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Lloyds Banking Group, Aviva, Experian, and consumer groups including Citizens Advice and the Money & Mental Health Policy Institute to join new committee.
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Treasury Minister Tulip Siddiq hosts first meeting to explore measures to support vulnerable people access banking, build savings and improve financial resilience.
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Findings will support development of next years Financial Inclusion Strategy.
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 peoples 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 Governments Financial Inclusion Strategy which will be published next year.
Tulip Siddiq, Economic Secretary to the Treasury, said:
Being able to open a bank account, build savings for a rainy day or access affordable loans is vital to helping people across the UK manage their money.
I want to make the system fairer and more accessible and thats what this work is all about.
Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said:
People with mental health problems can face major barriers when choosing, using and paying for financial services. This can result in many of us paying through the nose for financial products like insurance, or being effectively locked out of these services altogether. Its fundamentally wrong that a diagnosis of a mental health condition can lead to a life of financial difficulty. That needs to change, so were delighted that mental health will be a key consideration in the Financial Inclusion Committees work. I look forward to working with the Committee to address these issues through the new financial inclusion strategy.
Jasjyot Singh OBE, CEO, Consumer Lending, Lloyds Banking Group
Were strongly committed to financial inclusion. We look forward to collaborating with Government and others on the Committee to share insight and discuss how we can help more people to become financially secure and empowered to make the most of their money, now and in the future.
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:
Everyone needs access to affordable financial products and services to go about their daily lives, manage their money and be economically active. An ambitious Financial Inclusion Strategy which covers the whole financial services sector is an integral part of helping the 20 million people in the UK who are in financially vulnerable circumstances. We look forward to working with the Government, committee and industry to make thi