Select Committee on Financial Exclusion
Tackling financial exclusion: A country that works for everyone?

Report of Session 2016-17 - published 25 March 2017 - HL Paper 132



Summary of recommendations

Chapter 1: Introduction

Why does financial exclusion matter?

The focus of the Committee

The work of the Committee

Chapter 2: The extent and nature of financial exclusion

Defining financial exclusion and financial inclusion

The relationship between financial exclusion and financial inclusion

Financial inclusion in public policy

Who is affected by financial exclusion?

Figure 1: Who is at risk of financial exclusion?

Figure 2: Financial exclusion in the UK

The relationship with poverty

The poverty premium

Aspects of financial exclusion

Figure 3: Households and adults without access to a current or basic account, or savings account

Figure 4: Households’ Saving Ratio

Concluding remarks

Chapter 3: Leadership from Government and proactive regulation

The need for Government leadership and co-ordination

Leadership from Government

Developing and implementing a strategy

The role of regulators

The Financial Conduct Authority and financial inclusion

Box 1: Co-operation between the FCA and the CMA

A duty of care to customers

Chapter 4: Financial education, advice and capacity building

Financial education

The school curriculum

Box 2: Financial Education in Scotland, Wales and Northern Ireland

The Ofsted Common Inspection Framework

Further and higher education

Financial guidance and advice services

Replacement of the Money Advice Service

Debt and debt advice

The role of employers

The importance of encouraging savings

Chapter 5: Financial exclusion and vulnerable groups

The risk of financial exclusion for older people

The relationship with mental health

Disability and financial exclusion

Chapter 6: Access to financial services

Opening a bank account

Basic bank accounts

Identity and address verification issues

Access to bank branches and services

Bank branch closures

Box 3: Nationwide in Glastonbury: an innovative solution

A greater role for the Post Office


Digital exclusion and financial technology (FinTech)

Online banking

Financial technology (FinTech)

Digital by default

Chapter 7: Financial exclusion, credit and borrowing

High-cost credit

What is high-cost credit?

Unarranged overdrafts

High-cost consumer credit products

The problems with high-cost credit

Financial Conduct Authority regulations on the high-cost, short-term credit sector

The effect of the restrictions

Future developments

Provision of credit by the third sector

Community development finance institutions

Chapter 8: Welfare reform and financial exclusion

Universal Credit

The initial waiting time

Monthly payments

Housing costs

Sanctions in the social security system

Local welfare assistance—the localisation of Social Fund responsibilities

Appendix 1: List of Members and declarations of interest

Appendix 2: List of witnesses

Appendix 3: Call for evidence

Appendix 4: Acronyms and glossary

Appendix 5: Note on Committee visit to Coventry City Council and Coventry Citizens Advice: Wednesday 23 November7

Appendix 6: Note on Committee visit to Toynbee Hall, London: Wednesday 30 November

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Q in footnotes refers to a question in oral evidence.

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