Headlines

Adopting basic income scheme in Wales could improve health for all

A report published in June (2021) by Public Health Wales suggests that introducing a basic income scheme in Wales could be a catalyst for better health and well-being outcomes for all.

The idea of a universal basic income, a form of social security aimed at providing all people with a set amount of regular income, for example £500 a month without means testing, has existed for centuries but never been fully implemented.

Based on international evidence, key findings of implementing such a scheme identified potential positive effects on people’s health, including:

• Increasing income security: Money worries are one of the most common triggers for anxiety and depression • Reductions in child poverty and improvements in other childhood outcomes: Research shows that children are able to learn better at school when they have enough to eat and a stable family life • Improved educational attainment:

Children from a financially secure background are more likely to stay in education longer or return to education • Additional money for those more likely to be in lower paid jobs such as disabled people and women from deprived areas, leading to a higher standard of living • Greater food security and improved nutrition • Housing quality improvements and more affordable housing options • A decrease in hospital admissions particularly in relation to accidents, injuries and mental health conditions • However, when schemes were stopped, the positive effects diminished and in some cases well-being worsened from before the scheme was implemented.

The report ‘A basic income to improve population health and well-being in Wales?’ considers a range of evidence and explores the potential impacts on health and well-being. It also looks into the different approaches to policy design and implementation internationally.

Report author Adam Jones, Senior Policy Officer for Public Health Wales, said: “How well a basic income scheme works would certainly depend on how it’s designed and delivered.

“How much income it provides, who is eligible for the income, and how long the scheme is designed to last are all crucial factors in determining outcomes.

“The protection and improvement of Wales’ health is at the heart of everything we do at Public Health Wales. Evidence suggests that members of society would benefit from

an income that supports their health and wellbeing and allows them to contribute to society and flourish.

“A form of basic income is one of the options government can consider to achieve this. It is a radical concept that has yet to be adopted formally by any country but parts of Canada and Finland have trialled schemes, with different approaches, with both seeing positive impacts upon health and well-being in the population. These included people reporting better mental well-being, with improved satisfaction in their lives, and less mental strain, depression and loneliness. Recipients also noted improvements in income security, educational uptakes, and community participation. “However this is based on limited evidence, and there are many areas where there is minimal or no change in outcomes. Basic income as an idea and as a proposal is as multi-faceted and complex as the issues it needs to address.”

The report identifies options for policymakers who are thinking about basic income, such as carrying out economic modelling, placing health and wellbeing as a core aim of any scheme, and carrying out feasibility studies to understand how basic income could be introduced in Wales.

Financial Wellbeing advice from Money Wales

The link between money and mental and physical health is well established. Financial worries can make existing health problems worse or be a cause of new ones, leading to people needing support on both health and money issues.

What is financial wellbeing?

Financial wellbeing is about feeling secure and in control. It’s knowing that you can pay the bills today, can deal with the unexpected and are on track for a healthy financial future. In short, feeling confident and empowered.

How money worries can affect health

If you’re facing a health problem, finances may be the last thing on your mind. Financial health should be considered just as important to personal wellbeing as physical and mental health. A recent survey (Money and Mental Health Policy Institute, 2018) showed that 18% of people with mental health problems are in problem debt, which can be described as people who find keeping up with their regular bills and credit commitments a “heavy burden”.

Key financial wellness statistics in Wales

Prior to COVID-19, there were significant challenges to financial wellbeing in Wales:

• 15.5% of adults in Wales were overindebted – that is, they found keeping up with bills and credit commitments a heavy burden, or had fallen behind on payments in three or more of the previous six months. • 66% of adults in Wales were not satisfied with their overall financial circumstances. • 27% of adults in Wales had less than £100 in savings and investments. (Money Advice Service ‘Wellbeing in Wales’, 2018)

How the MONEY AND PENSIONS SERVICE can help:

Networks of Support for Professionals: You might be a front-line worker who supports people with money matters as part of your role, or a leader in an organisation that provides money guidance as part of its service. Sharing your experience with others in different roles is a great way to learn more about what works and develop your skills. Money Wales are supporting a UK wide network of money guidance, practitioners with free resources including webinars, workshops, meetings and discussion groups. Fancy joining our community? Drop us a line and follow @money_wales on Twitter. The next event in October, is about energy use and cold weather resilience and awareness raising of support available to vulnerable households.

Talk Money Week Getting people talking about money matters: Each November Money Wales encourage Wales and the UK to talk about managing money – from pocket money right through to pensions – and celebrate the work done by thousands of organisations to build financial wellbeing across the country. This year, the campaign will be held between 8-12 November 2021. Our goal is to turn talking about money from one of Wales’ least favourite topics into something commonplace. Our Participation Pack is full of ideas and resources to help you get involved and host your own activities. MoneyHelper is here to make your money and pension choices clearer. Anyone can use our service and we provide bilingual guidance across a wide range of money matters, to help people manage their money. Our focus is on supporting people who can benefit the most from our help or who are going through significant life events.

For further information contact Lee Phillips Lee.Phillips@maps.org.uk

Income Maximisation: How Citizens Advice is tackling problems which contribute to poor health and wellbeing

Every year thousands of people contact the Citizens Advice service across Wales for help with solving their problems. We are an important part of the community, with a credible, up-to-date understanding of local needs. Our service is tailored to the people we support and trusted by those who use it and we work in partnership with organisations across Wales to improve advice and advocate for change. Covid-19 has caused unprecedented financial challenges with many people losing their jobs or seeing their incomes reduced, leaving them struggling to keep up with day to day costs. Those people whose employment has been affected by coronavirus, households with children and disabled people are most likely to have been affected. People whose incomes have been disrupted by the outbreak need to be able to rely on the benefits system as a safety net. However, we know that over the course of this crisis – and even before – a substantial number of people in Wales haven’t claimed all the benefits to which they’re entitled. Prior to the pandemic, Citizens Advice Cymru research found that more than a quarter (26%) of people in Wales have delayed or decided not to claim a benefit, despite thinking they could be eligible.

Negative perceptions of benefits and perceptions around the difficulty or time involved in applying are the main reasons people do not claim benefits in Wales. Our research also found people who have difficulty finding information or completing forms online are much more likely to have

Although most benefits are administered by the UK Government, we’ve long advocated for the Welsh Government to act within the scope of their powers to enable people in Wales to claim all of the support they are entitled to. We are pleased to work with the Welsh Government over the past year on six income maximisation pilots, administered by local Citizens Advice services with partners, targeting specific groups at risk of poverty or disadvantage. We havve also partnered with the Welsh Government on an advertising campaign designed to inform and encourage people who may not be claiming what they’re owed to find out what they’re entitled to. During the pandemic, the number of clients our advisers have helped with ‘maximising income’ has been four times the number that came in the same period last year. This demonstrates the importance of advice on benefit entitlements - especially as even those who have access to benefit support may find that they do not have enough to meet their costs. Citizens Advice research published last year found that almost half (49%) of those receiving working-age benefits had struggled to meet essential costs over the 12 months prior.

Our advice makes a big difference to our clients' health and wellbeing. Two-thirds (66%) of people said they felt less stressed, depressed or anxious as a result of the help they received from Citizens Advice, and nearly half (45%) said their physical health had improved. But our advice doesn’t just help the individual. We know that low income and debt are key factors in health inequality. By tackling social and economic factors through our advice, we can save time and money for health and social care services. We know our work in Wales saves the government and public services millions of pounds every year, with £250 million in savings to individuals alone, and a further £44 million in fiscal savings and £324 million in public savings. Please email policy.cymru@citizensadvice. org.uk or access the website citizensadvice. org.uk

Principality launches digital hub to support the teaching of financial education in schools

Wales’ largest building society has launched a digital financial education hub for teachers across Wales to support them in delivering money and saving skills from a young age. As part of its ongoing commitment to financial education for young people, Principality Building Society has launched Dylan’s Saving Squad Teacher’s Hub. The bilingual digital platform aims to promote responsible attitudes to money, offering resources, lesson plans and curriculum support to help teachers provide financial education in a fun, engaging way. Aimed at pupils between 5-11 years, the resources available on the hub have been produced by Principality in partnership with an educational consultant to fit with the Donaldson curriculum. Teachers in Wales can access the bilingual resources for free, and choose between delivering the programme in full or picking individual activities on their own.

To find out more visit: https://www. dylansteachersquad.co.uk/

Wealth of the Nation: The Financial State of Households Across the UK

Every year, CACI releases an estimate of the gross income and outgoings of households across the UK, the data shows the average and modelled distribution of household incomes and essential outgoings for the 1.6 million residential postcodes in the UK. This year’s data looks at the state of the nation’s finances and investigates whether Covid-19 has influenced an increased disparity in income and if the impact has been uniform across the country. Key points that the 2021 report covers: • The average household income in the

UK and how it's changed since last year • What does the UK wealth distribution look like? • What's the state of wealth inequality across the UK? • Where are the richest areas in the UK? • Where are the poorest areas in the UK? • How has the pandemic affected different sections of society?

Read more