The House of Lords Financial Exclusion Committee is calling for the UK Government, the Financial Conduct Authority (FCA) and banks to give greater priority to tackling financial exclusion.
In its new report, “Tackling financial exclusion: A country that works for everyone?”HOUSE OF LORDS (REPORT PDF )Select Committee on Financial Exclusion, the Lords want an end to the “scandal of the poorest being excluded from even basic financial services and forced to rely on expensive and substandard products”.
Baroness Tyler of Enfield, chair of the House of Lords Financial Exclusion Committee, says the UK financial services sector is a “world leader which makes it doubly unacceptable that it is failing those who need it most”.
The committee heard that more than 1.7 million people in the UK do not have a bank account, and that 40% of the working age population had less than £100 in savings. Estimates suggest at least 600,000 older people are financially excluded, while 51% of 18 to 24 year olds regularly worry about money.
The committee also recommends new regulations to limit unarranged overdraft charges (see paras 273-274 on pp. 75-76).