11. Financial Inclusion Strategy 2025-30
North Ayrshire Council · 28 October 2025
Back to Cabinet — 28 October 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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NORTH AYRSHIRE COUNCIL 28 October 2025 Cabinet Title: Financial Inclusion Strategy 2025 - 2030 Purpose: To provide Cabinet with an update of the progress relating to the Financial Inclusion Strategy 2023-28 and to present an updated Strategy for 2025-30. Recommendation: It is proposed that Cabinet: 1. Notes the contents of this report, particularly the progress made relating to the Financial Inclusion Strategy 2023-28. 2. Endorse the updated Financial Inclusion Strategy 2025-2030. 1. Executive Summary 1.1 Following a review of Financial Inclusion services in 2022, Money Matters and the Welfare Reform Advice team came together to form a new Financial Inclusion service within the HSCP. A new temporary Senior Manager (Financial Inclusion) post was created to develop a Financial Inclusion Strategy for 2023-28 (approved by Cabinet in March 23) and to lead on integrating the teams. The Senior Manager worked with the Transformation Team and Project Board on systems development, review of practice and processes and improving delivery models and established a Financial Inclusion Partnership. A non-recurring budget to cover the costs of the temporary Senior Manager post, contracting out debt advice services for two years and other costs associated service developments was agreed by Cabinet in March 2023. 1.2 Over the last two years our ambitions have been achieved. In December 2024, a report was submitted to the Integration Joint Board detailing recommendations for implementation by 1 May 2025 which were approved and have now been implemented. These include the rebranding of the Financial Inclusion service as Money Smart, the move of Money Matters from a universal service to one targeting priority groups, a restructure of the team and the creation of an in-house debt advice service for non- council tenants. AdvicePro, is now in use across the Money Smart team and a new Performance Management and Quality Assurance Framework has been integrated with AdvicePro. The Advice Line delivery model has been reviewed and a new, more client- centred model introduced in May 2025.
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The Financial Inclusion Partnership was established in May 2023 and is much valued by the 21 member agencies for information sharing, learning and networking. 1.3 A Financial Inclusion Strategy for 2025-30 has now been produced and is attached with this report for the endorsement of Cabinet. 1.4 The Money Smart team continue to achieve significant financial gains for residents in North Ayrshire with a total of £27.2m of financial gains reported for 2024-25. 1.5 Tackling child poverty represents a key pillar in the Council’s priority of transitioning to a wellbeing economy in a way that improves the quality of life for local people. As the cost of living crisis continues and has a significant impact on our local communities – services are working hard to address these challenges. Financial Inclusion services and supports are a key part of a whole system approach focussed on wellbeing in North Ayrshire. Ensuring access to welfare rights services and advice is key to ensure our residents can access the social security benefits they are entitled to and are essential to tackling Poverty. Direct drivers of poverty fall into three main categories – income from employment, costs of living and income from social security. Financial Inclusion services have a role in addressing costs of living and income from social security. 2. Background 2.1 As part of the Council’s Transformation Programme and in response to the Cost-of- Living crisis, a review of Financial Inclusion services across the Council was progressed during 2022. The outcomes included recommendations that a temporary Senior Manager post be created and that Money Matters and the Welfare Reform Advice Team (formerly in Housing Services) should form a new Financial Inclusion team within the Health and Social Care Partnership. 2.2 In January 2023, the new Senior Manager took up post. An interim Financial Inclusion Strategy for 2023-28 was approved by Cabinet in March 2023, detailing key intentions for 2023-24, and the new Financial Inclusion team was formed on 1 April 2023. The Project had Chief Officer Sponsorship within the HSCP, recognising the importance of ensuring the development of financial inclusion services, this was progressed at pace 2.3 The Senior Manager led on integrating the teams and worked with the Transformation Team and Project Board to review and implement a new case management system (CMS), whilst reviewing and implementing new, more efficient, processes and delivery models and developing a Performance Management and Quality Assurance Framework to be integrated in the new CMS. The Financial Inclusion strategy was reviewed and updated following a public and stakeholder consultation process. 2.4 The new North Ayrshire Financial Inclusion Partnership was established in May 2023 and now has representation from 21 different services or agencies. A working group was established to develop and deliver a community and stakeholder consultation to inform a review and refresh of the Strategy. This was carried out in October/November 2023 and the findings incorporated into the Strategy for 2025-30. A Fuel Poverty sub-group was established in 2024 followed by a Communications sub- group at the start of 2025 to take a joint approach to promotion of services and the key
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issues impacting on our residents. The Partnership brought new opportunities to improve partnership working and referral pathways and a review conducted at the end of 2024 found that it is valued by members for information sharing, learning and networking. A Partnership Action Plan has been developed and is incorporated into the Strategic Ambitions for 2025-30. 2.5 In 2024, as part of the ‘Accessing our Council’ initiative, Welfare Rights and Money Advice was incorporated into the online Corporate Referral Pathway developed and implemented by the Transformation Team, with pathways effectively established. From 1st May 2025 Money Smart calls were routed through the main council number with both the Money Matters adviceline and Welfare Reform Team numbers being phased out. A single point of contact has been developed for Money Smart calls, emails and referral form. 2.6 Following a technical appraisal carried out by the Transformation Team, AdvicePro, a system designed by and for the advice sector and already in use by the Welfare Reform Advice Team, was expanded to include Money Matters and went live on 30 September 2024. 2.7 AdvicePro incorporates the new Performance Management and Quality Assurance framework which supports a standardised approach to data capture and reporting, a systematic approach to service development and to encourage a culture of continuous improvement. 2.8 A total of £753,000 was approved by Cabinet in March 2023 aligned to progressing the strategy and the commissioning of debt advice services. The detail of the funding sources is detailed below: Funding agreed Source £258,000 Cost of Living budget £380,000 Employability earmarked reserves (originally the Better Off demonstrator budget) £15,000 NAC ‘Islands Budget’ £100,000 Funding allocated as part of NAC budget 2023-24 (up to £100k) £753,000 TOTAL Actual expenditure to 30 June 2025 is £633k with any remaining cost commitments being within the £753k allocated by North Ayrshire Council with the remaining balance being held in Council earmarked reserves. 2.9 In December 2024, a report was submitted to the Integration Joint Board detailing recommendations for implementation by 1 May 2025 which were approved and have now been implemented. This includes: A re-branding and re-launch of the Financial Inclusion team under the new name of Money Smart The CHAP two-year contract to provide debt advice to non-council tenants came to an end on 30 June 2025
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Debt Advice for non-council tenants has been added to the debt advice service available to council tenants. This allows us to make debt advice available to non- council housing tenants who approach the service for Welfare Rights advice but also need help with debts The Money Matters delivery model has moved from a universal service to one targeting priority groups. This includes referrals from HSCP/NHS/NAC and third sector, and self-referrals from people who have disabilities or dependent children, are pregnant or carers, or are from minority ethnic groups. These groups represented around 82% of clients in 2024-25. A restructure of the Financial Inclusion team, including management. The restructure incorporated the removal of a number of posts through a VER process and staff movement 2.10 Despite the move from a universal to a targeted service, referral numbers have not reduced, however the introduction of AdvicePro, implementation of our new delivery model, and adjustments to the way that work is distributed have allowed us to continue to meet demand. While the workforce has been reduced, the new structure has been designed to streamline processes, eliminate duplication, and use digital technology to assist with routine tasks. Referrals to date to the service are detailed below: Money Smart Referrals 2025/26 Month Total HSCP HRA April 520 365 155 May 530 361 169 June 498 359 139 July 528 342 186 Money Smart have received only 11 ineligible self-referrals since May 2025, of these, individuals have either been referred on to other alternative providers and supports or have been provided with advice only. 3. Proposals 3.1 The development of a Financial Inclusion Strategy and Ambitions for 2025-2030 has been informed by community and stakeholder consultation as well as engagement with staff and key service leads including Child Poverty, Community Wealth Building and Housing services. 3.2 Economic Context – Recent data for 2023-24 confirms that relative child poverty in Scotland has fallen from 26% to 22%, this is partly attributed to Scottish Government policy interventions and contrasts with a wider upward trend across the rest of the UK. However, ongoing welfare reforms continue to pose a significant risk of income loss and the households most likely to experience high poverty rates often are those reliant on benefits. In 2022-23 North Ayrshire recorded the second highest rate of child poverty in Scotland with 29.2% of children living in poverty (after housing costs). Encouragingly, updated data has shown that levels of child poverty in North Ayrshire
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have fallen significantly. The analysis shows the child poverty level (after housing costs) in North Ayrshire has reduced to 24.3 per cent in 2023-24, with North Ayrshire experiencing the largest improvement of any local authority area in Scotland in that year, North Ayrshire is now one of 10 local authorities in Scotland with a lower Child Poverty rate in 2023-24 compared with 2014-15. Across Scotland, data for 2021-24 indicates that around 75% of children living in poverty were in families where at least one parent was working and with approximately one in seven working households in poverty – in work poverty is driven by factors such as low pay, insufficient hours, lack of affordable childcare and high living costs. Nationally in 2024, 11.4% of employee jobs in Scotland were paid below the Living Wage. Whilst data specifically for North Ayrshire post-2022 is less readily available, we have been able to evidence a reduction in workers earning below living wage in the region between 2018-2022. Whilst a protective factor and a key driver of poverty, employment alone does not necessarily guarantee a pathway out of poverty for many families. Poverty continues to be a significant challenge across Scotland and particularly in North Ayrshire. 3.3 Tackling Poverty – the role of Financial Inclusion services - Unclaimed benefits across Britain were estimated to be around £23 billion in 2024, this excludes unclaimed disability benefits and discretionary support which have not yet been assessed (Poverty in Practice 2024). Benefits go unclaimed for many reasons including a lack of awareness, an assumption of ineligibility, the complexity of the welfare rights system, digital exclusion and stigma. Welfare Rights advice services break down those barriers. Debt repayments are not deducted from income for the purposes of determining whether a household is in income poverty. They do however reduce the level of household disposable income and increase the risk of material deprivation. Debt Advice services offer options for managing debt more effectively and in some cases, debt can be reduced or written off. 3.4 Demand for services - The Money Smart welfare rights and debt advice service dedicated to council tenants (formerly known as the Welfare Reform Advice Team) is funded through the Housing Revenue Account through a Service Level Agreement for 2025-30 with Housing Services. This service saw a significant increase in demand between 2023-24 and 2024-25, continuing the pattern of year on year increases for the last five years, this included: • A 28% increase in referrals to the Welfare Rights and Debt Advice service. 1,889 referrals were received (self-referrals from tenants doubled) and 72% of these resulted in cases being allocated. Complex (multiple) debt cases also increased. • Referrals to the Financial Inclusion Officers (FIOs) through the DWP Landlord’s Portal (managed by the service) for support with Universal Credit (UC) claims increased from 2,140 to 2,334. FIOs also receive referrals from Housing Services for ‘pre-tenancy checks’ for new tenants. Officers can explain changes to benefits arising from taking on a tenancy, provide support with Universal Credit claims, provide advice on managing household budgets and help tenants access grants/furnishings for their new home. Those referrals halved in number during 2024-25 due largely to the increase in vacated council properties being allocated to those who are homeless and who receive this support from the Housing
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support team. However, this was a temporary measure and referrals to the FIOs are anticipated to increase again during 2025-26. • Financial Gains of £5.7m were secured in 2024-25 for council tenants, an increase of 50% on 2023-24 • The Money Smart welfare rights service (formerly known as Money Matters and which was open to all North Ayrshire residents in 2024-25) has maintained a high level of referrals for the last five years with a total of 5,433 referrals across the year. 44% were from HSCP/NHS and 45% were self-referrals (or from a family member/friend). Around 70% engaged with the service and received advice and support. • 811 of the referrals from HSCP were for financial assessments – 653 for non- residential charging and 158 for kinship carers. Full breakdown of HSCP referrals opposite. £21.5m in Financial Gains were achieved for 2024-25. 3.6 Funded projects: • GP practices – Through this Scottish Government initiative launched in 2022, funding has been granted to support the development and embedding of welfare rights advisers in nine priority mainland GP practices, which was extended in 2023 to include the island practices on Arran and Cumbrae. The delivery model has proven effective and efficient with high levels of engagement. Over £3m in financial gains was achieved last year (this is included in the £21.5m above) for the 536
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patients referred by Practice staff (additional to the 5,433 referrals from other sources). • Schools – Through funding from Education services which started in October 2021, a named Adviser with a direct referral pathway was dedicated to engaging parents through secondary schools and through increased funding, last year three named advisers now incorporate primary schools and early years centres. Last year a total of 259 parents with school age children benefitted from this investment, through direct referrals from parents or schools or from HSCP social work teams who referred direct to the project. £560,509 in financial gains was achieved for those parents, an increase of 46% on 2023-24. (included in the £21.5m above) • Foodbanks and Larders - Since April 2021, the Trussell Trust has been funding advisers to support those who access foodbanks and larders. Initially this was one adviser, but funding was expanded to add a second, and they now provide services in 14 foodbanks and larders across North Ayrshire. 128 foodbank/larder users received welfare rights advice through this project in 2024-25 and an additional 76 referrals were received direct from the foodbanks. 3.7 Feedback from a recent Money Smart beneficiary: “Thank you to everyone who supported me. They went over and above to be extremely helpful, compassionate and understanding. I feel like [my case worker] has literally saved my life and given me hope. She explained everything in such a calm and reassuring way and has calmed me down so much. The process of dealing with DWP has been very stressful and frightening as I have worked most of my life. She has given me a reason to live and that I am not hopeless by treating me so kindly like a normal person. The huge problems that seemed impossible to face as I kept asking for help and getting nowhere until [the team] changed my life for the better are now being looked at. [My case worker] kept in contact and consistently been available and kindly given her time and advice and also a lot of other helpful information. Thanks to her I have been focussing on health, eating and sleeping properly and hopefully will be able to get a job in the future. Thank you. I cannot thank you and your staff enough”. 3.8 Financial Inclusion Strategy 2025-2030: Our Financial Inclusion Strategy sets out our Shared Vision and Mission that we have a “financially healthy North Ayrshire where people have the knowledge, skills, resources and confidence to manage their money effectively and live fulfilling and healthy lives” and we “ Provide accessible, professional advice services that work together and in partnership with related services, to ensure that all the needs of our customers are met.” The following summary of our strategic priorities will build on the strategic ambitions for 2023-25, including service developments and the work of the Financial Inclusion Partnership over the last two years. Early and Effective Support:
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• Advisers within GP practices will be mainstreamed in the lead up to the external funding ending. • We will build on established referral pathways through named workers within primary and secondary schools and early learning centres. • We will take referrals from Housing for tenants in, or at risk of being in rent arrears • We will continue co-location within key HSCP services • We will continue the Advice Line delivery model established in May 25, through which ‘duty’ advisers answer calls at the point of contact. • We will continue to challenge stigma and fear as barriers to engagement and raise awareness of all available advice and wider financial inclusion services across North Ayrshire through the continuation of our Financial Inclusion Partnership Wellbeing – Enabling Communities: • We will empower service users by pro-actively measuring customer satisfaction and seeking customer feedback. This will help us to identify potential service improvements and inform the content of campaigns and decision making • We will build financial resilience through the provision of welfare rights and debt advice services • We will support new tenants to maximise their income and sustain their tenancies • We will continue to build on the holistic approach to identifying and actioning wider and underlying issues to improve health and wellbeing Tackling Inequalities through Community Wealth Building • We will reach out to marginalised individuals within our communities to improve accessibility and support engagement, in particular those in our island communities, minority ethnic groups and gypsy/traveller communities. • We will gather evidence of the number of clients who, as a result of the advice and support received, are more confident managing their household budget and feel better prepared for unplanned and planned expenditures. Develop and Support our Workforce • Through the Performance Management and Quality Assurance framework we will encourage and support a culture of continuous improvement and enable the production of public performance reports which evidence the totality of our work and outcomes achieved for our customers. • We will Achieve accreditation to the Scottish National Standards for Information and Advice Providers to evidence to funders and to the public, of the high-quality services delivered by our team • We will seek opportunities to use technology where appropriate, to deliver more efficient and effective services and to maximise the use of resources Through the Financial Inclusion Partnership, we will continue to share information, knowledge and learning to enhance all services. A more detailed Action Plan in line with these priorities is being developed to ensure we can report on progress on an annual basis. 3.9 Anticipated Outcomes:
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Through our strategic ambitions, Money Smart will contribute to the North Ayrshire council ‘No Wrong Door’ approach to improving access to services and ultimately to the aim of a sustained decrease in the number of people, and children in our communities living in poverty. 3.10 Measuring Impact: Through our Performance Management and Quality Assurance Framework we will produce public performance reports which evidence the totality of our work and the outcomes achieved for people in our communities Through pro-actively measuring customer satisfaction we will evidence the value of our work from the customer perspective. Through our new ‘exit forms’ sent through AdvicePro when cases are closed, we will gather evidence of the extent to which the advice and support received by our teams has resulted in clients being more confident in managing their household budgets and feel better prepared for unplanned and planned expenditures. This will provide an indication of sustainable positive outcomes and impacts on child poverty. 4. Implications/Socio-economic Duty Financial 4.1 No direct financial impact for services, the report updates that the savings and changes to the Money Smart team previously approved by the IJB have been delivered in full. The report also highlights that in 2024-25 financial gains of £27.2m have been achieved for North Ayrshire residents by the Money Smart team. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 ‘Financial inclusion’ refers to the ability of individuals to access appropriate financial services or products to manage their money effectively, sustain their homes, build savings for unplanned expenditures, be financially resilient, and more confident in making informed life choices. Financial exclusion is closely linked with poverty and social exclusion and is a significant contributor to child poverty. Poor financial wellbeing impacts on all aspects of life and can leave lasting damage on future life chances. Financial inclusion services enable and empower people to access the information, advice and support they need to maximise and effectively manage their disposable income, to be less likely to fall behind with bills, more able to deal with unexpected expenses, have improved mental and physical health and to become more active in
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their communities. Ultimately, they enable people to have the knowledge, skills and confidence to feel more secure and in control of their personal finances, both day to day and when future planning. Our Financial Inclusion strategy sets out how in North Ayrshire we continue to seek to improve our approach in partnership with wider partners through the Financial Inclusion Partnership to better support and meet these needs for our residents. Climate Change and Carbon 4.5 None. Key Priorities 4.6 This report and the accompanying Financial Inclusion Strategy covers matters which contribute to the key priorities contained within the Council and IJB strategic plans. Community Wealth Building 4.7 The Financial Inclusion team supports the wellbeing economy by taking a people centred approach to service delivery and developments to ensure that the service is inclusive and people centred. This includes the addition of the internal debt advice resource to provide a seamless pathway to debt advice for people who seek welfare rights but also require help with debts. The new delivery model and single point of access for Money Smart will ensure that the service is inclusive, particularly for the most vulnerable people in North Ayrshire communities. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 The Financial Inclusion Partnership developed and delivered a Community Consultation late in 2023 to hear from our residents what they want from advice and wider financial inclusion services and to help inform the development of this strategy. A total of 177 responses were received from North Ayrshire residents, 57 of whom had accessed at least one advice service (44 had been to Money Matters, 7 to WRAT and 7 to CHAP) Services were highly rated for accessibility, response times and communications. 80% said they got more help than expected.
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15 stakeholder agencies/services were also consulted, and the responses reinforced the positive views of advice services expressed by most of those who responded to the community consultation. There were high levels of trust in the quality of services and effective and efficient referral pathways and response times were valued. “You Said: We will”: Where both debt and welfare rights advice was needed, accessing both through one service is preferred A Welfare Rights and Debt Adviser for non-council tenants has been added to the service to ensure that all those who access our services can receive both welfare rights and debt advice without the need to refer to an external provider. Engaging with the same person is preferred when receiving advice and support The ‘named worker’ model has been expanded over the last two years. Some respondents said they did not know where to go for the help they needed or did not think there are services for homeowners. Stakeholders said that more effective promotion is needed as people they refer often do not know such services exist. A Communications sub-group of the Financial Inclusion Partnership has now been formed to take a cross-sector approach to promoting services more effectively. The launch of Money Smart, with single points of contact for all services will improve both accessibility and awareness. Poor physical or mental health is a barrier to accessing services We will more effectively promote the range of options for accessing services We need welfare rights advice on Arran. We have developed more services for island communities and will continue to seek options to improve accessibility You want more help with form-filling for claiming benefits This has been reviewed and more support with form- filling is now provided internally. Links with gypsy/traveller communities need to be improved We are now promoting our services through the Tenancy Chat for Gypsy Travellers and seeking options to improve engagement with those living in encampments. Stigma and fear of your situation getting worse are barriers to engagement This will be addressed through a Communications Plan for 2025-26 Caroline Cameron Executive Director For further information please contact Annie Johnson, Principal Manager, Business Support Services, on 07887 647961. Background Papers 0
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1 OFFICIAL INFORMATION OFFICIAL INFORMATION North Ayrshire Financial Inclusion Strategy 2025-30
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2 OFFICIAL INFORMATION OFFICIAL INFORMATION Contents 1. Introduction ............................................................................................. 3 2. Alignment with HSCP Strategic Ambitions .............................................. 4 2.1 Enable Communities ................................................................... 4 2.2 Develop and support our Workforce ............................................ 4 2.3 Provide Early and Effective support ............................................. 4 2.4 Improve Health and Wellbeing ..................................................... 4 2.5 Tackle inequalities ....................................................................... 4 3. Our Interim Plan 2023-25 ........................................................................ 5 4. Economic context .................................................................................... 7 5. Tackling Poverty – The Role of Financial Inclusion ................................. 8 5.1 Income from Social Security - the ‘take-up’ of social security entitlements ....................................................................................... 9 5.2 Costs of living – Fuel Poverty .................................................... 10 5.3 Costs of Living - Unmanageable debt ........................................ 11 5.4 Costs of Living - Access to affordable credit and savings .......... 11 5.5 The Poverty Premium in North Ayrshire ..................................... 11 6. Advice Services in North Ayrshire ......................................................... 12 6.1 HSCP Financial Inclusion .......................................................... 12 6.1.1 The Welfare Reform Advice Team ................................. 12 6.1.3 Money Smart ................................................................. 16 6.2 CHAP ...................................................................................... 17 6.3 1st Alliance Community Bank – Progressive Finance ................ 17 6.4 Lemon Aid ................................................................................. 18 7. Developing the Plan for 2025-30............................................... 19 8. Vision, Mission and Core Values .............................................. 20 9. Money Smart Priorities and Ambitions to 2030 ......................... 22 Contact Information for Advice and Financial Inclusion Services ..... 25 Links ................................................................................................ 26 References ...................................................................................... 26
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3 OFFICIAL INFORMATION OFFICIAL INFORMATION 1. Introduction ‘Financial inclusion’ refers to the ability of individuals to access appropriate financial services or products to manage their money effectively, sustain their homes, build savings for unplanned expenditures, be financially resilient, and more confident in making informed life choices. Financial exclusion is closely linked with poverty and social exclusion and is a significant contributor to child poverty. Poor financial wellbeing impacts on all aspects of life and can leave lasting damage on future life chances. Low-income households are most at risk from the cost-of-living crisis, and people with disabilities, lone-parent households, carers and people from minority ethnic backgrounds are the most financially vulnerable. They are less likely to have savings that would cover their outgoings for more than a month should they lose their job and are most likely to have unmanageable debt. There is also a gendered dimension to the cost-of-living crisis. Women are more likely to live in lone-parent households (92%), as well as in households with an unpaid carer and larger households and can be more exposed to cost of living pressures. Financial inclusion services enable and empower people to access the information, advice and support they need to maximise and effectively manage their disposable income, to be less likely to fall behind with bills, more able to deal with unexpected expenses, have improved mental and physical health and to become more active in their communities. Ultimately, they enable people to have the knowledge, skills and confidence to feel more secure and in control of their personal finances, both day to day and when future planning. A financially healthy North Ayrshire is not only beneficial for individuals, but also for their families, communities, businesses and the economy. North Ayrshire Council and the Health and Social Care Partnership take pride in a co-production approach to strategic planning, through having meaningful conversations with people in our communities. Engagement with the public, service users, staff and key stakeholders was progressed in the second half of 2023, responses from which have informed the development of this Plan. The Financial Inclusion Strategy is closely aligned with North Ayrshire Council’s strategic aim to “Transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people” A wellbeing economy is one that delivers fair distribution of wealth and opportunities within a healthy environment. The vision of North Ayrshire Council is for a North Ayrshire that is ‘Fair for All’ with a Mission of “Working Together to improve the lives of our people in North Ayrshire”
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4 OFFICIAL INFORMATION OFFICIAL INFORMATION 2. Alignment with HSCP Strategic Ambitions The NAHSCP Vision is “People who live in North Ayrshire are able to have a safe, healthy and active life” Overview of Financial Inclusion alignment to HSCP strategic ambitions: 2.1 Enable Communities Financial Inclusion services build knowledge and confidence to enable people in our communities to navigate the welfare rights system and manage household budgets effectively forming the foundations for sustainable outcomes that will reduce the likelihood of clients facing financial crises in the future. 2.2 Develop and support our Workforce Financial Inclusion services continue to face significant challenges in responding to ever- increasing demand, the changing demographic of people seeking advice and support, particularly for debt advice, and the increasing complexity of the welfare rights system with ongoing welfare reforms. We recognise the strain that this puts on our staff but ensure that time is set aside for regular training and learning activities that are essential to maintain a high level of expertise, that effective and regular support and supervision is routinely carried out and that wellbeing supports are widely promoted and taken up when appropriate. We recognise that many North Ayrshire residents are members of our own workforce and that they can also require advice and support from our services. 2.3 Provide Early and Effective support Financial inclusion services will continue to work with the most vulnerable people in our communities, providing early interventions to reduce likelihood of a financial crisis situation developing. We aim to ensure that those most at risk of financial crisis, or living in poverty have ease - and equity - of access to advice and related services so they can receive the right support at the right time, in the best way for them. 2.4 Improve Health and Wellbeing We recognise that in this ongoing cost-of- living crisis, many people are experiencing worry, anxiety, or depression relating to their financial situation. The main focus of financial Inclusion services is to maximise income and help with managing debt, but it is also well- evidenced that by removing money worries, physical health and mental wellbeing improve The free advice sector has an important role to play in ensuring vulnerable people have access to advisers with the expertise and skills to effectively support and advise on welfare rights and debt, whilst having established referral pathways to health and wellbeing services 2.5 Tackle inequalities The ongoing cost-of-living crisis has further highlighted the negative impact of deprivation and poverty on our communities, and we will continue to work collaboratively with other service providers to deliver shared solutions. We recognise those most vulnerable to the
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5 OFFICIAL INFORMATION OFFICIAL INFORMATION increasing costs-of-living are people living on low incomes, in particular lone-parent households, people with disabilities and those from minority ethic groups. We will build on our holistic approach to providing advice including co-location with other services to proactively support those who are hardest to reach in our communities. 3. Our Interim Plan 2023-25 Out interim Strategy was published in April 2023 and a summary of achievements against our priorities is set out below. Review, develop and improve North Ayrshire Advice Services to ensure they are responsive to the needs of all local residents, and particularly those most vulnerable: • In April 2023, Money Matters and the Welfare Reform Advice Team, previously part of Housing Services, came together to form the new Financial Inclusion Service within the North Ayrshire Health and Social Care Partnership • Processes, procedures and systems have been standardised and streamlined to improve efficiency and to ensure the most effective use of resources. • A new Performance Management and Quality Assurance Framework has been integrated with our case management system to ensure a systematic approach to service development and improvement, service user participation and to encourage a culture of continuous improvement • From 1 May 2025, Money Matters services moved from a universal service to a service targeting those most vulnerable, and most likely to be living in, or at risk of poverty. People referred by HSCP, NHS or other services, along with people who have disabilities or dependent children, are carers, pregnant or from black or minority ethnic groups, will continue to have access to our services (circa 82% of clients in 2024-25). Provision of universal debt advice services A new universal debt advice services was contracted through CHAP and commenced on 1 July 2023. This contract will end on 30 June 2025. However, a debt advice service will be added to the team, to ensure debt advice is available in-house for non-council tenants who seek welfare rights advice but also need help with debts. Improved referral pathways The review of Financial Inclusion services was a key workstream within the North Ayrshire Council Transformation Programme to improve access to services. Referral pathways to welfare rights and debt advice services have been incorporated into the new online corporate referral pathway, and calls are now routed through the main Council contact centre telephone line. On 1 May 2025, the financial inclusion service was rebranded and relaunched as Money Smart, with a single Money Smart email address for referrals to both Money Matters and the Welfare Reform Advice team.
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6 OFFICIAL INFORMATION OFFICIAL INFORMATION Establish a North Ayrshire Financial Inclusion Partnership The Partnership was established in May 2023 and currently has representation from 21 different services or agencies. Fuel Poverty and Communications sub-groups have now been established to support a joint approach to promotion of services across North Ayrshire. The Partnership has brought new opportunities to improve partnership working, referral pathways and joint working as detailed later in this strategy. A review conducted in 2024 found that members valued the Partnership for information sharing, learning and networking. A Partnership action plan has been developed and has been incorporated into the Strategic Ambitions for 2025-30 in Section 10
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7 OFFICIAL INFORMATION OFFICIAL INFORMATION 4. Economic context Poverty continues to be a significant challenge across Scotland, with over a million people experiencing its effects. Households most likely to experience high poverty rates are often those reliant on benefits, which constitute a larger proportion of their income. Scottish Government data from 2021-24 also shows that child poverty is highest in families with three or more children, in minority ethnic households, lone parent families, households with a child under one year or where there is a disabled family member. In the wider population, the Joseph Rowntree Foundation reported in 2024 that 26% of informal carers and 34% of people in families where someone is in receipt of carers’ allowance are also living in poverty in Scotland. Across the UK, in 2022-23, 30% of people with disabilities were living in poverty. However recent data for 2023-24 has confirmed that child poverty in Scotland is falling, with the relative child poverty rate (before housing costs) decreasing from 26% to 22%. This positive trend is largely attributed to Scottish Government policy interventions, particularly the Scottish Child Payment, and contrasts with a wider upward trend in child poverty across the rest of the UK. However, wider UK government welfare reforms, as highlighted by organisations like the Resolution Foundation and CPAG, and the cost of living, continue to pose a significant risk of income loss for households. North Ayrshire faces distinct economic challenges and has a higher proportion of its population experiencing deprivation compared to the Scottish average. The Scottish Index of Multiple Deprivation (SIMD) 2020 identified North Ayrshire as having the third highest proportion of data zones within the 20% most deprived areas in Scotland, with 40.9% of its data zones falling into this category (up from 33 in 2004). Of the 186 SIMD data-zones in North Ayrshire, 52 (28%) are in the 15% most deprived areas in Scotland. A notable shift within the area is that the Irvine locality now has the highest proportion of data zones in the 15% most deprived in Scotland, having overtaken the Three Towns locality (Ardrossan, Stevenston, and Saltcoats), which previously held this position until 2012. As a result of the Covid-19 epidemic, the 2024 SIMD update has been delayed until 2026. The strategy will be updated to reflect any significant changes in the data thereafter. Child Poverty in North Ayrshire In 2022/23, North Ayrshire recorded the second highest rate of child poverty in Scotland, with 29.2% of children living in poverty (after housing costs). This means that over 7,000 children and young people in our area may be struggling to access everyday essentials such as food, clothing, and transport. This figure compared at the time to a national average of 23% in Scotland, highlighting the persistent local challenge and its direct implications for child health and wellbeing. Note: most recent after housing costs data is expected from Loughborough University in June, 2025 Across Scotland, the latest data for 2021-24 indicates that approximately three-quarters (75%) of children living in poverty were in families where at least one adult was working. Nationally in 2024, 11.4% of employee jobs in Scotland were paid below the Living Wage. Whilst data specifically for North Ayrshire post-2022 is less readily available, we have been able to evidence a decline in workers earning below living wage in the region between 2018-2022. This information demonstrates to us that employment does not necessarily guarantee a pathway out of poverty for many families.
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8 OFFICIAL INFORMATION OFFICIAL INFORMATION Our People’s Panel Survey indicated a concerning trend in 2018: that the percentage of adults in North Ayrshire managing well financially was reducing, and the number of adults with no savings was increasing, in slight contrast to Scotland as a whole. More recent local survey insights from 2022/23 highlighted that 26% of North Ayrshire respondents rarely or never have money left to save, and 18% have unsecured debt exceeding one month's income. Furthermore, 6% reported not managing very well or experiencing financial difficulties. 5. Tackling Poverty – The Role of Financial Inclusion The need for specialist financial inclusion support services has never been greater. Universal Credit is complex, and UC claims can impact on other benefits. The ongoing migration to UC from DWP legacy benefits and the additional, or devolved benefits now provided by Social Security Scotland make it challenging for many people to navigate the welfare rights system without the support of a specialist welfare rights adviser. The requirement to apply and maintain UC claims online is an additional barrier for many. DWP research suggests that 45% of benefit claimants lack the digital skills to make and maintain their claims. Money Advice Scotland reported in March 2024 that there has been a ‘surge’ in unsecured personal debt, with an increase in energy debt and council tax debt. Bankruptcies are up by 3%. Stepchange reported in April 2023, that levels of debt on household bills increased in Scotland by 68% between 2021 and 2022 and sat at an average of £2,929. The Money and Pensions Service reported that 700,000 people in Scotland are at risk of, or in problem debt, only 54% save regularly and 15% borrow to pay for food or bills. Money and Pensions Service research reported in November 2023 that there has been a deepening vulnerability and complexity, more intensive cases, and ‘never been in debt before’ middle income homeowners accessing debt advice services.
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9 OFFICIAL INFORMATION OFFICIAL INFORMATION Direct drivers of poverty (Scottish Government) The direct drivers of poverty fall into three main categories – income from employment, costs of living and income from social security. Financial Inclusion services have a role in addressing costs of living and income from social security. 5.1 Income from Social Security - the ‘take-up’ of social security entitlements Unclaimed benefits across Britain were estimated to be around £23 billion in 2024, excluding unclaimed disability benefits and discretionary support which have not yet been assessed. It is estimated that the total unclaimed support is likely to be over £30bn when those elements are included (Poverty in Practice 2024).
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10 OFFICIAL INFORMATION OFFICIAL INFORMATION The reasons for benefits going unclaimed include lack of awareness of the existence of some benefits, or assumptions that they would not be eligible, the complexity of the system, digital exclusion and stigma. Welfare rights advice services break down those barriers. They enable people to better understand and claim their entitlements to maximise their income. Increasing benefits take-up and ensuring citizens are in receipt of their legal entitlements has a positive impact for North Ayrshire residents and also for the local economy. 5.2 Costs of living – Fuel Poverty The Scottish Government reported in 2023 that that an estimated 31% of Scottish households were living in fuel poverty (spending more than 10% of their income, after housing costs, on energy) and around 19% were in extreme fuel poverty (more than 20%). People are more likely to be in, or to fall into fuel poverty if they have an ongoing heath condition which requires higher than average fuel consumption, have a low income, live in the social rental sector, in a home off the gas grid, in a rural area, or where electricity is their primary heating fuel. There are significant differences across the six North Ayrshire localities with the North Coast/Cumbrae and Arran generally having less people living in poverty, claiming benefits and lower health inequalities. The one exception is fuel poverty where the average for mainland localities is 27% but 41% on the island of Arran, where import costs and lack of access to the grid mean fuel is more expensive for Arran residents. Lemon Aid are a specialist social enterprise and member of the North Ayrshire Financial Inclusion Partnership with established referral pathways from advice services for help with energy costs, problems with meters, arrears on energy bills and
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11 OFFICIAL INFORMATION OFFICIAL INFORMATION disputes with suppliers. 5.3 Costs of Living - Unmanageable debt Debt repayments are not deducted from income for the purposes of determining whether a household is in income poverty. They do, however, reduce the amount of disposable income that households have to spend on goods and services, and therefore increase their risk of material deprivation, ie unable to afford goods and activities that are the norm in today’s society. Debt advice services offered by Money Smart and CHAP options for managing debt more effectively and support to put in place debt solutions. In some cases, depending on the circumstances, debt can be reduced or written off. 5.4 Costs of Living - Access to affordable credit and savings As a result of low income, income only from benefits, or poor credit rating many people are unable to borrow money from the same sources as other members of the population. Many, as a result, turn to high-cost alternatives such as doorstep or payday lenders. Credit can therefore be the most expensive for those who can least afford it. Access to affordable credit and savings can protect against problem debt and material deprivation as they safeguard against unplanned costs and changes in income. Credit Unions/Community Banks are key providers of financial inclusion services. The 1st Alliance Community Bank, based in Kilwinning, is another key member of the North Ayrshire Financial Inclusion Partnership. 5.5 The Poverty Premium in North Ayrshire The poverty premium is the extra cost people on low incomes and in poverty pay for essential products and services: • Payments – Some payment methods create a poverty If they do not have a bank account they have no access to direct debts, often a cheaper way to pay bills. Paying things like insurance monthly rather than all in one go annually can cost more. • Energy – Paying bills as they arise costs an extra £106 (Jan-Mar 2024) compared to using direct debit. • Credit – people in poverty pay more to borrow money because they are more likely to have a low credit score and be ore of a risk to lend to. • Insurances provide protection from financial loss and give peace of mind. Low- income households often cannot afford insurance but when they do, often face additional costs. Car insurance for those in less affluent areas can cost £314 pa more than in more affluent areas.
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12 OFFICIAL INFORMATION OFFICIAL INFORMATION The total cost of the poverty premium in North Ayrshire is £4,888,380 with 23.3% of households experiencing any premium. The average cost to N Ayrshire households is £468. (Fair by Design 2024) 6. Advice Services in North Ayrshire In comparison with many other local authorities, North Ayrshire has relatively few local providers of advice and wider financial inclusion services, but they are well-established and much valued in our communities. The North Ayrshire Financial Inclusion Partnership, established in May 2023, with representation from both advice services and key stakeholders, work together to share best practice and learning and to improve awareness of services and understanding of the needs of vulnerable people in our communities. 6.1 HSCP Financial Inclusion In April 2023, Money Matters and the Welfare Reform Advice team (formerly in Housing services) came together to form a new Financial Inclusion service within the North Ayrshire Health and Social Care Partnership. 6.1.1 The Welfare Reform Advice Team, Funded through the Housing Revenue account, provides services for council tenants through a close working partnership with North Ayrshire Council Housing services. They are based within Saltcoats Housing Office. The team includes Welfare Rights and Debt Advisers and Financial Inclusion Officers. In 2024-25 the team received a total of 4740 referrals.1899 referrals were for Welfare Rights and Debt Advice (WRDA), an increase of 28% on 2023-24 with self-referrals being double the previous year. 72% of those referrals resulted in welfare rights and/or debt cases being allocated. Of the remaining 28%, most received initial advice and/or information. £422,522 £755,811 £1,658,213 £974,153 £455,956 £561,598 Prepayment meter premium Non-standard billing premium Non-switching premium Area-based insurance premium Single item insurance premiums
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13 OFFICIAL INFORMATION OFFICIAL INFORMATION ‘Internal’ referrals to the Welfare Rights and Debt Advisers were from Money Matters (mostly for debt advice) or from the Financial Inclusion Officers for the more complex welfare rights cases. 2334 referrals were to the Financial Inclusion Officers (FIOs), through the DWP’s Landlords portal, for support with UC claims or from Housing services for pre- tenancy checks, through which FIOs explain changes to benefits arising from taking on a tenancy, provide support with UC claims, managing household budgets and to access grants/ furnishings for their new home. The number of pre-tenancy checks has halved in number from 2023-24, due largely to the increase in vacated council properties being allocated to those who are homeless, who receive this support from Housing’s tenancy support team. The Welfare Reform Advice Team secured a total of £5.7m in financial gains for tenants through income maximisation (£5.6m) and debt reduction (£96k). An increase of 50% on 23-24. 98.5% rated services as ‘very satisfied’ in 2024-25. Feedback from one Welfare Reform Advice team client below: “I found [my case worker[ was very helpful. She explained things in a way could understand and she helped by relieving my anxiety and worries over my problems. She was very empathetic and understanding, an absolute asset to your Team” 6.1.2 Money Matters core funding is from the Health and Social Care Partnership and until 30 April 2025, they provided a universal welfare rights advice for all North Ayrshire residents. They have been embedded within the Health and Social Care Partnership services for a number of years, including named workers who co-locate within Community Justice, Children & Families, and Addictions services. 815 524 448 112 697 247 380 165 0 200 400 600 800 1000 Housing services Self referrals Internal Other Referrals for Welfare Rights and Debt Advice 24-25 23-24 2334 507 2140 1090 0 500 1000 1500 2000 2500 DWP Portal - UC support Housing Services - Pre-tenancy checks Referrals to Financial Inclusion 2024-25 2023-24
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14 OFFICIAL INFORMATION OFFICIAL INFORMATION In 2024-25, Money Matters received 5433 referrals, maintaining a similar level over the last five years. 44% were from HSCP/NHS and 45% were self-referrals or from a family member/friend. Around 70% engaged with the service and received advice and support Of the HSCP/NHS referrals, 811 were for financial assessments, 653 for non- residential social care charging services and 158 for kinship carers. A total of £21.5m in Financial Gains was achieved for their clients, through maximising income. Note: Due to changing to a new case management system in October 2024, these figures may be lower than actual totals. Money Matters Funded Projects GP practices – through the Welfare Advice and Health Partnerships Scottish Government initiative launched in 2022, Money Matters has received funding to support the development and embedding of welfare rights advice in nine priority mainland GP practices, extended at the end of 2023 to include the islands of Arran and Cumbrae. Three Welfare Rights Officers work from the GP practices, where welfare rights appointments are input to the GP patient information system by practice staff and where advisers can access medical information to inform and HSCP/NHS, 44%, 44%Self or family/friend, 45%, 45% Other, 11%, Referral sources 0 100 200 300 400 500 600 700 Macmillan Service access Addictions Children & Families Justice Services Mental Health NHS Non-residential Charging Kinship Care HSCP/NHS referrals
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15 OFFICIAL INFORMATION OFFICIAL INFORMATION support casework. The delivery model is very efficient, engagement is high and over £3m in financial gains (included in the total financial gains of £21.5m above) was secured for the 536 patients referred in 2024-25. “I honestly can thank you enough for all your help and support with sorting [all my my claims] out for my family, it’s put me in a far better financial position now, all thanks to you. I really appreciate everything you have done, thanks again” (GP practice client feedback) North Ayrshire Schools – through funding from Education services which started in October 2021, Welfare Rights Officers have been attached to North Ayrshire secondary schools, initially one adviser covering secondary schools and since 2024-25, three advisers to incorporate primary schools and early years centres. Referral pathways direct to those named workers are promoted through school activities/communication channels and the number of referrals from parents with school-age children has increased through this initiative. In 2024-25, a total of 259 parents with school age children benefitted from this initiative – through direct referrals from parents, referrals from schools or HSCP social work teams who referred direct to the project. This represents a 144% increase on the number of referrals in 2023-24. A total of £560,509 in financial gains was achieved for those parents in 2024-25 (an increase of 46%) – included in the £21.5m total above. “Thanks so much for all your help, time and patience, I really appreciate it. You have improved mine and my kids lives so much, I will be forever grateful” (Parent feedback, Schools project) North Ayrshire Foodbanks and Larders – since April 2021, the Trussell Trust has been funding advisers to support those who access foodbanks and larders. Initially this was one adviser but funding was expanded to add a second, and they now provide services in 14 foodbanks and larders across North Ayrshire. In 2025 they aim to expand this to include Largs, Millport and Springside. 128 foodbank/larder users received welfare rights advice through this project in 2024-25 and an additional 76 referrals were received direct from the foodbanks. Summary of referrals to Money Matters and the Welfare Reform Advice Team 2024-25 (excluding the projects above). 0 1000 2000 3000 4000 5000 6000 7000 Money Matters - WR WRAT - WR & Debt WRAT - FIOs Pre-Tenancy Checks WRAT - FIOs UC Claims 2024-25 2023-24
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16 OFFICIAL INFORMATION OFFICIAL INFORMATION Child Poverty Outcomes The Financial Gains for North Ayrshire residents who engage with our services are substantial and have been increasing year on year for some time. Our beneficiaries have had their income maximised and many have had their debt reduced and affordable repayment plans put in place. North Ayrshire Council tenants are also supported to manage their household budget and furnish their homes. Most clients will have improved financial circumstances, and being unburdened of money worries, their mental health and wellbeing improved. In 2025, we will start pro-actively seeking client feedback on wider outcomes, through asking them to complete a brief survey when their case is closed which includes the following two questions which provide an indication of impact of our services on child poverty: Do you, as a result of advice and support received, feel more confident managing your household budget and in your ability to pay your bills? Do you, as a result of advice and support received, feel financially more prepared for an unplanned expenditure or unexpected event? The first report from this activity will be for 2025-26 and responses will further evidence the impact of advice services in relation to the related child poverty indicators. 6.1.3 Money Smart On 1 May 2025, the integration of the two internal teams into one cohesive Financial Inclusion Service was reinforced through the rebranding and relaunch of the service as Money Smart. Going forward the Money Matters and Welfare Reform Advice Team names will be dropped and the service referred to as Money Smart. This change alongside the now fully integrated service will maximise the use of all resources with staff across the service working with one case management system which will support more effective joint working to meet the needs of people in our communities. It will also improve accessibility with: • A Single point of contact for all services – one email address, one telephone number and one online ‘contact us’ form. • Phone lines staffed by advisers from across the Money Smart service, taking calls at point of need • Welfare Rights and Debt Advice both available for all council tenants, and for other vulnerable residents who are referred by services, are disabled, parents, pregnant, carers of from minority ethnic groups.
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17 OFFICIAL INFORMATION OFFICIAL INFORMATION 6.2 CHAP Based in Ardrossan, CHAP is a well-established charitable organisation that provides welfare rights, money/debt and independent housing advice for people across North Ayrshire. CHAP has been contracted by North Ayrshire Health and Social Care Partnership since July 2023 to provide debt advice services for North Ayrshire residents. This contract was for two years to meet a gap in debt advice when the Better Off programme ended. In the first year of this contract, CHAP received 440 referrals for debt advice. 225 engaged with the service and by the end of year one, 121 had debt strategies in place, exceeding the agreed performance targets. Customer satisfaction ratings were excellent and feedback from one client is below. "Everything was spot on, the help you gave me was phenomenal. They were so nice. Can’t thank you enough. I got awarded my ADP which I didn't even know if I would get it, I didn't know I was entitled to it, grateful for them doing that for me. My repairs and all that are being done now and I set up a payment plan". Following a review, it was decided in November 2024 that as a significant number of referrals to CHAP were from Money Matters (28%), the contract with CHAP would not be extended beyond June 2025, but a debt advice service for non-council tenants would be added to the Money Smart team to provide in-house debt advice for those who access welfare rights advice but also need help with debts and thus eliminate the need to refer to an external agency for this service. It is recognised that many people make a conscious choice to seek advice from CHAP and they are actively seeking alternative sources of funding to enable them to continue to provide this service. CHAP also provide advice and support for homeowners facing threat of repossession through a partnership with Govan Law Centre, and through funding from Housing services, provide advocacy and representation services for council tenants facing eviction. 6.3 1st Alliance Community Bank – Progressive Finance In November 2021, North Ayrshire Council Cabinet approved a £150k investment in 1st Alliance Community Bank to enable lending of small loans to those who are of higher credit risk and who would not normally quality through typical lending rules, but who can afford repayments. A priority was to assist people to move away from high-cost lenders e.g. doorstep lenders, buy now pay later’ and high-cost catalogues and improve access to affordable, and ethical lending. As per the Credit Union saving/borrowing model, residents who access small loans through this investment would also become savers (a minimum of £3/week) – a requirement to access loans. As each loan is paid off, the borrower could then move onto a members’-based loan which has a lower interest rate. In November 2022, a £25 one-off incentive for new savers was incorporated into the SLA (from the original £150k investment) to encourage residents to become more financially resilient through developing a ‘saving habit’ and build a new savings pot which provides
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18 OFFICIAL INFORMATION OFFICIAL INFORMATION some security for both unplanned and planned expenditures such as Christmas. By becoming regular savers, they would also then become eligible to access affordable credit through 1st Alliance members-based loans when required. In September 2024 it was further agreed that the £150k investment could be used to fund staff time to support the ‘unbanked’ to open mainstream bank accounts. The longer-term intention was that as loans were repaid, the £150k investment would be recycled to create a legacy fund for other high-risk borrowers. By March 2025, when the SLA ended, the £150k investment had enabled 338 residents who were higher-risk borrowers to access loans totaling £286,429 (including first and subsequent ‘members’-based loans). £231,033 had been repaid, thus creating the anticipated legacy fund which will enable continued access to credit for higher-risk borrowers. This initiative has evidenced that higher-risk borrowers can also be ‘responsible’ borrowers through a) an arrears rate of 5% which was lower than anticipated and b) that 56% applied and were approved for ‘member’s based’ loans after paying off their initial loan. Residents who accessed loans through this investment have built a total of £84,615 in new savings, illustrating that people on low incomes can develop a savings habit (32% were unemployed or on disability benefits and 11% were part-time workers) In addition, the £25 one-off incentive to open a savings account has generated 252 new savers and 78 have been supported to open mainstream bank accounts. 6.4 Lemon Aid Lemon Aid is a social enterprise helping domestic energy consumers to save on their energy costs. They are currently funded to provide support to North Ayrshire Health and Social Care services through Energy Action Scotland. In 2024-25 they provided advice and support to 4528 North Ayrshire residents including 763 people who were ‘reconnected’ to their power supply after having ‘self-disconnected’ – more than double the number in the previous year. Self- disconnection arising from: “Debt amassed due to in-ability to pay is moved to the ‘back screen’ of the meter by the supplier which results in a debt recovery rate being applied. This rate can be high and forces consumers to go without power or heating as they can’t afford to top up the meter, meantime their standing charge keeps increasing the debt level.” (Lemon Aid) Lemon Aid services include advice and support with debts to utility providers including support to access discretionary grants to write off energy debts, or to set up repayment plans. They also provide advice and support in resolving disputes with suppliers and with the replacement of prepayment meters with credit meters. In 2024-25 they achieved over £257,245 in financial gains through energy debt reduction. Referral pathways are in place from advice services to Citrus Energy for this specialist service and last year 141 clients were referred from our Money Smart
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19 OFFICIAL INFORMATION OFFICIAL INFORMATION teams to Citrus for help with energy costs and debt to energy suppliers. 7. Developing the Plan for 2025-30 The Financial Inclusion Partnership developed and delivered a Community Consultation late in 2023 to hear from our residents what they want from advice and wider financial inclusion services and to help inform the development of this strategy. A total of 177 responses were received from North Ayrshire residents, 57 of whom had accessed at least one advice service (44 had been to Money Matters, 7 to WRAT and 7 to CHAP) Services were highly rated for accessibility, response times and communications. 80% said they got more help than expected. “Money Matters came to my house, was able to complete my benefits applications in privacy and at my pace, I can become overwhelmed when presented with a list of questions. She explained everything and also advised of other financial help and support available to me while waiting. Nothing was too much trouble”. 15 stakeholder agencies/services were also consulted and the responses reinforced the positive views of advice services expressed by most of those who responded to the community consultation. There were high levels of trust in the quality of services and effective and efficient referral pathways and response times were valued. “Very knowledgeable and extremely helpful – great partnership working. Gold standard” You Said: We will: Where both debt and welfare rights advice was needed, accessing both through one service is preferred A Welfare Rights and Debt Adviser for non-council tenants has been added to the service to ensure that all those who access our services can receive both welfare rights and debt advice without the need to refer to an external provider. Engaging with the same person is preferred when receiving advice and support The ‘named worker’ model has been expanded over the last two years. Some respondents said they did not know where to go for the help they needed or did not think there are services for homeowners. Stakeholders said that more effective promotion is needed as people they refer often do not know such services exist. A Communications sub-group of the Financial Inclusion Partnership has now been formed to take a cross-sector approach to promoting services more effectively. The launch of HSCP services as Money Smart, with single points of contact for both Money Matters and the Welfare Reform Advice Team will improve both accessibility and awareness. Poor physical or mental health is a We will more effectively promote the
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20 OFFICIAL INFORMATION OFFICIAL INFORMATION barrier to accessing services range of options for accessing services We need welfare rights advice on Arran. We have developed more services for island communities and will continue to seek options to improve accessibility You want more help with form- filling for claiming benefits This has been reviewed and more support with form-filling is now provided internally. Links with gypsy/traveller communities need to be improved We are now promoting our services through the Tenancy Chat for Gypsy Travellers and seeking options to improve engagement with those living in encampments. You also told us that stigma, and fear of your situation getting worse are barriers to engagement. This will be addressed through a Communications Plan for 2025-26. 8. Vision, Mission and Core Values Our shared vision is for A financially healthy North Ayrshire where people have the knowledge, skills, resources and confidence to manage their money effectively and live fulfilling and healthy lives. Our shared mission is to: “Provide accessible, professional advice services that work together and in partnership with related services, to ensure that all the needs of our customers are met”
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21 OFFICIAL INFORMATION OFFICIAL INFORMATION Our Core Values: As part of our engagement in developing this plan, we asked local people, and our staff teams, to tell us what values they would expect from, and what they value in our services. They told us they expect us to embody: CARE – EMPATHY – RESPECT Care People are at the heart of everything we do, and we are passionate about making a real difference in their lives. We provide a quality service from advisers who are knowledgeable and highly skilled in their field. Empathy By actively listening and establishing trusting relationships, we gain an understanding of individual needs and respond to our clients at their own pace and as appropriate to their circumstances. Respect We see people who access our service as unique individuals and active participants improving their financial circumstances and quality of life. We respond quickly to enquiries and keep you informed throughout your journey with us. You will always be treated with dignity and respect from a service which is inclusive and designed around the needs of our clients. Feedback from a beneficiary of Money Smart services “Thank you to everyone who supported me. They went over and above to be extremely helpful, compassionate and understanding. I feel like [my case worker] has literally saved my life and given me hope. She explained everything in such a calm and reassuring way and has calmed me down so much. The process of dealing with DWP has been very stressful and frightening as I have worked most of my life. She has given me a reason to live and that I am not hopeless by treating me so kindly like a normal person. The huge problems that seemed impossible to face as I kept asking for help and getting nowhere until [the team] changed my life for the better are now being looked at. [My case worker] kept in contact and consistently been available and kindly given her time and advice and also a lot of other helpful information. Thanks to her I have been focussing on health, eating and sleeping properly and hopefully will be able to get a job in the future. Thank you. I cannot thank you and your staff enough”. A Case Study A tenant was referred by a local housing office due to her rent arrears. On visiting her, it became apparent that she had multiple debts, including priority debts, and she was not managing to meet her payments. Her income was increased, including through support to claim disability benefits, but she was reluctant to engage in debt
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22 OFFICIAL INFORMATION OFFICIAL INFORMATION advice as she felt she could then deal with her debts herself. A couple of months later she was again referred for her rent arrears. At this point her case was being taken to court and the housing office were requesting eviction from the property. She had withdrawn from speaking with her housing officer and all other agencies involved with her. She continued to be reluctant to engage in debt advice, but when an eviction date was given, she did, and potential debt solutions were discussed. Her options were limited, and she chose to apply for bankruptcy but then, after being advised on what was required to make the application she again withdrew. Meantime, the eviction had been postponed on the grounds that she would engage and work the adviser. After several attempts to re-engage with her to discuss the severity of the situation, we were able to apply and she was granted bankruptcy, including her rent arrears and all other debts. Both her mental and physical health had deteriorated due to the situation she was in, but when concluded she said that this was: “Like a weight lifted off my shoulders….I have not been sleeping or eating due to worry and anxiety and feel as if I can now look forward and start afresh…..I do not know what I would’ve have done without the service or where I would have ended up”. The outcome of the referral – income maximised to include disability benefits, £17k debt written off and the tenant and her child were able to remain in their home. 9. Money Smart Priorities and Ambitions to 2030 The following strategic priorities will build on the strategic ambitions for 2023-25, including service developments and the work of the Financial Inclusion Partnership over the last two years. Provision of Early and Effective Support – to meet this ambition we will ensure services are accessible at point of need through: 1. Co-location of welfare rights advisers within GP surgeries mainstreamed as Scottish Government Funding ends. 2. Engagement with parents through established referral pathways with schools, from early learning to secondary level. 3. Early engagement with council tenants in, or at risk of being in rent arrears, to provide support with managing payments, to put debt strategies in place and sustain tenancies, through established partnership with Housing services. 4. Established referral routes and co-location with key Health and Social Care and NHS services 5. The Advice Line delivery model implemented in 2025 which aims to ensure that those who choose to access the service by phone have their call answered, as far as possible, by a ‘duty’ adviser who can provide initial advice and support at point of contact. 6. The Financial Inclusion Partnership, through which we will: o Challenge stigma and fear as barriers to engagement, to encourage and motivate residents to access support at an early stage. o Build a more collaborative approach to communications to raise
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23 OFFICIAL INFORMATION OFFICIAL INFORMATION awareness of all advice and wider financial inclusion services and access points across North Ayrshire Wellbeing – Enabling Communities – to meet this ambition we will: 1. Pro-actively measure customer satisfaction and seek feedback and empower service users to identify potential service improvements and developments, to inform the content of campaigns and decision-making. 2. Build financial resilience through improving knowledge of and skills and confidence in the welfare rights system and managing personal finances to improve health and wellbeing 3. Raise awareness of welfare rights entitlements and systems through routine casework and promotion of ongoing welfare reforms and take-up campaigns. 4. Provide specialist debt advice to put debt strategies in place, maximise disposable income and effectively manage household budgets 5. Early engagement with residents signing up to council tenancies and existing tenants approaching state pension age, to support with maximising income/tenancy sustainment through established partnership with Housing Services 6. Build on the holistic approach to pro-actively identifying wider and underlying issues and support engagement with other service providers to achieve sustainable positive outcomes. Tackling Inequalities through Community Wealth Building – we will: 1. Reach out to marginalised people in our communities to promote our services, improve accessibility and support engagement, in particular those in our island communities, from minority ethnic groups, the more socially isolated, those experiencing in-work poverty and residents in gypsy traveller encampments 2. Evidencing the number of Money Smart clients who, as a result of advice and support received, are ‘more confident managing their household budget’ and who feel ‘better prepared for unplanned, and planned expenditures’, which provide an indication of sustainable positive outcomes and impact on child poverty 3. Through the Financial Inclusion Partnership, identify gaps in service provision and seek further opportunities for collaboration to ensure the needs of all people in our communities are met Develop and support our Workforce – to meet this ambition we will: 1. Ensure that in the current economic climate and with the increasing complexity of the welfare rights system, our people continue to be able to provide the expert, high quality welfare rights and debt/money advice which is much valued by people in our communities through the Performance Management and Quality assurance Framework. 2. Through the AdvicePro case management system and Performance Management and Quality Assurance Framework: o Encourage and support a culture of continuous improvement o Produce public performance reports for Money Smart which evidence the totality of our work and the outcomes achieved for
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24 OFFICIAL INFORMATION OFFICIAL INFORMATION people in our communities 3. Achieve accreditation to the Scottish National Standards for Information and Advice Providers for Welfare Rights and Money Advice, to evidence to funders and to the public, the high-quality services delivered by our team. 4. Ensure that the increasing demands and strain on our people does not impact on the essential time needed for ongoing training to maintain expert knowledge of ongoing welfare reforms and to ensure quality assurance measures are sustained. 5. Seek opportunities to use technology where appropriate, to deliver more efficient and effective services and maximise use of resources 6. Through the Financial Inclusion Partnership, share information, knowledge and expertise to enhance all services. North Ayrshire Council’s No Wrong Door policy builds on existing efforts to ensure that residents can access the funding of support they need, whether this be in relation to paying energy bills, accessing education grants for footwear and school meals or finding out more about state benefits. Through this strategy, our Money Smart team, via our priorities and ambitions and in collaboration with the Financial Inclusion Partnership aims to support a more financially healthy North Ayrshire for the benefit of individuals, their families, communities, businesses and the economy.
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25 OFFICIAL INFORMATION OFFICIAL INFORMATION Contact Information for Advice and Financial Inclusion Services Money Smart - call 01294 310000 or email moneysmart@north-ayrshire.gov.uk CHAP – Call 030 0002 0002 or email enquiries@chap.org.uk Lemon Aid – Lemon Aid Self Referral Form - Cunninghame Housing Association 1st Alliance Community Bank Call 01294 557123 or email info@allianceayrshire.co.uk Cunninghame Housing Association Call 01294 607553 Cairn/ANCHO Housing Association Call 0800 990 3405 Riverside/Irvine Housing Association Call 0345 112 6600 Citizens Advice Scotland Call 0800 028 1456 Stepchange Debt Charity Call 0800 138 1111
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26 OFFICIAL INFORMATION OFFICIAL INFORMATION Links NAHSCP Strategic Commissioning Plan Council Plan CWB Strategy References • What are the drivers of child poverty? - Tackling child poverty delivery plan 2018-2022: annex 2 - gov.scot • End Child Poverty Coalition. (Various years). Local Child Poverty Estimates. (Data modelled by Centre for Research in Social Policy, Loughborough University). North Ayrshire 2022/23 child poverty after housing costs figure. • Joseph Rowntree Foundation (JRF). (2025). UK Poverty 2025: The essential guide to understanding poverty in the UK. Joseph Rowntree Foundation. ‘very deep poverty’ statistics. • North Ayrshire Community Planning Partnership. (2018). People's Panel Survey 2018 Report. North Ayrshire Council. 2018 adult financial wellbeing data. • North Ayrshire Community Planning Partnership. (2022). People's Panel Survey 2022 Report. North Ayrshire Council. 2022/23 adult financial wellbeing data (e.g., % with no savings, % with unsecured debt, % not managing well. • SIMD. (2020v2). Scottish Index of Multiple Deprivation 2020. • Scottish Government. (2025). Poverty and Income Inequality in Scotland: 2021-24. Scottish Government. (Published March 2025). National Scottish child poverty rates (relative AHC and BHC) for 2023/24, and the proportion of children in poverty in working households for 2021-24. • Scottish Government. (2025) Labour market insight Living Wage data Local child poverty dashboard - gov.scot Poverty in Scotland 2024 | Joseph Rowntree Foundation Poverty: facts and figures | CPAG
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27 OFFICIAL INFORMATION OFFICIAL INFORMATION https://www.gov.scot/publications/scottish-house-condition-survey-2022-key- findings/pages/3-fuel-poverty/ Debt advice in the post-pandemic landscape | Money and Pensions Service (maps.org.uk) Missing out 2024: £23 billion of support is unclaimed each year | Policy in Practice https://www.gov.scot/publications/scottish-house-condition-survey-2023-key- findings/ What is the Poverty Premium - Fair By Design