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Moves to “open doors” to give people more support to access bank accounts, insurance, savings deals and affordable credit have been outlined by the Government. The Financial Inclusion Strategy aims to improve access to financial services for groups such as those at risk of homelessness, people with mental health issues, disabled people and people with debt problems. The strategy includes a pilot initiative to help widen access to bank accounts for people at risk of experiencing homelessness. Lloyds, NatWest, Barclays, Nationwide Building Society and Santander are expanding on a partnership between charity Shelter and HSBC. The partnership aims to make it easier for people who lack standard forms of identity to open bank accounts. HSBC previously partnered with Shelter who coordinate a network of local charities to certify the identity of people they support and, if needed, provide them with an address for the purposes of opening an account. Economic Secretary to the Treasury Lucy Rigby said: “This plan is about opening doors – helping people experiencing homelessness into work, helping survivors of abuse rebuild their credit, and helping families save for a rainy day.” Lauren Thompson, head of corporate partnerships at Shelter, said: “Through our partnership with HSBC UK, pioneers in this space, we’ve supported over 7,000 people experiencing homelessness or housing difficulties to open a bank account.” Jose Carvahlo, head of retail banking and wealth, HSBC UK said: “Through our partnership with Shelter and our no fixed address account service, we have already supported thousands of people to gain access to banking services, helping them break the cycle of homelessness, build financial resilience, and rebuild their lives. “This is a big step forward as the industry comes together to help as many people in need as possible.” David Postings, chief executive of UK Finance said: “This partnership with Shelter and the major account providers is a vital step in ensuring that everyone – including those facing homelessness – can access the financial system, find work, and move forward with independence.” Major credit reference agencies are working with others to develop an approach to improve the way coerced debt is reflected on the credit files of victim-survivors of economic abuse, the Government said. This will include consideration of how lenders should report data on affected files to credit reference agencies, with the aim of reducing detriment and making it easier for victim-survivors to access financial products in future. The Government will also work with others to explore how joint mortgages are used as a tool of abuse in relationships and how victim-survivors can be better supported. It also said it is committed to better identifying and supporting victim-survivors of economic abuse who owe debt to government. Sam Smethers, chief executive officer at charity Surviving Economic Abuse, said: “For far too long, domestic abusers have stolen victim-survivors’ futures – forcing them into debt and destroying their credit scores with life-shattering consequences. “This strategy provides a golden opportunity to help survivors rebuild their lives by restoring their credit scores.” The strategy also said an industry-led working group will be set up to examine where financial products and services can be made more accessible. It said that, for example, carers cards may be useful for people who rely on friends, family, or a carer to make payments due to a disability or illness, including mental health problems. The strategy also highlighted the importance of initiatives to help people build a savings pot through their payroll. It said: “Payroll savings schemes allow employees to save directly from their salary and are a proven way of helping people start and maintain a savings habit.” In another initiative, Fair4All Finance, working with the Financial Conduct Authority (FCA), will partner with the insurance and social housing sectors to explore different ways to increase contents insurance uptake for social renters. The findings and lessons will be shared by the end of 2027, the document said. The British Insurance Brokers’ Association (Biba) will also work with insurers to implement “total signposting” – to help people looking for insurance to more easily navigate the market. The initiative will build on existing work which already helps people find suitable insurance deals for their circumstances, for example if they have certain medical conditions or live in a high flood risk area. The document said: “Total signposting will ensure that all classes of retail insurance are covered, meaning consumers will be better informed and able to access the options available to them.” The Government said Biba will also work with price comparison websites to to help expand insurance signposting. The Association of British Insurers (ABI) will also work with Martin Lewis’s charity the Money and Mental Health Policy Institute and the FCA to convene a working group to build an understanding of how travel insurance underwriting decisions are reached for people with pre-existing mental health conditions. Helen Undy, chief executive of the Money and Mental Health Policy Institute and member of the Financial Inclusion Committee, said the strategy “contains some really welcome commitments”. But she added: “Unfortunately, the jury is out on whether the measures announced today will ultimately add up to a ‘transformative’ programme of change for people with mental health problems, because too much of this strategy relies on the goodwill of the financial services industry.” Meanwhile, Fair4All Finance has dedicated £30 million of dormant assets funding to launch a Credit Union Transformation Fund in England, which will support the growth of the credit union sector, the strategy document said. This will provide funding to allow the credit union sector to scale to serve a more people and support members, it added. The document said: “Credit unions are often uniquely positioned to support underserved groups, helping them build a track record of repayment and encouraging savings.” Fair4All Finance said it will be launching a small sum loans pilot scheme, aiming to provide access to affordable credit and an alternative to loan sharks. Andrew Gall, head of savings and economics at the Building Societies Association said credit unions will “play a key role in expanding access to affordable credit”. The Treasury will also work with the Northern Ireland Department for Communities to explore options to introduce a “breathing space” scheme in Northern Ireland. Breathing space schemes currently operate in England and Wales to give people with problem debts time to get on top of them, and people in Scotland can have a similar statutory moratorium, implemented by the Scottish Government. Jas Singh, chief executive, consumer relationships at Lloyds Banking Group said: “Digital and financial exclusion aren’t peripheral issues – they can be significant barriers to feeling part of society and supporting people to feel included and empowered is crucial. “This is a massive step forward to improve access to banking for those who need it most.”
