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Forum Home  →  Discussion  →  Other areas of social welfare law  →  Thread

Jam Jars.

Rehousing Advice.
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Homeless Unit - Southampton City Council

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There has been a lot of discussion around Jam Jars….

In the good ole days, your local housing officer ( Ok this is a long time back when local housing offices existed and officers visited) was tramping round his/her patch, they used to advise their tenants to put their rent money in a seperate jam jar, from the other household bills, thus cunningly ensuring that the rent would always be paid…..

Times changed and govts gave up with the cunning idea of social tenants on housing benefit having the HB paid direct to their rent account, cleverly negating the rent collection process…Genius.

Rather than HB pay the tenant then getting the landlord to collect the rent…Hb was paid direct to the social landlord.


Times changed, and we are about to approach the end of HB direct for social tenants (in most cases) and we are back to the age old question, how do landlords collect the rent.

Cometh the hour. The Jam Jar is reborn!

One problem, unlike the old jam jar…  these new jam jar accounts seem to have a high cost.

Everybody seems to think this a billy whizz idea, but getting folks, with little money to pay for help managing their money, raises questions. Of course Social landlords could whack up rents to finance this, but then why should good rent payers subsidise poor rent payers?

I havnt dont much research on this but have been quoted figures of up to £30.00 a month to administer a Jam Jar account….

I would be interested if RN advisors know of any cheap Jam Jars schemes, which are suitable for “Vulnerable folks” that struggle to pay the rent.

Do you use Jam Jars accounts with your clients? Do they really work?

Any help gratefully received.

 

 

 

 

Inverclyde HSCP Advice Services
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MartinB - 21 August 2014 11:11 AM

Of course Social landlords could whack up rents to finance this, but then why should good rent payers subsidise poor rent payers?

Because supporting people to manage their rents reduces arrears and benefits all tenants reduces other costs such as evictions… and of course the costs of rehousing people

Some credit unions seem to be able to provide jam jar services - see inside housing:

http://www.insidehousing.co.uk/finance/landlords-pay-tenants-to-open-‘jam-jar’-accounts/6523366.article

 

Bryan R
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Folkestone Welfare Union

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Some of my clts are already using Jam Jar Accounts through a kent Credit Union, they are charged 5 pounds monthly.

Also there is one in Coventry & Warwickshire which sets out wht they do how much they charge etc. I have attached it below.

Most Clts seem to like the idea and get on well with them, they have said there a few teething problems to begin with but once they are up and running they really do assist them tremendously.

 

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Ben E Fitz
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Welfare Benefits Caseworker, Manchester CAB Manchester

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If my bank can operate a current account which is free of charges as long as in credit, why are these organisations charging the poorest and most vulnerable for essentially the same service?

I have a word for it:-profiteering.

Disgraceful. I would not advise my clients to participate in any such fee charging scheme.

BC Welfare Rights
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Yeah, funny one. My instinct is to agree with Tony and Ben, these things are a rip-off and another tax on the poor. However, I have come across quite a lot of clients who really like them; they find that it takes the stress out of budgeting. They know that their bills will get paid every month and are happy to pay a few quid for this. When I suggest direct debits and the like as a free alternative a look of panic crosses their face and stress levels rise just thinking about it.

Like paying an accountant to do your tax returns I suppose, just a higher proportion of a much tighter budget.

Inverclyde HSCP Advice Services
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What is happening at the moment is a fudge. Banks were supposed to be funded to set up jam jar accounts (part of Universal Credit budgeting support) but banks aren’t playing ball. This means the accounts aren’t widely available and have high charges where they are available.

See thread on job for IDS promoting tripe. More of the same.

Ros
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Here’s DWP press release from September 2012 saying that -

‘The Government is seeking providers who can supply products with extra budgeting functions to support claimants as they move to the new benefit Universal Credit.

The Government expects interest from a wide range of financial providers, including high street banks, mobile phone operators and pre pay card providers.’

https://www.gov.uk/government/news/new-financial-products-to-help-universal-credit-claimants-manage-money

Also, Lord Freud speech to Centre for Responsible Credit Annual Conference from September 2012 saying that the introduction of the new benefit had provided the DWP with an opportunity to offer all claimants access to suitable banking products and that the government had published a Prior Information Notice alerting suppliers that it was ready to engage with the market to explore this proposition, with a budget of up to £145m for suitable financial products -

https://www.gov.uk/government/speeches/centre-for-responsible-credit-annual-conference

Can’t find anything about outcome of invitation…

Ben E Fitz
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Centre for Responsible Credit????????

Almost as big a contradiction in terms as “military intelligence”!!!

benefitsadviser
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Ben E Fitz - 21 August 2014 01:10 PM

If my bank can operate a current account which is free of charges as long as in credit, why are these organisations charging the poorest and most vulnerable for essentially the same service?

I have a word for it:-profiteering.

Disgraceful. I would not advise my clients to participate in any such fee charging scheme.


But thats how banks work though isnt it?

People who work and pay in £1000+ a month will get free banking as they will make money from millions of folk, each depositing a grand plus a month into their accounts.

Paying benefits is small fry and not worth their time unfortunately.
I remember an old saying : The banks will give you an umbrella on a sunny day and want it back when it starts raining. Says it all really…..........

Rehousing Advice.
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Ok you decide to forget about jam jars. Universal credit wont be coming in this side of the election (will it)

Your next client is a couple with six children. They are struggling to pay their rent on a private AST. You quickly ascertain that it a Total Benefit Cap case (there HB has been cut)and they are now £55.00 week short…

You do the obvious…Look for an exemption (nope)

Dhp? (they have beebn awarded it for 6 monthes it has now stopped)

Better off calcuation (no jobs around).

Local Welfare provison? (they are already getting food parcels….)

They will just have to budget within the Total benefit cap.

Eureka.

We can set up a Jam jar account and its only £15.00 a month at the local credit union. After 3 month saving they can even get credit at very favourable terms…...

Perfect….. or is it?

Any views?

Nicky
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benefitsadviser - 21 August 2014 03:44 PM
Ben E Fitz - 21 August 2014 01:10 PM

If my bank can operate a current account which is free of charges as long as in credit, why are these organisations charging the poorest and most vulnerable for essentially the same service?

I have a word for it:-profiteering.

Disgraceful. I would not advise my clients to participate in any such fee charging scheme.


But thats how banks work though isnt it?

People who work and pay in £1000+ a month will get free banking as they will make money from millions of folk, each depositing a grand plus a month into their accounts.

Paying benefits is small fry and not worth their time unfortunately.
I remember an old saying : The banks will give you an umbrella on a sunny day and want it back when it starts raining. Says it all really…..........

The account i have doesn’t work like that - no minimum deposit a month, no overdraft and DD-abled….