Help for those struggling financially

Last week the Joseph Rowntree Foundation released a report which showed that over 1 in 5 people are now living in poverty, following the first sustained rises in child and pensioner poverty for two decades. Last weekend the entire board of the Government's social mobility commission quit at the lack of progress towards a “fairer Britain”.

This isn't just an issue for the inner cities. As Claire Young discussed on BBC's Sunday Politics West, isolation and lack of services are an extra challenge for those living in rural areas.

If you or anyone you know is struggling with financial difficulties, there is help available. The council have commissioned the South Gloucestershire Advice Services to provide a general advice service with specialist knowledge in the areas of welfare benefit and debt advice to representation at tribunals and information on services for older people. The five organisations that make up the partnership hold drop-ins across South Gloucestershire. You can find out more on the South Glos website.

Local advice agencies join forces to improve money advice in South Glos

Talking Money and North Bristol Advice Centre (NBAC) are working in partnership to ensure everyone has access to specialist money advice throughout South Gloucestershire; advice sessions have been increased and are now running in Patchway, Kingswood, Yate and Filton.

Drop in advice sessions operate Tuesday to Thursday throughout the county. For up to date information on where and when you can access advice please visit www.talkingmoney.org.uk
or www.northbristoladvice.org.uk.

Talking Money say “Money problems are complex and are often caused by other personal issues, like long term ill health, family break down or loss of employment. By working together we can offer specialist advice and support on debt and welfare benefits”.

In addition to offering face to face advice at sessions throughout South Gloucestershire both agencies offer the same service through telephone and email. NBAC comments “We know that high quality advice can change lives and are pleased to offer weekly drop in sessions, as well expert advice by email, phone or online so that everyone can now access our services. We urge people to get in touch, no matter how desperate the situation may seem, because there are so many ways we can help.”

Cheque-mate! Banks back down on scrapping cheques

The Payments Council, representing the banks, has announced that it will not be scrapping cheques in 2018 after all. They now say that cheques will be will be kept "as long as customers need them".

This follows major campaigns by Liberal Democrat MPs, charities and organisations representing older people and voluntary groups. We have reported the campaigns here before, and many of our readers will hopefully have signed the petition by Lib Dem MP David Ward.

The BBC has more details here.

Could the banks change their minds about scrapping cheques?

The Payments Council, representing the banks, had a pretty rough ride when they appeared before Parliament's Treasury Select Committee. The Treasury has written to MPs on the Committee saying that they might consider blocking plans to abolish cheques in 2018 if suitable alternatives are not found.

David Ward MP however suspects that the banks may just reduce the level of service - like they've scrapped cheque guarantee cards - until they can quietly stop cheques completely by 2018.

More on this story here

Sign the Save Our Cheque petition here

House of Common committee opposes scrapping cheques

We've reported previously (here and here) about the big banks' intention to get rid of paper cheques.

The Treasury Select Committee has said that plans to phase out cheques should be put on hold because they are still vital for vulnerable people. They have been inundated by letters from members of the public saying that they rely on cheques, so they are reopening an inquiry initially launched last year.

More detail from Yahoo! Finance here.

Income tax and pensions in South Glos

Over the last seven days in South Gloucestershire, thanks to the Liberal Democrats being in Government:

• 122,000 people are getting a £200 income tax cut - benefiting 23 million people across the country
• 4,100 people have been lifted out of paying income tax altogether, with more to come
• 53,100 pensioners have been given an extra £4.50 a week – and those retiring from today will be on average £15,000 better off over their retirement.

This week also saw Steve Webb, as  Pensions Minister, announcing that the Government will be introducing a simple, flat-rate state pension of £140 to replace the current complicated, unfair and means-tested system.

Making your Money Work For You - Free workshop in Yate

Making your Money Work For You.  Free workshop at Westgate Childrens Centre on Tuesday 5th April 1pm - 3pm. A creche is available for children under 5.  Must be booked in advance.

Topics will include budgeting, borrowing, savings, banking, prioritising payments etc.

For full details and how to enrol click here and then click the link to download the Word document "Financial Inclusion Yate".

Another step towards getting rid of cheques

A while ago the banks announced that they wanted to phase out cheques in 2018. What is less well known is that we won't be able to use banks cards to guarantee cheques after the end of June this year.

Cheques are still widely used by older people, small tradesmen by local organisations that require clear financial controls – clubs, small charities and local councils. As recently as 2008, cheques were used six times more frequently than online payments.

The proposed phasing out of cheques in 2018 is squarely based on the costs to the banks, not on any consideration of customers’ needs. Stopping the cheque guarantee card facility in 2011 appears to be a deliberate move to make cheques less attractive to use by transferring risk from banks to customers, so accelerating the decline of cheque use.

The obvious paper-based alternative to a cheque is the postal order. However these are very costly – from £10 upwards the fee is 10% of face value, capped at £10, and they are only available up to a value of £250. They are also much more inconvenient to use because they require a visit to the post office (another facility that is in decline) to purchase them.

Even if the banks do not suggest postal orders as a viable alternative, there must be a concern that that postal orders will set the benchmark for the fees banks would levy for their own alternative.
We're campaigning against a change that is principally for the benefit of the banks, and works against the interests of millions of people and the community organisations they support.

Banks to scrap cheques?

The banks will be voting on 16 Dec about scrapping cheque system by 2018 (see Times article here) - an announcement about it is expected in January. At the moment about 1 payment in 25 is still made by cheque in the UK.

Cheques are inconvenient for banks because they cost more to process than electronic transactions. But how else will one individual be able to send payments to another safely? And do you want to be forced into setting up yet more direct debits?

Small companies are also against stopping the cheque system because of the extra costs they would incur. Apparently the banks have already decided to scrap payment guarantee cards from 2011 - anyone remember them telling us about that decision? Surely that will increase the risks for small tradesmen accepting payments from customers.

The postal order system is also likely to be affected because the secure version - the crossed postal order - can only be paid into a bank account or a PO savings account, unless it's used to pay a bill at a post office. So effectively it's a cheque. Unless of course the Post Office decides to scrap postal orders at the same time?

If you think cheques should stay, please sign the 10 Downing Street petition here.