% 33% Other 7% 0% 5% 10% 15% 20% 25% 30% 35% Base: All respondents (165) Of the remainder of respondents, 14% were referred to the Money Advice Project by Moneyline Cyrmu, 12% were referred by Welsh Water and a further 12% were recommended by a friend. The 5% (9 respondents) who were referred by another organisation were asked who referred them; 4 people could not remember, whilst Cadwyn Housing, Bron Avon Community Housing, Linc-Cymru, Rhondda Cynon Taf Council and Stepps each referred one person to the Money Advice Project. 3.3 USING THE MONEY ADVICE PROJECT As approximately half of the respondents claimed not to have heard of the Money Advice Project or could not remember being referred to Money Advice, the remainder of the analysis has only been conducted on those who were aware of, and could remember, Money Advice. The most common reasons for initially contacting or being referred to Money Advice were bill help and the Warm Home Discount (37%) and debt reduction (36%). At 8%, getting advice about loans was the most common other response. Figure 3 Q7. Why did you initially contact/ or why were you referred to Money Advice? Debt reduction Declined a loan Budgeting tips and solving problems Bill help and Warm Home Discount Identifying benefits and trust funds Financial capability Other 1% 6% 8% 14% 27% 36% 37% 0% 10% 20% 30% 40% Base: Those who had heard of/ remembered Money Advice (90) 8

9 Figure 4 shows the ways in which people have benefited from the Money Advice Project, both the overall figures and broken down by gender. Overall, debt reduction (42%) is the main way people have benefitted from the Money Advice Project, followed by budgeting tips and solving problems (32%) and bill help and the Warm Home Discount (31%). At 9%, not having received any benefits at all was the top other response. Both men and women have benefitted equally from debt reduction and budgeting tips and solving problems; however men were significantly more likely to have benefited from bill help and the Warm Home Discount (50% compared to 24% for women), identifying benefit and trust funds (29% compared to 5%) and financial capability (29% compared to 12%). Because gender has no impact on the reasons for initially contacting Money Advice this might be an anomalous finding; however, it may be worth monitoring this in the future in case there are differences in the ways in which men and women benefit from the advice. Figure 4 Q8. In which of the following ways have you actually benefitted from the Money Advice Project? Debt reduction Budgeting tips and solving problems Bill help and Warm Home Discount Identifying benefits and trust funds Financial capability i.e. being told something new or help completing forms Other 5% 11% 17% 12% 13% 42% 38% 44% 32% 33% 32% 31% 24% 29% 29% 23% 27% 50% 0% 20% 40% 60% Overall Male Female Base: Those who had heard of/ remembered Money Advice (90) 9

10 As illustrated in Figure 5, overall, almost three-quarters of respondents felt that the services provided by Money Advice have either already helped them access mainstream financial services (51%), or will help them do so in the future (20%). The remainder (29%) did not think that Money Advice will help them access this type of financial product. Figure 5 Q9. Do you feel that the services provided by Money Advice will help you/ or has helped you to access mainstream financial services i.e. loans, trust funds, bankaccounts and savings accounts? 29% 20% 51% Yes it will help me in the future Yes it has already helped No it won t help me Base: Those who had heard of/ remembered Money Advice (90) 38% of customers were referred by a loan officer at Moneyline Cymru to a Money Advice adviser. All of those people thought the referral system was effective, with 56% saying it is very effective and 44% quite effective. The graphic below shows the main reasons that respondents thought the referral system was effective. Figure 6 Gave good/ useful advice (9%) Looked at the situation from a different angle/ offered new and different advice which was effective (9%) Explained everything/ helped me get a better understanding (6%) It was easy and straight forward (6%) Helped me to reduce/ consolidate my debts (9%) Good communication - they text/ ring to keep me up-to-date with developments (6%) Quick service/ dealt with the issue very quickly (18%) Why are Moneyline Cymru referrals effective? The advisor was Very helpful (6%) Base: Those who had heard of/ remembered Money Advice and referred by Moneyline Cymru (34) 10

11 3.4 SATISFACTION WITH THE MONEY ADVICE PROJECT Figure 7 shows that a large majority of respondents (69%) were very satisfied with the level of service received from Money Advice, with a further 20% being quite satisfied (89% combined). Only 4% were quite or very dissatisfied with the service, although 7% did not know how satisfied they were. Figure 7 Q13. How satisfied are you so far with the level of service you have received from Money Advice? 2% 2% 7% 20% 69% Very satisfied Quite satisfied Quite dissatisfied Very dissatisfied Don't know Base: Those who had heard of/ remembered Money Advice (90) Respondents were asked why they were satisfied or otherwise with the level of service provided by Money Advice; Table 2, below, shows the main reasons. Table 2 Q14. Why do you say this? Don't know/ just do/ no further comment 10% They helped me/ were helpful/ very helpful 10% Put me straight on things, honest, resolved issues and followed up accordingly 6% The staff were very friendly/ kind/ helpful/ understanding 5% Easy to talk to, very understanding and non-judgmental 4% Helped reduce the water rates debt - helped take off pressure 4% Helped to get me out of debt and manage my bills 4% Base: Those who had heard of/ remembered Money Advice, don t know at Q13 excluded (84) When customers were asked about the format of the advice received from the Money Advice Project, over half of customers reported having received telephone advice (53%), whilst just under half (49%) have had sessions. Only 2% of customers took part in workshops. Four-fifths of respondents (81%) felt that their stress levels have reduced because of the Money Advice Project, although 17% said they have not reduced (the remaining 2% did not know). There is a high correlation between stress reduction and satisfaction with the level of service received from Money Advice. 90% of those who were very satisfied with the service from the Money Advice Project said that their stress levels had reduced, compared to 61% of the remaining customers (i.e. those quite satisfied, dissatisfied or unsure). There is no correlation between stress reduction and the reason for initially contacting the Money Advice Project, meaning that customers stress levels have been reduced regardless of the reason for approaching Money Advice. 11

12 All respondents were asked if there were any other additional benefits or services they would like to see Money Advice offer. Almost two-fifths of respondents (38%) suggested help completing benefit forms. The next most popular suggestions were housing advice (30%), internet advice (28%) and home visits (24%). Just over a quarter of respondents, however, thought that the Money Advice Project did not need to offer anymore services (27%). At 2%, raising awareness of the service and advertising more was the most frequent other response. Figure 8 Q17. What additional benefits would you like to see included as part of the service Money Advice offers? Help completing benefit forms Housing advice Internet advice Nothing more needed/ ok as it is Home visits Don't know Other 10% 14% 30% 28% 27% 24% 38% 0% 5% 10% 15% 20% 25% 30% 35% 40% Base: Those who had heard of/ remembered Money Advice (90) Customers in socio-economic groups (SEG) C1/C2 were approximately twice as likely as those in D/E to want to see additional help with housing advice (45% compared to 23%), home visits (36% compared to 19%) and internet advice (both 42% compared to 19%). SEG did not have an effect on the likelihood of wanting help completing benefit forms (C1/C2 42%; D/E 38%). 12

13 4.0 STAKEHOLDER SURVEY - KEY FINDINGS 4.1 AWARENESS OF MONEYLINE CYMRU 92% of the respondents had heard of Moneyline Cymru; four people had not heard of Moneyline Cymru, but two remembered Moneyline Cymru after being informed what the organisation does. All respondents were asked what services Moneyline Cymru offers; as Figure 9 shows, loans (65%) and money advice via a third party (45%) were the most well known services. Both at 8%, budgeting advice and the white goods package were the most frequent other responses. Figure 9 Q3. What services do Moneyline Cymru offer? Loans Basic bank Savings Money Debt advice Other 10% 12% 16% 27% 45% 65% Base: All respondents (49) 0% 10% 20% 30% 40% 50% 60% 70% Nearly three-fifths (59%) of stakeholders said their organisation works with Moneyline Cymru and CHC to help those excluded from mainstream financial products access more choice. 4.2 LIKELIHOOD OF RECOMMENDING MONEYLINE CYMRU Figure 10 shows that approximately three-fifths (59%) of stakeholders are likely to recommend Moneyline Cymru to their service users, with 31% being very likely to do so. However, at the other end of the scale, over a quarter (27%) are unlikely to make such a recommendation. Figure 10 Very likely Quite likely Neither/ nor Quite unlikely Very unlikely Q5. How likely are you to recommend Moneyline Cymru to your service users? 10% 14% 16% 29% 31% 0% 5% 10% 15% 20% 25% 30% 35% Base: All respondents (49) 13

14 Stakeholders were asked why they were (un)likely to recommend Moneyline Cymru to their service users; Figure 11, below, summarises the reasons. Figure 11 Reasons to Recommend Moneyline Cymru Reasons not to Recommend Moneyline Cymru Professional and reliable service More likely to use credit unions offering lower interest rate Good advice Deal with financial advice and assistance themselves - don't refer to others Low interest rate loans Refer to other advice agencies Alternative to loan sharks and doorstop/ payday loans Base: All respondents (49) 4.2 REFERRING TO MONEYLINE CYMRU Just over half (53%) of stakeholders have actually recommended/ signposted someone to Moneyline Cymru, whilst the remainder (47%) have not. The reasons why stakeholders have recommended someone to Moneyline Cymru are shown in Figure 12, below. Over half (54%) of the recommendations to Moneyline Cymru were to obtain a loan and just under a third (31%) were to obtain advice on how to reduce debt. The list of other' responses includes the quality of service offered and the white goods package (both 4%). Figure 12 Q8. For what reasons have you recommended / signposted people to access Moneyline Cymru? To obtain a loan To obtain advice on how to reduce my debt Help with loan sharks/ high interest lenders To get a bank account To open a savings account Other 4% 4% 8% 27% 31% 54% 0% 20% 40% 60% Base: Those who have recommended / signposted someone to access Moneyline Cymru (26) 14

15 In over two-thirds (69%) of cases the stakeholder was unaware of the outcome of the recommendation to Moneyline Cymru, whilst in 15% of cases a loan was obtained and in 8% of cases a payment plan was achieved. 4% (1 person) said that advice was received and another that the majority of referrals have a positive outcome. 4.3 THE MONEY ADVICE PROJECT Nearly three-quarters of stakeholders (74%) knew that CHC provides money advice, although the remainder (26%) were not aware of this. The great majority of stakeholders (88%) thought that a responsible lender should offer money advice to its customers, although 12% disagreed. Stakeholders were asked why they thought a lender should, or should not, offer money advice. Those who thought that a lender should offer advice thought that it was important for people to make informed choices so that irresponsible borrowing is avoided; furthermore, advice could help move people away from pay day loans and doorstep lending, as well as loan sharks. Those who did not think advice should be provided by a lender tended to think that advice should be independent, that is, not coming from a lender, as there could be conflicts of interest. Figure 13 shows the likelihood of the stakeholders referring someone to the Money Advice Project; as can be seen, almost half (49%) are very, or quite, likely to do so, although just under two-fifths (39%) are unlikely to make such a referral. Figure 13 Q13. How likely are you to ever refer into CHC s money advice service? Very likely Quite likely Neither/ nor Quite unlikely Very unlikely 12% 18% 20% 22% 27% 0% 5% 10% 15% 20% 25% 30% Base: All respondents (49) A fifth of stakeholders (20%, 10 people) have recommended CHC s Money Advice Project to service users whilst 18% of stakeholders are aware of referrals made to their organisation from Moneyline Cymru or CHC. Two-fifths (40%; 4 people) of the recommendations to the Money Advice Project were for budgeting tips and solving problems; other reasons were debt reduction, identifying benefits and trust funds, and general advice (all 20%). In 90% of cases the stakeholder did not know the outcome of the recommendation to Moneyline Cymru, although in one case a payment plan was set up. Finally, stakeholders were asked whether there were any other services that Moneyline Cymru or the Money Advice Project should offer their customers; over half (55%) did not offer any suggestions. Several stakeholders thought that Moneyline Cymru should have a stronger referral unit and closer ties with local credit unions. Other suggestions include helping people to get bank accounts, help with energy bills and teaching people to manage their own finances so that they are more financially literate. 15

16 5.0 STAKEHOLDER FOCUS GROUP - KEY FINDINGS All of the stakeholders were aware of Moneyline Cymru and of the reasons that it was set up; as one participant noted: I think they were kind of set up, I think, as a sort of alternative to the doorstep lender, and for people who can t get loans from traditional banks or the credit union, so it s like more interest rate than that, but less than the doorstep lenders. Moneyline Cymru is positioned between ordinary banks and doorstop lenders and provides loans that are cheaper than payday or doorstep loans, but more expensive than bank loans. Whilst this is still the situation, there was some concern that the interest rates offered by Moneyline Cymru have increased significantly from their inception. One participant thought that interest rates were initially 30/40% APR, and now they re up to about 120%. Okay, it s still half of what Provident will charge, however... it was kept kind of very quiet. The stakeholder recognised that Moneyline Cymru still provides cheaper loans than some lenders, however, there is a feeling that the interest rates have been surreptitiously rising. Some participants were also concerned that Moneyline Cymru encourages customers to take out further loans: In some communications, there was almost an invitation to borrow more from Moneyline Cymru, after a client had successfully repaid something. It was supposed to be something that would get them out of trouble, yet they were encouraging them to enter it again. There was a recognition that interest rates would probably be lower for someone borrowing for a second time, however, the participant felt that more effort could be put into encouraging people to save rather than borrow. Other stakeholders have a preference for using credit unions, and refer clients to these, because they are cheaper. Notwithstanding this, however, people are referred to Moneyline Cymru when they cannot get a loan from a bank or credit union so they are not forced to go to doorstop lenders. Furthermore, stakeholders like the comprehensive service offered by Moneyline Cymru; someone is offered a loan, but they will also go through budgeting, opening a bank account and other ways of reducing bills, e.g. Welsh Water Assist. Some of the participants were not aware of the difference between Moneyline Cymru and the Money Advice Project and thought that they were the same thing. Other stakeholders, however, thought that Moneyline Cymru pass those having trouble with budgeting etc. to Money Advice. Part of the confusion seems to stem from the fact that Moneyline Cymru and Money Advice share the same office, making the demarcation difficult. This confusion also means that some of the stakeholders are unsure of the referrals process; some thought you could directly refer someone to Money Advice, however some thought that you had to refer to Moneyline Cymru first. Some of the stakeholders claimed that although Money Advice provides general financial advice, they do not provide specialist debt advice, as one participant noted: The money advice isn t a specialist area: you can do the budgeting, you can do the generalist advice, but when it becomes re-negotiating debts, and all of that stuff, and debt relief orders and bankruptcy, you need to be consumer credit licensed, that s specialist debt advice However, the money advisors are consumer credit licensed, indicating that some of the stakeholders are misinformed. This shows that Moneyline Cymru/ Money Advice need to communicate better with their stakeholders so that they are fully aware of what the money advisors can do. The perceived lack of clarity about what Money Advice can offer as well as the blurred lines between Moneyline Cymru and Money Advice led some of the participants to suggest rebranding: It s got to be rebranded. Maybe not rebranded, but where you ve got Moneyline Cymru, Moneyline Loans and Moneyline Advice, just do separate taglines, keep the Moneyline as obviously a recognisable brand, but a different strap-line on the bottom. This would unite all the services offered under a single brand and reduce some of the confusion that both stakeholders and customers feel around the remit of Moneyline Cymru and Money Advice. It was also suggested that specialist debt advice (such a renegotiating with creditors, debt relief orders, advice on bankruptcy etc.) be offered. This rebranding would help with publicity; most participants did not feel that the Money Advice Project was particularly well known among the public. Furthermore, 16

17 providing more clarity and publicity around the services offered may increase referrals from other stakeholders, particularly if they are aware that Money Advice does offer specialist debt advice. A few of the participants reported having had difficulties with the referral process, primarily around being able to speak to the right people and having phone calls returned. As one stakeholder noted, the frustrating thing is obviously when messages are left and no one comes back to you or the client. The stakeholders suggested some ways of improving the service offered by Moneyline Cymru/ Money Advice; these include more offices (or more central offices), pop-up offices/ surgeries and home visits. One of the stakeholders commented that: The big one for us is we re community-based in south and east Cardiff, and obviously Cardiff being a fairly large city, and Moneyline are out in Canton, so our tenants wouldn t travel. I know it sounds a bit petty but they wouldn t go out to west Cardiff. Sometimes it can be difficult to say to someone, You ll have to speak to someone in Moneyline. If they haven t got a car it s at least two bus trips to get across to the other side of the city. In this case, having, for example, a more central office, or surgeries in local community centres would make Moneyline much more accessible to people who do not want to, or cannot travel far. Offering a telephone service would also improve access for those living further from the existing Moneyline Cymru offices. Whilst some of the stakeholders have some issues with Moneyline Cymru and Money Advice, as described above, they were in unanimous agreement that the Money Advice Project does help to improve people s lives, as these extracts illustrate: If you can offer advice to people and it s impartial, you re not selling a product, then it can t be wrong. If some people are managing on nothing at the moment, you get someone s water bill halved, then yeah, of course it s going to make a difference to people, you re chipping away at expenditure. Even just doing a household budget, some people have never done one, so even if they ve just [done that]... for some people I m sure that s a really big help Because the advice is so important, and can have such a large impact on people s lives, the stakeholders also thought that every person who applies for a loan from Moneyline Cymru should be given money advice and a benefits check. At the end of the focus group, the participants were given a very short questionnaire, which asked them to rate their level of agreement with four statements; the results are shown below (NB 14% represents one person): Figure 14 To what extent to you agree with the following statements? Moneyline Cymru needs to have a stronger referral unit 29% 29% 43% A white goods package should be offered 29% 57% 14% Referrals for money advice should be made to credit unions 29% 14% 43% 14% Referrals for money advice ahould be made to CHC's Money Advice Project 43% 29% 29% Base: focus group participants (7) 0% 20% 40% 60% 80% 100% Strongly agree Agree Neither/ nor Disagree Strongly Disagree 17

18 There is most support for a white goods package, followed by having a stronger referral unit. Participants were more likely to think referrals should be made to the Money Advice Project than credit unions. 18

19 6.0 CUSTOMER CASE STUDIES Depth interviews with those who had used the Money Advice Project were used to create a set of case studies, both written and digital. The case studies, presented in Appendix 7, p69, show that a wide range of people have used Moneyline Cymru and the Money Advice Project, from young single parents to retired civil servants. There does not appear to be one particular demographic that uses the service more than others, rather the commonality is that everyone has found themselves with greater expenditure than income. Table 3, below, provides a summary of case studies, showing the reason for being in financial difficulty, the advice and assistance given, and the outcome of the intervention. Table 3 Name Trigger Event Advice/ Help Given Outcome Natalie Jefferis Henry Johnson Divorce Fell behind with bills Budgeting/ reduced water bill Budgeting/ reduced water bill Emma Lloyd Partner s father s death Received loan Tim Porter Sarah Williams Jade Murphy Ill health Divorce/ loss of job Could not get bank or credit union loan Reduction in water and electricity bills/ spoke to creditors Water bill reduction/ budgeting Received loan/ budgeting Jeremy Munford Redundancy Re-structured finances Dorothy Hooper High water bills Reduced water bill Emma Porch Michael Neale Sarah Jones Rebecca Wiltshire Leanne McMillan June Hillam Council Tax Money was tight Child/ increasing debt Christmas Child/ Christmas Disability Renegotiated debt/ reduced water bill Received loan/ reduction in water and electricity bills Reduction in water and electricity bills Budgeting/ reduced water bill Received loan/ BT bill reduced/ budgeting Received loan/ budgeting Jane Jemmett Car needed fixing Received loan Jeanne Hugo Father s death/ divorce Received loan Neil Rutter Redundancy Received loan/ budgeting/ reduced water bills Anonymous Ill health Reduction in water bills Anonymous Disability/ Christmas Received loan/ reduction in electricity bills Can now manage her bills and her debts herself Happier now and can sleep better Pleased with service received Put Tim back in charge of his finances Back on track financially It s a weight of her shoulders Can now deal with his finances himself Can now cope with her finances Less stress/ children happier Happier/ feels respected Less stressed because debts are getting paid off Has more knowledge about managing her own money Happier/ less stressed More in control of her finances Could continue to work when car was fixed Can now manage her finances herself Debt free and has started saving Happier/ can save a little Happier/ less stressed 19

20 There are various ways in which people have got into difficult financial situations; however, with the exception of the costs of raising children, many of them involve a loss of some sort. This could be the loss of one s health or job, the loss of a partner (either through a relationship ending or bereavement), or the death of one s parents. The stories that the participants told do not show people who have been foolish or reckless with money, but rather people who are the victims of unfortunate circumstances. For example, Jeanne Hugo had financial problems caused by the death of her father and her marriage breaking up which left her with a low credit rating. Now retired from the civil service she had rising credit card bills and was unable to get a bank or credit union loan because of her low credit rating; Moneyline Cymru were however, able to give her a loan which has put her back on an even keel. There may be a perception that the type of person who lives in social housing and uses the services of Moneyline Cymru and the Money Advice Project is a failure; social housing has been seen by many people as a byword for failure, a home for life in a dead-end street 1. However, the case studies suggest that such stereotyping is not applicable to Money Advice service users. The case of Jeremy Munford exemplifies this; both Jeremy and his wife were made redundant at the same time, which led to Jeremy suffering mental health problems, meaning finding work was impossible, and debts spiralled out of control. He approached Moneyline Cymru for a loan, which he was not able to obtain, however he did receive advice on restructuring his finances from the Money Advice Project which caused massive reductions in stress, meaning that he is now able to search for work again. This was someone who had worked, and wanted to work again, but was made redundant; now, with the financial advice he received he is ready to work again. Furthermore, many people, such as Jeremy, went into Moneyline Cymru for a loan, but, because they would not offer him a loan, came out having been given money advice instead. Customers like the fact that Moneyline Cymru will not offer them a loan if it is not in the customers best interest and that with the money advice they are put in a position where they do not actually need the loan. This is probably a main reason why people so often recommend the Money Advice Project to friends and family; customers can see that getting people back on track financially is more important than just providing loans that could worsen someone s situation. The common theme across the case studies is that the recipients of the money advice are now more financially stable and consequently less worried and stressed. Many of the case studies note the effect that the financial problems had on people s families, particularly on (younger) children; the advice and support received materially affects not just the specific recipient but also their families. 1 Housing Minister Grant Shapps (2011)

21 7.0 KEY CONCLUSIONS The need for the Money Advice Project Given the current state of the economy and the fact that there is certainly a risk 2 of a triple dip recession, the advice and support offered by the Money Advice Project is increasingly important o The work is valuable and has a positive impact on customers, with debt reduction being the most important service Recipients of the advice are not necessarily stereotypical social housing tenants; they include people who have worked all their lives, but have found themselves in financial hardship because of a particular unforeseen (and largely unforeseeable) trigger event, such as redundancy or illness o Moneyline Cymru and the Money Advice Project is a safety net that can stop the downward spiral of ever increasing debt Satisfaction with the Money Advice Project The majority of customers received some benefit that is directly linked to their initial reason for contacting the Money Advice Project (e.g. debt reduction); however, they also received additional benefits as well o Someone may come into the Moneyline Cymru offices looking for help with debt reduction and receive help with budgeting tips and bill help as well Almost nine out ten customers are satisfied with the service provided by Money Advice o Almost three-quarters think that Money Advice has already helped them access mainstream financial services, or will do so in the future Branding For both customers and stakeholders there is confusion over the differences between, and branding of, Moneyline Cymru and the Money Advice Project o Many customers were actually unaware that they had used the Money Advice Project We recommend that: Moneyline Cymru and the Money Advice Project be rebranded so that there is less confusion between the two services The rebrand be used as an opportunity to inform customers and stakeholders of all the service that are offered, including money advice Stress Relief The advice and support given has an effect not only on the person directly receiving the advice, but also on their whole family o The stress relief provided by Money Advice helping customers to overcome their financial problems is clearly evident from the case studies o Stress reduction is closely linked to being very satisfied with the service provided by the Money Advice Project The stress relief function of the Money Advice Project is amply illustrates in the case studies, both written and digital Stakeholders Stakeholders are generally supportive of the work of the Money Advice Project, although there are small issues We recommend that: Money advice should be given to all those who apply for a loan from Moneyline Cymru 2 Vince Cable (9/12/12)

22 More use is made of credit unions The referral process is made smoother There is more outreach into local communities. Service Delivery There are several ways in which access to the Money Advice Project could be improved We recommend that: A telephone service is set up This should not be used as an excuse to reduce face-to-face contact Moneyline Cymru try to find central locations for their offices, or offer some sort of outreach program The Money Advice Project offers home visits The Money Advice Project offers help completing benefit forms In summation, Moneyline Cymru and the Money Advice Project provide a high quality service that is of direct benefit to a majority of customers and supported by a majority of stakeholders. There is some room for further improvement, for example, around branding and widening access to the service. Further research could be used to look at these areas and to discover whether there are ways that Moneyline Cymru and the Money Advice Project could assist people before they get into debt. 22

23 APPENDIX ONE: CUSTOMER QUESTIONNAIRE 23

24 Telephone Introduction: Good afternoon / evening. Could I speak to S_Name 1 Yes speaking 2 Not available at the moment If = 2, Prompt interviewee with message 'MAKE AN APPOINTMENT FOR A CALLBACK AT A CONVENIENT TIME' Hello/ Hi, my name is AgentName and I am calling from an independent research agency 'RMG:Clarity'. Firstly, can I assure you that we are NOT a sales company; we're simply conducting a short survey with customers who have accessed the Money Advice Project to deal with affordability issues. Would you be kind enough to spare a few minutes of your time? You views are really important to us in helping to improve the service, and find out in what ways the Project has helped people. IF YES: "JUST TO INFORM YOU THAT THIS CALL IS BEING RECORDED FOR TRAINING AND QUALITY PURPOSES" 1 Yes 2 No Firstly, I would like to ask you some questions about Moneyline Cymru Q1. Have you heard of Moneyline Cymru? DO NOT READ OUT LIST. MARK ONE BOX ONLY. 1 Yes 2 No If <> 1, do not ask 'Q2' If <> 1, do not ask 'Q3' Q2. Why did you decide to access Moneyline Cymru? DO NOT READ OUT. MARK ALL THAT APPLY (4 maximum responses) 1 To obtain a loan 2 To obtain advice on how to reduce my debt 3 To obtain help with loan sharks/ high interest money lenders 4 Other (specify) Q3. How did you first hear about Moneyline Cymru? DO NOT READ OUT. MARK ONE BOX ONLY 1 A friend/ family member recommended them 2 Seen a Moneyline Cymru shop 3 A flyer/ leaflet 4 On the radio 5 Internet/ website 6 Another organisation 7 Other (specify) 24

25 Q4. If Moneyline Cymru operated a telephone service, how likely would you be to use the service via this approach? READ OUT. MARK ONE BOX ONLY 1 Very likely 2 Quite likely 3 Quite unlikely 4 Very unlikely I would now like to ask you some questions about the Money Advice Project. INTERVIEWER ALSO READ OUT THE FOLLOWING: The Money Advice Project is targeted towards individuals to help them with affordability issues. It is setup to help people make better decisions about their finances and plan ahead to avoid getting into debt. Q5. How did you first hear about the Money Advice Project? DO NOT READ OUT. MARK ONE BOX ONLY 1 Referred by Moneyline Cymru 2 Referred by Welsh Water/ Dwr Cymru 3 Recommended to me by a friend 4 Referred by another organisation 5 Leaflet 6 Advert 7 Other (specify) If <> 4, do not ask 'Q6' Q6. Which organisation were you referred by? OPEN RESPONSE - WRITE IN NAME OF ORGANISATION Q7. Why did you initially contact/ or why were you referred to Money Advice? DO NOT READ OUT. MARK ALL THAT APPLY (7 maximum responses) 1 Debt reduction 2 Declined a loan 3 Budgeting tips and solving problems 4 Bill help and Warm Home Discount 5 Identifying benefits and trust funds 6 Financial capability i.e. being told something new or help completing forms 7 Other (specify) Q8. In which of the following ways have you actually benefitted from the Money Advice Project? 25

26 READ OUT. MARK ALL THAT APPLY (6 maximum responses) 1 Debt reduction 2 Budgeting tips and solving problems 3 Bill help and Warm Home Discount 4 Identifying benefits and trust funds 5 Financial capability i.e. being told something new or help completing forms 6 Other (specify) Q9. Do you feel that the services provided by Money Advice will help you/ or has helped you to access mainstream financial services i.e. loans, trust funds, bank accounts and savings accounts? DO NOT READ OUT. MARK ONE BOX ONLY 1 Yes it will help me in the future 2 Yes it has already helped 3 No it won t help me Q10. Were you referred from a loan officer at Moneyline Cymru to a Money Advice advisor? DO NOT READ OUT. MARK ONE BOX ONLY 1 Yes 2 No If <> 1, do not ask 'Q12' If <> 1, do not ask 'Q11' Q11. How effective do you think the referral system from a loan officer at Moneyline Cymru to a Money Advice advisor is? READ OUT. MARK ONE BOX ONLY 1 Very effective 2 Quite effective 3 Quite ineffective 4 Very ineffective 5 Don t know (Do not read out) If = 5, do not ask 'Q12' Q12. Why do you say this? OPEN RESPONSE Q13. How satisfied are you so far with the level of service you have received from Money Advice? 26

27 READ OUT. MARK ONE BOX ONLY 1 Very satisfied 2 Quite satisfied 3 Quite dissatisfied 4 Very dissatisfied 5 Don t know (Do not read out) If = 5, do not ask 'Q14' Q14. Why do you say this? OPEN RESPONSE Q15. Which of the following have you taken part in? READ OUT. MARK ALL THAT APPLY (3 maximum responses) Sessions 2 Workshops 3 Telephone advice Q16. As a result of the service provided, do you feel your stress levels have reduced? DO NOT READ OUT. MARK ONE BOX ONLY 1 Yes 2 No 3 Don t know Q17. What additional benefits would you like to see included as part of the service Money Advice offers? READ OUT RESPONSES ONLY IF RESPONDENT CANNOT ANSWER. MARK ALL THAT APPLY (5 maximum responses) 1 Help completing benefit forms 2 Housing advice 3 Home visits 4 Internet advice 5 Other (specify) Demographics: Please READ OUT Statement: Finally, I would like to ask you a few questions about yourself and your household. These are for survey control purposes only and the results will not be released identifying you by name. 27

28 Q18a. What is the occupation of the chief wage earner in your household? IF RETIRED, ASK FOR PREVIOUS OCCUPATION IF REFUSED, PLEASE TYPE IN 'REFUSED' Q18b. SEG 1 A/B 2 C1 3 C2 4 D/E 5 Refused Q19. How many people (men and women) aged are there in your household who are: READ OUT. MARK ONE BOX PER ROW. 1 None 2 One 3 Two 4 Three 5 Four or more 6 Refused In part time employment (up to 29 hours per week)? In full time employment - (30 or more hours per week)? Unemployed but available or seeking employment? Q20. Which of the following age bands do you fall into? PLEASE READ OUT years years years years years 6 65 years or above 7 Refused Q21. Gender of respondent 28

29 RECORD BY OBSERVATION 1 Male 2 Female Q22. Would you be willing to be re-contacted for future quality control purposes? INTERVIEWER NOTE: This will involve an interviewer contacting you and asking you a few brief questions to verify and monitor the quality of this call. 1 Yes 2 No Q23. Would you be interested in taking part in further research e.g. focus groups where we offer you a cash incentive for attending? INTERVIEWER NOTE: Please note that your details will be kept by RMG:Clarity and your responses to this survey will not be linked to you personally. 1 Yes 2 No If = 2, do not ask 'Q24' Q24. Please could you confirm your home address for me? INTERVIEWERS PLEASE READ OUT TO ALL RESPONDENTS: Thank you for participating in this survey. If you wish to check the credentials of RMG:Clarity, I can provide the telephone number for the Market Research Society, who will be able to verify our company. Would you like to take the number? Please check your work because once you move on you will not be able to return to this record. 1 Checking (Return to start of survey) 2 Continue to end of survey 29