Health at Work. Workplace.

Why does Financial Inclusion matter?

The Scottish Government defines financial inclusion as:

"Access for individuals to appropriate financial products and services. This includes people having the skills, knowledge and understanding to make best use of those products and services. Financial exclusion is often a symptom of poverty as well as a cause."

Managing finances can be hard work and stressful especially considering the current economic climate. Many of us take for granted that we can open bank accounts, secure credit and benefit from discounts such as paying our fuel by direct debit but for many people on low incomes or who are work deprived they are excluded from mainstream financial products and saving options can be unreliabe. Those who are excluded in this way often have to rely on credit from sub-prime lenders offering credit on APRs that often exceed 100 per cent, pawn brokers and loan sharks.

It is widely recognised that although employed, many low paid workers still live in poverty. Low paid workers are often in insecure or part time employment, especially women. In 2006/07 17% of the Scottish population (840,000 people) lived in relative poverty before housing costs. One third of those people (33%) were in families containing working members whose wages were not enough to lift the family out of poverty. In-work poverty has been a persistent problem in Scotland and the number of people in in-work poverty has not changed dramatically over the past 10 years.

What should I do?

Consider undertaking workforce auditing and profiling (gathering information about the make-up of your workforce i.e. low paid workers, part-time workers)

Provide awareness raising training for key staff E.g. HR Staff, Line Managers

Promote and inform staff on money matters via your staffnet site, info boards and newsletters

Consider applying for a grant via the Health at Work Low Paid Workers Grant Scheme - Click on the document on right hand side of page for further information

Consider offering an interest free annual travelcard loan scheme that employees pay back on a monthly basis and is deducted from their salary at source

Consider hosting workplace sessions on money matters/financial inclusion. The Financial Services Authority deliver these for free. http://www.fsa.gov.uk/financial_capability/our-work/workplace/index.shtml

Where can I get help?

www.gain4u.org.uk - Glasgow's Advice and Information Network - 0808 801 1011 1400hrs - 2000hrs Monday - Friday. click on the document on the right hand side of this page to download poster and leaflets for your workplace

www.cas.org.uk - Citizen's Advice Bureau

www.nacuw.org.uk/publications - National Association of Credit Union Workers

www.scottishcu.org - Scottish League of Credit Unions

http://www.fsa.gov.uk/financial_capability/our-work/workplace/index.shtml - Financial Services Authority offers workplace seminars and workshops for employees delivered in the workplace and free of charge

http://www.moneymadeclear.fsa.gov.uk/ The money made clear website from the Financial Services Authority - why not put a link to this on your Staffnet?