Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she will take to ensure banks provide access to affordable credit to people who are financially excluded.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government recognises that, when provided responsibly, credit can play an important role in helping people manage unexpected expenses and smooth their cash flow. Access to suitable, affordable credit products can support people’s financial resilience and help them achieve their financial goals.

For this reason, the Government is committed to improving access to affordable credit. HM Treasury regularly engages with lenders on a range of policy matters, including how the provision of affordable credit can be strengthened.

The Government’s recently published Financial Inclusion Strategy sets out an ambitious package of measures to improve access to affordable credit. This includes support for the community finance sector and a pilot of a small-sum lending scheme, run by Fair4All Finance, which will test the offer of small value loans from a mainstream lender.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Financial Inclusion Strategy, published on 5 November, whether the Government plans to develop targets as well as metrics to monitor progress in delivering the Strategy’s objectives on improving access to affordable credit.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

Earlier this month, I published the Government’s Financial Inclusion Strategy setting out an ambitious programme of measures to improve financial inclusion and resilience for underserved groups across the UK. The Strategy was developed alongside a committee of industry and consumer representatives and seeks to tackle a range of barriers individuals face in accessing financial products, including a key focus on improving access to credit.

As part of developing the strategy, the Government has engaged with Financial Inclusion Committee members and other organisations on how to measure its impact. The Strategy’s implementation will be reviewed in two years’ time to provide an update on interventions and relevant outcomes-based metrics, which will reflect on the progress made across the sector.

The Government will continue to work closely with the sector as we implement the strategy, including continuing to engage with firms on interventions to strengthen the provision of affordable credit.

Found: Watch the meeting Members present: Steve Barclay (Chair); Luke Akehurst; Irene Campbell; Paul Davies

Found: Watch the meeting Members present: Steve Barclay (Chair); Luke Akehurst; Irene Campbell; Paul Davies

Found: Watch the meeting Members present: Steve Barclay (Chair); Luke Akehurst; Irene Campbell; Paul Davies

Found: Watch the meeting Members present: Steve Barclay (Chair); Luke Akehurst; Irene Campbell; Paul Davies