Policy paper

Summary of Financial Inclusion Policy Forum meeting 11 October 2018

Published 17 December 2018

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The Financial Inclusion Policy Forum brings together leaders on financial inclusion to ensure collaboration across government and with the sector. The forum is co-chaired by the Economic Secretary to the Treasury and the Minister for Pensions and Financial Inclusion. The Forum’s second meeting was held on 11 October 2018.

1. 1.Agenda items of the second meeting included:

  • a presentation and discussion of the full set of recommendations from the Forum’s Affordable Credit Subgroup, led by Sian Williams of Toynbee Hall and Eric Leenders of UK Finance

  • progress update from the Department for Digital, Culture, Media and Sport (DCMS) on its work to direct funding from dormant assets to financial inclusion initiatives, led by Tom Le Quesne, Head of the Government Inclusive Economy Unit at DCMS

  • an update on the establishment of the Single Financial Guidance Body (SFGB) in early 2019, which will bring together the services of the Money Advice Service, The Pensions Advisory Service and PensionWise, led by the SFGB chair Sir Hector Sants and the SFGB chief executive John Govett

2. 2. Key themes of discussion included:

  • reflections on the progress made on financial inclusion since the Forum’s first meeting on 19 March 2018, including the FCA’s work on high-cost credit, the use of funding from Dormant Accounts, the establishment of the SFGB and the work of the subgroup on Affordable Credit

  • an analysis of the recommendations from the Affordable Credit subgroup, which included tackling regulatory barriers, improving use of data, improving the digital verification of ID, promoting investment to social lenders, supporting social lenders target consumers, introducing a No-Interest Loan scheme, and looking holistically at improving people’s resilience to reduce the need for credit

  • the decision to create an independent organisation in 2019 to deliver the £55 million available from Dormant Accounts towards financial inclusion, with a focus on affordable credit. It is also expected to play a role in leveraging other sources of funding beyond the £55 million. The organisation will become a legal entity in 2019

  • the progress on setting up the SFGB, which has become a legal entity in October 2018 and is expected to fully launch in early 2019. The chair of the SFGB noted that the new body intends to continue working closely with its many partners and stakeholders to ensure that there is a balance between continuity and positive action on financial capability and education to make a lasting impact

  • a commitment by Ministers to review the recommendations from the Affordable Credit subgroup and report on progress at the next Forum meeting

Further information on new measures to increase people’s access to affordable credit and improve their financial resilience in response to the subgroup’s recommendations can be found at Budget 2018.

The next meeting of the Financial Inclusion Policy Forum will be in Spring 2018.

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