Our campaign for improved access to savings
If all families had a minimum of £1,000 saved to help them cope with a 'rainy day' it would save half a million people from falling into problem debt.
That’s why we’re calling on government and banks to do more to help low-income families save. Our campaign has led to the government announcing the Help-to-Save scheme, which will provide a savings boost to struggling families from 2018.
- We think the UK should adapt the auto-enrolment pension system so families can use it as a ‘rainy-day fund’ in an emergency
- We think banks need to do more to provide innovative products that appeal to low-income households
- The government’s Help-to-Save scheme needs improving to be as effective as possible
Read more about our recommendations to improve access to savings and download our report, Becoming a Nation of Savers.
Our campaign for access to safer and more sustainable credit
There are too many families on tight budgets who have to turn to credit as a ‘safety net’ to meet the costs of everyday essentials and emergencies. This group are significantly more likely to fall into problem debt.
Credit products like credit cards, overdrafts and payday loans aren’t sustainable when used regularly as a safety net:
- Our safer overdrafts campaign is calling for a reform of expensive unarranged overdraft charges. Read our response to the Financial Conduct Authority's (FCA) review of high cost credit and overdrafts.
- We're calling for action to prevent credit card borrowing becoming long-term debt. Read our response to the FCA's proposals (PDF) for remedies on persistent credit card debt.
- We also think the rules governing the payday loan market need to be improved.
- We’re working with the End Child Poverty coalition to campaign for the government to protect families from getting into unsustainable debt from buying essential household goods through rent-to-own companies. Insights from our clients have revealed that financially vulnerable people are paying as much as three times the basic price for fridges, sofas and other items through rent-to-own.
The financially excluded can struggle to access mainstream credit and have to use high cost credit. Find out more by reading our report on the need to further expand the supply of affordable credit.