Economic Regeneration & Transport

PREVENTING REPOSSESSIONS CAMPAIGN AND

PURPOSE OF REPORT

To raise awareness of the ‘Preventing Repossessions Campaign’ and inform the Panel of the actions currently being undertaken by Middlesbrough Partnership’s Financial Inclusion Group.

BACKGROUND INFORMATION

Repossessions Campaign

The national It’s Your Home - Let’s Keep it that Way campaign was initially launched by the department for Communities and Local Government (CLG) on 8 September 2009, with advertisements appearing nationally and in 22 identified repossession hotspot areas. The campaign featured a series of press, online and billboards advertisements to highlight the practical steps that people can take to tackle their mortgage arrears and keep their home.

On 12 November 34-second tier repossession hotspots were announced and Middlesbrough was named as a hotspot area within that tier, alongside Stockton-on-Tees and South Tyneside. Since November 2009 CLG has now identified a total of 86 repossession hotspots nationally due to higher levels of unemployment and the number of repossession orders issued. On 25January 2010 it was announced that Councils in the 86 hotspot areas would receive a £2m boost to the Preventing Repossessions Fund.

On 10 February 2010 the Deputy Mayor and Executive Member for Regeneration and Economic Development will consider the proposed process for administering the Repossessions Prevention Fund in Middlesbrough. A copy of the Executive report is attached for the Panel’s information at Appendix 1 and the report highlights that Middlesbrough Council has been allocated £47,500 from CLG to prevent repossessions and evictions across all tenures, which is a one off payment for 2009/10. Sarah Brannen, Senior Housing Strategy Officer, will be in attendance at the Panel to respond to any queries in relation to this issue.

In addition to the extra funding awarded CLG has asked for the help of the Citizens Advice service to supplement the national It’s Your Home - Let’s Keep it that Way campaign with a series of short local awareness-raising campaigns. The campaign in Middlesbrough will run over a four-week period, commencing 16 February 2010, with a series of local face to face events that will provide information and advice to communities. It will consist of stalls and displays in public places; poster and leaflet distribution; contact with local media; promotions/events in community centres, libraries and shopping centres. Full details of the events proposed during the campaign are included in the poster attached at Appendix 2.

Mortgage arrears and the risk of house repossession are the main issues being addressed by CLG through the campaign, but they recognise the complexity of ‘debt’ and how difficult it is to isolate any one issue. Therefore, the campaign also aims to raise awareness of all the resources that may be available to people in handling the full range of their debt issues.

Financial Inclusion

It was also felt appropriate in view of the subject matter of the campaign, to give the Panel a brief overview of how Middlesbrough Partnership was addressing various financial inclusion issues.

Financial Inclusion is defined as access to appropriate financial products or services which give people the opportunity, ability and confidence to make informed decisions about their financial situation or organise their money effectively.

In order to address this issue across the town, Middlesbrough Partnership has established a Financial Inclusion Working Group. The Group brings together partners from the private, public, community and voluntary sectors to co-ordinate the Partnership’s response in promoting and improving financial inclusion in Middlesbrough.

Access to Debt and Money Advice – Provide a framework to ensure the effective and efficient co-ordination, delivery and access to debt and money advice across the town. The Group will also seek to ensure, through collaboration, that the use of resources to deliver these services is maximised and duplication is minimised.

Access to Affordable Credit and Banking Services –Provide a framework to improve access to appropriate and affordable credit and banking services.

Financial Literacy – Develop approaches that will lead to improving financial literacy within the community.

Underpinning these approaches, the Group has a particular focus on vulnerable groups and individuals within the community. In order to deliver on these three strands, the Group is seeking to promote, whenever and wherever possible, consultation and engagement activities with residents and communities. In order to provide a focus for the work to be undertaken by the Group, an draft action plan has been agreed, details of which are also attached to this report at Appendix 3.

Niger Sayer, Middlesbrough Partnership Manager and Janet Meikle, Senior Money Advisor have been invited to attend the Panel meeting to provide further information in respect of the campaign and financial inclusion issues. John Daniels, Manager CAB, is unable to attend the Panel meeting but kindly provided some of the information contained within this report.

RECOMMENDATION

That the Panel notes the content of the report and considers whether it wishes to receive any further information in respect of this issue.

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