Building Northern Ireland's financial wellbeing after Covid-19 - The story so far November 2020
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Building Northern Ireland’s financial wellbeing after Covid-19 The story so far November 2020 moneyandpensionsservice.org.uk
Stakeholders Engaged A special word of thanks to the people within the following organisations for their work in helping to shape the on-going work on the strategy in Northern Ireland. The Department for Communities Northern Ireland CIPD Manufacturing NI Alchemy Solutions NIACRO CAAND The Department for Health Northern Ireland COPNI BT Young Enterprise NI Northern Regional College The Federation for Small Businesses BITC Newry Credit Union Queens University, Belfast The Department for Education Christians against Poverty The Bank of Ireland Mindwise Reed Ambulance Service Consumer Council Northern Ireland NILGA The CBI Housing Rights The Department of Finance Pivotal think tank The Women’s Support Network CCEA Post Office Inspire Wellbeing The Irish League of Credit Unions The Bank of Ireland STEP Ulster University
Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 1 Contents Foreword2 Executive summary3 Introduction4 Supporting people in Northern Ireland in the light of Covid-195 The independent Chair’s report8 The MaPS UK response10 Northern Ireland specific considerations14 Appendix19 Virtual Roundtable ‘Engagement Session Reports’ 20
Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 2
1. Foreword
This paper has been prepared by the Money and Quote from Northern Ireland representatives:
Pensions Service (MaPS) to respond to the ‘Building
Financial Wellbeing in the light of Covid-19’ report in ‘We have all been heavily involved in helping to shape
a local context and to chart the ‘story so far’ of the UK the delivery of the UK Strategy for Financial Wellbeing
Strategy for Financial Wellbeing in Northern Ireland. in Northern Ireland for the past six months. Each of
us has spent countless hours evaluating how best to
To meet the goals published in the Strategy, MaPS make sure that the Strategy works locally and proves
brought together cross-sector groups of committed transformational for the financial wellbeing of everyone
specialists to help set milestones for the ten-year in Northern Ireland.
financial wellbeing journey. These UK ‘Challenge
Groups’ have worked for the past six months to set the ‘However, we all recognise that the Covid-19 pandemic
strategic financial priorities for all in the UK, come up will undoubtedly have a significant impact on the
with bold proposals and craft plans to deliver them. financial wellbeing of everyone in Northern Ireland. This
means that pausing to reflect on what is needed to
To support this work in a Northern Ireland context, local restore financial resilience in the short term is the only
experts have been engaging within all of the ‘Challenge way to ensure the success of the strategy in the longer
Groups’ to evaluate how proposals may work and term.
to create a delivery plan that maximises financial
wellbeing outcomes for individuals, communities, ‘The independent Chairs report is a collection of
businesses and the economy (due to be published in considerations on what could be done to rebuild
April 2021). financial wellbeing in the year after the coronavirus
pandemic. We would like to thank all of the members of
When the Covid-19 crisis gripped all of the UK, the our UK ‘Challenge Groups’ and everyone who engaged
MaPS Board felt that an extra effort was required to with the ‘virtual roundtables’ in Northern Ireland for
explore how to rebuild financial wellbeing amidst the making the report possible’
Covid-19 crisis and before the end of 2021. This work
required more scope than that of MaPS alone and
was carried out by the independent Chair’s of each
‘Challenge Group’. The 13 recommendations made by
the independent Chair’s require the support of us all to
deliver.
This paper a response to the independent Chair’s
recommendations on building financial wellbeing and
reflects significant engagement in Northern Ireland by
way of ‘virtual roundtables’ that examined coronavirus
impact during May 2020.
Janine Maher
Carol Fitsimmons Carmel Morris Michele Loughran
Young Enterprise NI Irish League of Credit Unions Mindwise NI
‘Financial Foundations’ Challenge Group ‘Nation of Savers’ Challenge Group Mental Health & FW Challenge Group
Sinead Campbell Scott Kennerly
Advice NI The Consumer Council
‘Better Debt Advice’ Challenge Group ‘Credit Counts’ Challenge Group
Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 3
2. Executive Summary
n MaPs is an arm’s-length body sponsored by the n This is a separate piece of work facilitated by MaPS
Department for Work and Pensions (DWP) and but undertaken by independent specialist Chairs
created as part of the Financial Guidance and and each respective ‘UK Challenge Group’ that they
Claims Act 2018. belong to.
n MaPS has a strong local presence in Northern n 13 urgent recommendations were made by the
Ireland and brought together the work of three independent chairs for restoring financial wellbeing
legacy bodies: Pension Wise, The Pensions Advisory post Covid–19 across the UK.
Service and Money Advice Service.
n This document is a response to those
n MaPS launched the ‘UK Strategy for Financial recommendations reflecting extensive local
Wellbeing’ in Northern Ireland on 1st April 2020. engagement and outlining specific considerations
The delivery of the strategy is co-sponsored by the to restoring financial wellbeing in Northern Ireland
Department for Communities (DfC) in Northern before the end of 2021.
Ireland.
n When the Covid-19 crisis gripped all of the UK, MaPS
decided that a ‘rebuild response’ was required as
part of an effort to restore financial wellbeing before
the end of 2021.
Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 4
3. Introduction
The UK Strategy for Financial Wellbeing in This document shares the UK-Wide recommendations
Northern Ireland of the independent Chairs, outlines the MaPS UK
response, and highlights specific Northern Ireland
The Money and Pensions Service (MaPS) launched considerations derived from local engagement.
the UK Strategy for Financial Wellbeing in Northern
Ireland on the 1st April 2020. Due to the coronavirus Across the month of May 2020, MaPS held a series
pandemic and associated restrictions, the launch of of virtual roundtables with local stakeholders/
the strategy was conducted online via webinar. It has a partners and government departments to consider
focus on five agendas for change and will be measured the immediate impacts of Covid-19. This document
by agreed goals for Northern Ireland. This is designed highlights those important conversations as both
to be the infrastructure in which MaPS can work with indicators of immediate action needed in the light
partners to bring tangible changes for people’s finances of Covid-19 and markers for a successful long-term
and overall financial wellbeing. delivery plan.
The delivery of the Strategy is co-sponsored by the
Department for Communities in Northern Ireland and How will MaPS respond to the Chair’s report
the ‘Delivery Plan’ will be published in April 2021. in Northern Ireland?
You can read more about the Strategy here: MaPS will share the independent Chair’s
https://moneyandpensionsservice.org.uk/uk-strategy- recommendations with relevant government
for-financial-wellbeing/ departments to consider in terms of re-building
financial wellbeing in the light of Covid-19. Alongside
this, MaPS has published a UK response document
Why publish this document now? to illustrate how it will deliver on applicable
recommendations – this will have an impact in
As the Covid-19 crisis developed, MaPS made some Northern Ireland.
changes to its original approach and recognised the
need for urgent recommendations to address the As delivery on the recommendations is rolled out in
financial wellbeing impact of the Covid-19 crisis. 2020/21, MaPS will build on relevant progress and
specific local considerations within the short-term
Work to create these recommendations was facilitated elements of the Delivery Plan (published in April 2021).
by MaPS but undertaken by independent specialist
Chairs and each respective UK ‘Challenge Group’ that
they belong to. You can read about the chairs and the
work of the ‘UK Challenge Groups’ here.
The 13 recommendations agreed to by the independent
Chairs are included in this report as immediate
measures that could be taken to restore overall UK
Financial Wellbeing before the end of 20211.
Importantly, all 13 recommendations are not
exclusively MaPS recommendations. Some are directed
at MaPS; others identify appropriate lead partners, and
some are dependent on policy change in the gift of
government departments.
1 Building financial wellbeing in the light of Covid-19’ http://rebrand.ly/CovidRecommendations
Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 5
4. Supporting people in
Northern Ireland
How MaPS adapted to the onset of the n re-deployed various colleagues to support frontline
Covid-19 crisis and supported people in activities, such as to develop new guidance and
training in response to government policy changes,
Northern Ireland to make the most of their and to analyse changing consumer needs to predict
money and pensions future demand spikes.
As well as facilitating the independent Chairs to create n Developed specialist pensions guidance in
their recommendations on ‘building financial wellbeing response to the emerging scams and risks to
in the light of Covid-19’, MaPS recognised the need pensions savings as the Crisis developed
to provide agile and responsive guidance to support
financial wellbeing after the onset of the coronavirus
pandemic. To help customers in Northern Ireland Assessing local impact: virtual roundtables in
navigate the rapidly evolving impacts of Covid-19 on Northern Ireland
their money and pensions, MaPS refocused its service
delivery and: As well as adapting its service delivery across the UK,
MaPS held a series of virtual roundtables in Northern
n developed a new online Coronavirus hub Ireland to examine the immediate impacts of the
(Coronavirus – what it means for you and what coronavirus pandemic and to explore the long-term
you’re entitled to) with the latest information across requirements of a local delivery plan for the Strategy.
a range of subjects, including employment and self-
employment rights and benefits, payment holidays, n Seven virtual roundtables were held throughout the
car finance, housing, pensions, scams and more – month of May on different strategy related topics –
viewed more than 1 million times2. each lasted one hour thirty minutes.
n set up new Facebook groups (Coronavirus and your n One hundred individual attendances from forty
money and debt advice) moderated by guidance external stakeholder bodies were recorded at the
specialists, with over 10,000 active participants3. ‘virtual roundtables.
n introduced a Covid-19 option on our money n Participants were asked to consider both the
guidance helpline and digital channels to help immediate implications of the coronavirus
manage demand and ensure customers could get pandemic and the longer-term Strategy.
the help they need as seamlessly as possible.
n In each roundtable, participants were asked to
n trained and re-focused pensions guidance consider the particular gender impacts of Covid-19.
specialists to provide holistic support for customers
with queries about their money, helping manage the
fluctuating demand across our services and ensure
operational resilience as customer needs continue
to evolve; and
2 https://www.moneyadviceservice.org.uk/en/hub/coronavirus-money-guidance
3 https://www.facebook.com/groups/678203076335430/
Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 6
Roundtable Topic Content Engagement Session Report & Roundtable Date
Briefing Materials
Financial Foundations A look at financial education in Northern Full write-ups and briefing 13th May 2020
Ireland. materials: here
Nation of Savers The savings habits of those who are Full write-ups ad briefing 14th May 2020
squeezed or struggling in Northern materials: here
Ireland.
Use of Credit How many people are using credit for Full write-ups ad briefing 20th May 2020
everyday essentials? materials: here
Better Debt Advice The need for, and provision of, debt Full write-ups ad briefing 12th May 2020
advice in Northern Ireland. materials: here
Future Focus Planning for later life and overall Full write-ups and briefing 27th May 2020
financial wellbeing. materials: here
Financial Wellbeing Exploring the clear links between Full write-ups ad briefing 6th May 2020
and Mental Health financial wellbeing and mental health materials: here
Financial Wellbeing in Employers as a driver and a delivery Full write-ups and briefing 19th May 2020
the Workplace channel for financial wellbeing materials: here
throughout working lives
Working in Partnership to support Highlighting available resources in an accessible
organisations in Northern Ireland in the light format for employers
of Covid-19
During the ‘virtual roundtable’ in May 2020, many
The coronavirus pandemic has presented all of us in employers highlighted that they would benefit from
Northern Ireland with a changed working environment accessible communications to highlight available
and a range of physical, mental, and financial impacts support and resources. The MaPS Partnership Manager
to consider. Employers too in Northern Ireland have in Northern Ireland recorded a webinar highlighting
been dealing with mass uncertainty, difficult operating all available resources and guidance available in the
environments, and an overall risk to employee financial period after Covid – 19. This ‘step by step’ presentation
wellbeing4. MaPS in Northern Ireland has been working included how to navigate the ‘Money Advice Service’
hard to offer support and guidance to employers who website, the MaPS ‘Coronavirus and your money’ guide
find themselves in new and challenging circumstances (containing valuable information on what Covid-19 may
because of Covid -19. mean for employees and their rights and entitlements)
and signposting to support outlets including
Bringing employers together to discuss the impact of a dedicated helpline and newly established
Covid-19 Facebook group.
In May 2020 MaPS brought several employers Supporting Health Trusts and frontline staff in
and representative bodies together in a ‘virtual Northern Ireland
roundtable’ to discuss the impact of Covid-19 and
possible solutions in Northern Ireland. Many of the Health and Social Care staff in Northern Ireland have
employers around the table were acutely aware of been under immense pressure since the outbreak of
their responsibilities in terms of employee financial the coronavirus pandemic in early 2020. Recognising
wellbeing and wanted to work in partnership with MaPS this, MaPS in Northern Ireland reached out to local
to provide greater resources and support. MaPS has Health Trusts to work in partnership to look after
continued to reach out to employers throughout 2020 employee financial wellbeing and provide guidance
to offer support, resources, and overall guidance on at a time of great uncertainty. As part of this effort,
how to protect financial wellbeing in light of Covid-19. the MaPS partnership manager hosted a webinar with
the Western Trust in July and continues to engage
constructively with all trusts to provide much needed
guidance to staff so that they can take control of and
make the most out of their money post Covid-19.
4 https://www.cipd.co.uk/knowledge/work/trends/goodwork/covid-impact
Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 7
Working with local government to support Increasing the impact of the Money Navigator tool in
communities in Northern Ireland Northern Ireland
Local government plays an important role in Northern MaPS has developed the ‘Money Navigator’ online
Ireland by supporting communities and promoting the journey to deliver money guidance to meet specific
wellbeing of all through the provision of high-quality credit guidance needs of consumers across the UK8.
services and support. MaPS has been engaging with This is an online tool designed to help consumers take
the Northern Ireland Local Government Association control of their finances in the period after Covid-19.
(NILGA) to share learning, syndicate resources and The Partnership Manager in Northern Ireland has been
promote partnership working to rebuild financial engaging with employers and representative groups
wellbeing in light of Covid-195. After an extremely across society to syndicate the tool in their resources
constructive meeting with the NILGA executive, and provide support to employees and their families
MaPS continues to help to supplement local – a valuable extra resource in protecting financial
government activity to promote financial wellbeing by wellbeing post Covid-19.
facilitating the syndication of resources and providing
guidance for communities on protecting financial Talk Money Week
wellbeing post Covid-19.
People in Northern Ireland do not talk about their
Making financial wellbeing resources available to the money enough. Talk Money Week is designed to
public increase people’s sense of financial wellbeing by
encouraging them to open up about personal finance
‘NIDirect’ is the official government website for – from pocket money to pensions9. Talk Money Week
Northern Ireland citizen and brings together information is being held in November 2020. It is an opportunity
from government departments and agencies on all for everyone with an interest in financial wellbeing to
matters of public interest6. MaPS is working closely get involved, with events and activations across the UK
with the team at ‘NIDirect’ to restructure and update designed to help people have more open conversations
all available online resources on promoting financial about money. MaPS in Northern Ireland have been
wellbeing in Northern Ireland. In this way, guidance and working with employers to encourage them to sign
support from MaPS will compliment other government up to talk money week and to prompt their employees
led efforts and culminate in the creation of a trusted, to talk about their money, especially in the period
widely used guide for those who may be in financial post Covid-19.
difficulty post Covid-19.
Supporting difficult conversations on redundancy
Regrettably, the period after Covid-19 has forced many
employers to engage in consultations surrounding
redundancy and may lead to difficult circumstances
for employees and their families7. Recognising this,
MaPS have reached out to many employers to offer
free, impartial, and confidential money advice and to
help develop a library of resources that can support
workers and their families through difficult periods
post Covid-19.
5 https://www.nilga.org/about
6 https://www.nidirect.gov.uk/
7 https://www.nisra.gov.uk/statistics/labour-market-and-social-welfare/redundancies
8 https://www.moneyadviceservice.org.uk/en/tools/money-navigator-tool
9 https://maps.org.uk/talk-money-week/
5. The independent Chair’s report 8
Ndidi Okezie OBE Eric Leenders Marlene Shiels Ben Page Sacha
OBE Romanovitch OBE
Emma Douglas Professor Dame Jackie Leiper Paul Farmer CBE Lesley Titcomb
Carol Black CBE
Building the UK’s
financial wellbeing in
the light of Covid-19
In January 2020, the Money and Pensions Summary of a report
Service asked us to become independent
‘Challenge Chairs’, bringing together 145 of the from the Independent
most experienced minds, to develop delivery Challenge Chairs
proposals for the five national goals of the UK
Strategy for Financial Wellbeing. This work will
for the UK Strategy for
complete this December. Financial Wellbeing
We have published an interim, independent
report containing 13 urgent recommendations
to address the financial wellbeing impact
of the Covid crisis, now and into 2021.
They respond to four key themes we have
identified from our analysis of the crisis.
Moments that matter Vulnerable circumstances
People are often forced into thinking again Covid-19 has amplified the circumstances
about money at transitional moments in their that were already causing vulnerability
lives. And Covid-19 is putting extra pressures for millions of people. Autumn 2020 is an
— physical, financial, or emotional — on important moment for financial services firms,
everyone in the UK. We identify ‘moments that and others, to take stock of how they have
matter’ that we think can make a difference. responded to the crisis.
Credit and debt Recommendations for government
Credit has been an important buffer to help Governments across the UK have done
people through difficult circumstances extraordinary and impactful things to respond
during the Covid crisis. Unfortunately, to the financial shocks of the Covid crisis.
over-indebtedness will be a consequence for We identified three valuable areas of action by
many, especially when people lose their jobs. the UK Government that we think should be
continued, expanded, or accelerated.Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 9
Our 13 recommendations
Moments that matter Vulnerable circumstances
People are often forced into thinking again about Covid-19 has amplified the circumstances
money at transitional moments in their lives. that were already causing vulnerability
And Covid-19 is putting extra pressures — for millions of people. Autumn 2020 is an
physical, financial, or emotional — on everyone important moment for financial services firms,
in the UK. We identify ‘moments that matter’ that and others, to take stock of how they have
we think can make a difference. responded to the crisis.
Recommendation 1 Recommendation 5
MaPS should run a three-phased programme The Financial Conduct Authority (FCA) should
of awareness raising, coordinating messaging explicitly require all firms to embed vulnerability
and partners through an agile approach, to reach: strategies that reflect the ways that Covid-19
people at risk of over-committing to high-cost has deepened existing vulnerabilities, and
credit; young people in financial difficulty finding placed new people in vulnerable circumstances.
it harder to transition to employment/further Firms should implement strategies from
education; and people at risk of redundancy. early 2021.
Recommendation 2 Recommendation 6
An ‘Essential Financial Skills’ training programme The National Academy for Social Prescribing,
should be co-designed by MaPS, with young Mental Health UK and MaPS should make
people, and embedded in all government backed their new money support resource rapidly
programmes for 16- to 24-year-olds that lead to available through NHS social prescribing link
jobs and careers. workers in England by the end of 2020.
Recommendation 3 Recommendation 7
MaPS should develop parent/child conversation Surviving Economic Abuse should lead a pilot
support tools to help families facing the combined of the Economic Abuse Evidence Form for
challenges of money and mental health problems, creditors and credit reference agencies by
drawing upon proven ‘Talk, Learn, Do’ techniques Summer 2021 (for full roll-out in Autumn
previously piloted by MaPS. 2021). It would need additional funding.
This should come from creditor and credit
Recommendation 4 reference firms.
MaPS should create a later-life checklist for people
over 50 who have been affected by the Covid crisis,
especially people at risk of redundancy.
Credit and debt Recommendations
Credit has been an important buffer to help for government
people through difficult circumstances Governments across the UK have done
during the Covid crisis. Unfortunately, extraordinary and impactful things to respond
over-indebtedness will be a consequence to the financial shocks of the Covid crisis.
for many, especially when people lose We identified three valuable areas of action by
their jobs. the UK Government that we think should be
Recommendation 8 continued, expanded, or accelerated.
FCA guidance requires firms to support people
Recommendation 11
coming out of Covid-19 payment deferrals with
DWP should maintain and extend relief measures
increased overdraft or credit card commitments.
put in place to help people who rely on welfare
We urge firms as a default to offer repayment
benefits and whose finances have been made
plans and to waive interest for people who are
worse by Covid-19. It could go further, and make
in serious difficulty.
the consent system for Universal Credit consistent
Recommendation 9 with the system for legacy benefits.
MaPS should carry out two reviews to help
Recommendation 12
the debt advice sector address an expected
HM Treasury and HMRC should further build
rise in demand. MaPS and Money and Mental
upon their efforts to publicise ‘Help to Save’. They
Health Policy Institute should promote
should now review their communications plans
accessible debt and credit services for people
and specifically target anyone newly eligible
with mental health problems.
because of the Covid crisis.
Recommendation 10
Recommendation 13
Fair4All Finance, Toynbee Hall and Fair by Design
DWP should retain the changes to Statutory
— with HM Treasury’s support, and building on
Sick Pay rules that have been introduced to
the findings from the feasibility study undertaken
deal with the Covid crisis. It could go further, by
by London Economics — should progress the
introducing reforms to Statutory Sick Pay that
design and pilot of a no-interest loans scheme
would make it a stronger source of financial
targeted at those most in need.
support for everyone, not just people with Covid.
To download our full report, go to rebrand.ly/CovidRecommendationsBuilding Northern Ireland’s financial wellbeing after Covid-19: the story so far 10
6. The MaPS UK Response
MaPS welcomes the work of the independent Chairs, supported by their ‘Challenge Group’ members, on the
‘Building financial wellbeing in the light of Covid-19’ report. As sector-leaders from multiple areas pertaining to
financial wellbeing, MaPS has paid full attention to each of the 13 recommendations produced by the Chairs and
published its response to the report here. Please find a summary of MaPS’ response below:
Recommendation Alignment to Target Group MaPS response Detail of how MaPS will
the UK Strategy deliver
for Financial
Wellbeing
1. MaPS should run a This Three target This recommendation MaPS will refocus
three-phased programme recommendation groups: people targets audiences current campaigning
of awareness raising, is broadly aligned at risk of over- who have been activity to target the
coordinating messaging to all agendas for committing to particularly impacted audiences highlighted by
and partners through an change within the highcost credit; by the Covid-19 the independent Chairs
agile approach, to reach: UK Strategy. young people in pandemic. MaPS (e.g. during Talk Money
people at risk of over- financial difficulty believes this Week). MaPS will continue
committing to high cost finding it harder recommendation has to work with employers
credit; young people in to transition to significant merit in and agencies across the
financial difficulty finding employment/ terms of signposting UK to support people at
it harder to transition further education; those groups who risk of/in redundancy,
to employment/further and people at risk may be particularly and consider how it can
education; and people at of redundancy. impacted/vulnerable coordinate with partners
risk of redundancy. towards existing a larger co-funded
expert guidance and awareness raising effort in
support services, 2021/22 once budgets are
including those known and secured.
provided by MaPS, its
partners and many
members of the
Challenge Groups and
wider sector.
2. An ‘Essential Financial This Young people MaPS believes that MaPS will build on the
Skills’ training programme recommendation aged 16 – 24 this recommendation ‘youth checkpoints’
should be co-designed aligns with who are enrolled aligns strongly with programme and the
by MaPS, with young the ‘Financial in a government our statutory remit of NESTA ‘rapid recovery
people, and embedded in Foundations’ backed promoting financial challenge fund’ as
all government backed agenda for change programmes (e.g. education and that it existing programmes that
programmes for 16- to within the UK apprenticeships) should take the lead support delivery in this
24-year-olds that lead to Strategy. to improve their and coordinate its area. Additionally, MaPS
jobs and careers. financial wellbeing delivery. will explore options for
as they enter delivery channels for this
into work post recommendation including
Covid-19. closer partnership working
with FE colleges and
targeting pilots with large
employers in the UK.
Table key
Recommendation for MaPS ecommendations for others
R R
ecommendations outside
but supported by MaPS of MaPS’ remitBuilding Northern Ireland’s financial wellbeing after Covid-19: the story so far 11
Recommendation Alignment to Target Group MaPS response Detail of how MaPS will
the UK Strategy deliver
for Financial
Wellbeing
3. MaPS should develop This Families facing MaPS support the MaPS commits to share
parent/child conversation recommendation the combined principles behind this and build on the evaluation
support tools to help aligns with challenges of recommendation data from existing
families facing the the ‘Financial money and mental from the independent pathfinder projects in
combined challenges of Foundations’ health problems Chairs. However, Scotland, Wales, and
money and mental health agenda for change who wish to have MaPS believes that Northern Ireland.
problems, drawing upon within the UK conversations without further
proven ‘Talk, Learn, Do’ Strategy. about money. at evaluation of As ‘Talk, Learn, Do’ is
techniques previously home, particularly evidence from current more firmly embedded
piloted by MaPS. in the light of pathfinder projects across the UK, MaPS
Covid-19. and ‘Talk, Learn, Do’ will be mindful of how
interventions, it is not future rollout can help
best placed to deliver households where
this intervention at money and mental health
this time. problems are present.
4. MaPS should create This People over 50 who MaPS welcomes this As part of ongoing work
a later-life checklist for recommendation have been affected recommendation as on a ‘Mid-life’ MOT, MaPS
people over 50 who have aligns with the by the Covid-19 immediate support will bring relevant content
been affected by the ‘Future Focus’ crisis, especially for people in their 50’s together as a ‘later-life
Covid crisis, especially agenda for people at risk of impacted by Covid-19 checklist’ digital resource.
people at risk of change within the redundancy. in terms of their In 2021/22, MaPS will
redundancy Strategy. finances, work/career explore appropriate
and overall wellbeing. channels for distributing
MaPS believes this this resource and enabling
recommendation people over 50 to plan
is already partially for later life amidst the
addressed through Covid-19 crisis.
the existing
‘Mid-life MOT’.
5. The Financial Conduct This Covid-19 has MaPS agrees that MaPS will continue to
Authority (FCA) should recommendation deepened existing consideration of engage in a constructive
explicitly require all firms aligns to the vulnerabilities and people’s vulnerabilities dialogue with the FCA on
to embed vulnerability ‘Credit Counts’ placed new people in how the sector vulnerability strategies
strategies that reflect agenda for change in vulnerable responds to Covid-19 and to support the FCA to
the ways that Covid-19 in the UK Strategy. circumstances. is important. guide financial services
has deepened existing Firms should firms to develop products
vulnerabilities, and implement that are mindful of
placed new people in strategies from Covid-19 vulnerability.
vulnerable circumstances. early 2021.
Firms should implement
strategies from early
2021.
6. The National Academy This People who are MaPS recognises and MaPS have co-
for Social Prescribing, recommendation referred into supports the developed the resource
Mental Health UK and is aligned to social prescribing opportunities that in conjunction with
MaPS should make their all agendas for services in NHS exist within locally Mental Health UK and the
new money support change within the primary care and designed and National Academy and it
resource rapidly available UK Strategy. who have a mix delivered social was made available from
through NHS social of money worries prescribing services October 2020 due to the
prescribing link workers and mental health to provide financial urgency of the situation.
in England by the end of problems. wellbeing support and
2020. guidance to those who
may need it as a result
of the Covid-19 crisis.Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 12
Recommendation Alignment to Target Group MaPS response Detail of how MaPS will
the UK Strategy deliver
for Financial
Wellbeing
7. Surviving Economic This People MaPS welcome this MaPS will support
Abuse should lead a recommendation (predominantly recommendation Surviving Economic
pilot of the Economic is aligned to the women) who from the independent Abuse to deliver a pilot
Abuse Evidence Form ‘Credit Counts’ have suffered a Chairs on of the Economic Abuse
for creditors and credit and ‘Better Debt double impact supporting those Evidence Form in England
reference agencies by Advice’ agendas from Covid-19 and who may be suffering by Summer 2021.
Summer 2021 (for full for change in the financial control as from economic abuse Additionally, MaPS will
roll-out in Autumn 2021). UK Strategy. part of economic amidst the Covid-19 explore opportunities to
It would need additional abuse. crisis. continue to support rollout
funding. This should by funding a phase of the
come from creditor and project in 2021/22.
credit reference firms.
8. FCA guidance requires This Those people who MaPS agrees with the MaPS will support this
firms to support people recommendation will be faced with independent Chairs recommendation by
coming out of Covid-19 is aligned to the financial wellbeing in recognising the continuing to make
payment deferrals with ‘Credit Counts’ challenges exiting potentially difficult the case for those who
increased overdraft or agenda for change Covid-19 payment situation for people may encounter financial
credit card commitments. in the UK Strategy. deferrals in the UK. coming out of difficulty when leaving
We urge firms as a default Covid-19 payment Covid-19 payment deferral
to offer repayment plans deferrals. processes. MaPS will also
and to waive interest for signpost to the ‘Money
people who are in serious Navigator Tool’, designed
difficulty. to help people manage
their finances in the light
of Covid-19.
9a. MaPS should carry This People who will MaPS welcomes MaPS will undertake a
out two reviews to help recommendation require debt advice and supports this rapid review of lockdown
the debt advice sector is aligned to in the context of recommendation and social distancing
address an expected rise the ‘Better Debt the Coronavirus from the independent and the demand for debt
in demand. Advice’ agenda for pandemic. Chairs. MaPS will advice.
change. work to deliver the
debt reviews within its MaPS will complete a
responsibility. review of customers
who are less well served
by debt advice to be
commenced in 2021/22.
9b. MaPS and Money This MaPS agrees that MaPS will continue MaPS commits to share
& Mental Health Policy recommendation consideration to engage in a and build on the evaluation
Institute should promote is aligned to the of people’s constructive dialogue data from existing
accessible debt and credit ‘Credit Counts’ vulnerabilities in with the FCA on pathfinder projects in
services for people with agenda for how the sector vulnerability strategies Scotland, Wales, and
mental health problems. change. responds to and to support the Northern Ireland.
Covid-19 is FCA to guide financial
important. services firms to MaPS will work with
develop products MMHPI to develop
that are mindful of accessible standards for
Covid-19 vulnerability. creditors.Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 13
Recommendation Alignment to Target Group MaPS response Detail of how MaPS will
the UK Strategy deliver
for Financial
Wellbeing
10. Fair4All Finance, This Covid-19 has left MaPS looks forward MaPS will consider how
Toynbee Hall and Fair recommendation many people with to seeing the out- it can support further
by Design — with HM is aligned to the reduced incomes. comes from Fair4All work, aligned with our
Treasury’s support, and ‘Credit Counts’ They may be more Finance, Toynbee Hall ‘Credit Counts’ agenda for
building on the findings agenda for change reliant on Universal and Fair by Design’s change.
from the feasibility study within the UK Credit. And they work on the pilot.
undertaken by London Strategy. may be unable to
Economics — should access affordable
progress the design and credit because of
pilot of a no-interest loans a contraction in
scheme targeted at those lending. Women,
most in need. lone parents,
and those on low
incomes have
been particularly
affected.
11. DWP should maintain N/A N/A This recommendation MaPS will share this
and extend relief is beyond the scope recommendation with its
measures put in place of MaPS and is for sponsor department, the
to help people who rely consideration by DWP. Department for Work and
on welfare benefits and Pensions.
whose finances have been
made worse by Covid-19.
It could go further
and make the consent
system for Universal
Credit consistent with
the system for legacy
benefits.
12. HM Treasury and This People who do not MaPS welcomes this MaPS works closely with
HMRC should further recommendation know the Gov- recommendation HMT and HMRC on the
build upon their efforts to is aligned to the ernment will boost from the independent promotion of ‘Help to
publicise ‘Help to Save’. ‘Nation of Savers’ any savings they Chairs. MaPS Save’ and will continue
They should now review agenda for change put into ‘Help to research indicates to engage constructively
their communications within the UK Save’ accounts. that incentivised during 2021.
plans and specifically Strategy. saving products work
target anyone newly well in attracting
eligible because of the savers and having
Covid crisis. financial incentives
to save, such as ‘Help
to Save’, help form
savings habits.
13. DWP should retain N/A N/A This recommendation MaPS will share this
the changes to Statutory is beyond the scope recommendation with its
Sick Pay (SSP) rules that of MaPS and is for sponsor department, the
have been introduced consideration by DWP. Department for Work and
to deal with the Covid Pensions.
crisis. It could go further,
by introducing reforms
to SSP that would make
it a stronger source of
financial support for
everyone, not just people
with Covid.Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 14
7. Northern Ireland
specific considerations
A challenging starting point pre Covid-19 Potential credit repayment guidance
During the virtual roundtable process in Northern The ability of people in Northern Ireland to repay credit
Ireland, many stakeholders highlighted the changed that they may have accessed under perhaps difficult
landscape for many families and the wider economy circumstances was a topic consistently raised during
post Covid-19. For example, all groups considered the the virtual roundtable process in Northern Ireland.
changed environments of the coronavirus pandemic Facilitating room for recovery and empowering people
and what they mean for those who need to access debt in Northern Ireland with guidance on credit was seen as
advice, credit, save for their future or even access their crucially important in the period after the Coronavirus
pension. pandemic.
The groups across the roundtables heard that ‘bills MaPS has developed the ‘Money Navigator’ online
decision making’ and the prioritisation of debt are journey to deliver money guidance to meet specific
causing extreme stress and anxiety in Northern credit guidance needs of consumers across the UK.
Ireland. Members of local organisations relayed the This is an online tool designed to help consumers take
experiences of individuals who have chosen mortgage control of their finances in the period after Covid-19.
over car payments or stockpiled a food budget rather The tool will make referrals for people urgently needing
than paying existing debt. to act and access debt advice. Furthermore, MaPS
has also secured funding from HMT for a digital, open
Families who do not have financial resilience could be banking enabled tool that can provide more individual
in trouble was a message constantly relayed by trusted money guidance.
partners and stakeholders. Many expressed that it
was a difficult task to begin with to look after financial These tools will need all partners involved across the
wellbeing – Covid-19 will most certainly exacerbate this devolved nations and in the sector to raise awareness
problem. with consumers that such support is available and
encourage uptake in the short-term post Covid-19.
The groups had collective conversations on the levels
of discretionary income available to people in Northern Representatives from organisations during the ‘virtual
Ireland – a challenging starting point pre Covid-19. One roundtable’ process in Northern Ireland on relayed their
stakeholder stated that the lowest 25% of the economic experiences in terms of the lending habits of people
population in Northern Ireland were already in a minus they support. In one case, the group heard that over
figure before the pandemic hit – what will the situation 60% of one organisation’s clients have indicated that
be in 6 months? they use credit to pay for household bills. Additionally,
according to 87% of women who undertook a survey
In Northern Ireland, before the onset of Covid-1910: facilitated by another organisation - they borrowed in
the last three years in the form of high cost credit used
n 51% of children report to not having had a
for everyday essentials.
meaningful financial education;
During the ‘credit counts’ virtual roundtables in
n 164,000 people often use credit to cover everyday
Northern Ireland, many discussed the considerable
essentials like food or bills;
lack of data in Northern Ireland in relation to credit
n 49% of working people fall into the ‘struggling’ or use. While MaPS figures indicate that 11% of people in
‘squeezed’ categories; and Northern Ireland (pre Covid-19) used credit for everyday
essentials, there is more to learn on why this is the
n 39% of people in Northern Ireland do not know what case and how to rectify it.
they need to plan for retirement.
10 https://maps.org.uk/2020/03/18/join-the-2030-financial-wellbeing-challenge/Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 15
For example, participants in the virtual roundtables pandemic12. This relative low rate of uptake was
pointed to previous UK surveys such as ‘The Wealth replicated in Northern Ireland too - only 49% of children
and Asset Survey’ that were not properly extended in and young people reported having had a meaningful
Northern Ireland - as a result some data sets are as financial education during the same time period13.
much as a decade old and not fit for purpose11. One
possible solution identified for the group was buying Indicators for financial capability amongst children
a module in the ‘Continuous Household Survey’ to and young people in Northern Ireland suggest that they
monitor access to credit on a yearly basis. may not be fairing as well as counterparts in England,
Scotland and Wales. Pocket money and other regular
money is significantly less common in Northern Ireland
The need for more accessible, affordable than in England. Whilst children in Northern Ireland
credit appear to have similar levels of recall for learning about
managing money in school overall compared to the UK,
During the virtual roundtable process in Northern only 29% of children aged 7 to 11 remembered doing so
Ireland, the group felt that it was no longer a tenable (compared to 55% in 2016), which appears lower than
position for Northern Ireland not to introduce average14. Positively, financial education is on both the
incentivised saving and credit products amongst those primary and secondary curriculum in Northern Ireland
who are ‘struggling’ or ‘squeezed’ – especially in the and is firmly embedded within the policy infrastructure
wake of the coronavirus pandemic. of the Department for Education15.
There was a threat, participants felt, that if action When discussing how to improve financial education
was not taken then there could be a rise in ‘doorstep’ in Northern Ireland during the virtual roundtable
and ‘payday’ lending – even illegal lending. Many process, many felt that while a GCSE is often a proxy
in the roundtable session expressed concern that for knowledge and an ability to practice – it must be
if immediate support/products were not offered – embraced in order to be effective.
negative lending choices may be pursued by people in
Northern Ireland. The group overall felt that a GCSE on financial
capability may be one way to standardise a higher
During the virtual roundtable process participants level of financial education across the spectrum in the
reflected on some of the structural problems that may long term. Importantly, members of the group felt that
exist in Northern Ireland when considering possible although qualifications may look good ‘on paper’, work
interventions in the areas of credit use and affordable needed to be undertaken to make sure a future GCSE is
credit. For example, at present Northern Ireland has a valued.
separate dormant bank account scheme that doesn’t
leave options for exploring funding arrangements for In the absence of a longer-term GCSE on financial
alternative credit open. Another point raised was that capability, many began a discussion on ‘LLW’ and its
Northern Ireland may face some structural difficulties role in terms of financial capability. ‘Learning for Life
surrounding risk profiles and the capacity to lend. and Work’ is a pre-existing qualification in Northern
Ireland and does include elements of financial
In Northern Ireland, credit unions can only charge up education16. The group considered whether, in the short
to 1% and the risk profile in terms of lending is much term, it would be a good idea to bolster LLW before
lower. A key long-term challenge will be navigating looking more long term to a new GCSE on financial
some of the subtle structural differences to implement capability.
interventions.
In order for this to be successful it would require
significant partnership working with the Council for the
The importance of financial education in Curriculum, Examinations & Assessment (CCEA) and
Northern Ireland the Department for Education in Northern Ireland.
According to MaPS statistics only 4.8 million children In November 2018, 340,000 copies of the very
across the UK had reported having a meaningful first financial education textbook in the UK,
financial education before the onset of the coronavirus Your Money Matters, were distributed to English
11 https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/debt/methodologies/wealthandassetssurveyqmi
12 https://maps.org.uk/wp-content/uploads/2020/03/Financial-Foundations-Challenge-Pack-UK-Strategy-for-Financial-Wellbeing.pdf
13 See above
14 See above
15 https://ccea.org.uk/learning-resources/financial-capability
16 https://ccea.org.uk/key-stage-3/curriculum/learning-life-workBuilding Northern Ireland’s financial wellbeing after Covid-19: the story so far 16
secondary schools17. The textbook, funded jointly by It is critical that the sector builds a robust evidence
MoneySavingExpert.com founder Martin Lewis and base to better understand these clients, including who
the Money & Pensions Service, will be sent for free to they are, the factors behind their challenges and what
schools in Northern Ireland alongside an accompanying potential solutions might be available for them.
‘teacher’s guide’. During the virtual roundtable process
in Northern Ireland on financial education, many
stakeholders felt that making the textbook available Mental health considerations
as a resource quickly was a possible solution to build
Mental health and money problems are often
future financial resilience post Covid–19.
inextricably linked. One in four UK adults experiences
a mental health problem each year20. Mental health
Preparing for an increased demand for debt problems can affect a person’s ability to process
information and solve problems, deplete their energy
advice
and motivation, and increase impulsive behaviour.
MaPS anticipates that there will be a large increase People with mental health problems have poorer
in those needing support, especially over the next financial wellbeing overall21.
few months (October – January), as people exit from
In Northern Ireland, Queen’s University Belfast, in
the payment holidays and government interventions
partnership with other organisations, have assisted
currently in place and as a result of broader macro-
The Mental Health Foundation in undertaking research
economic impacts. MaPS forecasts a rise in the need
on The Covid-19 Pandemic, Financial Inequality and
for debt advice both this year and extending into 2021.
Mental Health22.
The debt levy is distributed by the NI Executive through
The Report states that employment is one of the most
the Department for Communities18. At a local level, debt
strongly evidenced determinants of mental health.
advice is delivered by a lead charitable organisation
Lack of access to either employment or good quality
registered with the Charity Commission NI and
employment can decrease quality of life, social status,
supported by 13 affiliate members who ensure that an
self-esteem, and achievement of life goals.
on-the-ground presence is maintained within each of
the 11 local councils. Stakeholders in Northern Ireland were concerned about
the overall financial resilience of families post Covid-19.
Before the onset of the coronavirus pandemic in
Participants in the ‘virtual roundtable’ process heard
Northern Ireland, 29% of people had accessed the debt
that ‘bills decision making’ and the prioritisation of debt
advice that they need Additionally, people in Northern
are causing extreme stress and anxiety.
Ireland had the highest levels of over-indebtedness
across the UK (20% vs. UK average of 15%)19. Different organisations relayed their experiences
of individuals who have chosen mortgage over car
In Northern Ireland, during the virtual roundtable
payments or stockpiled a food budget rather than
process, groups considered the changed
paying existing debt. Families who do not have financial
circumstances of the coronavirus pandemic and
resilience could be in trouble. Many stakeholders
what they mean for those who need to access debt
expressed that it was a difficult task to begin with to
advice. Many highlighted the isolation that sections of
look after financial and mental wellbeing – Covid-19
Northern Ireland may now feel, especially in the wake
will most certainly exacerbate this problem.
of mounting debt pressure. Participants in the virtual
roundtables recognised that this situation is not normal
and that all providers must be ready for what the ‘new
normal’ looks like. Preparing for a ‘new normal’ includes
preparing for customers that for whom, resolution may
seem particularly challenging.
17 https://yeni.co.uk/programmes/your-money-matters-textbook/
18 https://www.communities-ni.gov.uk/publications/provision-free-debt-advice-services-northern-ireland-screening
19 https://www.fca.org.uk/publications/research/understanding-financial-lives-uk-adults
20 https://www.mind.org.uk/information-support/types-of-mental-health-problems/statistics-and-facts-about-mental-health/how-common-are-mental-health-
problems/#:~:text=1%20in%204%20people%20will,week%20in%20England%20%5B2%5D
21 https://maps.org.uk/wp-content/uploads/2020/03/Mental-Health-and-Financial-Wellbeing-Challenge-Pack-UK-Strategy-for-Financial-Wellbeing.pdf
22 https://daro.qub.ac.uk/Coronavirus-and-mental-health-Building Northern Ireland’s financial wellbeing after Covid-19: the story so far 17
Financial Wellbeing referrals As a possible solution, many in the virtual roundtable
process considered that an additional toolkit for
During the virtual roundtable process, providers and social workers may help them to better identify and
stakeholders in Northern Ireland pointed to the need refer those individuals whose wellbeing would be
to adapt to current challenges arising post Covid-19 considerably improved by financial wellbeing support.
by signposting and referring appropriately. As well as
exploring possible future options for social prescribing
in Northern Ireland, many participants during the virtual Planning for later life
roundtable process pointed to other avenues within
The Coronavirus pandemic is having an impact on
health and social care.
the attitudes of consumers across the UK in terms
One possible solution considered by the groups was of saving for and accessing their pensions. Research
using general practitioners (GPs) as a useful referral by Scottish Widows indicates that some people may
mechanism in Northern Ireland to financial wellbeing be thinking about utilising their pensions early - 33%
support. Increased multi-disciplinary team involvement of those with financial worries due to COVID-19 say
in primary care may help early intervention and it would be helpful to have access to some of their
prevention within financial wellbeing presentations pension savings23.
(considering the social determinants of health and
Policy issues surrounding accumulation (building your
poverty).
savings and pension pot) and decumulation (making
Building on the discussion around GPs and primary financial decisions on drawing down pensions) are
care overall, many participants affirmed that finding directly relevant to policy levers in Northern Ireland
a ‘trusted partner’ for the referral to debt advice or surrounding poverty, equality, protecting the vulnerable
financial wellbeing support was crucially important. in society, financial assistance and population health.
In some cases, this may be public services, an
Outcome 4 of the NI Programme for Government (we
employer or even a government department. Partners
enjoy long, active healthy lives) identifies that ‘For
in communities were also highlighted by the group as
individuals, families and communities to take greater
trusted partners. Community groups, social groups and
control over their lives and be enabled and supported
even charities may be appropriate channels for debt
to lead healthy, active lives; ongoing collaboration
advice referral. One additional link between healthcare
is needed across government and with local
services in Northern Ireland and financial wellbeing
government’24. Part of ‘taking control’ of their life for
may come in the form of the role of social workers in
an individual is undoubtedly having control over their
intersecting with vulnerable people at key stages in
financial wellbeing and the decisions they may take in
their life.
later life.
23 https://www.scottishwidows.co.uk/global/coronavirus/
24 https://www.executiveoffice-ni.gov.uk/topics/making-government-work/programme-governmentYou can also read
