Other policy areas which have close links with developing financial capability

Financial capability links with a wide range of other policy areas.

Housing/Maintaining Tenancies

Improving tenants’ financial capability has the potential to reduce rent and council tax arrears, lost income due to writing off former tenant arrears, costs associated with tenant turnover, evictions, court actions and abandonment, and the staff time involved.

Employment

Financially capable individuals are more likely to gain, sustain and progress in employment. They will be more able to control their wages, remain out of bad debt, avoid illness (for example, stress) and therefore remain in employment.

More Choices More Chances

Improving the financial capability of those in need of more choices and more chances will improve their confidence along with their money management skills and will allow them to move into education, employment or training. This could either be direct to young people or through their youth workers, for example, housing officers and young offenders teams.

Adult Learning and Skills

Financial capability can be delivered as part of an accredited course. It is also a means of increasing the confidence and life skills of, for instance, young adults returning to education and coping financially as a student.

Learning Disabilities

Many people with learning disabilities have little control over their own resources. Providing financial education can give them more independence and therefore confidence in finding and keeping accommodation and employment.

Mental Health

People with mental health conditions are three times more likely to be in debt. Sufferers often need extra support with their finances. Working with them on financial capability can help them to increase their confidence and life skills and therefore help them settle into accommodation and employment.

Offenders/Young Offenders

There are many factors that contribute to re-offending, including debt, disrupted benefits advice and insufficient funds. Good budgeting and money management skills are key in addressing these problems. Financial capability can help offenders settle back into the community. It helps them acquire and keep accommodation and employment, as well as increasing general confidence, which could then help in other areas of their everyday lives. This training may be particularly important if the offender has been in prison for a lengthy time or since the introduction of changes to the system, for example, chip and pin.

Domestic Violence

Providing financial capability to victims of domestic violence can give them the confidence to leave their partners and live independently. Additionally, domestic violence often includes financial abuse, i.e. restricted income from partners, so improving confidence around finance might also offer the impetus to move away from a violent partner.

Child Poverty

This is linked to helping people claim benefits and deal with debt.

Fuel Poverty

Financial capability training will help clients to switch to alternative suppliers and understand how to make energy savings. This can help alleviate the problem of fuel poverty as well as providing general financial capability skills, for example, budgeting, borrowing and saving.