Quids in!
Published October 2016
The Quids in!
Reader Survey 2016
Financial hardship in communities, the impact on social tenants
and other stakeholders, and the difference Quids in! makes
Supported by:
CONTENTS
p3
1 Objectives and Context
p5
2 Survey Methodology
p6
3 Who Are We Talking About?
p9
4 Tenants and Their Money
p13
5 Resilience: Implications for Tenants, Landlords and Other Stakeholders
p16
6 Interventions: Quids in! and Who Tenants Turn To
p19
7 Conclusions
p20
8 Acknowledgements
© Social Publishing Project, 2016
2
Quids in!
READER SURVEY 2016
1
OBJECTIVES AND CONTEXT
SEARCH
THE VALUE OF THIS RE
T
his is our third national survey of social tenants. We have
conducted them alternate years since 2012 and this is
giving us a multi-dimensional picture of life in some of
our most vulnerable communities. It vividly depicts the scale
of their money worries but also how they are impacting on
the quality of their lives. They tell us how they are affecting
their health. They raise warning flags where risk can be linked
to policy decisions, for example around the implications of
rolling out Universal Credit (UC) or tighter revenue protection
processes among landlords. All stakeholders should take note
and while we are not claiming a reader survey is robust enough
to dictate policy, it is something of a whistle-blower on issues
that deserve closer inspection.
This report shows how things are for hard-pressed
householders and how things have changed for them over the
past few years. We will see how things were bad enough in
2012, worsened by 2014, and rallied a little in 2016, although
not resuming the levels of wellbeing in our first survey, which
was already two years into an austerity regime. It will look at
how well (or not) people are managing their money and how
this in turn is impacting on their lives. It will reveal the level of
risk they face of being unable to juggle budgets and meet the
needs of landlords and creditors. It will also demonstrate the
difference Quids in! has been able to make, where else they
already turn and the interventions that are still required.
WHO ARE WE?
T
he Social Publishing Project (SPP) is a not-for-profit
enterprise in business to address poverty and social
exclusion by promoting financial capability and
promoting ways vulnerable people can help themselves.
We produce reader-friendly materials to help them manage
their money, signpost them to help when they need it, and we
are forging digital paths to accommodate anyone wanting
to improve how they manage their money whatever level
their IT skills. We are also sector-facing and run the Quids
In Professional Network boasting 2,000 adviser and policyformer subscribers, who receive briefings, articles and news
to help them improve services. We support networks and
forums around the UK, presenting on findings like those in
this report and sharing observations gathered nationally
on significant issues affecting our readers, like UC (which
has now been developed further into a professional training
workshop we deliver for social landlords). To date, we have
been entirely self-funding, working in partnership with
landlords and authorities and with sponsors like Aviva and
Mears whose support enabled us to conduct this research.
Quids in! is SPP’s flagship product. It is a quarterly money
management magazine that is lightweight in format and
design, so it is accessible for readers and easy for landlords to
insert into a tenant newsletter. It looks more like Take a Break
magazine than something produced by the Money Advice
Service. We have editions for England, Wales, Scotland and
Northern Ireland, as well as large print and digital versions.
Through our independence, irreverent style and authoritative
content, we have won readers’ trust and they engage with the
magazine hugely – our crossword competition entries prove
people are getting stuck in. As a brand, Quids in! has extended
to a very popular Universal Credit Guide, a New Tenants Guide,
a budget planner (with a unique payment priority pyramid), and
‘Say No to Payday Loans’ leaflets. This research tells us what
we already knew – readers like us: 17 per cent say they find us
useful all the time, 31 per cent said often, and 41 per cent said
some of the time.
CONTEXT: AUSTERITY
A
period of austerity continues, eight years after the
economic crash of 2008, (coincidentally the year Quids
in! was launched). With two changes of government,
our readers have weathered recession, job losses, welfare
reform, and rising costs where VAT remains at 20 per cent
and hits the poorest hardest1. A large proportion of them has
been scapegoated in the press, demonised in docu-soaps like
Benefits Street, and alienated by politicians of most colours
distinguishing the undeserving poor from ‘hardworking
families’. In that time, the only notable successes have been
Quids in!
the explosion of foodbanks and the rise (and fall) of the
payday loans trade – heroes and villains both serving the
short-term needs of people living hand to mouth.
Some attempt at measuring the impact this period of
austerity has had on low income communities is essential and
that’s why this research is so important. We will add to other
research2 that has shown how money worries have blighted
lives with ill-health, debt and the high risk of homelessness.
READER SURVEY 2016
3
OBJECTIVES AND CONTEXT
1
D WELFARE REFORM
UNIVERSAL CREDIT AN
P
oliticians and policy makers are so removed from
the lives of low income social renters that social
programmes do not always fit with reality, and
Universal Credit (UC) is a good case in point. Its ‘digital by
default’ agenda is the first giveaway that it was designed
by people who have little contact with Quids In’s working
age readers. As we’ll see later in this report, 35 per cent of
working age reader not in full-time employment (likely UC
claimants) have no access to the internet. Our partners on the
ground, working with unemployed people, report this is the
tip of the iceberg: claimants lack the skills or inclination to go
online and have limited access to free-to-use, fit-for-purpose
computers to complete UC applications, let alone search for
work.
The major challenges around UC do not end with the IT.
Direct and monthly payments, and the lag between claim and
first payment, generate huge risk of debt. Understanding
claimants often live hand to mouth, even before they have
to wait seven weeks for their first UC payment, helps
predict the level of support people will require. So when
our research shows just 17 per cent of working age readers
not in full-time employment use a savings account, how 22
per cent are already struggling with rent, 54 per cent with
other bills, and 34 per cent with debts, it offers insight that
is vital to landlords and other stakeholders. Anyone wanting
explanations for the reported 79 per cent3 of UC claimants
who fell straight into arrears upon moving to UC could do
worse than start with the charts in this report.
The fall-out of welfare reform in general, including benefit
caps, the bedroom tax and direct payments, has shaken the
social housing sector to its core. Evictions are on the up4 and
access to social housing is increasingly restricted to those
who are on top of their money. Social landlords have had
no choice but to make tough business decisions. When the
government then imposed rent cuts on them in England and
Wales, budgets were cut and often the squeeze has been on
social investment.
IMPACT
A
nother objective of this research is to build a business
case that addresses what tenants need to be ‘good’
tenants in the eyes of their landlords and the role
Quids in! can play in supporting them both. Our findings are
that 33 per cent of readers think more carefully about their
money and that 18 per cent think twice about high interest
borrowing. Additionally, 18 per cent recognise a financial
issue they need help with. Surely, this will be of interest to
landlords: for example, landlords would be worried their
tenants may get sucked into the trap of spending rent money
on other priorities. The insight we’ve gathered will enable us
to further refine our offer to readers and paying customers,
in the way that any publisher would use a reader survey. We
can immediately see the need for more content about UC
and challenges in particular around budgeting, access to
appropriate banking products and being online – what we’ve
called the 3 Bs.
The research means we can prove our value to funders and
commissioners too. As the financial capability/ wellbeing
‘sector’ takes shape, there is increasing consciousness that
impact is everything and we can demonstrate ours. That eight
per cent of readers decide to get help and that six per cent
access that support gives us benchmarks to build upon. It
suggests up to 18,000 fewer people would be able to sort out
their problems if Quids in! did not exist and as we get better at
nudging them in the right direction, and if we can hold the faith
of stakeholders, this can only grow.
THE ‘SECTOR’
I
t is difficult to determine whether there is a sector within
which the Social Publishing Project operates. There are
financial capability initiatives nationwide, housing providers
delivering money management courses all over, welfare
reform support programmes, debt and money advice agencies,
credit unions and the rest but do they form a cohesive sector?
4
Quids in!
Under the UK Financial Capability Strategy they might and
the significant development on this front is the recent launch
of What Works funding by the Money Advice Service (MAS),
which paves the way for the new commissioning body that will
replace MAS.
READER SURVEY 2016
2
SURVEY METHODOLOGY
OUR APPROACH
W
ith two prior surveys to draw on, the process for
defining questions was relatively straightforward.
Also as before, we recruited professional
researchers (this time from Cobweb Consulting) to help
ensure some rigour was applied at the design and analysis
stages. If the research was to make bold claims and be
put to work influencing policy, not just helping us improve
our products, we needed independent overseers to help
validate our approach. Other stakeholders involved from
the early stages were our sponsors, Aviva and Mears, whose
involvement proved our belief that there are partners out
there keen to do business with us in the financial capability
sector and their support meant this research could happen.
We wanted to maximise the survey’s reach and asked social
landlords who do not take Quids in! to also participate. For
those who continue to publish tenant newsletters, inserting
the 2-side survey was easy enough. In addition to the paper
copy, as before, we published an online version, which included
a small number of extra questions, taking advantage of
the chance to specifically find out more about the habits
of people who use the internet. (This time we included
qualifying questions to exclude non-social tenants. In 2014,
we did not do this and a link to the survey was published on
moneysavingexpert.com, whose users were better off and
more financially capable than Quids in! readers, causing us to
exclude 800 responses). This year we estimate we reached
130,000 social tenant households.
Under advice from researchers, we included three draw prizes
to increase the incentive to recipients to respond. We offered
£300 as a first prize, with two £100 runner-up prizes. We
received 583 legitimate responses, achieving a 0.5 per cent
Quids in!
take up. 436 (75%) were by post and 147 (25%) were online,
the latter being an increase on 2014 (21% responded online).
No reply envelope was included but a Freepost address was
supplied.
We consider the response rate to be small but robust enough
to offer some broad findings. The outcomes from previous
research, based on similar response levels, were later borne
out by other surveys, most of which were better resourced
and led by social research companies themselves, so we
are confident we have a decent snapshot of life within our
community. We are reluctant, however, to segment the data
too much as the smaller cohorts decrease the representative
nature of the data. For example, we have not broken the
findings down by region. Understanding of the situation for
benefit claimants was essential, however, so responses were
broken down into three groups: older respondents (above
retirement age),those of working age in full-time employment,
and those working age not in full-time work. We will show this
insight suggests massive inequality in all aspects of financial
wellbeing but acknowledge the numbers are low and worthy
of further investigation, (although they do appear intuitive,
proportional and consistent).
We have started working with social researchers to conduct
follow up surveys among respondents who indicated they
would be happy to participate further. This opens doors to
new partnerships and indicative findings broken down by
social group, circumstance or particular response create the
opportunity to dig deeper. To this end, we are talking to large
academic institutions who can make more use of the survey
data than a specialist publisher can.
READER SURVEY 2016
5
3
WHO ARE WE TALKING ABOUT?
SOCIAL TENANTS
T
here are approaching 10 million people living in social
keen to reduce its Housing Benefit bill. Universal Credit (UC)
and its direct, monthly, whole household payments introduces
a further series of threats, such as the high incidence of
arrears already evidenced in pilot studies referenced above.
others in general needs accommodation. Recent access to
social housing has been more limited to people less able to
access the private rented sector but longer term residents
WHO ARE WE
TALKING
ABOUT?
may
have accessed
it as a right even if they now enjoy higher
incomes. The Social Publishing Project is more interested in
lower income households… for that matter, of any tenure.
Tenants will notice their landlords have had to become
more business-like and many are screening out high risk
new tenants, testing their financial capability at the outset.
Schemes, like the Rental Exchange by Experian, will work
with landlords to incentivise ‘good tenants’ (who pay on time),
rewarded in this case with improved credit ratings while
hopefully others are guided to extra support. In light of the
increased risk of lost revenue caused by welfare reform,
investment in community or social initiatives has often been
curtailed or channelled toward schemes that protect revenue.
As all these changes work through, this research provides
landlords with invaluable insight. In many ways, they couldn’t
have more targeted data on the financial worries of their
tenants, how these impact their lives and what it will mean for
customers’ ability to keep on top of rent and their status as
‘good tenants’.
chers to conducthousing
follow up
surveys
who indicated
across
theamong
UK andrespondents
Quids in! reaches
all four
This opens doors
to new
partnerships
and aseditions.
‘indicative
only’
findings
home
nations
with targeted
They
areas
a mix
of
or particular
response
maybackgrounds,
be, further research
creates
opportunity
ages
and social
and range
acrossthe
older
people
large academic
institutions
who
can make
morespecial
use of the
survey
data
with ‘tenure
for life’
, tenants
requiring
support,
and
ing in social housing across the UK and Quids in! reaches all four home
mix of ages and
social
theyand
range
from older
people
The role
ofbackgrounds,
social landlords,
the culture
among
staffwith
who
upport and others
general
accommodation.
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work inin
the
sector,needs
has had
to adapt to challenges
broughtto
ople less able
to access
the private
rented
butprovider
longer term
about
by austerity
measures.
Assector
a major
to benefit
en if they now
enjoy higher
Thealready
Social Publishing
Project
claimants,
welfareincomes.
reform has
impacted on
them.is
ds… for thatThere
matter,
any tenure.
areof
almost
too many changes (and implications) to list
here but key ones include underoccupancy where tenants with
among staff
who
work spare
there,bedroom
has had to
to challenges
brought
one
or more
hadadapt
Housing
Benefit capped,
a
ovider to benefit
claimants,
welfare
reform
has already
impacted
them.
general
capping of
benefits
per household,
removal
of access
proportions
of benefit
forunderoccupancy
younger people, where
and in
mplications)to
toall
listorhere
but key ones
include
England
and
Wales
a
rent
decrease
imposed
by
government
ad Housing Benefit capped, a general capping of benefits per household,
mposed by government keen to reduce its Housing Benefit bill. Universal
ousehold payments introduces a further series of threats, such as the
erenced above.
NTS
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F RE
Oare
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DE
the outset. Schemes, like the Rental Exchange by Experian, will work with
o pay on time), rewarded in this case with improved credit ratings while
ll respondents
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t. In light of the increased
risk ofwere
lost revenue
causedThe
by welfare
reform,
we will refer
to is schemes
on age/ working
status:
es has often been differentiator
curtailed or channelled
toward
that protect
24
per
cent
were
beyond
normal
working
age,
12
, this research provides landlords with invaluable insight. In manyper
ways,
wereofworking
age andhow
in full-time
employment,
andand
64
he financialcent
worries
their tenants,
these impact
their lives
per
cent
were
working
age
not
in
full-time
employment.
The
eep on top of rent and their status as ‘good tenants’.
A
age of respondents ranged widely but those aged between 51
and 64 were the largest group in general and 75+ the smallest.
We will frequently compare responses from these groups
as this has particular resonance in the context of welfare
reform and the financial challenges this brings. Those who
are working age and not in full-time employment include
part-time workers (12% of all respondents), carers (10%),
students (1%), those not able to work (26%), unemployed
but looking for work (10%) or not looking (6%). Some were
Those who are working age and not in fulltime
employment
include part-time workers
Age
and employment
profile
(12% of all respondents), carers (10%),
students (1%), those not able to work (26%),
unemployed but looking for work (10%) or
7%
not looking (6%). Some were working but
16%
Above working age
24%current situation, with
dissatisfied with their
17%
five per cent saying their job was not meeting
Working age and f/t
their needs and three per cent saying they
employed
12%
27%
were
looking for better paid work. As a
64%
Working age and not
reminder that working people will be f/t employed
32%
affected by welfare reforms, four per cent of
working people were claiming benefits. These
figures are for all respondents, so include
people beyond statutory retirement age, (as
above, 24% are beyond retirement age but 32% of all ages said they were retired).
y
Age of respondents
l-
d
m
ce
6
Quids in!
READER SURVEY 2016
21-34
35-50
51-64
65-74
75 +
reminder that working people will be
32%
75 +
affected by welfare reforms, four per cent of
working people were claiming benefits. These
WHO ARE WE TALKING ABOUT?
figures are for all respondents, so include
people beyond statutory retirement age, (as
above, 24% are beyond retirement age but 32% of all ages said they were retired).
3
Employment status
Under pressure from Job Centre, can't find work
Out of work, claiming, not looking for job
Out of work, not claiming
1%
4%
6%
Looking for job
4%
5%
3%
Have job but receive benefits
Job not meeting needs
Looking for better paid job
10%
Unable to work
Carer
Student
Self-employed
1%
2%
10%
26%
In terms of benefits, we found two thirds (67%)
were in receipt of Housing Benefit, a third
12%
(34%) were on Employment and Support
Full time
12%
Allowance and a quarter (25%) claimed Child
Help from utility supplier
7%
Retired
Tax Credits. All these will 32%
move to Universal
Credit in 25%
the next five
or so years,
alongside
Discretionary Housing Payment0% 3% 5%
10%
15%
20%
30%
35%
claimants of Jobseekers Allowance (13%),
Working Tax Credits (14%) and Income Support
Working Tax Credits
14%
(17%).claimants
As we will come
on to explore,
these
five
or
so
years,
alongside
of Jobseekers
Allowance
working but dissatisfied with their current situation, with
represent
huge
numbers
of
social
tenants
(13%),
Working
Tax
Credits
(14%)
and
Income
Support
(17%).
five per cent saying their job was not meeting
their
needs
and
Child Tax Credits
25%
whose money management skills may be put to
As we will come on to explore, these represent huge numbers
three per cent saying they were looking for better paid work.
the test creating risk for landlords. Just two per
Housing
Benefit
of social tenants
money management skills may be put
67%whose
As a reminder that working people will be
affected
by welfare
cent were already on UC, unfortunately too
to the test creating risk
fora landlords.
Just two
cent were
reforms, four per cent of working people were claiming
small
sample to assess
how per
it impacts
this
Income Support
17%already on UC, unfortunately
too
small
a
sample
to
assess how
benefits. These figures are for all respondents,
so include
group but worthy of further exploration.
Benefits
claimed
Part time
it impacts this group, but worthy of further exploration.
34%
We also wanted to know what other forms of
support
accessing,
outside of
We also wanted to know
whatreaders
other were
forms
of support
13%
formal benefits. Seven per cent were receiving
readers were accessing, outside of formal benefits. Seven
help from a utility supplier, which could be in
per cent were receiving
a utility
supplier,
In terms of benefits, we found two thirdsUniversal
(67%) Credit
were in 2%
thehelp
formfrom
of a grant
or special
tariffwhich
on account
could be in the form of
a
grant
or
special
tariff
on
account
receipt of Housing Benefit, a third (34%) were on Employment
of hardship. Three per cent had turned
to of
their
0%
20% hardship.
40%
60%
Three80%
per cent
had
turned
to
their
local
authority
and Support Allowance and a quarter (25%) claimed Child
local authority for assistance through a
Discretionary
Housing
Payment,
although it is
for assistance through
a Discretionary
Housing
Payment,
Tax Credits. All these will move to Universal Credit in the next
8
impossible
toconclusions
draw conclusions
although it is impossible
to draw
fromfrom
thisthis
as as
criteria for its use varies from authority to authority
– for
in Scotland,
for example,
itauthority
is automatically
allocated
to offset
criteria
its
use
varies
from
to
authority
–
in
In terms of benefits, we found two thirds (67%)
Underoccupancy caps.
Scotland,
for example,
is automatically
were
in receipt
of HousingitBenefit,
a third allocated to offset
Underoccupancy
caps.
onper
Employment
and Support
Of those who indicated it, 58 per cent were (34%)
femalewere
and 42
cent were male.
This compares to our 2014 survey
Allowance
and
a
quarter
(25%)
claimed
Childof the publications Quids
per
cent
were
female
and
36
per
cent
were
male.
As
well
as
mirroring
the nature
Help from utility supplierwhere 64
7%
Of
those
who
indicated
it, 58to
per
cent
and
42 per
Credits.
All
these
will women
move
Universal
in! emulates, which tend to target women, itTax
also
reflects
findings
that
are
morewere
likely female
to engage
with
4
financial
issues.
In
March
2016,
the
Huffington
Post
reported:
“According
to
research
from
Policy
Expert,
women
Credit
in
the
next
five
or
so
years,
alongside
cent
were
male.
This
compares
to
our
2014
survey
where
64
Discretionary Housing Payment
3%
take care of most of the bills in the home; 58%
look after
bills, 72%
manage(13%),
home insurance and 67% oversee
claimants
of utility
Jobseekers
Allowance
the grocery shopping.”
Working Tax Credits (14%) and Income Support
Working Tax Credits
14%
(17%). As we will come
on to explore, these
Relationship
status
Although we have not used this to drill
represent
huge
numbers
of
social
tenants
Child Tax Creditsfurther into our25%
findings here, it is useful
whose money management skills may be put to
to note the make up of households we
the test creating risk for landlords. Just two per
had
Housing Benefitare reaching. We found 23 per cent
67%
cent were already on UC, unfortunately too
children and 16 per cent had adult
small a sample to assess how 20%
it impacts this
for example, while 42 per
Income Supportdependents,17%
group but worthy of further exploration.
Married
cent were single, 20 per cent married,
five living with a partner, 22 per cent
42%
Employment Support Allowance
34% widowed. We We also wanted to know what other forms of Widowed
divorced, and 10 percent
Divorced
10% of
support readers were accessing, outside
also asked how many had a lodger or
Job Seekers Allowancesub-tenant13%
and found one per cent said
formal benefits. Seven per cent were receiving Living with partner
they did.
help from a utility supplier, which could be in
Single
Universal Credit
2%
the form of a grant or special tariff on account
Although we are not focusing on
22%
of hardship. Three per cent had
turned to their
regional
coverage
in
this report,
0%
20%
40%
60% as the
80% local authority for5%
assistance through a
sample size is slightly too limited for this,
Discretionary Housing Payment, although it is
we would note that the survey was
impossible to draw conclusions from this as
criteria for its use varies from authority to authority – in Scotland, for example, it is automatically allocated to offset
4
Source: The Gender Gap - Do Men and Women Handle Debt Differently? (Huffington Post, March 2016)
Underoccupancy caps.
people beyond statutory retirement age, (as above, 24% are
Employment Support Allowance
beyond retirement age but 32% of all ages said they were
retired).
Job Seekers Allowance
Benefits claimed
[http://www.huffingtonpost.co.uk/maz-deo/the-gender-gap-do-men-and_b_9516822.html]
Quids in! READER SURVEY 2016
9
Of those who indicated it, 58 per cent were female and 42 per cent were male. This compares to our 2014 survey
7
d accounting for around half of all circulation and 53 per cent of all responses. The aim
s in future research so we can compare them by region, for comparison with
WHO
WE
TALKING
ABOUT?
3 Service
5
Money Advice
, forARE
example,
whose
findings include
that people in Northern
problem debt than in some other parts of the UK, (21% experiencing it compared to the
t we know Quids in! is reaching the parts where it is perhaps needed most.
increasingly, the best deals will be available to those who shop
of social
around online. Digital skills are now key to financial capability.
, it is vital
hip with IT
One in five respondents (21%) told us they have no access
50%
41% 43%
gement
to the internet, (as opposed to 22% in 2014). Two in five had
40%
se who are 30%
21%
internet access via a PC at home (41%, compared to 45% in
20%
me critical
20%
2014) and/or a smartphone (43% versus 25% in 2014). It is
6%
5%
m
10%
1%
also interesting to note how few (5%) have a job that provides
landlords
%
e and
access for them to the internet.
circulated in Northern Ireland accounting for around half of all circulation and 53 per cent of all responses. The aim
accessing
remains to increase responses in future research so we can compare them by region, for comparison with
and,
We dug deeper into where and how people do access the
ill be
intelligence gathered by the Money Advice Service5, for example, whose findings include that people in Northern
internet. We asked all readers how they use it and the chart
around
Ireland are affected more by problem debt than in some other parts of the UK, (21% experiencing it compared to the
below gives hugely useful insight into tenants’ habits and
ey to
UK average
ofinternet
16.1%). At
we know
Quids in! is reaching the parts where it is perhaps needed most.
Use
of IT and
(byleast
response
type)
e
also how we might engage with them online. Of those who
ey have no per cent were female and 36
0%per
10%cent
20% 30%
40%
50%
60%
70%
80%
90%
responded online, over four in five (84%) are frequent
male. As well as
In terms of creating a profilewere
of social
posed to
internet users and almost two thirds are competent with
mirroring
the
nature
of
the
publications
Quids
in!
emulates,
84%
internet
tenants
andregularly
Quids in! readers, it is vital
Use internet
47%
email (63%), online forms (61%), banking (61%) and shopping
which
tend
to
target
women,
it
also
reflects
findings
that
,
to understand their relationship with IT 63%50%
43%
41%
Use email
regularly
d/or a
(60%). Around half could be engaged through YouTube (50%)
women are more
likely
to engage with financial
issues.
In
33%
and the internet. Digital5 engagement
40%
in 2014).
or Facebook (55%) and a fifth via Skype (22%). Half can,
March 2016,
Post reported:
“According
to
61%
andthe
theHuffington
division
Use online
forms
without helpbetween those
ow few
25% who are
21%
and therefore20%
half cannot, find the advice they are looking
research from Policy Expert, women take
care of most30%
of the
and are not online will become
critical
access for
20%
22%
Access to internet
Access to internet
eople do
We asked
d the
y useful
d also
em
ed online,
quent
o thirds
%), online
%) and
could be
0%) or
a Skype
e half
re looking
apability
d by post
ople who
who do
Use Skype/
video
messaging
bills in the
home;
look after utility
bills, 72% manage
11% from
issues
as58%
communications
10%
home insurance
and
67%
oversee
the
grocery
shopping.
”
50%
government,
authorities and24%
landlords
Watch YouTube
%
lean on electronic media more and
55%our
Have and
use
Facebook
account
Although
we
have
not
used this to drill
further
into
32%
more.
Job
opportunities
and accessing
findings here,
it
is
useful
to
note
the
make
up
of
households
61%
benefits will
upon it23%
and,
Bank depend
online
we are reaching.
We
found
23
per
cent
had
children
and 16 per
increasingly, the best deals will be
60%
Shop online for example,
cent had adult
dependents,
while
28%
available to those who shop around
42 per
cent
were
single,
20
per
cent
married,
53%
online.
Digital
skills
are
now
key
Sought and found advice online
29% to
five livingfinancial
with a partner,
22 per
cent
divorced,
capability.
One
in five
26%
Checked
applied forwidowed.
benefits online
and
10 or
percent
We also
asked
respondents (21%)
told 12%
us
theyhow
have no
many
had
a
lodger
or
sub-tenant
and
found
one
Don't know where and how to use
1% (as opposed
access
to
the
internet,
to
21%
computer
per cent said
they
did.
22% in 2014). Two in five had internet
Can find info on internet without help
54%
access via a PC at home (41%, 33%
Although
we
are
not to
focusing
on6%
regional
compared
45%
and/or
a
Someone
does above
for
me in 2014)
22%
coverage in
this
report,
as
the
sample
size
is
smartphone
(43%
versus
25%
in
2014).
Computers and internet too
2%
slightly too
limited
for this, weto
would
note
that
18%
complicated
It is
also interesting
note
how few
the survey
was
circulated
in
Northern
Ireland
(5%)
have
a job
that0%
provides
access for
Don't see
benefit
of being
online
6%
accounting
for around
half of all circulation and
them
to the internet.
53 per cent of all responses.
The aim
Online response
Postalremains
response
to increase
responses
in
future
research
so we
We dug deeper than where people
do
can compare
them
by
region,
for
comparison
access
the
internet,
however.
We
asked
s (Money Advice Service, March 2016)
with intelligence
gathered
by the
ce.org.uk/en/corporate/a-picture-of-over-indebtedness]
all readers
how they
useMoney
it and Advice
the
Service6, for
10
example,
whose
findings
include
chart
to the right
gives
hugely
useful
that people
in Northern
Irelandhabits
are affected
insight
into tenants’
and also
more by problem
debt
than
in
some
how we might engage withother
themparts
of the UK,online.
(21% experiencing
it
compared
the
Of those who responded to
online,
UK average
of
16.1%).
At
least
we
know
Quids
over four in five (84%) are frequent
in! is reaching
the parts
it is perhaps
internet
users where
and almost
two thirds
needed most.
are competent with email (63%), online
forms (61%), and banking (61%) and
In terms of
creating(60%).
a profile
of social
shopping
Around
halftenants
could be
and Quidsengaged
in! readers,
it
is
vital
to
understand
through YouTube (50%) or
their relationship
with
IT and
internet.
Facebook
(55%)
andthe
a fifth
via Skype
Digital engagement
and
the
division
between
(22%). Half can, and therefore
half
those whocannot,
are andfind
are the
not advice
online will
theybecome
are looking
critical issues
as communications
from
for. Predictably
lower is the
capability
government,
authorities
and
landlords
tend
among people who responded
by post
to rely on but
electronic
media
more
and
more.
these include a mix of people who
Job opportunities
andaccess
accessing
have digital
and benefits
those who do
(specifically
UC)
will
depend
upon it, as
not.
will making use of financial services, and,
for. Predictably lower is 5%
the capability
6% among people who
responded by post but these include a mix 1%
of people who have
digital access and those who do not.
Use of IT and internet (by response type)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Use internet regularly
Use email regularly
11%
Watch YouTube
32%
Bank online
Shop online
28%
Sought and found advice online
29%
12%
1%
6%
2%
READER10
SURVEY 2016
22%
18%
0%
6%
Online response
53%
21%
33%
Computers and internet too
complicated
60%
26%
Can find info on internet without help
Someone does above for me
55%
61%
23%
Checked or applied for benefits online
Quids in!
50%
24%
A Picture of Over-Indebtedness (Money Advice Service, March 2016)
[https://www.moneyadviceservice.org.uk/en/corporate/a-picture-of-over-indebtedness]
8
22%
Have and use Facebook account
5
61%
25%
Use Skype/ video messaging
Don't see benefit of being online
63%
33%
Use online forms without help
Don't know where and how to use
computer
84%
47%
Postal response
54%
4
TENANTS AND THEIR MONEY
TENANTS AND THEIR MONEY
Money
90%
struggle to some
extent with
managing money
74%
do not save for
unexpected
setbacks
40%
do not use a
bank account
59%
do not have
home contents
insurance
16%
faced serious
financial
problems
HOW OUR COMMUNITY MANAGES
Source: 2016 Quids in! Reader Survey (of social tenants)
It is important to understand how respondents told us they view and attempt to manage their finances. This is our
starting point. The figures in this section apply to social tenants of all ages and backgrounds but we will return to
some of the key findings here
to
between the habits of retired, full-time employed and working age but
ANAGES
Mdistinguish
MUNITYrespondents
R COMemployment
in a later chapter.
HOWnotOinUfull-time
I
Just oneto
inunderstand
ten (10%) ofhow
respondents
toldtold
us us they
t is important
respondents
they
never have
a problem
managing
view and
attempt
to manage
theirwith
finances.
This istheir
our
money.
Twofigures
fifths (44%)
they’re
usually
starting
point. The
in thissaid
section
apply
to social
okay
37 per
cent
a bit,
tenants of
all (but
agesnot
andalways),
backgrounds
but
we struggle
will return
to some
and
nine per
cent
think they are
not very
of the key
findings
here
to distinguish
between
thegood.
habits of
All theseemployed
responsesand
areworking
subjective,
course,
retired, full-time
ageof
but
not in fulland research
by MAS and
has found
time employment
respondents
in aothers
later chapter.
many people do not realise they have a problem
manage,
before theytold
decide
whether
Just one to
in ten
(10%)even
of respondents
us they
neveror
have
not
to address
it.their
Sixteen
per cent
said they
a problem
with
managing
money.
Two fifths
(44%) said
faced serious
financial
problems.
they’re usually
okay (but
not always),
37 per cent struggle a
Managing money
Not very good
10% 9%
I struggle a bit
44%
37%
I'm usually OK
Never have
bit, and nine per cent think they are not very good. All these
problems
Later
will return
to how and
these
money by MAS
responses
arewe
subjective,
of course,
research
worries
impact
tenants’
lives
andrealise
the they have a
and others
has found
many
people
do not
for landlords,
authorities
and or not to
problemimplications
to manage, even
before they
decide whether
with
As weserious
take anfinancial
overview of the
these financial
concerns
take
– an
on overview of
andtoll
agencies
working with
them.must
As we
take
address agencies
it. Sixteenworking
per cent
saidthem.
they faced
relationships, on people mental and physical wellbeing, on
to work or
find work
– –it on
is also
importanton
to
problems.
thetheir
toll ability
these financial
concerns
take
relationships,
understand what facilities they have access to, or feel they
do. mental and physical wellbeing, on their ability to
people’s
work or find work – it is also important to understand what
Later we will return to how these money worries impact on
facilities they can access, or feel they can.
tenants’ lives and the implications for landlords, authorities
BANKING ON FINANCIAL SERVICES
A recent report by the Financial Conduct Authority6 on access to financial services found a range of obstacles.
Identification issues barred many
from opening accounts, resulting in 1.5 million UK adults remaining unbanked. The
NANCIAL SERVICES
ON FI
KINtoGonline
services shut out customers, it said, where 3.8 million households have no internet access at home
BANdrive
and one in five lack digital skills. One in four high street branches are expected to close as more digitally included
people bank online, exacerbating issues for rural communities who often also have poor broadband coverage. It also
foundreport
consumers
in “a
maze ofAuthority
impersonal processes
made by
computers
instead
people”,
also with
havedecisions
poor broadband
coverage.
It also
foundofconsumers
recent
by thecaught
Financial
Conduct
7
lacking
transparency
and
leaving
people
falling
foul
of
algorithms
or
poor
record-keeping
with
little
recourse.
caught
in
“a
maze
of
impersonal
processes
with
decisions
(FCA)
on access to financial services found a range
A
made by computers instead of people”, lacking transparency
of obstacles. Identification issues barred many from
and 2016)
leaving
people falling foul of algorithms or poor recordopening 6accounts,
resulting
in
1.5
million
UK
adults
remaining
Occasional Paper 17: Access to Financial Services in the UK, (FCA,
[http://www.fca.org.uk/static/documents/occasionalkeeping.
unbanked.
Our
research
found
one
in
twenty
(5%)
could
not
papers/occasional-paper-17.pdf]
open an account as they did not have ID. The drive to online
11
In the context of Universal Credit, Martin Lewis from
services shut out customers, the FCA said, where 3.8 million
moneysavingexpert.com described the situation as ‘a
households have no internet access at home and one in
civil rights issue’ if claimants are penalised for not using a
five lack digital skills. One in four high street branches are
system they are barred access from8. He likened this to the
expected to close as more digitally included people bank
online, exacerbating issues for rural communities who often
so-called Spare Room Subsidy (aka Bedroom Tax) where
Quids in!
READER SURVEY 2016
9
4
TENANTS AND THEIR MONEY
Credit Union account (11%), both of which outstrip use
in 2014 and 2012. Neither are totally ideal in the context
of UC, as they can be limited in functionality or coverage
respectively
• With UC in mind, the government has agreed with nine
retail banks that Basic Bank Accounts will be available to
all. There is no comparative data on these but a third of
respondents (34%) report having these already, although
many are still finding ID issues prevent them accessing
In 2014, we saw a marked drop-off in use of financial services
even these
compared to 2012. The picture is a little more mixed in 2016
• Use of payday loans and doorstep loans has decreased
but there are some encouraging signs:
(to 2% and 4% respectively), which is good news and
• Respondents are returning to using bank accounts more.
tallies with a significant drop off of the number of people
In 2012 we found 85% had an account but in 2014 we
reporting problems meeting debt repayments (from
asked how many used one and just 48% said they did. We
In the
context of Universal
Credit,the
Martin
Lewis
from
described
the situation
as30%
‘a civil
rights which
57% in 2012,
and 41%
in 2014, to
in 2016),
acknowledged
this distorted
picture.
This
timemoneysavingexpert.com
we
issue’
if claimants
are penalised
notausing
system 63%
they are barredwe
access
from.
(He Cheque-cashing
likened this to the
so-called
return
to later.
services
have also
asked
both about
having andfor
using
bank aaccount;
Spare
Room
where
smaller
properties
not available evendecreased
when claimants
but nothit
yetby
tothe
thecap
lowwere
levelsprepared
of 2012
have
one,Subsidy
60% use
one. This
suggests
trustwere
in banking
to move.)
Ourisresearch
one
twenty
could
notinopen •an account
as about
they did
not have
There
been
We asked
pensions
andID.
just
4 perhas
cent
have a
services
returningfound
a little
butinnot
to the(5%)
levels
shown
progress
right ofpension
all consumers,
remains
to bea seen
while 11itper
cent have
work-based
2012on making Basic Bank Accounts (with direct debit facilities) aprivate
howMore
fast government,
regulators
andafinance
institutions
move to combat
financial
exclusionformat
and ensure
fairer in 2016 to
pension.
The question
was changed
•
people are, however,
using
Post Office
(16%) or
smaller properties were not available even when claimants
hit by the cap were prepared to move. While there has been
progress on making Basic Bank Accounts (with direct debit
facilities) a right of all consumers, it remains to be seen how
fast government, regulators and finance institutions move to
combat other aspects of financial exclusion and ensure fairer
access to all.
access to all.
In 2014, we saw a marked drop-off in use of
Consiste
of financial
financial services Use
compared
to 2012. services
The picture is a
online re
little more mixed in 2016
but there are
some
financia
(by response
type)
postal an
encouraging signs:
0%
20%
40%
60%
80% 100%
0% 10% 20% 30% 40% 50% 60% 70%
as use o

Respondents are returning to using bank
(76%) of
accounts
more.
(In
2012
we
found
85%
had
an
22%
34%
Savings account
22%
Savings account
32%
while jus
account
but
in
2014
we
asked
how
many
used
one
22%
Alternat
and just 48%
said
they
did.
We
acknowledged
this
3%
Private pension plan
4%
be used
29%
distorted the picture. This time
we asked both about
Credit card
23%
19% hav
having
and
using
a
bank
account;
63%
have
one,
11%
24%
Work pension plan
11%
per cent
60% use one.) This suggests trust in banking services
Credit U
is returning a little
butcard
not to the levels shown
in
39%
Credit
Bank account
48%
19%
online re
60%
2012
took out

More people
are, however, using a Post
76%
Bank account
reflectin
15%
56%
Office (16%) or Credit Union account (11%), both of
Post Office account
10%
way, as
16%
which outstrip
bothaccount
use in 2014 and 2012.
39%Neither
Basic Bank
versus 1
33%
are totally ideal in the context of Universal Credit, as
3%
be an id
Private health care
3%
they can be
limited in functionality
or coverage
6%
Post Office account
promote
2%
19%
respectively

With
UChealth
in mind,
government has
3%
4%
It is wor
Private
care the2%
Credit Union account
6%
agreed
with
nine
retail
banks
that Basic Bank
processe
11%
AccountsCredit
will Union
be available
to
all.
There
is
no
9%
Universa
account
2%
comparative data on these but a11%
third of
identifie
Pay day loan
6%
respondents (34%)
report
having
these
already,
2%
individu
4%
Pay day loan
2%
although many are still finding
ID issues prevent
monthly
23%
Store card / catalogue / owe
Store
card
/
catalogue
/
owe
them
accessing
even
these
taken fo
26%
15%
money on items
money
onpayday
items loans and13%
16%
debits to

Use of
doorstep loans has
thinking
decreased (toDoorstep
2% andloan
4% respectively),
which is
4%
8%
4%
disinclin
Doorstep loan
good news and tallies with a significant
drop off of
6%
4%
disadvan
the number
of
people
reporting
problems
meeting
1%
Cheque cashing services
2%
and othe
debt
repayments
(from
57%
in
2012,
and
41%
in
0%
online a
Cheque cashing services
3%
2014,
to
30%
in
2016),
which
we
return
to
later.
2%
Handwritten
and the
Cheque-cashing servicesOnline
have also
decreased but
digitally
not yet to the low levels of 2012
2012
2014
2016

We asked about pensions and just 4 per
Understanding this inequality however requires empathy. Some people do
cent have a private pension while 11 per cent have a
physically reach one (in rural areas or small towns where local branches are
work-based pension. The question format was changed in 2016 to reflect new legislation around the latter,
access to make use of them digitally. Some have to manage budgets so tigh
however in previous surveys we found 8 per cent had a pension plan of any kind in 2014 and 13 per cent in
payments are made, especially when juggling debt. For all the laudable rea
2012. The impression is that there is some
progress
although
the vast
majority do not appear to have a
Quids
in! READER
SURVEY
2016
salary
payments,
it overlooks that claimants do not always live their lives th
financial cushion lined up for retirement
Use of financial services
(comparison over time)
10
TENANTS AND THEIR MONEY
reflect new legislation around the latter. However in
previous surveys we found 8 per cent in 2014 and 13
per cent in 2012 had a pension plan of some kind. The
impression is that there is some progress although the
vast majority do not appear to have a financial cushion
lined up for retirement.
Consistent with previous surveys, we also found online
respondents were more likely to access financial services.
The figures above combine postal and online returns but
disguise trends such as use of a bank account where three
quarters (76%) of online respondents used a bank account
while just over half (56%) of the rest did. Alternative types
of accounts were more likely to be used by people who
posted their surveys, with 19% having a Post Office account
compared to six per cent of those online, and 11 per cent had
a Credit Union account rather than nine per cent of online
respondents.
It is worth noting here that having reviewed the processes
and claimant experience around Universal Credit, the Social
Publishing Project has identified access to banking as a
4
critical issue for individuals facing challenges in managing
direct, monthly payments. The facilities on offer are taken
for granted by many of us, who use direct debits to pay
mortgages and rent without thinking. For people refused an
account or disinclined to use one, this creates an immediate
disadvantage and a knock-on risk for landlords and other
creditors. SPP also identified being online as another critical
success factor for accessing UC; the better access to financial
services seen from the survey among digitally included groups
adds weight to this.
Understanding this inequality however requires empathy.
Some people do not trust the institutions. Some cannot
physically reach one (in rural areas or small towns where local
branches are being shut down) or lack the IT skills or access
to make use of them digitally. Some have to manage budgets
so tightly, they would rather control the day payments are
made, especially when juggling debt, than leave it in the hands
of others. For all the laudable reasons to make UC reflect the
norms of salary payments, it overlooks that claimants do not
always live their lives the way employed people can afford to.
s possible that this is also reflected in the numbers of people reporting difficulty with debt repayments as this has
opped significantly and consistently over six years. In 2012, 57 per cent of readers told us they struggled with debt
payments, 41 per cent in 2014 and 30 per cent in 2016. A lot of investment has been made into free debt advice
rvices and it could be that the message is getting through. However, we should sound two notes of caution: Firstly,
s highly likely that debt crisis
is under-reported; Secondly, these findings are counter-intuitive and warrant further
RROWED TIME
N BO
estigation O
with
larger samples and more rigorous data gathering.
S
impact
of tight
regulation
the
e have alreadyignificantly,
seen that the
slightly
more
people
are on
using
payday loan industry has had an immediate effect,
edit cards now (24%) than in 2014 (23%), although not as
with use of them dropping from six per cent in 2014 to
any as in 2012
(29%).
TheSimilarly,
use of acredit
byofwork
two per
cent now.
declinediffers
in the use
otherstatus
high
9
o with twointerest
in fiveorfull-time
respondents
(40%)
potentiallyemployed
illegal borrowing
, as shown above,
suggests
regulation is not
the only
Equally
ng a credit
card (compared
to 19%
of factor.
working
ageplausible
not in is
an
increased
awareness
among
consumers
of
the
dangers
l-time employment and 30% of older people), and six perof
high interest borrowing or of loan sharks, thanks in large part
nt of working
age not in full-time employment taking a
to the work of stakeholders operating in the field of financial
orstep loan
(as opposed
toone
2%offor
full-time
employed
capability.
Certainly
Quids
In’s original
objectives was to
ople, andempower
no olderconsumers
people. to make more informed decisions when
confronted by tempting but unaffordable credit – something
readers
we have
influenced
them over.machine
e also asked
howacknowledge
readers would
replace
a washing
d found more
than one in ten (11%) would put their credit
It is possible that this is also reflected in the numbers of
rd to use and
one
in fivedifficulty
(20%) would
borrow
fromas
family,
people
reporting
with debt
repayments
this
hile three has
perdropped
cent would
use a and
payconsistently
day loan and
per In
significantly
overfour
six years.
2012,
57
per
cent
of
readers
told
us
they
struggled
with
debt
nt would seek a doorstep loan. The almost two in five (18%)
repayments,
41
per
cent
in
2014
and
30
per
cent
in
2016.
ho would use a store offering credit are at particular risk of
A lot of investment has been made into free debt advice
ing sold over-priced
goods, charged unnecessarily high
services and it could be that the message is getting through.
erest, andHowever,
forced we
to should
take on
unreasonable
on-costs,
as ithigh
sound
two notes of caution:
firstly,
is
eet storeshighly
havelikely
sprung
up nationwide
targeting and
lowsecondly,
income
that debt
crisis is under-reported;
these
findings
areaccess
counter-intuitive
and warrant
useholders
with
limited
to affordable
creditfurther
or means
investigation
with
larger
samples
and
more
rigorous
data
shop around and find alternative suppliers online. This
gathering.
ure is worse than in 2014 (16%) and 2012 (15%).
We have already seen that slightly more people are using
Means of replacing
household goods
3%
Pay day loan
15%
Approach a charity
Second hand shop or
re-use
32%
18%
Store offering credit
4%
Doorstep loan
28%
Would do without
20%
Borrow from family
24%
From savings or income
11%
With a credit card
0%
10% 20% 30% 40%
e will return to where people access advice and how effective they find it but as we review respondents’ attitudes
borrowing it is worth noting that 36 per cent of respondents
saidSURVEY
they sought
Quids in! READER
2016 advice on debts of any kind. As a
aser, we would also note that 18 per cent of readers told us they would think twice about high interest loans after
11
4
TENANTS AND THEIR MONEY
credit cards now (24%) than in 2014 (23%), although not
as many as in 2012 (29%). The use of credit differs by work
status too with two in five full-time employed respondents
(40%) using a credit card (compared to 19% of working age
not in full-time employment and 30% of older people), and six
per cent of working age not in full-time employment taking
a doorstep loan (as opposed to 2% for full-time employed
people, and no older people.
We also asked how readers would replace a washing machine
and found more than one in ten (11%) would put their credit
card to use and one in five (20%) would borrow from family,
while three per cent would use a pay day loan and four per
cent would seek a doorstep loan. The almost two in five (18%)
who would use a store offering credit are at particular risk
of being sold over-priced goods, charged unnecessarily high
interest, and forced to take on unreasonable on-costs, as high
street stores have sprung up nationwide targeting low income
householders with limited access to affordable credit or
without means to shop around and find alternative suppliers
online. This figure is worse than in 2014 (16%) and 2012
(15%).
We will return to where people access advice and how
effective they find it but as we review respondents’
attitudes to borrowing it is worth noting that 36 per cent of
respondents said they sought advice on debts of any kind. We
would also note that 18 per cent of readers told us they would
think twice about high interest loans after reading Quids in!,
but we’ll come back to that later also.
CE
FINANCIAL RESILIEN
A
ccording to StepChange10 : “Thirteen million people
in the UK lack the savings to keep up with essential
bills for just one month if their income dropped by a
quarter” and they say a nest egg of £1,000 would protect half
a million households from problem debt. The findings from
our survey shows a mixed picture with just one in five (22%)
using a savings account but two thirds (66%) saying they
saved for things they wanted to buy, which may reflect that
with interest rates at an all-time low there is little incentive to
use a savings account:
•
•
•
•
As the diagram above shows, 24 per cent say they would be
able to turn to their savings (or draw on their income) if a key
white goods item such as a washing machine broke down. This
compares to 29 per cent in 2012 and 22 per cent in 2014,
repeating the same pattern as for other indicators where
things have improved but not to the levels of 2012.
Just 22 per cent of social tenants surveyed used a savings
account
An encouraging 66 per cent said they saved for things
they wanted to buy
Beyond savings, we can see individuals thinking about pensions. It is worth noting that this is also an area affected by
31 per cent regularly save to cover unexpected expenses
regulation with the introduction of work-based pensions using an auto-enrolment policy that makes participation
10 per cent had sought advice on their savings
the default option. This is good for take-up but employees may not be conscious of the decisions, for example when
responding to a survey, (although not all workplaces have it in place yet). Although improving on recent years,
Beyond savings, we can see individuals thinking about
planning for pensions is not much better than it is with saving, as just four per cent said they have a private pension
pensions. It is worth noting that this is also an area affected
plan and eleven per cent have a work-based pension.
by regulation with the introduction of work-based pensions
using an auto-enrolment policy that makes participation
Another key indicator of tenants’ financial resilience,
the default option. This is good for take-up but employees
especially to big shocks, is levels of home contents
may not be conscious of the decisions, for example when
insurance. Just 41 per cent reported having a policy in
responding to a survey, (although not all workplaces have it in
place. Given our relationship with Aviva (who
place yet). Although improving on recent years, planning for
sponsored this research), we chose to look in more
pensions is not much better than it is with saving, as just four
detail at this issue to understand consumers’
per cent said they have a private pension plan and eleven per
reluctance. By understanding the implications of
cent have a work-based pension.
these findings, we can begin to consider messages
and interventions, although these might be presented
Another key indicator of tenants’ financial resilience,
alongside other ways consumers might also improve
especially to big shocks, is levels of home contents insurance.
their resilience.
Just 41 per cent reported having a policy in place. Given
our relationship with Aviva (who sponsored this research),
shows,
24 per
say they
we choseAs
to the
lookdiagram
in more above
detail at
this issue
tocent
understand
would
be
able
to
turn
to
their
savings
(or
draw
consumers’ reluctance. By understanding the implicationson
their income)
if begin
a key white
goodsmessages
item, a washing
of these findings,
we can
to consider
and
machine,
broke
down.
This
compares
to alongside
29 per cent
interventions, although these might be presented
in consumers
2012 and 22might
per cent
2014, repeating
the same
other ways
also in
improve
their resilience.
Reasons for not taking up
home insurance
Too complicated to arrange
Couldn't find right cover
Never heard of it
If I claim the price will go up
Don't understand what it…
Quids in!
68%
Too expensive
18%
Don't think I'll need it
pattern as for other indicators where things have
improved but not to the levels of 2012.
12
8%
4%
5%
8%
12%
READER SURVEY 2016
0%
20%
40%
60%
80%
5
RESILIENCE:
IMPLICATIONS FOR TENANTS, LANDLORDS
AND OTHER STAKEHOLDERS
Resilience
RESILIENCE: IMPLICATIONS FOR TENANTS, LANDLORDS AND OTHER STAKEHOLDERS
18%
were in rent
arrears
46%
47%
had fallen
behind with bills
felt frightened or
anxious due to
money worries
35%
30%
skipped meals
struggled to
maintain debt
repayments
Source: 2016 Quids in! Reader Survey (of social tenants)
BAD TIMES FOR GOOD
T
TENANTS
BAD TIMES FOR GOOD TENANTS
ime and again, the snapshot of
Time and again, the snapshot of
respondents’ wellbeing has revealed
respondents’ wellbeing has revealed
the most troubling of all our findings.
the most troubling of all our
We have consistently used the same hardship
findings. We have consistently used
indicators over the past three surveys and
the same hardship indicators over
these now paint a picture of trends over
the past three surveys and these
time with regard to the impact of money
now paint a picture of trends over
worries on tenants’ wellbeing. It is important
time with regard to the impact of
to know how people view their money and
money worries on tenants’
how they attempt to manage it but what
wellbeing. It is important to know
really matters is the difference it makes
how people view their money and
to people’s lives. On one hand, this helps us
how they attempt to manage it but
understand consumers’ motivations, and how
what really matters is the difference
stakeholders and interventions like Quids in!
it makes to people’s lives. On one
magazine can better frame messages around
hand, this helps us understand
how taking action may benefit their lives. On
consumers’ motivations, and how
the other, it reminds us how important work
stakeholders and interventions like
around financial wellbeing is because it is
Quids in! magazine can better frame
directly linked to individuals’ general health –
messages around how taking action
we asked about impacts caused specifically
may benefit their lives. On the
by money worries.
other, it reminds us how important
work around financial wellbeing is
From the chart we can see how respondents’
because it is directly linked to
indebtedness may have improved over
individuals’ general health – we
previous years but their health is only slightly
asked about impacts caused
better than in 2014 and has yet to reach the
specifically by money worries.
levels seen in 2012. Those falling behind with
bills is down marginally to below half (46%).
From the chart we can see how
Most impressive, however, (and on account of
respondents’ indebtedness may
its notability, worthy of further exploration),
have improved over previous years
is the decrease in numbers struggling with
Resilience/Hardship Indicators (2012-2016)
0%
10%
20%
30%
40%
50%
49%
52%
46%
Fallen behind and or struggled to pay bills
Difficulty keeping up with debt payments
30%
57%
41%
33%
37%
35%
Skipped meals
44%
Turned off heating despite being cold
42%
21%
Became physically ill because of my
financial circumstances
22%
51%
30%
45%
Felt frightened, anxious or depressed
52%
47%
24%
25%
23%
Had arguments with family or friends
55%
53%
53%
Missed out on occasions with
friends/family
2012
60%
2014
2016
but their health is only slightly
better than in 2014 and has yet to reach the levels seen in 2012. Those falling behind with bills is down marginally to
below half (46%). Most impressive, however, (and on account of its notability, worthy of further exploration), is the
decrease in numbers struggling with debt, which fell from 57 per cent in 2012 to 30 per cent this year. This could be
down to successes in education about high interest borrowing, regulation of payday loans companies, and/ or more
Quids in! READER SURVEY 2016
13
16
5
RESILIENCE
debt, which fell from 57 per cent in 2012 to 30 per cent this
year. This could be down to successes in education about high
interest borrowing, regulation of payday loans companies,
and/ or more limited access to borrowing across the board.
It should be noted that debt is notoriously under-reported by
consumers and there were no mechanisms to push this issue
within our study.
This year we asked about how tenants are faring with rent and
found one in five (18%) have fallen into arrears. Although this
is a new question for us and covers the whole of the UK, for
comparison the 2013-14 English Housing Survey11 found 15%
of renters not receiving Housing Benefit were in arrears. It is
predicted that migration to Universal Credit will significantly
alter this picture as early pilots found a staggering one in
four claimants (see endnote 3) were in rent arrears by the
time they received their first payment and this was before
they addressed the money management challenges of direct
payments.
Issues around the resulting health impacts caused by money
worries is an ongoing concern with a fifth (22%) suffering
physically, almost half (47%) struggling emotionally with
potential mental health implications, and a third (35%)
skipping meals while two fifths (42%) go cold by turning off
heating. We can also see that athough the impact of money
worries may have improved on the2014 figures, it has only
changed a little. We should not be complacent. These hardship
indicators remain unacceptably high. The pernicious effects
of financial difficulty are highlighted by how it unpicks social
support mechanisms, causing arguments among family or
friends for 23 per cent or forcing 53 per cent to miss out
on social occasions. These figures show little change from
previous research. All these factors conspire to undermine
individuals’ wellbeing, which in turn, erodes their ability to
cope with and address financial hardship by facing up to it,
seeking help or finding employment.
COPING AND SUPPORT
R
esilience is not only about how badly money worries are
crushing tenants. To understand it, we also need to look
at the steps people are prepared to take to cope. The
picture here, however, requires some thought. Eleven per cent
cut their broadband and we would see this as a short-sighted
step, given the financial advantages of being online. A quarter
(26%) used an online switching service to cut fuel bills, which
would be encouraging had this figure not been 33 per cent
in 2014, showing a significant downward trend. Indeed, it
could be argued that skipping meals and going cold is in fact
a measure of good housekeeping but this is way beyond the
threshold of how Quids in! would advise its readers to respond
to financial pressures. The other indicators on resilience are
on preparedness to seek help and we will return to the issue of
advice.
Landlords are already nervous about the security of revenues
from tenants on benefits. Our research provides useful
context and helps landlords, authorities and support agencies
NANCIAL
WORK STATUS AND FI
To target interventions efficiently, more detailed analysis is
required. As mentioned above, the Social Publishing Project
is exploring ways to segment the market and target those
at risk with more salient information. Other initiatives are
also emerging to help identify tenants who are at particular
risk, including the Rental Exchange scheme led by Experian
and RentSense by Mobysoft Housing Intelligence. We hope
these will enable support to be more effectively delivered,
rather than ‘weeding out’ higher risk tenants in the way some
landlords are testing prospective tenants’ financial capability
before offering them accommodation.
WELLBEING
W
e were particularly interested in the experience of
WANFTEs – ie, those who are working age but not
in full-time employment. They are the group most
likely to be affected by Universal Credit as it is rolled out.
They are most likely to be in the social segment the Money
Advice Service describes as ‘Struggling’ and most likely to be
considered by landlords as ‘high risk’. Intuitively, this group is
the least likely to be financially resilient in general, let alone
14
consider what is going on in their communities, especially for
vulnerable people. This can help engender a supportive culture
without undermining the necessary business approach to
managing risk. Indeed, acknowledging that tenants’ wellbeing
is good for organisations’ sustainability could prevent an ‘us
and them’ rift between landlord and tenant, for example, or
worse, a distinction between so-called good tenants and ‘bad’.
Quids in!
once confronted by UC, so we wanted to explore resilience
among this group in particular.
We are not, however, trying to raise yet further fears about
the risks posed by this vulnerable group and their ability to
manage their money. Many have had to institute incredibly
sophisticated, if informal, ways of micro-managing monies
in and out: for example not leaving payments to automated
READER SURVEY 2016
RESILIENCE
WORK STATUS AND FINANCIAL WELLBEING
We were
inthe
thefunds
experience
of
datesparticularly
(direct debit)interested
but ensuring
are available
WANFTEs
– committing
ie, those who
are
working
but What
not in fullbefore
them,
perhaps
evenage
in cash.
matters here is They
our understanding
of the
challenges
time employment.
are the group
most
likely to be
this
group
faces,
to
which
we
call
on
all
stakeholders
to
affected by Universal Credit as it is rolled out. They are
respond
when
reviewing
the
interventions
that
are
or
most likely to be in the social segment the Money Advice
could be made.
Service describes as ‘Struggling’ and most likely to be
considered
bywith
landlords
as ‘highthe
risk’.
Intuitively,
this
Starting
money worries,
comparative
chart
on the
groupright
is the
least
likely
to begroups
financially
resilient
in
shows
how
the three
describe
their money
general,
let alone
once confronted
by UC,
wehalf
wanted
worries.
Immediately
we can see that
moreso
than
those
not
in
full-time
work
(54%)
are
struggling
with
to explore resilience among this group in particular.bills,
Resilience/Hardship Indicators
(by work status)
0%
Faced serious financial
problems
compared to a third in full-time jobs (35%) and ‘just’ a
quarter
(25%) of older
people
– clearly
theyet
average
masks
We are
not, however,
trying
to raise
fears
further
these inequalities. One in five (20%) of WANFTEs also
about the risks posed by this vulnerable group and their
say they face serious hardship, worse (but only just) than
abilityfull-time
to manage
their money. Many have had to
employed people (17%) and older people (5%),
institute
if informal,
of
withincredibly
the averagesophisticated,
being 16 per cent.
All workingways
age people
micro-managing
and
out;
for example
not
are strugglingmonies
equally in
with
rent
arrears
(both 22%).
Yet all
health-related
andautomated
social indicators
showdebit)
WANFTE’s
leaving
payments to
datesalso
(direct
but
suffering
most.
ensuring the funds are available before committing them,
perhaps even in cash. What matters here is our
Picking out the issues that will affect Universal Credit
understanding
of the challenges this group faces, which
claimants we believe many will face the triple threat
we call
on
all
stakeholders
to respond to when reviewing
of finding appropriate banking facilities (to manage
the interventions
thatdifficulty
are or could
be made.
direct payments),
budgeting
(to keep essential
outgoings safe when receiving large monthly lump sums),
Starting
money
worries,
comparative
chart
andwith
problems
getting
onlinethe
(where
UC will be claimed
and
managed
online).
Claimants
will
also
have
to
manage a
shows how the three groups describe their money
seven-week
income
hiatus.
WANFTEs
told
us:
worries. Immediately we can see one in five (20%) of
WANFTEs say they face serious hardship, worse (but only
• 56% use a bank account, (36% a basic account)
just) than
full-time employed people (17%) and older
• 17% use a savings account
people
average being
16 per cent. All
• (5%),
27%with
save the
for unexpected
expenses
working
areOffice
struggling
equally with rent
• age
18%people
use a Post
account
arrears
Yet
than
halfatthose
not their
in full• (both
13% 22%).
say they
aremore
‘not very
good’
managing
money,
41%
say
they
‘struggle
a
bit’
time work (54%) are struggling with bills, compared to a
• full-time
35% sayjobs
they (35%)
have noand
access
to the
internet(25%) of
third in
‘just’
a quarter
• 65% say they cannot fill in forms online unaided
older people – clearly the average masks these
• 67% do not have home contents insurance
inequalities. All health-related and social indicators also
showItWANFTE’s
suffering
most. however. Many full-time
is not all about
the WANFTEs,
employed people (and older people) live in poverty and
20%
5%
2%
22%
22%
17%
15%
23%
44%
35%
26%
Turned off heating despite
being cold
37%
51%
44%
5%
17%
28%
21%
16%
Felt frightened, anxious or
depressed
Missed out on occasions with
17%
20%
16%
19%
23%
34%
30%
Skipped meals
Had arguments with family or
friends
READER SURVEY 2016
80%
54%
46%
Difficulty paying off debts
Became physically ill because
of my financial circumstances
60%
25%
35%
Fell behind on/struggled with
bills (not rent)
Rent arrears
40%
42%
58%
47%
4%
17%
30%
23%
21%
Picking
out the
issues
thatinto
willthe
affect
Universal
Credit
although
they
may fall
‘squeezed’
segment
as
friends/family
defined
by
MAS,
they
are
at
high
risk
of
falling
into
the
claimants, then, we believe most will face the triple
In terms
of this facilities
report, stakeholders
threat‘struggling’
of findingcategory.
appropriate
banking
(to
7%
should
be
considering
interventions
aimed
at
these
too.
manage direct payments), budgets (to keep essential
12%
Stopped paying for broadband
They could easily be claiming, or entitled to, welfare
12%
outgoings safe when receiving large monthly lump sums),
11%
benefits and might be affected by Universal Credit or
and being
UCand
will
betime
claimed
andare
managed
other online
reforms.(where
Low paid
part
workers
also
13%
online).
Claimants
willwhen
alsoithave
a seven-week
often
overlooked
comestotomanage
support programmes
Used comparison service to
33%
income
WANFTES
told us:
andhiatus.
can be difficult
to engage
due to their limited
29%
switch
26%
they are
no less (36%
deserving.
Prevention
 availability,
56% usebut
a bank
account,
a basic
account)
here
is
almost
certainly
more
cost-efficient
than
the
cure.
 17% use a savings account
Above working age
 27% save for unexpected expenses
 18% use a Post Office account
Working age, f/t employed
 13% say they are ‘not very good’ at managing
Working age, not f/t employed
their money, 41% say they ‘struggle a bit’
Across all (average)
 35% say they have no access to the internet
 65% say they cannot fill in forms online unaided
 67% do not have home contents insurance
18
Quids in!
5
58%
63%
53%
15
6
INTERVENTIONS:
QUIDS IN! AND WHO
TENANTS TURN TO
INTERVENTIONS: QUIDS
QUIDS IN!
IN! AND
AND WHO
WHO TENANTS
INTERVENTIONS:
TENANTS TURN
TURN TO
TO
Quids in!
33%
think more
carefully about
finances
Since reading Quids in! magazine:
Stats are wrong:
Stats are wrong:
33% think more carefully; 18% think twice;
33% think more carefully; 18% think twice;
14%
understood
more; 18% realised
they they
now think
twice
understood
realised
14%
understood
more;more
18% realised
they
needed help;
8% decided
to get help
about high
about
pensions/
needed help
needed
help;
8%
decided
to
get
help
interest loans
benefits
18%
14%
18%
8%
decided to
get help
Source: 2016 Quids in! Reader Survey (of social tenants)
S IN? (IMPACT)
UID
ARE
WE
FEELING
QUIDS
(IMPACT)
G QIN?
IN
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and
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almost
half
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were
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this
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consumers
have
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INTERVENTIONS
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READER SURVEY 2016
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SIGNPOSTING ADVICE
ADVICE
SIGNPOSTING
In
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18
Quids in!
READER SURVEY 2016
INTERVENTIONS
7
CONCLUSIONS
TENANTS AND THEIR
MONEY
I
t is not unique to social tenants that the majority struggle
to some degree with their money. They are, however, at the
epicentre of significant changes, notably around welfare
reform. Working age tenants’ ability to adapt or cope and the
consequent implications that could affect their wealth (and
then their health) is what we are interested in here, as well
as how well they are doing already. This research provides
evidence that social tenants require more support to be
resilient in the face of poverty, poor access to appropriate
finance services, and the challenge Universal Credit poses.
Key areas for stakeholders, such as landlords, authorities and
support agencies, on money issues:
• Levels of financial capability: 9% ‘not very good’, 37%
who struggle
• Access to appropriate banking facilities for budgeting
RESILIENCE:
•
•
•
NANTS, LANDLORDS
IMPLICATIONS FOR TE
L
andlords are only too aware that increased insecurity
for tenants means a higher level of risk to their
businesses. There is a symbiotic relationship that cannot
only be addressed long-term through tighter financial controls
and excluding ‘bad’ tenants, which may call into question the
purpose of social housing. By understanding the impact on
the community’s wellbeing, however, it becomes clear that
what is good for the tenant is good for the landlord. Residents’
health is in decline specifically on account of money worries
and there can be no bigger incentive for them to engage in
programmes designed to help them organise their finances
and stretch money further.
and managing UC / direct payments: 40% not using a
regular bank account and 5% turned away from banks due
to inadequate ID
Ongoing activity required to eradicate inappropriate
high interest borrowing with attention perhaps turning
to those who would turn to a high street credit store to
purchase white goods and furniture
Promotion of savings for unexpected issues, immediately
to address the seven-week transition to UC, but also
to weather general setbacks with a £1,000 buffer; also
promotion of home contents insurance and, longer term,
of pensions
IT skills and internet access must be improved to ensure
all tenants access benefits, advice and services, and the
financial and social benefits of being online
DERS
AND OTHER STAKEHOL
•
•
•
•
All stakeholders should:
Highlight ways to mitigate the health impact of poverty
through support of foodbanks (in emergency) and healthy
eating initiatives, promotion of energy saving schemes
and their financial benefits, and de-stigmatising mental
health support and encouraging social contact with
neighbours, families and friends
Target working age residents not in full-time employment
with support but also preventative action in the lead up
and migration to Universal Credit, promoting savings,
appropriate bank facilities and access to IT
Research and promote local best practice on access to
appropriate banking facilities
Raise the profile of independent debt and money advice
and encourage best practice among creditors
NTS TURN TO
IDS IN! AND WHO TENA
INTERVENTIONS: QU
W
hile it is not the only intervention in town, this
research is naturally interested in the impact
of Quids in! magazine. The research bears out
feedback received that we have unique reach and could
play an increasingly important role engaging social tenants,
highlighting issues they should be concerned about and
building a bridge to services. Those services have work to
do too, to target hard-to-engage groups, partly by ensuring
advice does better than solving the problem for just one in
five. We also need to link consumers to specialist advice,
beyond informal networks and GPs.
•
•
•
•
•
Quids in! will benchmark its impact indicators and improve
Quids in!
outcomes by 2018, especially around numbers realising
they need help, deciding to get help, and accessing it
We will find ways to add the perceived value of the
magazine and SPP activity in general, to engage
consumers better and to enter into more partnerships
with landlords, authorities and commissioners
With 47% seeking advice on benefit entitlement, all
stakeholders should make information more available
All stakeholders should improve signposting to specialist,
money management advice
Stakeholders should build two-way partnerships
with health bodies and GPs, sharing information and
signposting specialist services
READER SURVEY 2016
19
8
ACKNOWLEDGEMENTS
WITH THANKS TO…
T
hanks to Danny Friedman and his colleagues at Cobweb Consulting for leading on the research methodology and
analysis. Thanks also to our sponsors who not only made the research possible but contributed to its design. We
acknowledge the support of social landlords and local authorities who distributed the survey with or without Quids in!
magazine and of course readers who took time and trusted us with honest feedback about their finances. We hope (and intend)
the findings of this report continue to build our collective understanding about the help people on low incomes need to better
manage their money and increase their incomes.
M
ears is the leading social housing repairs and maintenance provider in the UK and a major presence in the homecare
and support market. We repair and maintain over 700,000 social homes and provide personal care to over 30,000
elderly and disabled people Our broader housing service incorporates building new homes, as well as housing
management and maintenance. Our customers are at the heart of everything we do and our culture centres on serving the
communities in which we work and in making a positive impact on the lives and welfare of the people living within them. We aim
to deliver a leading and trusted customer experience, shaped around customer feedback.
A
viva is the leading insurance and savings business in the UK and Ireland with 16 million customers in the UK. We
became an accredited Living wage employer in 2014 and currently chair the Living Wage Foundation. For over 20 years
Aviva has worked with social landlords and broker partners offering tenants both affordable and easily accessible home
contents insurance to provide valuable protection for their belongings. We now work with over 100 landlords (mainly councils
and housing associations) across the UK offering schemes tailored to the requirements of social tenants who may otherwise be
excluded from financial products.
ENDNOTES
1
2
3
4
5
6
7
8
9
10
11
20
Source: Save the Children: Why VAT must not go up (April 2010) [https://www.savethechildren.org.uk/sites/default/files/docs/Why_VAT_must_not_go_up_1.pdf]
Source: The Body Economic (Stuckler & Basu, 2013) [http://commons.esc.edu/newperspectives/wp-content/uploads/sites/1433/2015/08/The.Body_.Economic.Why_.Austerity.Kills_.pdf]
Source: (Universal Credit One Year On – NFA and ARCH Welfare Reform Survey, March 2016)
Source: Ministry of Justice statistics: https://www.gov.uk/government/collections/mortgage-and-landlord-possession-statistics
Source: The Gender Gap - Do Men and Women Handle Debt Differently? (Huffington Post, March 2016) [http://www.huffingtonpost.co.uk/maz-deo/the-gender-gap-do-men-and_b_9516822.html]
A Picture of Over-Indebtedness (Money Advice Service, March 2016) [https://www.moneyadviceservice.org.uk/en/corporate/a-picture-of-over-indebtedness]
Occasional Paper 17: Access to Financial Services in the UK, (FCA, 2016) [http://www.fca.org.uk/static/documents/occasional-papers/occasional-paper-17.pdf]
Martin Lewis, speaking at the launch of FCA Occasional Paper 17, Access to Financial Services in the UK
As in SPP’s previous surveys, no distinction is made between legal and illegal lenders as it is notoriously difficult to define, for example, a loan shark.
Press Release: £1,000 in savings would protect 500,000 households from problem debt (StepChange, 2015) [https://www.stepchange.org/Mediacentre/Pressreleases/Actionplanonproblemdebt.aspx]
English Housing Survey 2013-14, p88 (DCLG, 2014) [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/461449/Chapter_5_Social_renters.pdf]
Quids in!
READER SURVEY 2016