News

A financial education project has driven a 64 per cent drop in evictions

MyBnk’s The Money House puts care leavers in an apartment for a week to learn how to keep track of their spending

The Money House

New circumstances have led The Money House to update its practical help for a generation on the pathway to social housing.

A two-year study into a pioneering financial education project has found that it helps to slash the number of evictions – the leading cause of homelessness in the UK.

The innovative Money House project, run by financial education charity MyBnk, sees care leavers learn the skills, knowledge and confidence to live independently as they head to flats in Greenwich and Newham to learn about budgeting and finance. The course has been such a hit that it is now mandatory for all young people applying for social housing with four London councils as well as sheltered housing providers like Centrepoint, the YMCA and Depaul.

The Big Issue featured the project in our evaluation of financial education back in September but now independent evaluators have carried out to assess its impact.

After asking nearly a thousand 16-25 year olds in care or sheltering housing for their thoughts, it was revealed that participants were now three time less likely to slip into rent arrears and there was a 64 per cent drop in evictions for those at risk of losing their home.

This is a significant impact in an area where one in three care leavers lose their first home, costing £7,056 to evict a tenant. On that metric, The Money House has already found more than £300,000 in direct savings. And as for the Housing Association Charitable Trust’s social value model, for every £1 spent, there is £3.36-worth of social value.

Almost half of the project’s participants have seen a decrease in their bank charges or missed bills while a fifth now borrow from sustainable firms rather than high-cost lenders.

“Working with vulnerable young people at these transitional periods is crucial,” said MyBnk CEO Guy Rigden. “That’s when they are at the highest risk of making the poor financial decisions that can have lifelong consequences. Social and key workers are under immense time and resource pressures to meet the need. These results, show investing in young people and the use of expert-led direct delivery of these specialist areas pays back for everyone.”

The Money House project has been running for six years and recently announced that funding has been received to keep it running until 2021.

It is not the first time financial education has been thrust into the limelight recently – the first-ever financial education textbook was launched earlier this month and will be distributed to schools around the country for free.

Sarah Porretta, UK financial capability director at Money Advice Service, who part-funded the study, said: “There is a real lack of cost benefit analysis in financial education, including with young adults transitioning into independent living but this report provides a fantastic contribution to the growing evidence base. The Money House is an excellent example of providing vulnerable young people, such as those leaving care, with the skills and knowledge they need to manage their money and stay out of problem debt.”

Image: MyBnk

Support the Big Issue

For over 30 years, the Big Issue has been committed to ending poverty in the UK. In 2024, our work is needed more than ever. Find out how you can support the Big Issue today.
Vendor martin Hawes

Recommended for you

View all
From the NHS to levelling up: Here are all the broken promises after 14 years of Tory rule
General Election 2024

From the NHS to levelling up: Here are all the broken promises after 14 years of Tory rule

'Nature is slowly healing': How rewilding is bringing Britain's extinct species back from the dead
Conservation

'Nature is slowly healing': How rewilding is bringing Britain's extinct species back from the dead

Beat the Streets music festival funds new homes for rough sleepers: 'If we could do more, we would'
Homelessness

Beat the Streets music festival funds new homes for rough sleepers: 'If we could do more, we would'

Energy bills are set to fall but UK families have already lost £72bn to 'staggering' prices
energy bills
Energy bills

Energy bills are set to fall but UK families have already lost £72bn to 'staggering' prices

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know