Claire Mills, Deputy CEO of Charity Finance Group, discusses the alarming banking issues faced by charities, with 90% reporting problems over the past two years. She reveals that many struggle to change signatories on bank accounts and highlights the emotional toll these challenges take. The conversation also shifts to the recent Scottish budget, focusing on income tax updates and the two-child benefit cap. Finally, they provide essential insights on Attendance Allowance for pensioners and how to avoid duplicate insurance coverage.
The podcast highlights that 90% of UK charities have faced banking issues, necessitating better communication between banks and charities.
Significant changes in the Scottish budget aim to lift the two-child benefit cap, providing financial relief for affected households.
Deep dives
Challenges Faced by Charities with Banking
Many charities in the UK have reported significant issues with banking, with a survey indicating that nine out of ten charities have faced at least one banking problem in the last two years. Over three-quarters of respondents experienced difficulty changing signatories on their accounts, leading to severe operational disruptions, such as the case of the Roma Project, which faced a banking freeze following the death of its founder. This situation forced the charity to rely on personal savings to pay staff, illustrating the urgent need for improved communication and knowledge within banks regarding the specific needs and organizational structures of charities. Recommendations have been made for banks to establish dedicated customer service teams that possess specialized knowledge about charities to help facilitate smoother banking experiences.
Impact of Scottish Budget Changes
The recent Scottish budget included significant changes, notably a promise to scrap the two-child cap on benefits, which could potentially offer substantial financial relief to impacted households. While the exact details of how this will be implemented remain unclear, this initiative is seen as a step towards mitigating the financial strain caused by the cap, which has been estimated to cost families over £3,000 per child. Additionally, the budget introduced changes to income tax thresholds, with the Scottish government opting to lift them for lower tax rates, allowing for minimal increases in take-home pay for many Scots. However, the overall tax scheme remains complex, and some will ultimately pay more than individuals in other parts of the UK.
Evaluating Insurance Coverage Effectiveness
Recent research indicates that many households may be over-insured, with over a third of those having contents insurance also carrying separate policies for specific items like phones and appliances. This duplication often occurs without the policyholder realizing that their contents insurance may already cover these items, leading to unnecessary expenditures. The survey highlighted a particular risk among specific demographics, such as younger individuals and those from minority ethnic groups, who are more likely to have multiple insurance policies. Experts emphasize the importance of reviewing existing insurance coverage and understanding policy details to ensure essential items are sufficiently protected without incurring extra costs.
Around 9 out of 10 charities have told a new report they've had at least one issue with banking in the past two years. The Charity Finance Group and National Council for Voluntary Organisations spoke to almost 2,000 charities in the UK and found more than three quarters had struggled to change the named signatories on their bank account and 4 in 10 said that the checks they were asked to complete weren't designed for voluntary organisations. We'll speak to one of the authors of that report and get reaction from UK Finance, which represents banks.
What were the key announcements in the Scottish Budget? We'll discuss income tax thresholds and a promise to lift the two-child benefit cap.
If you're a pensioner missing the Winter Fuel Payment this year - what other help could you get if you're struggling? We'll look at Attendance Allowance - who's eligible and how you can apply.
And, what's the best advice to make sure you're not inadvertently insuring the same thing twice?
Presenter: Felicity Hannah
Reporter: Dan Whitworth
Researchers: Emma Smith and Jo Krasner
Editor: Jess Quayle
(First broadcast 12pm Saturday 7th December 2024)
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