Memorandum submitted by the Royal National
Institute of the Blind (RNIB)
1. WHO WE
ARE
1.1 We are the leading charity working in
the UK offering practical support, advice and information for
anyone with sight loss. We are an organisation of blind and partially
sighted people, with 80% of our Trustees and Assembly Members
being blind or partially sighted. We are also a membership organisation
with approaching 10,000 members, 81% of whom are blind or partially
sighted.
1.2 RNIB runs a welfare rights service which
directly assists with around 3,800 income and pension enquiries
per annum, run to Community Legal Service specialist standards.
We are, however, unable to provide debt advice.
2. EXECUTIVE
SUMMARY
2.1 Blind and partially sighted people face
significant barriers to achieving financial inclusion. These barriers
are faced when trying to access financial services, utilities,
as well as advice services dealing with debt and financial management.
2.2 Unpublished research that we conducted
in partnership with Citizens Advice and Royal Bank of Scotland,
has given an insight into the barriers affecting blind and partially
sighted people's ability to achieve financial inclusion. The research
demonstrated barriers such as;
2.2.1 Information on special offers and
new products is commonly available in a print format and therefore
not accessible to people with sight loss, who may require it in
large print, audio tape or braille, or only available in person
and therefore not accessible to people who cannot travel independently
to a shop, branch or other retail outlet. This leads to people
with sight loss missing out on competitive pricing and paying
extra, which they can least afford from their fixed incomes.
2.2.2 The complexity of dealing with largely
print based documentation and advertising, such as information
about loans, credit or special offers on goods and services, is
a barrier for many people who do not have assistance on hand from
family, friends or support workers to make this information accessible
to them. In addition, the hassle of paperwork required to change
financial products from an existing one can seem insurmountable
to some people with serious sight loss.
2.2.3 Technological advances, such as internet
banking are not benefiting blind and partially sighted people
as much as the general population. Our research with Royal Bank
of Scotland shows that 40% of those surveyed have no access to
a computer or the internet, excluding them from internet based
special offers and rates.
2.2.4 Financial advice services provided
by organisations such as Citizens Advice Bureaux are not always
accessible to blind, partially sighted and other disabled people
who are unable to travel independently to organisations' offices
to take advice. The provision of home consultations would be a
welcome way to make these services more accessible but often the
focus is not necessarily on debt but how to make the most of their
existing income. It is virtually impossible to get general advice
on this in localities.
2.3 We believe that banks, utility companies
and organisations offering financial advice need to improve the
accessibility of their products and services if blind and partially
sighted people are to enjoy greater access to information about
products and services that may be better value than those they
are currently using, improving their financial inclusion and maximising
their limited incomes.
3. DISABILITY,
DEBT AND
FINANCIAL INCLUSION
3.1 The recent report from Leonard Cheshire
"In the balance: disabled people's experience of debt"
(2005) clearly demonstrated that there was a strong association
between acquiring an impairment and falling into arrears. For
many participants the impact of an impairment over time, combined
with a reliance on welfare benefits and the gradual erosion of
personal savings, meant that problem debt was the result of barely
managing to make ends meet.
3.2 Almost a half of individuals said that
an unexpected one off cost, not related to their disability, such
as the need to replace a broken cooker, bed or washing machine,
had contributed to their financial problems.
3.3 The average level of debt amongst the
small sample of blind people in Leonard Cheshire's survey was
higher than the average for disabled people. The average debt
amongst all participants was £8,750, but amongst those with
a visual impairment it was slightly higher at £9,500. None
of the blind participants was in paid employment (75% of blind
and partially sighted people of working age are unemployed).
3.4 The three main reasons given by individuals
with a visual impairment as to why they had fallen into debt corresponded
to those given by other participants; living long-term on a low
income, difficulty in securing paid employment, the inadequacy
of benefits etc. All participants with a visual impairment said
they considered their impairment to be a `very significant' factor
in contributing to their debt problems. This group were also less
likely to have sought independent advice on debt.
3.5 Leonard Cheshire's report dealt mainly
with people of working age. However, the vast majority of England's
300,000 blind and partially sighted people are over pensionable
age (80% of people with sight loss are aged over 65) and 90% are
living on incomes of less than half the national average (Lost
Vision: Older Visually Impaired People, RNIB 1998). Their
circumstances are likely to be worse than the participants in
the Leonard Cheshire survey, as they will be more likely to be
living in older and more unsuitable accommodation and have reduced
mobility. Around 120,000 people with serious sight loss receive
Disability Living Allowance or Attendance Allowance and around
half are on income related benefits.
4. OUR EXPERIENCE
OF FINANCIAL
EXCLUSION
4.1 As a charity RNIB receives requests
for financial support from people in exceptional hardship. Although
we do not advertise this service we receive over 1,000 requests
for help per annum and the main issues are problem debt and inability
to buy essential items such as a mobile phone (for safety and
orientation) or items of household furniture and equipment such
as electrical cookers (rather than gas) for safety reasons.
5. FINANCIAL
INCLUSION FOR
BLIND AND
PARTIALLY SIGHTED
PEOPLE
5.1 Recent unpublished research that we
conducted in partnership with Royal Bank of Scotland indicated
that for the 163 people with sight loss surveyed a significant
number (106 people or 65%) advised that they had experienced difficulties
when dealing with financial information, their money or credit
or debit cards.
5.2 There were some significant general
findings from the study that impact upon the overall ability of
people with sight loss to be financially literate. Amongst these
were;
5.2.1 Their choice of financial institution
or products was based on convenience, standard of customer service
or the provision of accessible information rather than competitiveness
of the product or service.
5.2.2 Due to their sight loss they were
much less able than a sighted person to scan, locate and transfer
to more competitive financial deals and therefore missed out on
special offers and new products.
5.2.3 The need to rely on the assistance
of friends and family for support with financial affairs limited
what they could do.
5.2.4 An inability or failure to take advantage
of telephone banking or internet banking limited their options.
6. THE TOP
FIVE BARRIERS
HIGHLIGHTED FROM
THE RESEARCH:
| Problem | identified by (%)
|
| Reading written information | 48
|
| Distinguishing coins and bank notes | 26
|
| Difficulties with ATMs | 20
|
| Filling in and signing forms and cheques |
20 |
| Reading details on credit cards | 11
|
7. ASSISTANCE WITH
FINANCIAL AFFAIRS
7.1 Participants sought help or assistance from a number
of different sources but the majority had received help from relatives.
| Source of help | % |
| A relative | 34 |
| Bank/building society | 18 |
| A friend | 11 |
| Citizen Advice Bureau | 1 |
| RNIB | 2 |
| Other | 5 |
7.2 Examples of other people from whom help was sought
included a Local Association for Disabled People, carers, social
worker, neighbour, Post Lady and doctor.
7.3 When asked what type of help or assistance people
were given, 105 responses were received. The top five areas of
assistance were;
| Five top areas of assistance | number of people
|
| Help with reading information | 52
|
| Filling in and signing forms and cheques |
28 |
| Assistance using ATMs | 15 |
| Relatives dealing with all financial matters
| 9 |
| With writing aids such as signature guides |
3 |
7.4 Participants were then asked which statement most
accurately described how they managed their finances. The results
were;
| Totally independently of other people | 37
|
| With the assistance of friends or family members
| 96 |
| Rely on others | 10 |
| Other | 18 |
7.5 The majority of blind and partially sighted people
questioned required help or relied upon friends and family members
to conduct their financial affairs. This points to a significant
disadvantage in blind and partially sighted people's ability to
make informed choices about financial products as they receive
information from third parties, who may not be qualified to give
independent or accurate advice.
8. FINANCIAL INCLUSION
AND UTILITIES
8.1 Although we looked at financial institutions, the
above issues are just as likely to apply to provision of services
and products through utility companies. Given the fact that people
with sight loss are mainly on low incomes, have little or no savings
and have additional costs, they can ill afford any reduction from
their fixed disposable income through a lack of awareness of more
competitive financial or utility deals.
8.2 Awareness of special offers plays a large role in
gaining value for the consumer in relation to, for example, utilities
such as energy or mobile and fixed telephone services. With strong
competition in many sectors leading to a range of deals and reductions
for consumers, an ability to view printed media, TV adverts and
internet special offers is now a central part of getting good
value and being included in the financial benefits offered for
limited periods, or online. Our research has shown that blind
and partially sighted people are significantly excluded from accessing
these special offers and rates, which would be of great benefit
to them.
8.3 We also have concerns that essential information
contained in services such as utility price comparison and switching
websites is not available to those people without computer and
internet access. The number of blind and partially sighted people
with computers will increase substantially in the coming years,
but we still have concerns that websites offering important financial
and price comparison information are designed to be accessible
to blind and partially sighted people using Access Technology,
such as voice output screen readers and text magnification software.
This has been required by the Disability Discrimination Act, 1995
since relevant provisions came into force in 1999. However, an
Inquiry by the Disability Rights Commission in 2004 on web accessibility
found that found only 19% of websites comply even with the lowest
priority Checkpoints for accessibility.
9. CONCLUSIONS
9.1 As can be seen from the research that Leonard Cheshire
have conducted, as well as that which we have carried out in partnership
with the Royal Bank of Scotland, there are a number of challenges
that need to be met if blind, partially sighted and other disabled
people are to achieve greater financial inclusion. This applies
across general goods and services, banking, credit services, utilities
and also financial advice services.
9.2 Many disabled people face extra costs that they cannot
meet from their current incomes that drive them towards debt and
financial exclusion.
9.3 Furthermore, blind and partially sighted people
face additional disadvantage in not being able to independently
access information and advice, often print based, relating to
special offers and discounts across a range of goods, services
and financial products. This has the impact of excluding many
people with sight loss from being able to get better rates on
utilities like gas and fixed line and mobile phones, as well as
personal financial products. This then leads to them paying higher
costs for these goods and services, which they can least afford.
9.4 We are also concerned that advice services covering
switching utility providers, as well as debt and personal finance
need to improve the accessibility of their services. This could
mean engaging in outreach work to reach disabled people at home
who are unable to travel to advice centres. In addition, the access
needs of disabled people need to be considered in greater detail,
whether that be in terms of making information available in a
range of formats or making reasonable adjustments to services,
such as ensuring that websites are fully accessible.
9.5 We would also like to see progress made with improving
the ease with which disabled people can switch utility or other
service providers. Clear explanation of the information needed
to switch would be useful to alleviate the worry of excessive
"hassle" that many of our customers believe they will
experience if they change suppliers or providers.
January 2006
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