Increasing the take-up of financial and budgeting support by residents in economic hardship

This project focused on improving the referral process between the Derbyshire Discretionary Fund (DDF) and financial and budgeting support services. It aimed to:

• ensure that callers are connected and able to obtain support at a point of crisis
• increase the number, and quality, of referrals. 

The project reviewed the referral process and applied behavioural science principles to increase engagement from callers, DDF staff and partners.

During the project, a new referral partnership was set up between the DDF and Citizens Advice (CA). The partnership with Citizens Advice delivered over £200,000 in direct financial benefit for callers over the first six months.

We also ran two randomised controlled trials (RCTs) which tested the use of SMS reminders and commitment devices, to increase the take-up of referrals. The results showed that the SMSs reduced the likelihood of callers contacting support services and should not be used. 

A data and evidence led approach and the ability to robustly evaluate ideas was introduced to the DDF. The analysis of the data also identified clear opportunities for the DDF to explore to increase referrals. This has placed the DDF on a strong road to improving outcomes for callers, staff and partners.

The Derbyshire Discretionary Fund (DDF) provides emergency cash payments to Derbyshire’s most vulnerable and hard-to-engage residents. As part of the application process, DDF staff call applicants to discuss their situation. Prior to this project, although referrals and signposting were happening, the team were not tracking the outcomes of the referrals. It was felt this support was not taken up; and, where data was tracked (for internal referrals), often callers could not be reached, despite repeated attempts.

The challenge was to ensure that the opportunity to speak with vulnerable residents was maximised, ensuring that more callers were referred to support and that this support was taken up.

We added prompts and support materials to make the referral more salient, gave DDF staff agency over engaging callers, and provided positive feedback (case studies) to DDF staff on the impact of their work. Overall, this increased the quantity and quality of referrals to Citizens Advice and the welfare rights team.

We also trialled SMS confirmation texts to increase the commitment and likelihood of callers speaking with support agencies. This extra step had an overall negative impact on the number of callers speaking with support agencies.

Given the changes and improvements in the referral process, it is not necessary to use commitment devices to increase caller contact.

• As a result of the referral process over 200,000 in direct financial benefit was provided to over 300 callers who spoke with Citizens Advice, averaging over £800 per connection made.
• Financial support and budgeting support was also given to these callers. Although not captured, this could result in a meaningful shift in residents' behaviours towards financial management and budgeting.
• A new partnership between Citizens Advice and the Derbyshire Discretionary Fund was established which was recognised as a success for all partners.
• A 'test-learn-adapt' system was set up within the DDF to test and improve the calls and referral process coming into the DDF. This will pay dividends in the long term, enabling DDF staff to learn, iterate and improve their process over time.
• There were also clear opportunities identified to increase referral uptake moving forward at a low cost.
• Staff behaviours shifted, with the decision-making team increasing engagement with referrals.

How is the new approach being sustained?

• The introduction of the randomised controlled trial process is being sustained by trialling new concepts to increase referral uptake. 
• The partnership with Citizens Advice continues to develop.
• Derbyshire County Council and the Derbyshire Discretionary Fund are continuing to invest in behavioural science across their operations and services.

• Don’t use SMS texts with this population once a referral has been agreed.
• There is high value in adopting an evidence-based approach of evaluating new initiatives – this enabled the team to halt the trial after it was clear that the SMSs were inhibiting referral contacts. This also enabled the team to identify opportunities to increase referral rates going forward at a low cost.

• Scoping document

Vicky Powers | [email protected]

Ian Redpath | [email protected]