Demand for financial skills in prisons and probation soars

The number of people requesting financial capability training from Nacro, the crime reduction charity has risen by 87% compared to the same period last year. The charity which delivers money management training to prison and probation staff received 176 calls in just 6 days.

Financial literacy is being increasingly recognised as a route to reducing reoffending rates. Recent research from the Legal Services Research Centre has found that the relationship between financial exclusion and a prison sentence as ‘compelling’. Over 47 % of people in prison have a history of debt and 23,000 offenders had financial problems linked to their offending. (1)

Raj Patel, a senior policy development adviser at Nacro, says “Poor financial literacy can impact on some of the key factors to reducing reoffending such as employment and accommodation. The majority of employers will require a bank account to pay wages into and if you are trying securing a roof over your head you need to have good budgeting skills to pay the rent and utilities on time.”

“As many as 40% prisoners do not have a current account or any other financial products and do not know how to access them.”
The National Audit Office estimates that reoffending costs the taxpayer over £11billion a year.

Chris Pond, a director of the Financial Services Authority (FSA), says: ‘Debt can drive people back into offending. If by having money management training whilst in prison, offenders are better able to avoid money problems after their release, then this is a valuable initiative and one which the FSA is happy to sponsor’.

Nacro’s Managing Money – Building essential skills programme is funded by the Consumer Financial Education Body, previously part of the FSA. The two day programme covers the welfare benefits system; managing debts; budget planning, bank accounts and insurance disclosures; and preparing for life ahead. It is designed to equip staff with the ability to run the course and also provide one-to-one personalised advice sessions with offenders.

ENDS

For more information contact Olivia Ware on 020 7840 7216 / 07974 189979 or olivia.ware@nacro.org.uk

Notes to editors:

(1) New Philanthropy Capital (2008) Short changed: financial exclusion, a guide for donors and funders, London: New Philanthropy Capital

(2) Nacro, the national crime reduction charity, works with disadvantaged people, deprived communities and ex-offenders to give them a positive stake in society. It has unrivalled expertise in developing practical responses to crime and stimulating fresh thinking on how best to reduce it through policy, research and campaign work.

(3) Nacro runs preventive projects to steer young people away from crime, provides housing, education and employment programmes for ex-offenders and people at risk of offending, resettles prisoners into the community and works with families and communities to prevent crime.

(4) Every year Nacro works directly with over 90,000 people and many more benefit from our work with local, regional and national partners to help reduce crime. To find out more and for access to online information resources, please visit: www.nacro.org.uk