Framework Accounts National Launch
Do you know we were the first organisation to have an air balloon created in the shape of a house? That was back in the 70s.
Well, we've done it again. This time it's a first related to savings accounts - we've launched a pioneering project, which is believed to be the first of its kind in the UK.
We introduced four new savings accounts called Framework Fair Value accounts in partnership with homelessness charity Framework and we're excited to say their official national launch was at The House of Commons on Thursday 27th June.
The Nottingham has agreed to lend Framework £800,000 on commercial terms out of a total of £1.1m needed to provide 14 units of crucial move-on accommodation in Lincoln and Swadlincote, Derbyshire.
These self-contained one bed flats will accommodate homeless people on their journey to living independently whilst freeing up much-needed space in emergency accommodation. The cost of the loan, provided by us will be partly offset by savers' investment in the Framework savings accounts, where the lower the interest rate paid on their savings bond, the cheaper the loan to Framework will be. We also waived administrative and usual lending fees for a loan of this type.
David Marlow originated the idea of a loan backed by a range of dedicated savings products and has driven the project forwards, Commenting at the event, said, “One of the founding principles of The Nottingham was to help provide homes for people who otherwise could not afford them. This package of investment and support is an ideal way to show that we are as committed to that ideal today as the Society’s founders were more than 160 years ago."
“This arrangement provides a double benefit for supporters of the excellent work that Framework does – allowing them to know that their savings are doing good for people in need but enabling them to retain their investment in a reputable Society with all the protection and flexibility this brings. We are delighted to be able to set up this win-win situation which benefits charity supporters and homeless people."
Minister for Civil Society Nick Hurd added, "Social investment allows us both to transform the funding environment for charities and social enterprises, and give socially minded investors and savers the opportunity to do more with their money. It is early days, but I hope ambitious projects like this one will go on to show more people how important affordable finance is for social innovation”.
David Marlow, concluded his speech saying, "What started out as a very traditional relationship between a business and a local charity has developed into something ground-breaking. Hopefully others will follow this lead in the future. We are delighted that this scheme has now been launched and that we are able to provide additional support for Framework’s invaluable work. Homelessness is an issue that has really struck a chord with our staff, many of whom have taken the opportunity to view at first hand the life-changing activities of Framework.”