Melin Homes launches pioneering financial inclusion strategy

Melin Homes is the first housing association in Wales to launch a financial inclusion strategy.

The South East Wales housing association unveiled its new strategy, ‘Investment in Futures’, at Garnteg Primary School, Torfaen, last month. 

Financial exclusion is the inability, difficulty or reluctance to access appropriate, mainstream financial services.  It is both a symptom and a cause of poverty and can manifest in many ways: lack of access to bank accounts, unemployment, limited access to pensions and insurance, limited access to advice, arrears of rent, utilities and council tax, fuel poverty, the inability to save even small amounts, and doorstep lending.

In fact, around 150,000 people in Wales borrow from doorstep lenders and, according to a feasibility study carried about Community Housing Cymru last year, the average APR for their loans stands at an incredible 254.5 per-cent. 

Financial exclusion can lead to poor health, high levels of unemployment and social exclusion, and unfortunately the current economic climate means that it is increasingly prevalent.  It can also affect all sections of communities. However, statistics show that social housing tenants are particularly vulnerable: according to the National Housing Federation, 81 per cent of people who live in social housing do not have access to savings accounts. 

Melin’s financial inclusion strategy, Investment in Futures, aims to tackle financial exclusion head-on and ensure that all of its residents and members of the wider community are able to take responsibility for their day-to-day and long-term finances.

This will involve informing people about ways to maximise their incomes, increasing their access to bank accounts and affordable credit, and helping to tackle unemployment by promoting training and work opportunities. 

Dr Brian Gibbons, Minister for Social Justice and Local Government, joined Melin’s Chief Executive Mark Gardner and Board Chair Doiran Jones at the launch of Melin’s new strategy at Garnteg Primary School, Garndiffaith. 

Melin chose Garnteg Primary as the site to launch its new financial inclusion strategy because not only does the housing association have homes near the school, but this part of South East Wales has also been identified by the Welsh Assembly Government as one of multiple deprivation.  Melin aims to tackle financial exclusion here and all the other communities in which it has homes with the support of its Investment in Futures strategy.

At Garnteg school’s assembly, the Minister presented the school with a cheque from Melin that will allow each year 6 pupil to invest £20 in a savings account with the local credit union Savings Gateway.  This will help the pupils begin saving for their future and will also fulfil the Welsh Assembly’s vision for every secondary school child to have access to a local credit union.  Pupils from other years in the school will receive a Melin piggybank so they can start saving immediately too.

Melin’s Chief Executive, Mark Gardner, said: “I’m so proud of our new financial inclusion strategy as it demonstrates Melin’s commitment to addressing the financial issues affecting all our communities.

"In fact, our launch at Garnteg Primary school encapsulates the far-reaching nature of Investment in Futures – it aims to ensure that all members of our communities, young and old, are aware of the services that can help maximise their individual financial circumstances.”

Dr Brian Gibbons said: “I welcome the fact that Melin Homes is leading the way by developing its own financial inclusion strategy that reflects local needs. The current economic climate means that it is more important than ever that everyone is aware of services that can help them financially.  

He added: “Opening a credit union savings account for each Year 6 pupil going to secondary school in September is very much in line with the Assembly Government’s vision for every secondary school child to have access to a local credit union.  I am certain that the action Melin is undertaking is going to make a real difference.”

Melin has worked with the national Financial Inclusion Champions project to help roll out its financial inclusion strategy.  The Welsh Assembly Government defines financial inclusion as a state in which everyone has access to appropriate financial products and services in order to manage their money effectively, regardless of income levels or social status.