Homelessness Prevention by The Money House

Immersive financial literacy programme

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The context

Young people face many challenges setting up and managing a home, many of which have been heightened during the pandemic. Some of these challenges are objective and age-based: young people generally command lower wages, less secure employment and lower benefit entitlements than older people.

For young people who lack strong support (including financial) from parents, other family members or wider social networks, independent living can be even more challenging, with the risk of rent arrears, debt and homelessness high. For the past decade, The Money House has been seeking to reduce those risks for some of the most vulnerable young people across three London boroughs.

The intervention

Youth charity MyBnk developed Money House, a simulated financial education programme delivered in a real house, in partnership with Hyde Housing and London Borough of Greenwich in 2012. The programme encompassed a preventative theory of change targeting young people most at risk of future money problems and homelessness in an independent home. It tracks participants’ short- and long-term progress after completing the course via ongoing quantitative and qualitative monitoring and evaluation.

Trainers use non-traditional, immersive and active techniques to animate the five day on-site course. It cover housing elements (tenancy agreements, moving costs, utility providers, paying bills) and more general financial elements: banking, borrowing, budgeting, benefits, spending habits, shopping and future planning. Modules on energy efficiency, designed with UK Power Network and avoiding money scams, developed with the Met Police, have been added more recently. Course participants gain NVQ Level 6.

All referrals come from local authorities, Housing Associations or hostel providers. They target young people aged 16-25 who are leaving care, moving on from homelessness or who have just moved into their first home. Training groups contain between four and ten people. There are Money Houses in Greenwich, Newham and Haringey. The first Scottish site is planned in Glasgow for 2022. During the pandemic, an online version of Money House was created, with learners now offered the option which suits them best.

The outcome

A comprehensive 18-month evaluationxlii in 2018 concluded The Money House addresses a gap in financial education and effectively equips at risk young people to live independently. Relevant to housing, the report recorded: a 62% drop in participants who failed to keep up with priority debts (rent, council tax, bills, fines); 47% decrease in those owing money; 117% increase in those paying off debts regularly; 54% rise in those saving regularly over the long-term. On rent arrears specifically, a long-term reduction of 41% was registered. Young people themselves reported better digital skills and increased confidence. Some formed enduring social networks with other learners.

Housing management data in Greenwich indicated a baseline of 33% of young people were in substantial (over £500) arrears. That reduced to 11% for course participants. Council eviction data also showed only 1% of course participants were evicted, against 6% for young tenants as a baseline. When delivering at full capacity, every £1 spent on Money House was found to generate at least £3.36 of social value.

Key insights

• though a key part of what works well for many, immersive ‘house’ delivery doesn’t suit every single person. Online courses offered during COVID-19 enabled Money House to improve access for certain groups: young people with childcare obligations, travel or access issues and those with social anxiety
• engagement is generally very good (and drop-off low) when young people attend day one, but encouraging them to go in first place can be a challenge. Offering childcare support, travel pass or an online option can help
• mixing classes, for example, to include some young people already in tenancies and others who have not moved in, enables learned, direct experience to complement the training

Find out more…

Madeleine Marcateus, Project Manager, The Money House
madeleine.marcateus@mybnk.org