New post will help the poorest manage money better

More help is on its way for residents of affordable housing providers to develop their financial know-how from next month.

The Chartered Institute of Housing (CIH) has appointed a new Financial Capability Advisor to work with councils, ALMOs and housing associations to ensure their residents have access to the range of services that can help them to plan, save and manage their money better.

The new post, funded by the Financial Services Authority (FSA), is part of a drive to help people budget, save for the future and prevent them falling into debt. Social housing tenants account for 70% of the most financially excluded in the UK, with less access to mainstream financial services than other groups and with a recognised need for better money management advice.

In an increasingly cash-less society those that aren't engaged risk being left behind. A significant proportion of the population still prefers to use cash, and is penalised by higher utility bills and less competitive pricing by being unable to shop on-line, for example.

The FSA has led the National Strategy for Financial Capability since 2003 and is working in partnership with CIH to encourage individuals living in affordable housing to take charge of their own finances, plan ahead and choose products that meet their needs.

CIH's new Financial Capability Advisor, Sharon Wheeler, who takes on her role on 11 June, will help councils and housing associations develop strategic approaches, working in partnership with others.

Sharon said: "I'm so excited about this new challenge. We know that social housing tenants often miss out on good value loans, the best savings products and cheaper gas and electricity prices because they don't have a bank account or are not confident in planning their finances. Working for the CIH, I will have the chance to reach many of these people through their council or housing association landlords, who are often the only trusted link to money advice and reputable banking services. "

Merron Simpson, CIH Head of Policy said: "Financial capability now is firmly on the Treasury's agenda - with a commitment to establish a new generic financial advice service and support to develop the role of credit unions and other third sector lenders. Local authorities, ALMOs and housing associations have a huge role to play - being landlords to many of the most financially excluded people. We are delighted to be working with the FSA to promote learning within the sector - to develop preventative strategies that will enhance their residents' life-chances as well as reduce their rent arrears and indirect costs associated with debt problems" .

Martin Coppack, Development Manager at the FSA said: "We are delighted to be working with the CIH. It's essential that we work with partners who really understand the needs of their clients and the everyday problems they face in getting to grips with their finances".