31 January 2007 - New Government campaign to boost financial security of people on low incomes
A Government campaign to help people living on low incomes find out about how they can get bank accounts and low cost loans, and advice on how to manage their money better, is launched today.
People without access to affordable credit often have to borrow from very high cost lenders, including loan sharks, and can face a lifetime of debt and poverty. Without a bank account they can find it hard to get a job, and are vulnerable to loss or theft. Those who rely on cash are unable to make savings using direct debits on utility bills. The launch of the Government’s ‘now let’s talk money’ multi-media campaign, part of the Government’s on-going work to tackle financial exclusion, will help people in this situation to find a way out.
Department for Work and Pensions Minister James Plaskitt, who is launching the campaign today, said:
“By working closely with our partners in housing associations, charities and financial institutions on this campaign we can encourage more people to get free financial advice, and show them how getting a bank account and access to affordable credit can help them begin to leave their money worries behind.”
“Tackling child poverty is my Department’s number one priority. By helping people on low incomes start building a secure financial future for themselves and their families we can help many more children escape poverty for good.”
Economic Secretary Ed Balls, said:
“The 'now let's talk money' campaign is a great way of getting more people engaged with banking, affordable credit and advice services. With this important initiative, funded from the Financial Inclusion Fund, the Government is taking the lead in addressing the barriers that limit demand for appropriate financial services. By working closely with our partners in the voluntary and private sectors, we can make a real difference to those most affected by financial exclusion.”
Phase 1 of the campaign will help build awareness of financial exclusion among organisations that have regular contact with people on low incomes, such as local authorities, housing associations and charitable and voluntary organisations. It will provide them with the information and support to help, by working more closely together, to encourage closer co-operation on financial exclusion at local level. A network of stakeholder managers, seconded from these organisations, has been set up across the country to work on this. Phase 2, this summer, will encourage financially excluded individuals to find out about and take advantage of the financial advice, products and services available. The campaign will be funded from the Government’s Financial Inclusion Fund.
The Government’s Financial Inclusion Fund has already created more than 350 new advisers to provide free face-to face money advice; enabled more than 100 credit unions and community development finance institutions to provide personal loans at affordable rates for people on low incomes; and will also be funding the roll out, to every region of the country, of projects tackling illegal loan sharks.
Notes to editors
- James Plaskitt was speaking at the launch of the Government’s Facilitating Access Campaign ‘now let’s talk money’ campaign at Barclays Bank plc, Canary Wharf.
- In ‘Promoting financial inclusion’, published alongside the 2004 Pre-Budget Report, HM Treasury set out the Government’s three priority areas in tackling financial exclusion – access to banking, affordable credit and free face-to-face money advice. The Government has set up a Financial Inclusion Fund of £120 million and a Financial Inclusion Taskforce to oversee progress.
- Financial Inclusion Fund initiatives include:
- £47.5 million to increase provision of face-to-face money advice, administered by the Department of Trade and Industry;
- £36 million for the Growth Fund to increase access to affordable credit through credit unions and community development finance institutions administered by the Department for Work and Pensions;
- £6 million to pilot outreach models on debt advice administered by the Legal Services Commission
- The Government is also tackling financial inclusion by working with the banks to reduce the number of people without a bank account. Ed Balls, the Economic Secretary to the Treasury, also launched ‘Financial Capability: the Government’s Long-Term Approach’ on 15 January.
- The campaign will be delivered by the Department for Work and Pensions on behalf of HM Treasury. COI have appointed the PR agency MS&L to work on the campaign.
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