Policy and Government

Universal Credit has been in the spotlight for much of the past few years, and the 2018 Budget at the end of October saw no change. Today CAP has released a policy note to take stock of where we are and precede a series of briefing papers sharing insights into the areas in which claimants continue to be caused hardship. We welcomed the changes seen in the Budget, including the increase of the work allowance and the reduction in maximum debt repayments, but with the resignation of Esther McVey, we need the next Secretary of State for Work and Pensions to keep the momentum going. To read more, please click below.

Last week we took part in Talk Money Week, designed to place emphasis on talking about money. This is part of the Money Advice Service (MAS) Financial Capability Strategy for the UK. We attended the joint MAS and Money Advice Liaison Group (MALG) conference and have been promoting our CAP Money and CAP Life Skills courses across the country. Check out our blog here, looking at why it's good to #TalkMoney.

CAP broadly supports Ofgem's design and methodology proposed for the default tariff cap, but although it will offer universal price protection to all, many will not see a material benefit. This is especially true of those consumers who use little energy because they cannot afford it, who will see little to no reduction in their bills. 42% of CAP clients cannot afford to sufficiently heat their homes and as a result we feel that a price cap is not the right vehicle to address this deeper affordability issue. Consideration and a deeper intervention is needed for those on low incomes who struggle to afford their energy bills. To read our full response, click below.

Today Christians Against Poverty (CAP) has launched the findings of London School of Economics (LSE) Housing and Communities' twelve-month research project detailing CAP’s Social Return of Investment. LSE’s research concludes that CAP’s approach is more intensive, personal and holistic than most approaches to poverty relief. For every £1 invested, CAP delivers £3.60 of social benefits. Read the full report and summary report here.

CAP has responded to the FCA’s consultation on overdrafts, as part of their wider high-cost credit review. We welcome the focus on overdrafts, as this is an area of harm for many of CAP’s clients. The draft rules propose to reduce harm through building awareness and engagement in the market. We welcomed the ideas of online eligibility tools and charges calculators, but were concerned that this would not help those digitally excluded. We also fed into how the FCA plan to tackle complex pricing structures and high fees and charges. To read more, click below.