FINANCIAL WELLBEING
Introduction Financial wellbeing is about a sense of security and feeling as though you have enough money to meet your needs. Whatever your personal financial circumstances, everyone will benefit from feeling in control of their day to day finances and having the financial freedom to make choices that allow them to enjoy life. We have put together this guide which focuses specifically on financial wellbeing, as we recognise that this is a topic not often talked about openly or it can feel overwhelming to someone experiencing financial worries.
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Please note that the information contained in this document is intended to provide some ideas and tips for you to consider. You will need to assess for yourself whether something is right for your own particular circumstances and anyone requiring financial advice should always speak to a regulated professional.
Contents Information and education
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Financial education Getting into the habit of saving Buy now, pay later
Understanding your current financial status
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Knowing your credit score Debt advice Benefits Check your tax code Pensions Making a will Further support
Making the most of your financial resources
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Insurance and utility providers Eating on a budget Save on your shopping
Increasing your financial resources
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Your opinion is valuable Share your data Sell unwanted items Rent out your space
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Information and education
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Financial education Understanding finances and knowing the right choices to make can feel hard, especially as the topic is one many of us do not feel comfortable openly discussing. Educating yourself will give you the tools you need to understand your options and to manage your personal finances more effectively. Open University and Money Saving Expert have partnered up to provide a free online MSE Academy of Money Course covering the following key topics (you can choose to complete one, more or all of these, see the link below):
Visit The Open University to enrol on the course.
Making good spending decisions This session develops your approach to money management by exploring the behavioural and marketing pressures, which influence buying decisions, and looks at a simple four-stage decision-making model. Budgeting and taxation This session looks at how to calculate net incomes. It explores spending patterns, how national insurance and income tax work, and how to build a successful budget. Borrowing money This session looks at how different types of debt work, exploring the differences between them and the dangers. It looks at the concept of "good debt, bad debt" and how to borrow sensibly.
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Understanding mortgages This session gives a grounding in how mortgage products work, including interest rates, repayments and possible penalties. It also looks at mortgages from the lender's perspective, explaining why your mobile phone contract could affect how much you borrow. Saving and investment This session explains the difference between saving and investing. It looks at different types of savings vehicles and the basics of investments such as shares, bonds and commodities – and the associated risks. Planning for retirement This session is designed for both those who are retiring imminently and those who have many years to go. It looks at how state pensions, occupational pension schemes and personal pension schemes work, and the differences between them.
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Getting into the habit of saving Research shows that most of us do not have enough put by in savings to get us through a rainy day, or that we seriously underestimate the amount of savings we need should our financial situation be impacted unexpectedly either through a sudden emergency bill, or illness preventing us from being able to work. It can be hard to save but here are some tips that could help you make a start: Clear your debts first Whilst savings are always desirable, if you have debts, they will likely be costing you far more than the interest you are likely to earn on savings and debt will make you less resilient to those unexpected financial pressures.
Save the change A number of banks now offer the option to roll up your purchases to the nearest £ and to add the additional pennies into a savings account. These small amounts are less noticeable but will soon start to build up. If your bank does not offer this then you can use an app such as Plum or Monzo instead.
Track your spend It’s very easy to get to the end of the month and not be quite sure where all your money went. By tracking your spend you can monitor where you are spending more than you need and use this to cut back. Budget Set yourself either a weekly or category budget limit depending on what works best for you and stick to it, ensuring that you build a small amount of savings into your initial budget. Treat saving like a direct debit and move it out of your account at the start of the month rather than the end. You are far less likely to dip into it this way.
Psssst, clear your debts!
Try a savings challenge Whether it’s a ‘no spend’ challenge or a 1p challenge by adding a competition element you may find it easier to stick to. We have included a couple of examples overleaf for you to try if you wish. RMBI CARE CO. FINANCIAL WELLBEING
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Simple budget template Income 1
Income 2
Fixed expenses
Budgeted
Actual
Debt/savings
Budgeted
Actual
Other income
Variable expenses
Total income Fixed expenses Variable expenses Debt/savings Total leftover
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Total income
Budget
Actual
Budgeted
Actual
No spend challenge: A simple way to reset spending No spend rules: Spend only on necessary, planned purchases such as food, bills and petrol. If it's a "treat yourself" item, don't buy it! Directions: Colour the dots green on days you don't spend unnecessarily. Colour the dots red when you do.
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1p saving challenge: Save £667.95 in 365 days
Buy now, pay later Many retailers are now offering solutions to enable you to buy now and pay later or to split your payments over a number of months, which can seem very attractive, especially as they are often interest free. A note of caution however, that these solutions are designed to encourage you to spend more than you usually would. It is also very easy to forget about the purchase once made and it is only once the repayments start to hit your bank account that you might realise you are struggling to afford them. If you have a large purchase then it may well be that spreading the cost is the best option for you, however you need to ensure that you have budgeted for the monthly payment accordingly before clicking that 'buy now' button.
See page 27 for details.
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Understanding your current financial status
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Debt advice Anyone who is experiencing significant financial difficulties should seek professional advice to help them.
Knowing your credit score Unfortunately, there is no one set credit score and different lenders will use different criteria to assess your suitability for any financial product. Experian, Equifax and Clear Score all provide you with free access to your credit score and we would encourage you to use one or more of these services regularly in order to better understand your financial status.
Our Employee Assistance Programme (EAP) will be able to provide you with initial advice and signpost organisations that might be able to help you.
You can contact the EAP 24 hours a day, 7 days a week on 0333 400 0545 quoting RMBI.
In addition to the score, you can check that the information held about you is accurate and there will be guidance on actions you can take to improve your credit score if necessary.
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Benefits
Pensions
Whilst we are unable to advise staff in relation to benefits, we would encourage you to ensure you are not missing out on your entitlements.
No matter what stage of life you are currently at, planning for retirement will ensure that you are able to enjoy a comfortable lifestyle later in life.
You can access a number of governmentapproved calculators by visiting www.gov.uk/benefits-calculators
How much you will need in your pension pot will depend on what ‘living comfortably’ means to you but generally, most people need around two-thirds of their salary in retirement in order to maintain their current lifestyle. If you haven’t joined the RMBI pension plan that is available to you, please contact the HR department to find out how you can do so. If you are concerned that you may be under prepared then we would encourage you to seek professional financial advice.
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Check your tax code As your employer, we are obliged to use the Tax Code issued to us by HM Revenue & Customs (HMRC) to calculate how much tax we need to take off your pay. We are not able to check if this tax code is correct but it is suggested that up to 1 in 3 employees are on the wrong tax code for their individual circumstances. Understanding your tax code and your entitlements is not always easy, however there are some simple checks you can do yourself. • If you only have one source of income then your tax code would usually end with an L. • If you have more than one source of income, then one of those incomes would usually use the tax code BR or D0.
• If your tax code has W1 or M1 or X at the end then you are on an emergency tax code, this is common when you have changed jobs within the tax year or you have advised HMRC of a change in circumstances and they are in the process of reviewing your tax code. You can check your tax code on your most recent payslip and if you believe it may be incorrect then, it could be worth speaking to HMRC directly. If you would like a more thorough review of your current and previous tax codes and do not feel able to do this yourself then, you can access The Tax Code Company through your Hapi benefits or by calling 0161 968 7345. Please note that the review itself along with any money returned from the current tax year is free of charge, however, if they are able to recover any overpayment of tax from the previous four years then there is a fee for this.
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Making a will If you have assets or dependents, then making a will ensures that any dependents are looked after in line with your wishes, if you are not around to do it yourself. Without a will, your assets may not be distributed in the manner you would have chosen and risks leaving your loved ones having to deal with an unexpected financial burden. The MCF, our group charity, has partnered with The Goodwill Partnership and will cover the costs for any of our staff who wish to make a will. To access this service visit www.thegoodwillpartnership.co.uk/mcf and use the discount code MCF001.
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Further support In addition to this guide, which we hope you find informative, RMBI Care Co. has developed a relationship with Salary Finance, who provide a range of financial services and products and can be accessed through the Hapi app. In particular, Salary Finance offer a Financial Wellbeing hub where you are able to calculate your own financial health score as well as access webinars and guidance on how to improve your financial resilience. This tool can be found by visiting home.salaryfinance.com/rmbi
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Making the most of your financial resources
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Insurance and utility providers Loyalty to your providers will often mean that you might be paying more for your insurance cover and utility services. It is therefore always advisable to compare prices and in most cases, switching is simple and taken care of by the new provider. There are, however, a few key points to be aware of: Water providers You will only have the ability to use the set provider servicing your area so switching is not an option. However, if you have more bedrooms than people in your property, you may want to consider whether installing a water meter might be cheaper for you. Please note once you install this you cannot usually go back to an unmetered water supply and if you are renting, you will need to speak to your landlord first.
Make sure you are comparing like for like Especially when it comes to insurance as you don’t want to find out later you are no longer covered – for example a number of life time pet insurance policies will still exclude any pre-existing condition that occurred before your policy started with that specific provider. If you really don’t want to switch providers Use a comparison site to obtain competitive quotes and then ring your provider to negotiate on this basis, they will usually offer you a lower quote than they did previously. Beware of exit fees A number of utility providers will lock you in for a set time to give you their best rates and if you decide to leave early, you might be hit with high penalties.
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Eating on a budget Food is not only one of our biggest financial outlays after our household bills are paid, it is also something a lot of us seek enjoyment from, however that doesn’t mean you can’t budget and still enjoy your meals. If you’re a fan of a takeaway then swapping this to a ‘fakeaway’ will usually be healthier for both your bank and your calorie intake. If you google ‘fakeaway’ you are sure to find lots of interesting recipes to try. If cooking isn’t your thing, then swapping to a supermarket takeaway meal deal will still be significantly cheaper than calling your nearest delivery company. Save on wastage and your weekly food bill by selecting recipes that use the same base ingredients for the week. This enables you to buy in bulk at a
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cheaper cost whilst still having variety in your meals – a Spaghetti Bolognese and a Chili Con Carne taste completely different but share a number of common ingredients! Bulk cooking will also be cheaper than making smaller portions – if you don’t fancy eating the same thing for days at a time then pick recipes that can be frozen.
Food swaps are another easy way to reduce your spend – if you currently purchase from the premium range, try swapping it down to the range below and seeing if you can really taste the difference. If you go from 'premium' to 'value', then chances are you might notice the difference but dropping down one level from your usual quality is much less noticeable but still gives you extra money in your pocket. Watch out for the BOGOF’s – buy one get one free and other similar offers are deliberately designed to get you to purchase more than you intended. If you are not going to use it within a reasonable time period then stick to the original purchase you planned. There are a number of phone apps that will offer money off certain products (or sometimes allow you to try them for free), Shopmium is just one of these to get you started.
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For more savings, find out from your local supermarket what time they reduce their stock that’s going out of date – a lot of it can be frozen and it can be a great way to keep your spend down. Remember the golden rule, only buy if you will genuinely use it! Don’t forget a lot of supermarkets are also on your Hapi app too so you can save at least 4% more off your total bill! When eating out make sure you have researched where you are planning on going and see if there are any special offers on. A number of restaurants offer either a cheaper menu for being an ‘early bird’ or discount vouchers that you can download before you leave home. Lastly, if you download the ‘Too good to go’ app then you can purchase the unsold food that would otherwise go to waste from your local restaurants and supermarkets at significantly lower prices.
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Save on your shopping Working for RMBI Care Co. gives you access to a number of high street and online retail discounts on a number of everyday items either through our Hapi platform, or the Blue Light discount card. Make sure you remember to check both prior to purchasing to ensure you are getting the best deal. If you do want to purchase something that isn’t available through either of those options then you could also consider using a cashback site such as www.topcashback.co.uk or www.quidco.co.uk. Each site will have different deals available, and often do special offers so make sure you do your research for every purchase. Remember discounted shopping is only a saving if it’s something you planned on buying anyway. Depending on your own personal circumstances you may also
sometimes be better using a discount that’s immediate rather than cashback which you have to wait for, even if it’s not quite as good a deal. Lastly, don’t forget to check that the discounted item isn’t actually for sale cheaper elsewhere. If you find you often purchase items you don’t end up using, try adding to your online basket and waiting a week before purchasing – if you still want it then you can go ahead, but if you have completely forgotten about it then you can probably avoid that purchase all together.
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Increasing your financial resources
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Your opinion is valuable You might recall seeing news articles that quote statistics informing you for example that X% of the population agrees with a certain policy decision.
and the size of the payment does vary but if you feel it is right for your circumstances, it can help you to top up your income. Some examples include Swagbucks, i-Say, and Toluna.
Journalists and researchers often get this information from yougov.co.uk. If you are happy to share your opinion then you earn points for doing so, which can be turned into cash payments. Whilst you won’t get rich from completing surveys, this is a great way to have your voice heard on a range of public topics whilst also being rewarded for your time. There are other additional ways to earn points such as sharing your Netflix viewing history on a weekly basis and if you do this, you will soon be able to cash out a £50 payment. Online survey companies can also reward you for your time with points. It is worth doing your research on these as the time involved
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Share your data
Sell unwanted items
Retailers benefit from understanding the purchase habits of their customers and as such, they will often offer reward cards and points in return for you agreeing to them tracking your purchases.
Many of us either hold on to things just in case we might need them in the future, or if we are having a good sort out, simply throw it in the bin without even thinking.
In addition to your usual loyalty cards, you can also download apps to your phone that enable you to scan your receipts and earn points for doing so, which you can convert to gift vouchers. Shoppix, Storewards, and SnapMyEats are just some of the apps available.
De-cluttering your environment is great for your overall wellbeing and if you follow some of these steps, it can also help you financially: Tackle a small area at a time It gets a lot messier before it gets organised, so if you do too much at once it becomes overwhelming. Create the following zones when sorting through what you have – Keep, Sell, Give to Charity and Bin.
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A useful trick when sorting through your clothes is to pop all your hangers in your wardrobe the wrong way round and as you wear an item put it back the right way around – any hangers still turned the wrong way in three months’ time are items of clothing you haven’t worn and you could maybe consider getting rid of. Start to sell your items There are lots of online sites to look at such as Facebook Market Place, Shpock, Vinted and Ebay, which let you list items and set a reserve price – some of these have fees so make sure you read the terms and conditions and pick the one that works best for you. Make sure you take good quality pictures, and a tip when selling clothing is where possible, have pictures of you wearing the clothing as the buyer can see the fit and style better and is much more likely to purchase.
Be careful of scammers – make sure you are comfortable with the payment method being used and don’t be tempted to use the Paypal friends and family option. Whilst you avoid the fees, you also have no seller protection. For some items it may be easier to sell directly to a website that specialises in that type of item – try mazumamobile.com or webuyanyphone. com if you have an old mobile phone for example – as always, do a comparison check to make sure you are getting the best deal. There are also a few specialist websites focusing on buying your old books, blue-rays and DVD’s but you might want to consider a car boot option for items like these as you may find you are able to get more for them.
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Rent out your space This option won’t be suitable for everyone and if you are renting your property, you should always check with your landlord beforehand to make sure it is allowed under your tenancy, but if you have space in your property, you might be able to make money from it. When most people think about renting out space in their property they automatically think about having a lodger that lives with them, which is of course always an option (there are tax implications to this however if it’s more than the allowed annual amount). You can also rent out the space as storage and there are a wide number of websites online that will help you– think loft space, garage, spare room and even your driveway if you don’t use it yourself and you are in a good location.
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Another option is to consider renting your property out as an Air B&B when you yourself are away on holiday or there are websites that allow you to do house swaps.
1p saving challenge: Save £667.95 in 365 days DAY AMOUNT
DAY AMOUNT
DAY AMOUNT
DAY AMOUNT
DAY AMOUNT
DAY AMOUNT
DAY AMOUNT
DAY AMOUNT
DAY AMOUNT
DAY AMOUNT
1
£0.01
39
£0.39
77
£0.77
115
£1.15
153
£1.53
191
£1.91
229
£2.29
267
£2.67
305
£3.05
343
£3.43
2
£0.02
40
£0.40
78
£0.78
116
£1.16
154
£1.54
192
£1.92
230
£2.30
268
£2.68
306
£3.06
344
£3.44
3
£0.03
41
£0.41
79
£0.79
117
£1.17
155
£1.55
193
£1.93
231
£2.31
269
£2.69
307
£3.07
345
£3.45
4
£0.04
42
£0.42
80
£0.80
118
£1.18
156
£1.56
194
£1.94
232
£2.32
270
£2.70
308
£3.08
346
£3.46
5
£0.05
43
£0.43
81
£0.81
119
£1.19
157
£1.57
195
£1.95
233
£2.33
271
£2.71
309
£3.09
347
£3.47
6
£0.06
44
£0.44
82
£0.82
120
£1.20
158
£1.58
196
£1.96
234
£2.34
272
£2.72
310
£3.10
348
£3.48
7
£0.07
45
£0.45
83
£0.83
121
£1.21
159
£1.59
197
£1.97
235
£2.35
273
£2.73
311
£3.11
349
£3.49
8
£0.08
46
£0.46
84
£0.84
122
£1.22
160
£1.60
198
£1.98
236
£2.36
274
£2.74
312
£3.12
350
£3.50
9
£0.09
47
£0.47
85
£0.85
123
£1.23
161
£1.61
199
£1.99
237
£2.37
275
£2.75
313
£3.13
351
£3.51
10
£0.10
48
£0.48
86
£0.86
124
£1.24
162
£1.62
200
£2.00
238
£2.38
276
£2.76
314
£3.14
352
£3.52
11
£0.11
49
£0.49
87
£0.87
125
£1.25
163
£1.63
201
£2.01
239
£2.39
277
£2.77
315
£3.15
353
£3.53
12
£0.12
50
£0.50
88
£0.88
126
£1.26
164
£1.64
202
£2.02
240
£2.40
278
£2.78
316
£3.16
354
£3.54
13
£0.13
51
£0.51
89
£0.89
127
£1.27
165
£1.65
203
£2.03
241
£2.41
279
£2.79
317
£3.17
355
£3.55
14
£0.14
52
£0.52
90
£0.90
128
£1.28
166
£1.66
204
£2.04
242
£2.42
280
£2.80
318
£3.18
356
£3.56
15
£0.15
53
£0.53
91
£0.91
129
£1.29
167
£1.67
205
£2.05
243
£2.43
281
£2.81
319
£3.19
357
£3.57
16
£0.16
54
£0.54
92
£0.92
130
£1.30
168
£1.68
206
£2.06
244
£2.44
282
£2.82
320
£3.20
358
£3.58
17
£0.17
55
£0.55
93
£0.93
131
£1.31
169
£1.69
207
£2.07
245
£2.45
283
£2.83
321
£3.21
359
£3.59
18
£0.18
56
£0.56
94
£0.94
132
£1.32
170
£1.70
208
£2.08
246
£2.46
284
£2.84
322
£3.22
360
£3.60
19
£0.19
57
£0.57
95
£0.95
133
£1.33
171
£1.71
209
£2.09
247
£2.47
285
£2.85
323
£3.23
361
£3.61
20
£0.20
58
£0.58
96
£0.96
134
£1.34
172
£1.72
210
£2.10
248
£2.48
286
£2.86
324
£3.24
362
£3.62
21
£0.21
59
£0.59
97
£0.97
135
£1.35
173
£1.73
211
£2.11
249
£2.49
287
£2.87
325
£3.25
363
£3.63
22
£0.22
60
£0.60
98
£0.98
136
£1.36
174
£1.74
212
£2.12
250
£2.50
288
£2.88
326
£3.26
364
£3.64
23
£0.23
61
£0.61
99
£0.99
137
£1.37
175
£1.75
213
£2.13
251
£2.51
289
£2.89
327
£3.27
365
£3.65
24
£0.24
62
£0.62
100
£1.00
138
£1.38
176
£1.76
214
£2.14
252
£2.52
290
£2.90
328
£3.28
25
£0.25
63
£0.63
101
£1.01
139
£1.39
177
£1.77
215
£2.15
253
£2.53
291
£2.91
329
£3.29
26
£0.26
64
£0.64
102
£1.02
140
£1.40
178
£1.78
216
£2.16
254
£2.54
292
£2.92
330
£3.30
27
£0.27
65
£0.65
103
£1.03
141
£1.41
179
£1.79
217
£2.17
255
£2.55
293
£2.93
331
£3.31
28
£0.28
66
£0.66
104
£1.04
142
£1.42
180
£1.80
218
£2.18
256
£2.56
294
£2.94
332
£3.32
29
£0.29
67
£0.67
105
£1.05
143
£1.43
181
£1.81
219
£2.19
257
£2.57
295
£2.95
333
£3.33
30
£0.30
68
£0.68
106
£1.06
144
£1.44
182
£1.82
220
£2.20
258
£2.58
296
£2.96
334
£3.34
31
£0.31
69
£0.69
107
£1.07
145
£1.45
183
£1.83
221
£2.21
259
£2.59
297
£2.97
335
£3.35
32
£0.32
70
£0.70
108
£1.08
146
£1.46
184
£1.84
222
£2.22
260
£2.60
298
£2.98
336
£3.36
33
£0.33
71
£0.71
109
£1.09
147
£1.47
185
£1.85
223
£2.23
261
£2.61
299
£2.99
337
£3.37
34
£0.34
72
£0.72
110
£1.10
148
£1.48
186
£1.86
224
£2.24
262
£2.62
300
£3.00
338
£3.38
35
£0.35
73
£0.73
111
£1.11
149
£1.49
187
£1.87
225
£2.25
263
£2.63
301
£3.01
339
£3.39
36
£0.36
74
£0.74
112
£1.12
150
£1.50
188
£1.88
226
£2.26
264
£2.64
302
£3.02
340
£3.40
37
£0.37
75
£0.75
113
£1.13
151
£1.51
189
£1.89
227
£2.27
265
£2.65
303
£3.03
341
£3.41
38
£0.38
76
£0.76
114
£1.14
152
£1.52
190
£1.90
228
£2.28
266
£2.66
304
£3.04
342
£3.42
Tel: 020 7596 2400 Email: enquiries@rmbi.org.uk
www.rmbi.org.uk
Registered Charity No: 1163245 • Company No: 1293566 • Published Date: February 2022
This company is part of the Masonic Charitable Foundation. For more information, please visit www.mcf.org.uk
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The Royal Masonic Benevolent Institution Care Company 60 Great Queen Street London WC2B 5AZ