In the five months since launching its CleverCard digital payment card, funds administrator Charis has issued a staggering 12,500 cards, which helped alleviate over £1,000,000 worth of energy bills for the increasing number of households slipping into fuel poverty.
The digital payment card was specifically launched by Charis to create a way of quickly distributing funds to those householders who are on smart meters and usually pay their bills through direct debit. While this demographic has traditionally been able to keep up with bill payments through direct debits and fixed rates, rising prices have forced many to seek additional financial help (often for the first time).
“We’ve been surprised by the high levels of payments being distributed by our housing association and charity partners, and it doesn’t seem to be easing off any time soon,” commented Ollie Gray, Charis business development director. “The high levels are indicative of how the landscape has changed for households across the UK. While previously many families were able to live within their monthly budgets, the price increases have taken them over their limits.
“One of the key advantages of the CleverCard is that it is restricted so that it can only be used to make a payment to an energy company. It can’t be used to make any other kind of purchase. That gives our partners the peace of mind that their funds are being used to combat the energy crisis,” continued Ollie Gray.
Before the introduction of the CleverCard, organisations had no other way of getting the funds to smart meter or direct debit customers, as the more traditional route of vouchers was designed only to service those who were on prepayment meters. With four million on these prepayment meters who are deemed to be in fuel poverty, current findings indicate that the number in fuel poverty has since doubled, necessitating an increase in funding.
“We’ve been happy with the way the digital payment card has proven to be such as success in allowing organisations to distribute these funds so quickly and efficiently,” continued Ollie Gray. “Because it is available through our Charis Shop platform, users can still benefit from our back end reporting functionality and responsive approach to eligibility checks. We are currently looking at other ways in which the card can be integrated into funds administration to help our partners further improve efficiencies.”
The beneficiary receives a text message or email with an image of the digital payment card which looks just like a Mastercard. They must click a link to activate the card and release the CVC number, and then the card details can be used to pay their energy costs online in the same way as any credit card. Charis’ traditional voucher system for pre-paid meters has a maximum value of £49. The new Charis digital payment card can be pre-loaded with units of £30, £50 up to £100. This allows charities and local authorities to provide much higher value support to their client base.
Charis Grants Ltd is a privately owned company established in 2003 to facilitate the distribution of funds and grants by energy companies, charities, housing associations and other bodies, such as the Citizens Advice Bureau, which help and support vulnerable people in the community.
