DWP Financial Inclusion Team - Third Sector Tender Exercise
29th January 2010
DWP Financial Inclusion Team – Programme Costs Fund
The Department for Work and Pensions administers the Financial Inclusion Champions Initiative on behalf of HM Government. The initiative is designed to increase the awareness of financially excluded people about the services available to help them to manage their money better, including how to set up basic bank accounts, access financial services including low cost loans, start saving, and where they can get financial and debt advice.
The DWP Financial Inclusion Champions are seeking proposals from Third Sector not for profit organisations to support small-scale financial inclusion initiatives. It must be stressed that this is not for creating any new national projects, but for reinforcing what already exists locally and what has not already received direct support from the Financial Inclusion Fund – so, for example, capital for onlending and the provision of debt advisors are out scope.
Contracts will be awarded to organisations which demonstrate their ability to deliver against one or more of the objectives of the Fund outlined above.
Monies may be used for a variety of purposes including (but not limited to) marketing services to consumers, infrastructure development, product development, mergers between businesses, and supporting the delivery of affordable credit, savings, financial capability or money advice services to consumers.
Particular attention will be paid to those proposals which demonstrate the positive and long term impact the money will make.
In particular, how it will enable:
- Improvements in efficiency which allow more loans to be made to low income consumers
- Improvements and innovation in products and/or services which allow more loans to be made to low income consumers
- An increase in the scale of operations and number of loans made
- An evidenced increase in access to affordable credit in an area which currently has restricted access to affordable credit
- Innovation in products and/or services which allow and encourage more low income consumers to save
- Innovation in products and/or services which increases the number of Home Contents Insurance policies taken out by low income consumers
- Innovation in products and/or services that increases the number of people able to access face to face money advice and guidance
- The sustainability of services developed.
Monies may not be used for the following purposes:
- Onward lending to customers
- On-lending to other community finance organisations
- Feasibility studies
- Research
- Salaries of Debt Advisors
- As an incentive to save.
The above list is not exhaustive and DWP will consider each application on its merits.
Tender proposals will be required to describe the proposed initiative, explain how it will be carried out, and give details of what the expected outcomes will be.
Please click here to access the proposal form.
In considering applications, DWP will take into account not only the quality of the proposal but also the need to ensure a reasonable geographic distribution of activity, the need to engage a range of partners in delivering initiatives, a variety of innovative approaches and the need to avoid duplication or overlap.
Because of the limited amount of money available the number of contracts to be awarded will be restricted and DWP will have the final decision on all applications. The allocation of funds will be based on the quality of proposals received, the relevance of the proposals and the extent to which the proposals meet the objectives outlined above, however, it is not envisaged that any individual contract will exceed £25,000 in value. And many are likely to be for less.
The Financial Inclusion Champions are available to offer advice and guidance but cannot have direct input to, or write bids. Please click here to find their contact details. There is not nationwide coverage of the Financial Inclusion Champions project but your nearest one will offer support.
Further information can be obtained from Malcolm McNichol at:
Room M0068
Durham House
Washington
NE38 7SF
Tel: 0191 224 7761
Or email newcastle.nowletstalkmoney1@dwp.gsi.gov.uk
Please check the website for further details.