Evaluation of the Community Development Programme in Financial Literacy and Basic Skills

EVALUATION OF THE COMMUNITY DEVELOPMENT PROGRAMME IN FINANCIAL LITERACY AND BASIC SKILLS

Summary Report

Sue McMeeking

Robert Smith

Anne Lines

Louise Dartnall

Sandie Schagen

August 2002

CONTENTS

page

1.INTRODUCTION......

2.POSITIVE ACHIEVEMENTS......

2.1The LEA Strand......

2.2The Citizen’s Advice Bureaux Strand......

2.3The Credit Union Strand......

3.KEY ISSUES AND RECOMMENDATIONS......

3.1 Financial Literacy and Basic Skills......

3.2 Locally-based Provision......

3.3Organisation and Management......

3.4Staffing Issues......

3.5 Reaching the ‘Hard to Reach’......

3.6 Delivery......

3.7 Continuation and sustainability......

4.CONCLUDING REFLECTIONS......

INTRODUCTION

1.INTRODUCTION

In response to a report from the Adult Financial Literacy Advisory Group (AdFLAG), the Basic Skills Agency (BSA) developed a programme which aimed to reach socially excluded adults. One part of the programme focused on 15 community projects in disadvantaged areas that would develop and pilot models of delivery aimed at improving both financial literacy and basic skills. The projects were developed in partnership with Citizen’s Advice Bureaux (CABx), Credit Unions (CUs), and local education authorities (LEAs). These three development areas (referred to as ‘strands’ in this report) adopted different approaches to tackling the problems of basic skills and financial literacy:

The LEA Strand: sought to extend and strengthen the ‘My Money, My Life’ course developed by Coventry LEA, through the addition of a basic skills focus. Three LEAs took part (in addition to Coventry), and the course was trialled at three or four locations in each.

The CABx Strand: piloted approaches to the development of basic skills and financial literacy in five CABx located in the East and West Midlands. The focus was on the setting up of programmes, development of material and the raising of staff awareness.

The CU Strand: The Association of British Credit Unions Limited (ABCUL) worked with its chapter of Credit Unions in the Newcastle area to develop a training programme that could be used for all Credit Unions in the Association. The intention was that the course would be piloted in six CUs, although what happened in practice was rather different.

The NFER was commissioned to undertake an evaluation of these projects, which aimed to highlight examples of good practice and factors critical for success. The evaluation relied primarily on qualitative information, derived from interviews with project managers, tutors and learners. Visits were made to some individual projects and telephone interviews carried out with the managers of others. Because the development of the CU strand was limited, there was less scope for evaluation.

Part 2 of this brief report summarises the experience and achievements of the community projects, looking first at the overall picture and then at each of the three individual strands. Part 3 focuses on specific issues arising during the course of the evaluation, and presents our recommendations for future programmes of this type in response to these issues. Part 4 provides some concluding reflections on the key points which emerged.

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POSITIVE ACHIEVEMENTS

2.POSITIVE ACHIEVEMENTS

Whilst the three strands were quite different in the approach adopted, there were some similarities between them. All targeted those with basic skills and financial literacy needs in areas of socio-economic disadvantage. These areas were characterised by high unemployment and high numbers claiming benefits; where employment was available it was low-skilled, low-paid and often temporary. A variety of financial issues, including debt, welfare rights and benefits, were prominent in these areas. The projects gained from involvement in the initiative in a number of ways:

All of the strands gained experience from working with a variety of local and national partners, including voluntary and community organisations, FE colleges and the BSA. Existing relationships were reinforced and new links were forged. The collaboration was generally seen as very positive and of benefit to all partners involved.

Those involved gained experience of programme development, promotion, recruitment and delivery in a variety of settings and with various target groups. This led to an awareness of the issues in developing and delivering basic skills and financial literacy provision, and enabled organisations to consider the role they might play in local provision of this kind. Positive gains were reported by learners, in basic skills, financial literacy and aspects of personal development, most notably self-confidence. A variety of ‘organisational’ gains included a broadening of the role played in the local community and an expansion of provision for those in need.

A variety of financial literacy and basic skills resources were developed and/or adapted. These included a range of paper-based resources as well as a website, and materials with a focus on awareness-raising, training, teaching, guidance and learning.

Below we give further details of the experiences and achievements of each individual strand.

2.1The LEA Strand

The ‘My Money, My Life’ course was managed by officers with responsibility for lifelong learning in collaboration with community-based organisations and welfare rights teams. Delays occurred in setting up the courses, and managers felt that more lead-in time was required. Tutors were qualified in basic skills, but few had previous involvement in financial literacy. To compensate for this, the course drew on the experience of other organisations.

Recruitment of learners was generally face-to-face, via partner organisations. Tutors adapted the materials to meet the needs of individual learners. Attendance and retention varied and it was felt that a shorter course, or a modular approach, would have been more appropriate. The importance of appropriate and accessible venues was emphasised. Some learners had a need for help with either basic skills or money management, but had no need (or were unwilling to admit a need) for help in the other area.

The LEAs reported that, through their participation in the programme, they had gained a better awareness of the BSA’s priorities and methods of working. At the same time, the LEAs gained valuable knowledge by working with existing partner organisations, and forging links with new partners. In several cases the capacity of partner organisations to deliver basic skills and financial literacy courses was extended.

A number of LEAs said that the experience of delivering ‘My Money, My Life’ would make it easier to deliver a similar programme in future. This included better understanding of issues such as:

the amount of lead-in time which was required

how best to deliver the programme

how to recruit learners

where to deliver the programme.

The programme provided a good opportunity to trial the materials in a variety of settings. Those involved felt that important lessons were learned about how the material could be used with different target groups, and many of the tutors had developed a range of teaching and learning materials and guidance material for learners.

The basic skills tutors said that they felt they had learned a great deal about financial literacy and in general they felt that working with welfare rights advisors had been a positive experience. It was felt that basic skills tutors and welfare rights advisors understood each other better and would therefore be able to collaborate effectively in future. In addition, the tutors felt more informed about the most appropriate ways of assessing progression. Those who had delivered the programme also said that they had a better understanding of the range of existing knowledge about finance and that they knew more about the priorities of learners and their different needs.

Some of the learners felt more confident about dealing with people ‘in authority’, especially in dealing with financial institutions and benefits agencies. A number of learners had gained a better understanding of their entitlements after they had attended the ‘My Money, My Life’ sessions. Some were more confident about handling money and were able to organise their money more effectively.

2.2The Citizen’s Advice Bureaux Strand

The CABx programme was able to build upon the reputation the organisation has within the community, the trust of its clients and its links with other community groups. It was also able to build upon its expertise in various aspects of financial literacy, particularly debt and welfare rights. Individual projects sought to promote basic skills and financial literacy through the development of resources, the provision of courses on-site, and one-off events delivered at the premises of other local community groups.

It was generally felt that the timescale for the initiative, exacerbated by delays, was too short. Programmes were managed by CABx staff/volunteers, but often brought in expertise in the form of basic skills tutors (usually from local FE colleges) to assist in development and delivery. There was some resistance to the initiative from staff and volunteers, alleviated in some cases by awareness-raising and training.

Despite heavy marketing and promotion, using a variety of methods, the number of learners recruited onto the programmes, in some cases, was low. However, once learners were engaged with the programmes, attendance and retention was generally good. A tailored, one-to-one approach was adopted to meet the specific needs of learners. There was an emphasis on informality and a close working relationship between tutor(s) and learners. Where viable, learners met in groups whilst pursuing individual learning plans, but where there were bigger groups of learners, facilities were stretched. Learners liked the anonymity of the CABx setting; they trusted staff and reported development of their basic skills, financial literacy skills, and self-confidence.

By including basic skills/financial literacy in their remit, the various CABx felt able to offer clients a more holistic package of advice and support. The CABx were new to the area of basic skills provision and were able to expand the view of the role of the organisation amongst staff and volunteers. They were now in a position to offer clients (and in some cases, their own volunteers) a service that had previously not existed.

In the light of the experience with this initiative, individual CABx were able to consider the role they might play in this provision in their local area and what would be most suitable in individual circumstances. Several roles were envisaged: as a provider of specific basic skills/financial literacy programmes, as a referral agency, or as a facilitator of other local providers.

2.3The Credit Union Strand

The main focus within the CU strand was in developing a financial literacy training package for CU members. It was envisaged that this generic training pack would serve to develop the basic skills and financial literacy of members and inform them of how banking accounts work and how to operate and manage their CU accounts. ABCUL worked with an FE college in the North East and with local CUs to develop the programme. Development was hampered by a series of delays, and staffing difficulties at ABCUL and the college, so the training pack was not ready to be trialled until the end of March 2002 when a weekend training course was arranged for local CUs. Because it was arranged at short notice and inadequately advertised, it was poorly attended and did not reach the intended target group.

As the planned training courses did not take place, the remaining funding was spent on producing additional copies of the marketing materials (‘statement stuffers’), which were welcomed by CU delegates at a recent conference. ABCUL now has a good supply of these leaflets, which are being made available to CUs. It is intended that the leaflets will be sent out with statements to existing members and on receipt of enquiries from new members. An ABCUL website is active (although the training pack cannot yet be made available on the site) and other developments are envisaged.

ABCUL would want the training pack to be revised to make it attractive to learners. Some CU members questioned whether this type of provision was appropriate for CUs who might be better referring clients to other providers.

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KEY ISSUES AND RECOMMENDATIONS

3.KEY ISSUES AND RECOMMENDATIONS

In this section of the report, consideration is given to some of the fundamental cross-strand issues which the evaluation served to highlight. At the end of each individual issues section, recommendations for future provision, drawing upon the experience of the 15 community programmes, are highlighted. It is envisaged that a successful ‘model’ for basic skills/financial literacy programmes will reflect this experience and take elements of good practice from each strand.

It is considered that these issues and recommendations could inform the deliberations of:

those, like the BSA, responsible for the development and promotion of this type of joint provision across a variety of organisations at a national level

individual community-focused groups like the Citizen’s Advice Bureaux and ABCUL considering the adoption of such programmes for their member organisations

local agencies attempting to provide the most appropriate support to those in need in local communities.

The development projects were based on the principle of providing help with financial literacy and basic skills. The merits of jointly addressing these two areas of need are discussed first. This is followed by an examination of the value of locally-based provision which the initiative sought to promote, issues concerning the organisation and management of programmes like these, staffing issues, the recruitment of learners, aspects of programme delivery and programme sustainability.

3.1 Financial Literacy and Basic Skills

There are clear and strong links between financial literacy and basic skills. To be financially literate requires basic numeracy skills (e.g. ability to deal with percentages) and also basic reading skills (to understand entitlements to benefits, or the conditions attaching to a loan). Basic skills might therefore be regarded as a prerequisite for financial literacy. However, the link is two-way, as money management can provide a useful and practical context for acquiring or practising basic skills.

To provide help in both basic skills and financial literacy, as the development projects sought to do, was a natural and potentially fruitful idea. It has to be noted however, that despite the strong links, some people who need help in financial literacy may not need or want help in basic skills, and vice versa. Examples of this were found among the clients for the LEA courses. Some learners who wished to find out about welfare rights were not happy to discover that their course dealt with basic skills; others, interestingly, were willing to admit their need for help with basic skills, but felt there was a stigma attached to being unable to cope with money management.

The CABx were possibly more successful in this respect, as programmes of learning were tailored more closely to individual needs. They could therefore, in principle, focus on basic skills or financial literacy, according to need. However, it emerged that, in some cases, the emphasis reflected not only client need but also the expertise of the tutor, which might be almost exclusively in one of the two areas. There were a few cases where two people worked successfully together to provide the required expertise: for example, a basic skills tutor from an FE college was supported by a volunteer who specialised in welfare rights issues.

Recommendations

In order to avoid these problems, it might be helpful if courses could be devised with a modular structure: perhaps a first part focusing on basic skills (though using finance-based examples, problems and issues) and the second part focusing more specifically on money management. This would mean that learners could attend either or both parts as appropriate. It would also mean that the two parts could be led by different tutors, if no individual tutor felt equipped to deal with both aspects of the course.

3.2 Locally-based Provision

The three types of organisation involved in the initiative attested to the importance of being able to tailor programmes to the needs of local communities and for individual clients. Local knowledge of the community and knowledge of the needs of clients was seen as essential in this respect. Clearly the organisations involved were able to build on their expertise in this area in developing specific programmes for the socially excluded. However, this is a difficult and by no means homogenous group and the organisations experienced varying degrees of success with respect to recruitment. The evaluation indicated that local community organisations, such as the ones included in the initiative, might play a variety of roles in the provision of basic skills/financial literacy programmes. This might be as a provider to their own clients or to other client groups, as a referral agency, or as a base for ‘outreach’ provision by a college or CAB.

It is clearly important that courses should be run in a suitable location – one that those being targeted can reach easily, and where they will feel comfortable. One possibility is to run the courses in centres where potential learners are already gathered; if local community organisations help to recruit learners, they may also be willing to host sessions. Venues used by LEA groups included day centres and advice centres, although a bail hostel and a Social Services family centre proved to be less satisfactory. Learners also proved willing to attend CABx, as they welcomed the anonymity of the setting, although facilities were not always adequate.