EEDA - East of England Development Agency

Improving access to financial advice across the region

19 September 2008

A new report, which will be the launchpad for improving access to financial advice and services across the region, is published today by EEDA.

‘Financial Inclusion in the East of England’ looks at money management skills and highlights the areas where people are least likely to have bank accounts, home insurance or access to advice.

Of the 4.6 million working age people in the region, 14 per cent live in the 500 neighbourhoods with the worst levels of financial exclusion, 28 per cent have no savings accounts and nearly 30 per cent are without home contents insurance. In some areas one in five people of working age do not have a current account.

EEDA joined forces with Citizens Advice, social landlords and Jobcentre Plus, to carry out the research. A joint action plan will be developed to improve service co-ordination and provision across the region, helping people to manage their money more efficiently.

John Wilkinson, head of economic participation at EEDA, said:

“This report is the first step towards increasing access to financial services and advice across the region, which will improve everyone’s ability to manage their money.

“In the current economic climate, there is a risk that over-indebtedness may cause real financial stress for many households, putting pressure in areas which have traditionally fuelled the region’s economy.”

The report highlights that people claiming benefits and tenants in rented accommodation are most likely to suffer from financial exclusion, with poor access to banking, advice or cheap loans.

Urban areas such as Norwich, Luton, Great Yarmouth, Thurrock, Peterborough and Basildon face higher levels of financial exclusion but some rural areas also miss out.

Householders in prosperous areas of the region, including Hertfordshire and Bedfordshire are the most likely to have sub-prime loans and mortgages.

He added:

“Money management skills are needed by everyone. By working together with our partners we can make sure that everyone gets the help they need.”

Andrew Seager, of Citizens Advice, said:
 
“When it comes to dealing with debt, the first thing you must do is to face up to the problem. It won’t go away. Your local CAB gives free, independent and confidential advice and can help you to work out repayments, negotiate with creditors and help you stay out of debt in future.”
 
For more information, including factsheets on dealing with debt go to: http://www.adviceguide.org.uk 
 
To view the report go to: http://www.eeda.org.uk/publications.asp.

The main findings of the Financial Inclusion in the East of England Report are:

Norfolk

Norwich has the highest number of financially excluded neighbourhoods in the region. Other financially excluded areas include parts of King’s Lynn, Thetford, Great Yarmouth and Wells-next-the-Sea, with pockets of exclusion also found in Holt and Swaffham.

Wells-next-the-Sea has only one free ATM machine, no credit union and limited availability of advice.

There are no credit unions in King’s Lynn or Swaffham.

Kings Lynn and Great Yarmouth have some of the highest levels of families claiming Working Tax Credit.

Suffolk

Parts of Ipswich and Lowestoft are among the most financially excluded areas in the region. Rural financial exclusions hotspots can be found in Haverhill, Saxmundham and Sudbury, where there is limited credit union provision.

There is no CAB outreach service for the rural areas around Bury St Edmunds, Newmarket and Sudbury, where there are high levels of financial exclusion. There is no outreach service for villages around Brandon and Mildenhall.

Households in Newmarket are some of the most likely to save for a particular purpose e.g. a holiday.

Hertfordshire

South Oxhey tops the table of financially excluded areas in the East of England — although the county has one of the lowest levels of exclusion.

An area east of Harpenden has the highest levels of unsecured loans. Batford and East Hyde are the most likely to suffer from high levels financial stress through debt.

Rural areas around Welwyn have high levels of financial exclusion but there is no CAB outreach service.

Households in St Albans are some of the most likely to save for a specific purpose e.g. a holiday.

Cambridgeshire

Parts of Peterborough are the most financially excluded areas in the county, with smaller pockets in Cambridge and Huntingdon.

There is limited credit union provision in Peterborough, Huntingdon and March.
Peterborough has one of the highest levels of families claiming Working Tax Credit.

Households in Cambridge are some of the most likely to save for a specific purpose e.g. a holiday.

Bedfordshire

The most financially excluded areas can be found in parts of Luton and Bedford, with pockets of rural deprivation found in areas such as Ampthill.

Luton has one of the highest levels of families claiming Working Tax Credit.

Salph End, near Bedford, has no access to a free ATM.

Essex

Parts of Basildon have the second highest levels of exclusion after Norwich. There are 12 areas identified in Southend-on-Sea but they have some of the lowest inclusion scores in the region.  Brentwood, Tilbury, Braintree and Harlow are also among the most financially excluded.

Tilbury, Braintree and Clacton-on-Sea have limited CAB and credit union services.

• Download the report, 'Financial inclusion in the East of England'
• Download full press release   (DOC 170KB)

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