Save money with Communities First Swansea

Low income is central to the subject of poverty and social exclusion.  Swansea East has a much higher percentage than average of low income households – in Penderry ward for example, 39.1% of households receive an income-related benefit compared with 18.6% in Swansea as a whole.

One of the many disadvantages of being poor is that you pay more for energy, loans and – until the arrival of the low cost German supermarkets – for food.  The dual fuel direct debit means of paying for energy is  not an option for many on low incomes, and many do not have the benefit of the interest-free borrowing that some credit cards can provide.  Most low income households are on token meters and are, unless they are members of a credit union, unable to access low-cost loans and often have to resort to high-interest lenders such as pay day lenders to get by.

In the Swansea North West Cluster, Communities First is undertaking a number of projects that are primarily focused on helping people to save money, to budget, and to maximise their income and make them more financially aware.   They run money awareness and basic budgeting courses at all the primary schools in the cluster.  As well as these they have teamed up with the LASA credit union to get all the schools in the area to start regular savings clubs to encourage parents to start saving for next Christmas.  Saving with LASA allows parents to access low-interest loans, which reduces the likelihood of them borrowing from high interest pay day lenders or, even worse, illegal lenders.

Other projects running in the area include Citizens Advice Bureau (CAB) drop-in sessions providing guidance on money matters and the Money Advice Service that gives one-to-one specialist advice on universal credit and budgeting in preparation for the change in the way that benefits will be paid.  CAB sessions have been held in Penlan and Portmead where they have seen a large number of people engaging with the service, some of whom are signposted to budgeting or benefits advice.

An energy saving event in partnership with the Environmental Centre was held at Penlan South Community centre, to raise awareness amongst people in the local area.  Organisations at the event included NEST, Gwalia, Swansea Council, Communities First and the Environment Centre, all of which promoted energy saving and awareness of help to  combat fuel poverty.

Communities First teams are tasked with helping to maximise incomes. The Communities  First  “Drop In”  provides budgeting and financial information sessions  twice weekly in Bonymaen and Port Tenant. Personal financial planning sessions are also available, where an individual’s financial plan can be worked through with someone experience in budgeting. Weekly “change to save” sessions are held to look at ways of saving on household bills, especially through use of the internet, as many of the best deals for utilities and insurance are only available on line. Since 2012 over 100 people have reduced household expenditure through involvement on this project.  At this time of year “Christmas on a budget” and “Savvy Shopper” sessions,  which  help  residents to plan their Christmas expenditure and improve their ability to save money when shopping, are popular.

The project provides volunteering opportunities – at present there are two volunteers who between them volunteer for approximately twenty hours a month, managing a LASA credit union weekly collection point.  It is hoped in the near future that a second LASA credit union collection point will open in the cluster.

Whilst none of these activities will take people out of poverty as it is conventionally measured, what they will do is improve people’s financial circumstances. For many people either not in employment or in employment but with fluctuating income, cutting utility costs, lower cost borrowing and maximising benefits can be the difference between coping and serious financial problems.