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News archive - 2008

Invitation for expressions of interest to deliver The Growth Fund from February 2008 to March 2011

24 November 2008

The Department for Work and Pensions (DWP) now manages nearly 100 contracts across GB for delivery of the Growth Fund (GF). The GF is purpose designed to invest capital in the provision of affordable loans to people on low incomes in deprived areas through third sector institutions.

During 2006/08 Government invested £42m in the GF project, and because the service was successful it allocated a further £38 million to expand delivery in 2008/11. To help focus delivery where there is the greatest need DWP and the Treasury asked Experian to show where the greatest gaps exist between consumer demand for affordable credit, and supply. Their work became known as the ‘red and amber alert maps’ which you can find on the Government’s Financial Inclusion Taskforce website.

During the first half of 2008 new contracts were put in place to provide GF service in the following areas from those maps:

Wansbeck
Blyth Valley
Telford & Wrekin
St. Helens
The Wirral
Chesterfield
Bolsover
N. E. Derbyshire
N. E. Lincolnshire
Stockton on Tees
Redcar & Cleveland
Crawley
Scarborough
Tamworth
Southampton
Manchester

We are now advertising again to procure service coverage for the next stage of our plans in:

England
Blackpool and W Lancashire
Middlesbrough
Sefton (Merseyside)
Wear Valley
Wolverhampton

Scotland
Aberdeen
Clackmannanshire
Dundee City
Fife
Inverclyde
North Lanarkshire
South Ayrshire.

In this procurement exercise we will consider expressions of interest (EOIs) from organisations new to GF able to deliver in individual areas, or from larger organisations with a GF track record capable of delivering across several areas through a range of sub contracted customer outlets such as credit unions, housing offices etc.

Eligibility

All the previous eligibility conditions will continue to apply. So eligible organisations must either be regulated by the Financial Services Authority (FSA), or constituted as not for profit third sector organisations, licensed by the Office of Fair Trading (OFT) to provide credit services.  

Organisations must have an average annual turnover (before tax) of less than EUR€100 million during the last two financial years. And DWP may not contract with any of the above unless they are registered under the Data Protection Act (you must already have, or be willing to name, DWP or Central Government as a Data Processor).

Instructions for completion

If you are an eligible lender and wish to be considered please complete the pre-qualification questionnaire. Please note there are two versions of the questionnaire. If you are an existing GF provider please complete Growth Fund PQQ V1 (62KB) word. If you do not currently have a DWP contract for the delivery of the Growth Fund you must complete Growth Fund PQQ V2 (92KB) word.

Completed documents should be sent hard copy and by e-mail, to Barbara Elliott at the address below. If you do not currently hold a GF contract, you must also enclose a copy of the audited accounts for your organisation for the last two complete financial years. New organisations which do not yet have two full accounting years to report may contact Barbara Elliot, see contact details below, to discuss.

Please note that all EOIs must be received at the DWP address by close of business on 12 December 2008. And organisations who submit a successful EOI will be notified before Christmas, and be provided with the necessary documents to submit a full bid by 16 January 2009.

Based on lots of previous experience, we will make the bid documents as simple and straightforward as possible.

Supplier Selection

The objective of the selection process is to assess the responses to the Pre-Qualification Questionnaire and select potential suppliers to proceed to the next stage of the procurement.

Selection criteria will be a combination of both financial and non-financial factors and will consider:

Supplier Acceptability – in relation to the Authority’s definition of an eligible lender.

Economic and Financial Standing – the supplier must be in a sound financial position to participate in a procurement of this size. Organisations must demonstrate experience, competency and capacity to effectively deliver a loan book in excess of £200,000. This may entail independent financial checks.

Technical or Professional Ability – the supplier must be able to demonstrate that they meet any minimum standards of technical or professional ability required of them by the Authority, including relevant experience in instant capacity based lending.

Postcodes identified must be consistent with the Authority’s target locations.
 
Failure to provide a satisfactory response to any of the questions may result in the Authority not proceeding further with the supplier. The information supplied will be checked for completeness and compliance before responses are evaluated.

Timetable

Deadline for receipt of EOI – 12 December 2008
Invitation to Tender issued by – 19 December 2008
Deadline for receipt of proposals – 16 January 2009
Evaluation of proposals – 19 January 2009 – 30 January 2009
Contract commencement – February 2009

Address for responses

Barbara Elliott
Room M0074G
Durham House
Washington
Tyne and Wear
NE38 7SD

E-mailed responses should be sent to:
NEWCASTLE.THEGROWTHFUND@DWP.GSI.GOV.UK

Please clearly state Growth Fund – Expression of Interest in the subject field.

Queries about the procurement

The Authority will not enter into detailed discussion of the requirements at this stage. Any questions you may have should be submitted by letter or e-mail to the contact stated above.

If e-mailing a query please clearly state Growth Fund  – Query in the subject field.

If the Authority considers any question or request for clarification to be of material significance, both the query and the response will be communicated, in a suitably anonymous form, to all suppliers who have responded.

All responses received and any communication from suppliers will be treated in confidence except in pursuance of the Authority’s obligations under the Freedom of Information Act 2000.

Launch of Financial Inclusion Champions

23 October 2008

The £12million Champions initiative to help people suffering from financial exclusion was launched on Tuesday 21 October 2008 by Department for Work and Pensions (DWP) Minister, Kitty Ussher.

Organisations appointed so far are:

The campaign will build on the existing “now lets talk money” campaign, and will work with local authorities, social landlords and other key partners to make sure people have access to basic financial services, such as safe saving, bank accounts, money advice, home contents insurance and affordable credit.

Champions will not only signpost people to existing financial services but will also work in partnership to develop new services in areas where people do not have access to the services others take for granted.

Launching the campaign at the financial inclusion Taskforce Conference 2008, Kitty Ussher, said:

“The Government is committed to helping the poorest members of our society gain access to services, such as basic bank accounts, safe saving, home contents insurance and affordable loans that will put their finances on a more secure footing.

“It is vital that we work with organisations who come into daily contact with some of the people we want to reach so are well placed to provide the advice, support and services people need to improve their financial situation.”

Regional Financial Inclusion Champion teams are being rolled out throughout the rest of the Great Britain, with teams expected to be in place by January 2009.

Definition of Low Income – revised figures

12 June 2008

We have increased the amounts used to define low income by 5%. Please use the following figures from today:

Income levels shown on the list are made up of all net income received into a household, including all earned income, benefit income and tax credits, but excluding:

These figures are indicative, and should not be applied rigidly. Income is not the sole factor to take into account. We recognise that there may be some applicants with household incomes that vary from these amounts who are still readily identifiable as financially excluded. It may be appropriate to approve a loan from your Growth Fund capital for them. Use the list as a prime indicator of whether or not an applicant may qualify for a loan.

Loans made to cases where income is above these rates should be the exception rather than the norm, and you will need to provide a well documented explanation to support the decision.

Growth Fund Statistics

14 May 2008

The Growth Fund provides an opportunity for people on low incomes in areas of high financial exclusion to help themselves; it allows them access to loans at affordable interest rates; helps them to obtain bank and savings accounts; and helps them to avoid the spiral of debt that high interest door step and high loans often lead to.

The increased investment of £80 million for the period to 2011 will result in more affordable credit becoming available, to tens of thousands of people, through Credit Unions and other third sector lenders.

Below are headline Growth Fund statistics for the period from July 2006 to March 2008:

Updated figures will appear regularly on this website.

Official opening of Enterprise Credit Union office in Huyton

26 March 2008

On the 4 March 2008 James Plaskitt, DWP Minister responsible for Financial Inclusion, officially opened Enterprise Credit Union’s new Page Moss Office on Liverpool Road, Huyton.

As well as offering a range of financial services, including savings and affordable loans, to the local community, Enterprise Credit Union were the first in the country to start a Money Advice and Budgeting Service which provides debt counselling and training in financial literacy.

The event was a great success and Mr Plaskitt took away first hand accounts of how members and the local community were benefiting from the services provided.

James Plaskitt with Huyton Credit Union staff and local officials

Left to right: Karen Bennett (Enterprise Manager), Sheila Piggott (New Deal for Communities), Councillor Ken McGlashen, James Plaskitt MP, Councillor Veronica McNeil, Irene Dillon  (Enterprise) and Joe Lloyd (Chair of Enterprise).

Minister opens new Bristol Credit Union Office

26 March 2008

On 13 March 2008 James Plaskitt, DWP Minister with responsibility for Financial Inclusion,  visited Bristol Credit Union to officially open the new Head Office in St Paul’s.

Bristol Credit Union offers a range of accessible, affordable financial services (including a range of savings accounts and affordable loans) for people in the Bristol area.

Mr Plaskitt met and chatted to staff and members of the Credit Union as well as representatives from organisations supporting the event. The enthusiasm on the day was clear with members keen to tell the Minister how the Credit Union had turned their lives around.
 
James Berry, General Manager at Bristol Credit Union, said “We are delighted that the Minister has been able to visit the credit union today to see for himself the fantastic work we are doing to help people all over Bristol manage their money better. The credit union is moving from strength to strength, with more people joining every week. The new office gives us a great base as we look forward to offering an ethical current account, with debit card facility, from June this year, alongside all our other services for local people.”

James Plaskitt at Bristol Credit Union with James Berry (General Manager) and Valerie Davey(Chair BCU)

Left to right: Valerie Davey (BCU Chair), James Plaskitt MP, James Berry (BCU General Manager)

James Plaskitt answers questions on Financial Exclusion

3 March 2008

Leeds City Council hosted a Beacon Open Day on 6 February 2008. The topics covered were promoting Financial Inclusion and tackling Over-Indebtedness.

James Plaskitt, Parliamentary Under Secretary at the Department for Work and Pensions, was disappointed that he was unable to attend in person so instead sent a message of support via DVD which included a short question and answer session. You can see the question and answer session (this link will take you to the YouTube website) and read a transcript of the interview (16KB) PDF.

The Growth Fund 2 (Urgent Update)

28 February 2008

In addition to the areas listed in the 13 February 2008 news item, Expressions of Interest will be accepted for delivery of Growth Fund in one further area:

Manchester (R)

Anyone wishing to express interest in delivering Growth Fund in Manchester should follow the Instructions for completion as set out in the 13 February news item.

The Growth Fund 2

13 February 2008

Invitation for expressions of interest (EOI) to deliver The Growth Fund 2 from July 2008 to March 2011.

Background

The Department for Work and Pensions (DWP) currently manages over 100 commercial contracts worth £42 million to deliver The Growth Fund (GF). The GF supports the provision of affordable loans to people on low incomes in areas of high financial exclusion through third sector institutions. In March 2007 Financial Inclusion: The way forward was published by HM Treasury announcing a new financial inclusion fund for 2008 – 2011. Of this £130m fund, £38 million has been allocated to increase delivery of the GF initiative, delivery of which will continue to be through Credit Unions (CU’s), Community Development Finance Institutions (CDFI’s), and other community focused Industrial and Provident Societies (I&PSs) and not for profit institutions.

A competitive exercise is about to begin to attract potential suppliers into some of the red and amber priority areas identified in an HM Treasury commissioned report to identify supply and demand mapping of third sector affordable credit. Bids will be considered from any organisations that do not currently deliver GF, and also from existing contractors, however DWP will only accept EOI’s from organisations capable of delivering the GF in any of the following areas:

England
Wansbeck (R)
Blyth Valley (R)
Gateshead (R)
Derwentside (R)
Chester le Street (R)
Durham City (A)
Wear Valley (A)
Easington (R)
Telford & Wrekin (A)
Peterborough (R)
St Helens (A)
Corby (R)
The Wirral (R)
Wellingborough (A)
Ellesmere Port (R)
Kettering (R)
Chesterfield (R)
Worcester (A)
Bolsover (R)
Gloucester (A)
NE Derbyshire (A)
Thurrock (A)
Lincoln (R) 
Slough (A)
NE Lincolnshire (A)
Gravesham (A)
Swale (A)
Stockton on Tees (A)
Wolverhampton (A)
Dover (A)
Redcar & Cleveland (A)
Walsall (A)
Crawley (A)
Scarborough (A)
Tamworth (A)
Southampton (R)
Bradford (A)
Manchester (R) – added 28 February 2008

Scotland
Dundee City (R)                            
Fife (A)
Aberdeen (A)
Clackmannanshire (A)
Inverclyde (R)
North Lanarkshire (A)
South Ayrshire (A)

Wales
Neath & Port Talbot (A)
Newport (A)

(R)= Red Alert area
(A)= Amber Alert area

Eligibility

Eligible organisation are organisations which are regulated by the Financial Services Authority (FSA) and/or licensed by the Office of Fair Trading (OFT) to provide credit services and access to affordable loans, such as CU’s, CDFl’s and charitable/non-profit making organisations, with an average annual turnover (before tax all activities included) of less than EUR€100 million during the last two financial years. DWP will not contract with any of the above unless registered under the Data Protection Act (you must already have, or be willing to name, DWP or Central Government as a Data Processor).

Instructions for completion

If you are an eligible lender and wish to be considered please complete the pre-qualification questionnaire. Please note there are two versions of the questionnaire. If you are an existing GF provider please complete Growth Fund PQQ V1. If you do not currently have a DWP contract for the delivery of the GF please complete Growth Fund PQQ V2.

This should be completed and sent hard copy and e mail, to Barbara Elliott at the address below. With the hard copy, please enclose your latest audited statutory accounts and management accounts.

Please note the target date for receipt of EOI is 17th March 2008.

Supplier Selection

The objective of the selection process is to assess the responses to the Pre-Qualification Questionnaire and select potential suppliers to proceed to the next stage of the procurement.

Selection criteria will be a combination of both financial and non-financial factors and will consider:

  1. Supplier Acceptability – in relation to the Authority’s definition of an eligible lender.
  2. Economic and Financial Standing – the supplier must be in a sound financial position to participate in a procurement of this size. Organisations must demonstrate experience, competency and capacity to effectively deliver a loan book in excess of £200,000. This may entail independent financial checks.
  3. Technical or Professional Ability – the supplier must be able to demonstrate that they meet any minimum standards of technical or professional ability required of them by the Authority, including relevant experience in instant capacity based lending.
  4. Postcodes identified are consistent with the Authority’s target locations (please identify if a red or amber alert area in accordance with the above list -priority will be given to red areas with consideration given to amber areas where funding allows)

Failure to provide a satisfactory response to any of the questions may result in the Authority not proceeding further with the supplier. The information supplied will be checked for completeness and compliance before responses are evaluated.

If you are deemed eligible to take part in the exercise you will be issued an Invitation to Tender pack for completion and return.

Timetable

A proposed timetable for the exercise is shown below:

Address for responses

Barbara Elliott
1st Floor, Saxon House
50 – 52 Heaton Road
Newcastle upon Tyne
NE6 1SL

Emailed responses should be sent to:
NEWCASTLE.THEGROWTHFUND@DWP.GSI.GOV.UK

Please clearly state Growth Fund 2 – Expression of Interest in the subject field.

Queries about the procurement

The Authority will not enter into detailed discussion of the requirements at this stage. Any questions about the procurement should be submitted by letter or e-mail to the contact stated above.

If emailing a query please clearly state Growth Fund 2 – Query in the subject field.

If the Authority considers any question or request for clarification to be of material significance, both the query and the response will be communicated, in a suitably anonymous form, to all suppliers who have responded.

All responses received and any communication from suppliers will be treated in confidence except in pursuance of the Authority’s obligations under the Freedom of Information Act 2000.

Third Sector Training and Development Update

1 February 2008

DWP has now finalised contracts for the provision of third financial sector training and development for Growth Fund (GF) contractors, and others identified as likely to become contractors. The successful contractors were ABCUL, the CDFA and Wales Co-operative Centre.

Training and development is scheduled to be delivered during the remainder of financial year 2007 - 08 and throughout 2008 - 09. The first stages of delivery are currently underway.

The training to be delivered originated from research conducted for DWP and HM Treasury by Liverpool John Moores University, which has been supplemented by a Credit Union (CU)/Community Development Finance Institution (CDFI) survey to which 90% of GF Contractors responded in October/November 07.

The training breaks down into 5 main areas:

  1. Loan Application Processes
  2. Credit Control Functions
  3. Manager/Leader/Business – Development
  4. Board & Director Training
  5. PEARLS Financial Training for ABCUL credit unions.

CDFA will deliver areas 1 – 4 to GF CDFI’s and will link with ABCUL for area 5 where credit unions are sub contracted to a CDFI for GF delivery.

Wales Co-operative Centre will deliver 1 - 4 to CU’s in Wales.

ABCUL will deliver 1 - 5 to GF CU’s across England and Scotland.

ABCUL will also link with the Wales Co-operative Centre to provide in Wales:

If you have any questions about the information above, please contact either:

Steve Duffy or Tony Franklin
Financial Inclusion Team
Saxon House
50 – 52 Heaton Road
Newcastle NE6 1SL

Tel: 0191 275 2455 or 2445
Email: Anthony.franklin@dwp.gsi.gov.uk

Extra time for Stakeholder Managers

16 January 2008

Now Let's Talk Money campaign managers are delighted to confirm that the 14 Stakeholder managers working across the UK are to remain in post until the end of June 2008.

Expressions of Interest for Growth Fund 2

14 January 2008

Following the announcement of the £38 million allocated by HM Treasury (for the period 2008 to 2011) to increase:

a commercial procurement exercise has commenced and Expressions of Interest (EOI) have been invited from all organisations that currently deliver Growth Fund. These organisations can only bid to cover current contracted geographical areas or existing common bonds.

New contracts will be required to cover those parts of the country highlighted as Red and Amber alert areas in the HM Treasury Action Plan where there is currently no Growth Fund coverage. A public procurement exercise to select contractors for these areas will be announced in the Spring.

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