The benefits of Financial Shield

About two years ago we set out to trial a new model to help people of working age who suffered from both long term illness and debt, by asking GPs in Lambeth and Southwark to refer patients to the scheme. Our Financial Support Link Workers have provided face to face advice to these referrals to maximise incomes and address rent and Council Tax arrears, to help get their finances back on track, and ultimately improve their wellbeing.

In the last financial year, we received 651 referrals, resulting in 330 people being successfully onboarded. There are four key findings from our work:

First, over £350,000 of financial support was delivered into the pocket of those people helped. This ranged from securing access to emergency funds for gas and electricity, to much larger amounts of previously unclaimed benefit entitlements, for example, Personal Independence Payment, worth around £8,500 per year.

These financial gains are also a likely under-estimate, as not all residents report back concerning the outcomes of their claims. Despite this, the value of the financial support delivered for residents was around 35% higher than the cost of delivering the service.

However, we have also seen how many people continue to struggle with the cost-of-living crisis, and how social security support is proving inadequate. Around three quarters of the people we saw were only entitled to relatively small sum, temporary and discretionary support such as food bank and fuel vouchers. Although these were welcome no major improvements in health can be achieved from such stop-gap measures. Nevertheless, for the quarter of residents who were helped to claim additional benefits entitlements, the average value of those awards was significant at around £4,000.

Second, we helped around 100 people to access the project’s unique ‘local breathing space’, which suspends recovery action by the participating local authorities and housing associations pending income maximisation work. Project workers also negotiated debt reductions and write-offs in cases of vulnerable people, to help them back on their feet after prolonged illness, depression and household breakdown.

Evaluation of the impact on Council Tax debt in Lambeth indicates that three months after accessing this element of the project, residents have reduced their Lambeth Council Tax debts by more than £40,000: an average of £720 per person. The Council report that they have also saved money due to reduced collection costs.

Third, we looked at the number of pre and post intervention GP appointments for a random sample of patients. This indicates a reduction in the number of GP appointments in the 3 months after accessing Financial Shield compared to the 3 months before. Overall GP appointments post-intervention reduced by about 25%. Whilst the data does not exist to concretely attribute this reduction directly to the scheme, it suggests we are making some progress towards the objective we set to deliver tangible cost savings to the NHS.

Fourth, we are definitely reaching the intended target audience: 95% have a long term health condition or disability, a quarter have a disability, or live with someone with a disability; 62% have a physical health condition, 55% have a mental health condition and 26% have both; 79% have minority ethnic heritages with half identifying as Black, Black British, African, or Caribbean. Two thirds are female and one in five are single parent households.

In addition to the data, we have also written up case studies – these stories attest to the power of face to face intervention and personal support. Each one illustrates the ‘reciprocal relationship’ between financial health and multiple long-term health conditions and each one explains why it can be so hard to climb out of ‘the overwhelming black hole’ of debt alone.

I am therefore especially grateful to Impact on Urban Health, which has now confirmed continued financial support for this scheme through to Autumn 2025. This will enable us to help more people and continue to build the case for the NHS and local authorities to come together within their Integrated Care Partnerships and provide resources for similar services on a sustainable basis. As we move into a pre-election period, we will also be making the case to politicians. A full report of the progress made to date will be published in October.