GCC Proposed Financial Inclusion Strategy 2011 – 2015

In a report submitted to the Finance and Audit Scrutiny Committee on Wednesday 18th May 2011 the Council outline their Financial Inclusion Strategy for the period 2011 – 2015.  The report includes recommendations on the commissioning of advice and support services. 

The previous 3 years were commissioned on a 5 area basis, in line with former community planning structures and different consortia developed across the city to tender for contracts, however, a different approach has now been recommended.  

There are 3 options for the future commissioning approach as follows:  

• One contract plus a layer of sub contracts with a 3 area service delivery model, including city wide functional activities which align with the Local Regeneration Agencies approach (recommended).

• New contracts to be coherent with the 3 Social Work geographical areas (possible option).

• The status quo with 8 contracts, covering 5 Strategic Planning Areas contracts, one Citywide service and 2 service specific contracts for Homelessness and Glasgow Advice and Information Network Helpline (not recommended)

The budget approved for 2012/13 includes a 10% reduction of £345,000. The overall contract value will be £8,970,000 over the 3 year contract period, representing a reduction of £1, 040, 000 compared with the preceding 3 years. The recommended year on year funding is as follows:   

• 2012/13 = £2,990,000

• 2013/14 = £2,990,000

• 2014/15 = £2,990,000

Potential Implications for Service Users

In addition to the above, there will be a change in focus, highlighted by the new vision statement:  

“To give our most vulnerable citizens access to quality advice, information and assistance that aims to help them from being financially excluded, putting them back in control of their life and enabling them to fully contribute to, and participate in, the social and economic life of the city”.  

This will involve a shift in focus to target support to the “most vulnerable” which will be a contractual requirement for the agencies involved in the delivery of services.   It is unclear at present how the “most vulnerable” will be defined and how current service provision can be reshaped to accommodate this requirement. There are fears that this could put at risk the ‘open door’ policy currently favoured by many advice agencies, leading to a system of referrals and appointments only.  

The new approach also recommends increased emphasis on online and telephone based service delivery, which could prove problematic for service users who either do not have access to these, or who have been cut off due to arrears.   There will be obvious implications for the agencies involved as TUPE regulations and pension requirements have proved difficult and expensive to cover in the past and further reductions in funding could exacerbate already difficult operating environments. 

Read the full report

Tags: Finance, Glasgow News, Policy, Welfare