2007/2008
Promoting financial inclusion and tackling over-indebtedness
Financial inclusion
South Tyneside has been recognised by the government as one of the best councils in the country for its work in promoting financial inclusion and tackling over-indebtedness.
South Tyneside Council's Beacon Scheme application 2006
South Tyneside Council's Beacon Scheme assessment 2006
Tackling debt
The story behind us achieving Beacon Status for promoting financial inclusion and tackling indebtedness.
About financial exclusion and over-indebtedness
Financial exclusion and over-indebtedness continue to present us with a real challenge.
People at the lower end of the income distribution are more likely to be in arrears, suggesting that financially excluded people have a greater likelihood of becoming over-indebted.
People without access to bank accounts are far more likely to use the alternative credit market – and pay interest many times that of a standard overdraft.
Over-indebtedness can be caused by and contribute to financial exclusion, social exclusion and poverty.
Local authorities can make an important contribution through their day-to-day contact with financially excluded individuals, through corporate debt management policies, and as funders and providers of money advice.
Local authorities are well placed to make a real impact on financial exclusion and over-indebtedness. Beacon authorities demonstrate the benefits of their work in this area, and are willing to share experiences and best practice with others.
Other useful documents
Enterprise in Disadvantaged Communities
A research report into a Neighbourhood Renewal Fund Project in South Tyneside.
