Income Maximisation – Reclaiming the billions owed to the vulnerable in society

Something different as I double up on my (monthly?!) newsletter!

💭 Will Open Finance give people the £19 billion of financial support they are due?

Bringing Greats Together

Last month, I was at Parliament, joining in on the discussion about poverty, benefits, Government and data, and in the hope of getting closer to putting the £19bn into the hands of the vulnerable who need it.

Event title:

“Income Maximisation – Reclaiming the billions owed to the vulnerable in society.”

I was honoured to be invited by the amazing team at IncomeMax, Daniel Woodhead and Founder Lee Healey.

The event held on July 19th was attended by some amazing individuals and organisations, including Liz Barclay, UK Small Business Commissioner Financial Inclusion Commission, Paul Maynard, MP, Deven Ghelani from Policy in Practice, and Emma Schoolar The Trussell Trust. I also got to meet and reconnect with some other wonderful people, including CJ Tayeh from Flank, Thomas Lawson from Turn2us and Bob Winnington, the CEO of the Money Advice Liaison Group Ltd.

➡️ Event Highlights:

Big Problem

💡 The benefits issue is HUGE. From the challenge people face accessing the money, to the stigma the nation has about the claiming of benefits, and the fact benefits are not sufficient to support those who need them.

The Potential Impact

💡 If the £19bn were distributed to those who need it, they would get an additional £3,500 every year! This does not just provide financial support but, as Lee mentioned, it provides stability, improves mental health and reduces loneliness, and more.

Problems With The Benefits Calculation

💡 Emma highlighted the problem with the way the basic benefits are calculated - as a percentage increase each year and not in relation to the cost of living - and the work she is doing to address this.

Using What We Know About Human Behaviour

💡 We discussed the fact that we have not made use of what we know about humans, behaviour and psychology. Money is a taboo subject and claiming benefits is seen negatively in society, so a focus on helping people to overcome the stigma, shame and embarrassment of claiming benefits is key. More importantly, we should not make people have to go out looking for their benefits - why can benefits not be given to the people who we already know need them? (Councils and providers know exactly who is eligible for benefits.)

Is Open Finance The Answer?

💡 There was a HUGE focus on making use of Open Finance. Open Finance has the potential to put control of financial data back in the hands of customers while allowing third parties to access a broader range of customer data from savings accounts, investments, pensions, mortgages, insurance and much more. This could help with the challenges that the benefits system currently faces, currently causing people to miss out on £19 bn per year, as data would be easier to access and share.

A Positive Outlook

💡 It was a positively emotional room, filled with honest experiences and stories about job losses, rocky marriages and claiming benefits for the first time. We also discussed the work that many organisations and local councils are doing to support those in need, such as IncomeMax, StepChange Debt Charity, Turn2us and Policy in Practice.

It was a great event. I learned a lot about the benefits system and the many great organisations in this space, and I connected with some impressive people.

❓ What are your thoughts on this topic?

#IncomeMaximisation #Benefits #Poverty #FinancialWellbeing