Achieving financial inclusion in the UK

In October 2024, at a House of Lords event, CHASM joined with the Financial Inclusion Commission (FIC) to present key research. Commissioned by FIC and carried out by CHASM, the two reports highlight the harms financial exclusion continues to cause in communities across the UK. The Parliamentary event was followed by an online launch enabling CHASM’s Dr Louise Overton and Professor of Practice Adele Atkinson to further engage with industry, media, practitioners, and third sector representatives.

The research highlights that:

• 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 also argues that a financial inclusion strategy is not only necessary to address social inequalities, but to also unleash ‘inclusive’ economic growth 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.

Read the full reports: Achieving full financial inclusion in the UK: current realities and potential solutions and Financial Inclusion in the UK

In a significant step towards implementing a financial inclusion strategy, December 2024 saw the inaugural meeting of the UK Treasury’s new Financial Inclusion Committee, bringing together industry, consumer groups and regulators to identify measures to improve access for vulnerable people. Its findings will support development of the government’s financial inclusion strategy.

As previously announced, CHASM Professor of Practice, Martin Coppack, has been appointed to the Committee. The University of Birmingham thereby becomes the only academic institution represented on the committee.