The Government recently shared their Child Poverty Strategy. Here’s Fair4All Finance CEO, Kate Pender, commenting on the strategy.
‘We welcome the Government’s Child Poverty Strategy, especially the removal of the two-child limit and the decision to make Help to Save permanent that was recently announced in the Autumn Budget. These are landmark steps that will deliver real, immediate relief for families under the most pressure. Our own research indicates that there are 3.9 million people in families with higher levels of poverty that are in a cycle of juggling and struggling with everyday bills, debts and rising costs, where almost one in three are single mums with little or no savings.
We’re also pleased to see recognition of the impact a family’s financial situation can have on children and reference to the Government’s Financial Inclusion Strategy. Making sure everyone can access the financial products and services they need to support their financial resilience helps people stay afloat, particularly the millions of people who are excluded from mainstream credit, have very low savings and are often carers, people with health conditions or parents earning under £20,000 a year. With almost half of people in these circumstances having children at home and nearly a third being single parents, ensuring they can access fair and affordable credit and maximise their income is vital to preventing continued poverty.
This is why, since 2019, Fair4All Finance has invested £37 million into community finance providers via social investments, grants and guarantees. This is a landmark commitment that underscores the scale and urgency of tackling the UK’s £2bn affordable credit gap and connecting those who are underserved, often families with low incomes, to appropriate solutions be they credit, debt advice or help to maximise their income.
Research continues to demonstrate over £24 billion per year in unclaimed benefit entitlement and social tariffs in the UK, meaning that many people in the most financially vulnerable circumstances are missing out on vital income. Government and the financial services sector must continue to champion early signposting of benefits calculators to make sure that families are getting every ounce of the support they are entitled to. We have done our part in funding over 50 not for profit providers to include benefits calculators and grants checkers in their customer journeys. And we welcome the calls in the Financial Inclusion strategy for these calculators to be commonplace across financial services.
Most importantly, today’s strategy aligns with the ambitions set out in the financial inclusion strategy, which when combined, are meaningful steps towards a fairer financial system that works for those who need it most. It is critical that industry and policymakers work together in implementing both of these strategies together, ensuring that we create impactful synergies where possible.
We look forward to working with government and partners to turn these commitments into real-world impact, helping families build resilience, avoid problem debt and give our children a more secure future.’
