News archive - 2009
Growth Fund Opportunity – West Midlands
2 December 2009
As previously announced in May 2009, the Department for Work and Pensions (DWP) will be advertising new Growth Fund delivery opportunities within specified locations. The DWP are now seeking suitable providers for Growth Fund delivery across the West Midlands Government Office Region.
Supplier Selection
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. 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.
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.
Eligibility
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. Also, DWP will 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.
How to express an interest:
If you are an eligible lender and wish to be considered please e-mail your expression of interest to Alex Joseph at the address below. Please clearly state "Growth Fund – Expression of Interest" in the subject field. You must also send a hard copy of this letter and enclose a copy of the audited accounts for your organisation for the last two complete financial years and your latest set of management accounts. New organisations which do not yet have two full accounting years to report may contact Susan Carr to discuss.
Please note that all Expressions of Interest must be received at the DWP address by close of business on Friday 11 December 2009. Organisations who submit a successful Expression of Interest will be notified during w/c 14 December 2009 and be provided with the necessary documents to submit a full bid.
Contact details and address for response
Alex Joseph
CD Business & Financial Services
Room BP5101, Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1YX
Alex.Joseph@dwp.gsi.gov.uk
Saving Gateway Credit Union workshop – Glasgow 2 December 2009
24 November 2009
This is a reminder that a Saving Gateway workshop for credit unions is taking place at Saint Andrews in the Square in Glasgow on 2 December 2009.
Saving Gateway will launch in 2010 and this workshop provides the ideal opportunity for credit unions to learn more about the initiative and the potential business opportunities which are available. It will also cover account features and the requirements upon Saving Gateway account providers.
Further information regarding the Saving Gateway workshop, including details of how to reserve a place, can be found in the document below. This event is proving popular therefore if you wish to attend you are advised to book a place as soon as possible.
There is no charge for attending the workshop however please note that any other expenses incurred by attendees cannot be reimbursed.
Growth Fund Opportunity – York and North Yorkshire
20 November 2009
As previously announced in May 2009, the Department for Work and Pensions (DWP) will be advertising new Growth Fund delivery opportunities within specified locations. The DWP are now seeking suitable providers for Growth Fund delivery in York and North Yorkshire.
Supplier Selection
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. 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.
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.
Eligibility
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. Also, DWP will 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.
How to express an interest:
If you are an eligible lender and wish to be considered please e-mail your expression of interest to Susan Carr at the address below. Please clearly state "Growth Fund – Expression of Interest" in the subject field. You must also send a hard copy of this letter and enclose a copy of the audited accounts for your organisation for the last two complete financial years and your latest set of management accounts. New organisations which do not yet have two full accounting years to report may contact Susan Carr to discuss.
Please note that all Expressions of Interest must be received at the DWP address by close of business on Friday 4 December 2009. Organisations who submit a successful Expression of Interest will be notified during w/c 7 December 2009 and be provided with the necessary documents to submit a full bid.
Contact details and address for response
Susan Carr
CD Business & Financial Services
Room BP5101
Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1YX
E-mail: Susan.Carr@dwp.gsi.gov.uk
Growth Fund Opportunity – Northampton
16 November 2009
As previously announced in May 2009, the Department for Work and Pensions (DWP) will be advertising new Growth Fund (GF) delivery opportunities within specified locations. The DWP are now seeking a suitable provider to deliver GF across the Northampton Borough Council area.
We wish to invite eligible organisations interested in working with us to deliver GF to attend a briefing event explaining more about it and the tendering process in Northampton on Friday 4 December at 9.30am. The venue will be confirmed shortly, please keep checking this website for an update. Following the briefing session interested parties can request a tender application pack.
Eligible organisations 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 Credit Unions, Community Development Financial Institutions and charitable or non-profit making organisations, with an average annual turnover (before tax) of less than EUR100 million during the last two financial years.
Please confirm your intention to attend the event by emailing the name and status of your organisation, and details of attendees, to:
Alex Joseph
DWP Commercial Directorate
0191 216 8495
Responses by Friday 27 November 2009.
Saving Gateway: Credit Union Workshop, Birmingham 12 November
9 October 2009
Saving Gateway is a government-supported saving account which credit unions may choose to offer from 2010. Its objectives are to support financial inclusion and kick-start a saving habit among working age people on lower incomes.
A Savings Gateway workshop event has been organised for all credit unions. This event will allow credit unions to find out more about the Saving Gateway, including how accounts will work, the requirements on account providers, and the potential benefits for credit unions. If you want to attend this event please see the invitation below.
Growth Fund Opportunity - Northumberland and South West
9 October 2009
As previously announced in May 2009, the Department for Work and Pensions (DWP) will be advertising new Growth Fund delivery opportunities within specified locations. As a result of our previous open procurement rounds, we have awarded contracts in County Durham South, Corby, Kettering & Wellingborough, Peterborough, Lincoln and South East Wales and Newcastle upon Tyne.
We are now seeking suitable providers for Growth Fund delivery in Northumberland, Wiltshire, Somerset, Gloucestershire, Devon & Cornwall.
Supplier Selection
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. 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.
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.
Eligibility
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. Also, DWP will 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.
How to express an interest:
If you are an eligible lender and wish to be considered please complete the pre-qualification questionnaire.
Completed documents should be sent hard copy and by e-mail, to Alex Joseph at the address below. You must also enclose a copy of the audited accounts for your organisation for the last two complete financial years and your latest set of management accounts. New organisations which do not yet have two full accounting years to report may contact Alex Joseph, see contact details below, to discuss.
Please note that all EOIs must be received at the DWP address by close of business on Friday 30 October 2009. It is envisaged that after an initial assessment of expressions of interest, DWP will host a briefing event at local venues where next steps & the procurement timetable will be discussed. The events will also provide an opportunity for potential bidders to learn more about Growth Fund delivery and ask questions in an open forum.
Contact details and address for response
Alex Joseph
CD Business & Financial Services
Room BP5101
Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1YX
E-mail: Alex.Joseph@dwp.gsi.gov.uk
Growth Fund Opportunity – Stoke on Trent and Newcastle under Lyme
14 August 2009
As previously announced in May 2009, The Department for Work and Pensions (DWP) will be advertising new Growth Fund delivery opportunities within specified locations. As a result of our first open procurement exercise we are currently considering applications to deliver the service in County Durham South, Corby, Kettering & Wellingborough, Peterborough, Lincoln and South East Wales and Newcastle upon Tyne.
We are now hoping to attract suitable lenders to deliver the service in Stoke on Trent and Newcastle under Lyme.
Supplier Selection
A Financial Inclusion Partnership Group is currently being developed with the Local Authority. It is the intention of this group to work with a preferred supplier to develop the service to be provided. The purpose of this exercise is to identify that preferred supplier.
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. 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.
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.
Eligibility
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. Also, DWP will 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.
Completed documents should be sent hard copy and by e-mail, to Barbara Elliott at the address below. 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 Elliott, see contact details below, to discuss.
Please note that all EOIs must be received at the DWP address by close of business on Friday 21 August 2009. Organisations who submit a successful EOI will be notified w/c 31 August 2009 and be provided with the necessary documents to submit a full bid.
Based on previous experience, we will endeavour to make the bid documents as simple and straightforward as possible.
Timetable
Deadline for receipt of EOI: 21 August 2009
Invitation to Tender issued by: w/c 31 August 2009.
Deadline for receipt of proposals: Friday 18 September 2009
Evaluation of proposals: w/c 21 September 2009
Contract award: w/c 28 September 2009
Contact details and address for response
Barbara Elliott
CD Business & Financial Services
Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1YX
E-mail: 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.
Growth Fund Opportunity – Newcastle upon Tyne
17 July 2009
As previously announced in May 2009, The Department for Work and Pensions (DWP) will be advertising new Growth Fund delivery opportunities within specified locations. As a result of our first open procurement exercise we are currently considering applications to deliver the service in County Durham South, Corby, Kettering & Wellingborough, Peterborough, Lincoln and South East Wales.
We are now hoping to attract suitable lenders to deliver the service in Newcastle upon Tyne.
Eligibility
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. Also, DWP will 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.
Completed documents should be sent hard copy and by e-mail, to Katie Davis at the address below. 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 Katie Davis, see contact details below, to discuss.
Please note that all EOIs must be received at the DWP address by close of business on Friday 31 July 2009. Organisations who submit a successful EOI will be notified w/c 10 August 2009 and be provided with the necessary documents to submit a full bid.
Based on previous experience, we will endeavour to 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. 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: 31 July 2009
Invitation to Tender issued by: w/c 03 August 2009.
Deadline for receipt of proposals: Friday 28 August 2009
Evaluation of proposals: w/c 31 August 2009
Contract award: w/c 14 September 2009
Contact details and address for response
Katie Davis
CD Business & Financial Services
Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1YX
E-mail: 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.
Invitation for expressions of interest to deliver The Growth Fund
29 May 2009
The Department for Work and Pensions (DWP) currently manages nearly 100 contracts across GB for delivery of 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.
Following the recent announcement in the budget to invest a further £18.75 million in GF a competitive exercise is to be held to attract potential suppliers into some locations identified as priority areas where currently there is insufficient cover. DWP will only be looking to contract in the areas specified, and there is eligibility criteria that must be satisfied before organisations are invited to bid. These areas are:
England
County Durham, south
Corby, Kettering and Wellingborough
Peterborough
Lincoln
Kent
Wales
South East Wales, including Neath, Port Talbot
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. Also, DWP will 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 PQQV1. If you do not currently have a DWP contract for the delivery of the Growth Fund you must complete PQQV2.
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 Elliott, see contact details below, to discuss.
Please note that all EOIs must be received at the DWP address by close of business on Friday, 12 June 2009. Organisations who submit a successful EOI will be notified w/c 22 June and be provided with the necessary documents to submit a full bid.
Based on previous experience, we will endeavour to 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. 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 June 2009
Invitation to Tender issued by – w/c 22 June 2009.
Deadline for receipt of proposals – Friday 7 August 2009
Evaluation of proposals – 10 August – 21 August 2009
Contract commencement – w/c 31 August 2009
Contact Details
Barbara Elliott
M0074, Durham House
Washington
Tyne & Wear
NE38 7SD
Email: thegrowthfund@dwp.gsi.gov.uk
Address for responses
Barbara Elliott
M0074
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.
Additional £18.75 million for Growth Fund - Update
20 May 2009
In the Latest News article 22 April we advised that we would publish regular updates regarding our investment strategy following the Budget announcement of an additional £18.75 million for Growth Fund.
The additional money will be used:
To support existing Growth Fund contracts
- Further investment to existing Growth Fund contracts will be based upon thorough examination of contractual Key Performance Indicator’s and performance to date.
- Successful Growth Fund providers will receive notification w/c 18 May asking them to consider the desirability and feasibility of delivering additional Growth Fund loans. Proposals should be returned by 19 June.
- Bids to deliver in locations deemed applicable to open competition will be defered until such time.
To support new providers
- The first open competition is expected to be publicised on the website in the coming weeks. The locations we will be advertising in the first round are South Wales and County Durham
- Other locations will be announced in due course.
Chancellor announces extra £18.75 million for the Growth Fund
22 April 2009
DWP is pleased to announce that, this week, the Chancellor outlined a further £18.75 million investment in the Growth Fund. This is excellent news for the project, and a real recognition of the hard work of everyone involved, and the real success we have achieved.
DWP will outline their investment strategy over the next few weeks, and we would ask current and potential Growth Fund partners not to contact us in the meantime. We will publish regular updates here and now let’s talk money website.
Prime Minister thanks the Front line
27 March 2009
Prime Minister Gordon Brown has spoken of his gratitude to community organisations for providing “real help now” during the economic downturn.
Mr Brown invited 22 representatives from Credit Unions and Community Development Finance Institutions around Great Britain to 10 Downing Street to personally thank them, and other front line agencies, for the work they are doing in the heart of communities.
The Prime Minister, Gordon Brown, said:
"I am very pleased to be able personally to thank all those who are providing support and advice to the people of Britain in this time of economic crisis.
We want to do everything possible to make sure that every worker, every homeowner, every small business, every family and every pensioner here in Britain receives the advice and information they need to help them through these tough times.
I am delighted to be able to pay tribute to the advisers on the front line and thank them for the invaluable service they are providing to the people in their communities".
Among those invited John McClay, Member Services Manager, Capital Credit Union in Edinburgh and Lakshman Chandrasekera, Chief Executive, Southwark Credit Union both agreed that it was a great evening and a real boost to be recognised in this way for the difference organisations like theirs are making to peoples lives.
Delivery in Gateshead, Derwentside, Chester-le-Street - Expressions of interest
2 March 2009
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.
We are now advertising again to procure service coverage for the next stage of our plans from 1 May 2009 to March 2011 in:
England
- Gateshead
- Derwentside
- Chester-le-Street
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) 
. If you do not currently have a DWP contract for the delivery of the Growth Fund you must complete Growth Fund PQQ V2 (94KB) .
Completed documents should be sent hard copy and by e-mail, to Katie Davis 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 Katie Davis, see contact details below, to discuss.
Please note that all EOIs must be received at the DWP address by close of business on Friday 14 March 2009. Organisations who submit a successful EOI will be notified week commencing 23 March and be provided with the necessary documents to submit a full bid by Friday 10 April.
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 – 14 March 2009
Invitation to Tender issued by – week commencing 23 March 2009.
Deadline for receipt of proposals – Friday 10 April 2009
Evaluation of proposals – week commencing 13 April
Contract commencement – 01 May 2009
Address for responses
Katie Davis
c/o Room M0074G
Durham House
Washington
Tyne and Wear
NE38 7SD
Emailed 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 emailing 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.
Definition of low income – revised figures
20 January 2009
In November 2008 income levels were increased to more closely match government guidelines for tax credits. Applications received from customers in receipt of any type of tax credit payment can, at the discretion of the contractor, be considered for a Growth Fund loan. Normal income and expenditure assessment action (including a credit search where appropriate) must be taken to ensure that the applicant has the capacity to repay.
However, the Department is now able to go further than that, and all of the income levels are being revised to give even greater flexibility. Each band has been increased by approximately 50 per cent, and rounded up to the next £10. So, for example, the suggested income level for a single person, previously quoted as £136, will now be £210.
The following figures are now in use:
- Single person £210
- Single person with 1 child £280
- Single person with 2 children £360
- Single person with 3 children £440
- Single person with 4 children (or more) £510
- Couple £360
- Couple with 1 child £440
- Couple with 2 children £510
- Couple with 3 children £590
- Couple with 4 children (or more) £670
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:
- Child Benefit
- Disability Living Allowance
- Attendance Allowance (regardless of whether it is paid in respect of an adult or a child)
- Mobility allowance (regardless of whether it is paid as cash or a Motability car)
- Housing Benefit
- Council Tax Benefit
- DWP funded mortgage interest payment
These figures are indicative, and should not be applied rigidly. Income is not the sole factor to take into account. It is recognised 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 Growth Fund capital for them. The list should be used as a prime indicator of whether or not an applicant may qualify for a loan.
Growth Fund – An update for the New Year
9 January 2009
As we move into the first few days of the New Year we thought it appropriate to take stock of the Growth Fund – to reflect upon the achievements and challenges, and to re-affirm the principles of the project.
Financial inclusion policy and the Growth Fund
In December 2004 the Government set out the first steps for tackling financial exclusion in three priority areas:
- access to free face-to-face money advice;
- access to banking; and
- access to affordable credit.
£120 million was allocated to tackle financial inclusion issues, including £36 million to the Growth Fund to increase the availability of affordable credit through Credit Unions and Community Development Finance Institutions (CDFIs). Following the March 2007 budget Growth Fund was increased by £6 million, to £42 million. In December 2007, Treasury published an action plan for financial inclusion covering the period from 2008 to 2011, and a further £38 million was allocated to the Growth Fund to increase consumer access to affordable credit and extend coverage in priority areas where research showed that there was little or no supply.
Financial exclusion results in real and rising costs, often borne by those who can least afford them. Exclusion can mean:
- paying commission to cash a cheque, rather than being able to pay it into a bank account;
- experiencing the stress of over-indebtedness which could have been avoided with timely advice and support;
- being unable to get affordable credit even though you can repay;
- being forced to rely on high cost credit from a door step lender or high street shop; and even
- risking intimidation and violence at the hands of illegal loan sharks.
The principles of the Growth Fund
Many people on low incomes need to borrow from time to time to help manage their cash flow or deal with unexpected expenses. It is wrong that they should be forced to borrow at high rates of interest which can plunge them into unmanageable debt.
The Government believes that the best way to make affordable credit accessible to people who the mainstream lenders do not serve is through community-based lenders. Credit Unions and CDFIs are able to help people to manage their finances and avoid building up debts they are unable to repay, provide affordable personal loans to people who can repay, and offer saving and banking services. The Growth Fund offers these organisations the opportunity to expand their services to people at risk of exclusion. It also enables them to develop their businesses and widen their coverage across the country.
Growth Fund is not about increasing personal debt. It is about offering financially excluded people an affordable choice to high cost lenders, where interest charges well in excess of 189 percent APR are common. The Growth Fund has enabled Credit Unions and CDFIs to offer the affordable alternative that excluded people needed, reducing the amount of interest they repay by huge margins, and reducing the amount of debt that those charges often cause.
With interest rates commonly at 26.8 percent APR for first loans, credit unions offer a real alternative to doorstep lenders. A £500 loan from a Growth Fund credit union, repaid over one year, will attract an interest charge of £62. Compare that to the rates charged by a leading doorstep lender, where the same £500 loan will cost over £600 in interest. The £500 plus of interest charges saved by the borrower remains available to spend in the local community and for this reason the Growth Fund makes good economic sense for financially excluded people.
The FSA Money Made Clear website provides further information about interest charges. The Lenders Compared website, regulated by the Office of Fair Trading, allows borrowers to compare home collected loans with other cash-based loans, including loans from Growth Fund providers, and can show clearly the wide difference in interest charges and fees.
Responsible lending principles
But the principles of the Growth Fund go deeper than just affordable credit. The project was founded on the basis of responsible lending by our Credit Unions and CDFIs, and responsible borrowing by their customers:
Responsible Credit Unions and CDFIs – all Growth Fund partners check the income and outgoings of each client and conduct a credit check. Clients are asked if they have tried to obtain a loan through other cheaper sources such as banks or building societies. They are asked if they could apply for a Social Fund loan – whether a Crisis Loan if they are in hardship, or a Budgeting Loan to help with things for the home or other items that the client cannot pay for in a lump sum.
Responsible consumers – CUs and CDFIs will advise against borrowing where there is any doubt about the client’s ability to repay. Growth Fund partners engage clients in a discussion about their financial situation, and where there are debt problems refer them to a local debt advice agency rather than make a loan. They encourage clients to save, possibly for the first time in their lives, to plan for events such as birthdays and Christmas.
Growth Fund success to date
Since the Growth Fund began in July 2006, over 120,000 loans with a value of over £52 million have been made. Behind each of these loans lies a real-life story, reflected in a letter received by one of our partners in Liverpool. It said:
“Before I opened my credit union account I regularly borrowed from friends and family to the point where they were fed up of me. Being on benefits mean that bank and loan agencies would never even consider me for a loan. I felt like I was sinking and couldn’t get back on an even keel.
My credit union has helped me out of many sticky situations, as well as giving me an opportunity to save. I no longer have to borrow from friends and family. Occasions such as birthdays and Christmas don’t seem so daunting to me cos’ I know there will be something there and the possibility to borrow a little if I need to without incurring huge interest charges and unreal repayments.”
The Growth Fund will continue to develop over the next two years; offering a real alternative to financially excluded people, helping to develop a broad range of services available to their members and to increase the sustainability of our GF partners by encouraging increased credit union membership, increased savings (especially as we move towards the launch of the Saving Gateway), and re-affirming the principles of responsible lending and borrowing at affordable interest rates.
