People with poor credit histories could receive new support to access banking, affordable credit and other financial services
Support for vulnerable people to access banking, build savings and improve financial resilience is under discussion at the heart of government today as Treasury Minister Tulip Siddiq hosts the first meeting of the new Financial Inclusion Committee.
Made up of consumer groups and financial institutions, their focus on tackling financial exclusion will discuss ways to provide individuals with poor credit histories access to safe and affordable credit.
The committee will also identify measures to support the 11.5 million people in the UK with less than £100 in savings limit their vulnerability to unexpected costs. Such low savings significantly increase their vulnerability to unexpected costs or unforeseen life events.
Poor access to the right financial products and services can have a significant impact on people’s finances and wellbeing. Expanding credit will offer people more choices and help prevent them from resorting to predatory lenders, such as loan sharks or other exploitative financial practices.
These strands – access to banking, access to affordable credit and improving savings – will form part of the Government’s Financial Inclusion Strategy which will be published next year.
Tulip Siddiq, Economic Secretary to the Treasury, said:
Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said:
Jasjyot Singh OBE, CEO, Consumer Lending, Lloyds Banking Group
The Committee will include representatives from major financial institutions such as Lloyds Banking Group, insurance firm Aviva, credit reference agency Experian, and consumer groups like Citizens Advice and the Money & Mental Health Policy Institute, a charity founded by Martin Lewis.
Kate Pender, CEO at Fair4All Finance said: