Context

The Gypsy/Traveller community in Scotland is one of the most excluded groups and has worse life outcomes. They are likely to be particularly affected by the continuing process of welfare reform and the introduction of Universal Credit. Shelter Scotland work with Gypsy/Traveller communities through the 'Making Advice Work' project, with a strong focus on supporting people to navigate the benefits system, promoting financial inclusion and addressing poverty. The study was intended to build knowledge in this area, from the perspective of both Gypsy/Traveller people and Shelter Scotland’s own experience.

The study

The study aimed to record the experiences and views of Gypsy/Traveller people and Scotland Shelter staff who support them in order to highlight financial capability and inclusion needs and how best to address them. The study involved semi-structured interviews with eight Gypsy/Traveller individuals or groups who lived in or were associated with two council sites in Edinburgh and Lothian. They had used the Shelter Scotland project; the study also involved three interviews with three professionals who work with the community. The interviews were supplemented with case file analysis of 118 Gypsy/Traveller families who had used the project (which operates in Edinburgh, Lothian and Borders), as well as brief literature and policy reviews.

Key findings

The study reports that Gypsy/Traveller communities face many challenges to independent financial management, including: poverty, debt problems, difficulty accessing benefits and high living costs. Key findings are:

The case file analysis reveals 83% of service users were unemployed and receiving benefits, while 52% were recorded as having some form of disability (primarily mental health problems).

Gypsy/Traveller communities financial capability is limited without support. Low general and financial literacy makes it hard to be confident with financial products, and the cohort tends to resist using banks.

Low pay and savings levels, as well as resistance to borrowing outside the community, limits the financial resilience of Gypsies /Travellers, leaving people exposed to unexpected events.

74% of service users had incomes of less than £14,500 and that only 3% had any savings (compared with 67% of the general population).

Financial capability amongst Gypsies/Travellers is especially threatened by digital exclusion, disengagement from education and limited use of banking. 20% of service users did not have a bank account, and many who did have only basic accounts for receiving benefits.

Welfare reforms and the introduction of Universal Credit are likely to be hard for the community to manage.

• Expert support can help this group address financial challenges, such as a dedicated worker providing advice and acting as a link with external agencies. However, this requires funding to build trust and relationships with individuals over time, and enable agencies to work in partnership.

Points to consider

• The research findings provide a detailed description of the financial inclusion and capability issues faced by three Gypsy/Traveller communities in Scotland. While the findings are not representative of all Gypsy/Traveller communities in Scotland, the issues raised in this report are likely to be found elsewhere.
• The study is focused on financial capability and offers ideas and perspectives that might benefit from further research.
• The methodological limitations outlined above mean that conclusions cannot be generalised or transferred, but do provide key insights.

Full report

Gypsy/Travellers and financial exclusion - full report