The need for a Treasury-led National Financial Inclusion Strategy is again highlighted by new research published by the Financial Inclusion Commission (FIC) in the Houses of Parliament on Tuesday 22 October. The research, commissioned by FIC and carried out by the Centre on Household Assets and Savings Management (CHASM) at Birmingham University, highlights the harms financial exclusion continues to cause in communities across the UK.
Read the full report: Achieving full financial inclusion in the UK: current realities and potential solutions
Read the full report: Financial Inclusion in the UK
- One in five (22%) adults have increased their borrowing to cover higher living costs due to a lack of affordable credit;
- One in twenty (5%) still have no current bank account, rising to one in twelve (8%) in Northern Ireland;
- Over 8 million UK adults need debt advice;
- One in five people in Wales face financial difficulties rising to one in three in the most deprived areas of Scotland;
- More than one in six families have no savings.
The research draws on evidence published between January 2022 and March 2024 (covering Covid-19 and the cost-of-living crisis); and 9 qualitative group discussions in England, Northern Ireland, Scotland and Wales in April 2024, including 4 sessions with people with direct, lived experience of financial exclusion.
FIC is calling on the Government to prioritise a National Financial Inclusion Strategy to address deep-rooted and worsening problems of exclusion. It argues this is not only necessary to address social inequalities but to unleash ‘inclusive’ economic growth in by releasing the potential of all UK citizens, including those currently excluded from access to basic financial services like current accounts, car and home insurance, loans and savings.
FIC Chair, Chris Pond, comments:
“This research provides a baseline for a government-led National Financial Inclusion Strategy, which we hope is now imminent. The findings reveal a truly depressing picture of wasted human and economic potential which is holding Britain back. The Government needs to close the financial inclusion gap as a priority to unlock inclusive growth by drawing on the skills and ambitions of all citizens, including millions who are currently financially excluded.”