We brought together Parliamentarians, civil society, and financial services leaders to shine a spotlight on financial inclusion and the urgent need for greater access to affordable credit.

Our drop-in event in Parliament – in partnership with Fair By Design, the APPG on Fair Banking, and Poverty Alliance – highlighted what financial exclusion looks like in practice.

One of the most powerful parts of the day was the Give Me Some Credit photo exhibition. Co-produced by people with lived experience of financial exclusion, it tells deeply personal stories of what life without a safety net really means. Hearing directly from Reem, Zahida and Pamela was a moving reminder of what’s at stake – and how much change is needed.

The upcoming national Financial Inclusion Strategy presents a crucial opportunity to tackle financial exclusion and ensure that everyone has access to essential financial products and services, when they need them.

Today across the UK there are more than 20 million people in financially vulnerable circumstances. The current system isn’t working for everyone, leaving millions of people financially excluded and unable to turn to financial safety nets such as credit, savings and insurance. The FCA’s recent Financial Lives Survey found that: 

• 3.2 million people have been declined credit in the past two years, up from 2.9 million in 2022.
• And a further 5.5 million people reported avoiding applying for credit altogether, assuming they would not be eligible, not be able to afford the product, or would be rejected.
• 60% of those who are declined credit from mainstream lenders end up turning to high-cost alternatives.  

It is estimated that there is a £2bn serviceable gap in affordable credit provision that is not being met by the market. And without legitimate access to credit in times of financial distress, many people are using harmful substitutes.

Community finance lending, whilst growing at pace, cannot fill this gap alone. It’s clear that we won’t fix this issue unless banks and mainstream lenders are willing to play a more significant role in serving people who are currently excluded. We believe that the UK could learn from the successful US ‘small dollar loan’ programme – we have published some insights from the US here.

And to support financial resilience more widely, we also need to take steps to reduce the insurance premiums of low income households. In too many cases, it’s the people who most need insurance who are going without, or who have to pay the most. As a result, there are 5 million people in financially vulnerable circumstances who do not have any insurance whatsoever, leaving them more exposed to day to day financial shocks.

Below you can read about Joanne’s experience dealing with a stolen car and financial barriers preventing her from replacing this essential tool for the family.

Thank you to all our partners, and here’s to an ambitious Financial Inclusion Strategy that enables people to access the products and services needed to improve their financial wellbeing.