Banking sector expands financial inclusion pilot measures

UK Finance has announced the start of an expanded pilot programme, delivered in partnership with Shelter, the housing and homelessness charity, to improve access to banking services for people who may face barriers to opening a bank account.

Helping people who don’t have the standard ID or proof of address required to open an account is an important part of HM Treasury’s Financial Inclusion Strategy. By removing a significant barrier, this initiative is designed to empower more people to take control of their own finances.

Access to a bank account is often the first step towards financial stability. Without one, people can struggle to receive benefits or wages, pay bills, or find somewhere to live. The pilot builds on the success of Shelter’s ‘Breaking the Cycle’ programme, developed in partnership with HSBC UK and is now being expanded to include Barclays, Lloyds, Nationwide, NatWest and Santander.

These firms will work with Shelter and UK Finance to help improve access to banking services for people who are financially excluded and encourage wider take-up across the sector.

David Postings, Chief Executive of UK Finance, said “Being able to prove who you are should never be a barrier to rebuilding your life. That’s why we have worked with our members to make it easier for people without a fixed address to open a bank account. 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.”

Rachel Blake, Economic Secretary to the Treasury, said “Bank accounts are a gateway to the modern economy, whether it’s getting into the job market or securing a stable home. It is no exaggeration to say that this pilot will transform lives and I’m delighted that it is being taken forward as part of the Financial Inclusion Strategy.

“I welcome HSBC and Shelter’s leadership on this issue, and the wider collaboration we are seeing from the sector to give people this first step into financial inclusion.”

Sarah Elliott, Chief Executive at Shelter said “The expansion of the programme is a hugely welcome step. The ‘Breaking the Cycle’ programme has been vital in ensuring that thousands of people facing homelessness can, not only access basic banking services, but also build their financial resilience.

“Every day at Shelter, we see the crushing financial strain that people at the sharp end of the housing emergency face. Many are forced to make devastating choices daily, from going without meals to pay rent to having to cutting back on essentials, just to stay afloat.

“Without a bank account, receiving benefits or wages, paying bills or rent, and finding and keeping a safe home can be almost impossible. Together with HSBC UK, we’ve supported over 7,000 people experiencing homelessness or housing instability to open a bank account. We’re delighted that the banks are adopting the programme, which will mean that more people across the country will be able to access the banking services they desperately need to rebuild their lives.”