Financial Inclusion

Martin Rhodes Excerpts

Wednesday 22nd October 2025 Westminster Hall

[Dr Rupa Huq (in the Chair)]

As this is a 30-minute wonder, there will be no time for a concluding speech from Martin Rhodes. I remind other Members present that they cannot make a speech; they can only intervene, with permission from the Member who has the floor.

[Martin Rhodes (Glasgow North) (Lab)]

I beg to move,

That this House has considered financial inclusion.

It is a pleasure to serve under your chairship, Dr Huq. We need a financial system that removes barriers to accessing affordable financial products and services. Those on lower incomes, older people, those with health issues and people with disabilities all have unique needs that an inclusive financial system should be engineered to support. The Building Societies Association reports that 14 million people have less than £100 in savings. According to Fair4All Finance, there are certainly more than 20 million people in financially vulnerable circumstances in the UK.

[David Burton-Sampson (Southend West and Leigh) (Lab)]

I thank my hon. Friend for securing this important debate. In my constituency of Southend West and Leigh, nearly 30% of people who are financially vulnerable are in the “squeezed and sliding” group—people with mortgages and rent commitments but on a low income and, most importantly, with limited savings. Does he agree that more needs to be done to encourage saving for a rainy day, perhaps including an opt-out payroll savings scheme?

[Martin Rhodes]

I agree that we need to do more to encourage savings, but we also need to encourage the incomes that are required for people to make those savings.

The driving reason for this level of financial exclusion has been attributed to an increase in low or unstable incomes, lack of savings and life events such as loss of work or bereavement.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing this important debate. I am a firm advocate of local credit unions that provide access to affordable loans and help with learning how to save. Does he agree that financial inclusion must be available in small villages and towns through sound help and advice? Does he also agree that banks need to come back to the villages and stop the centralisation of services, which isolates people from the guidance they need?

[Martin Rhodes]

I agree that we need to look right across the board at the different ways in which people are excluded from financial services, including people living in smaller villages and towns. I also agree about the importance of credit unions to financial inclusion.

It has been reported that 41,500 people in Glasgow North are in financially vulnerable circumstances. That is 44% of the adult population, which is far higher than the national average of 38%. With financial exclusion increasing, the Government must take steps to mainstream inclusive policies and practices in our financial system, which is why I support the Government’s appointment of the Financial Inclusion Committee and the soon-to-be-published financial inclusion strategy.

[Matt Turmaine (Watford) (Lab)]

I congratulate my hon. Friend on securing this important debate. Does he agree that the publication of the Government’s financial inclusion strategy is welcome, given the urgency of the circumstances that many people face? For example, 37,000 people are affected in my constituency of Watford, and we are higher than the national average in three major metrics of need for this vulnerability.

[Martin Rhodes]

I agree that the financial inclusion strategy is a very welcome step in developing, co-ordinating and implementing interventions to support financial inclusion in the UK.

Subsequent policy decisions stemming from the strategy will have to work for a broad range of groups in society. Many face financial exclusion for different reasons, including older people, disabled people and young people.

[Elaine Stewart (Ayr, Carrick and Cumnock) (Lab)]

I thank my hon. Friend for raising this important subject. In Ayr, Carrick and Cumnock, 30,000 adults—40% of the population—are financially vulnerable. That is higher than the national average, and it is hitting older residents and carers especially hard. There are too many forgotten families struggling to access credit, savings and insurance. The upcoming financial inclusion strategy is a vital chance to make a change. Does my hon. Friend agree that we need to work with the Government to ensure that those communities have the financial safety nets they need to thrive?

[Martin Rhodes]

I agree that we need to make sure that all communities have access to financial services, wherever they are and whoever they are. Everybody needs access to those services. I will welcome hearing from the Minister later about the financial inclusion strategy.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I hope that the hon. Member agrees that the Financial Conduct Authority’s work on access to cash is a useful step in the right direction. Does he also agree that provision should be widened to include face-to-face services, whereby people can see someone across the counter and receive advice?

[Martin Rhodes]

I certainly agree. Later in my speech, I will come on to the issues of access to cash and face-to-face financial services.

All the groups that I have mentioned face barriers, but an area of particular concern that I wish to focus on this morning is financial inclusion for disabled people. Much of my thinking on the issue has been informed by the hard work of the Advisory Group, or TAG, a Scottish charitable incorporated organisation run by and for people with disabilities and abilities. Glasgow TAG’s banking campaign steering committee came together in response to growing frustration among TAG members about how banking is excluding them, both in terms of access and in terms of treatment. They have highlighted to me the very real financial exclusion that they face in everyday life.

A key issue that the group has raised with me is access to cash. Many members rely on cash for daily budgeting. The shift to card-only businesses and the closure of free-to-use ATMs are leaving people unable to spend their own money. Quarriers, one of Scotland’s largest social care charities, reports that 76% of people with learning disabilities rely on support with their finances, and the same proportion use bank cards to withdraw cash. In my constituency, we have seen a 22% decrease in free-to-use ATMs between 2019 and 2025. This has created cash deserts, where communities are left without access to cash machines, and those that remain often charge for withdrawals or are inside premises with closing times. I hope that the Minister will engage with the issue and acknowledge the importance of continued free access to cash for financial inclusion.

The second issue that TAG has raised is discrimination in branches. TAG members have shared experiences of being ignored in favour of support workers, denied access to their own accounts or treated with suspicion. There is a strong feeling among TAG members who have spoken to me that financial institutions are not doing enough to meet their obligations under the Equality Act 2010. Will the Government consider supporting mandatory disability awareness and equality training in banking institutions, to help prevent such incidents?

[Tulip Siddiq (Hampstead and Highgate) (Lab)]

I thank my hon. Friend for bringing to the House this important topic, which is very close to my heart. I have had a lot of representations from disabled constituents in Hampstead and Highgate who are very worried about similar issues to those that he describes. They are also worried about the poverty premium in the insurance market, which I am sure my hon. Friend will touch on. Does he agree that any future inclusion strategy needs to address the poverty premium that exists in the insurance market, especially for our disabled constituents who have urged us to make a difference to their life?

[Martin Rhodes]

Yes, I agree that we need to look right across the whole range of financial services, including insurance, as well as those that we have touched on. Exclusion from one service can often lead to exclusion from another and then another. Failing to get access to one service means that people are less likely to get access to another, and the problem becomes greater.

[Steve Yemm (Mansfield) (Lab)]

Does my hon. Friend agree that it is totally unfair that many people, including many constituents of mine, find themselves excluded from some of the best utility deals because they do not have a bank account, so they are unable to pay by direct debit? Effectively, that cuts them off from some of the best deals that are available across a range of products and services.

[Martin Rhodes]

I agree. Financial exclusion has a cumulative effect: if someone is excluded from one financial service because they do not have access to a bank account, they may well find themselves excluded from others. As my hon. Friend says, they may be unable to pay for utilities or other services by direct debit, which would allow them to get the best deals. That cumulative impact is a very big issue.

The last issue that has been raised with me by TAG members is digital exclusion and branch closures. The transition to online banking is simply not accessible for many TAG members, and the closure of local branches has made it harder to get support in person. With the closure of high street banking, we are seeing the loss of the important face-to-face contact that can support people with learning disabilities with access to financial activities.

I support the Government’s work with industry to roll out at least 350 banking hubs that will provide communities with critical cash and banking services. I would welcome any reflections from the Minister on what the Government are doing to ensure that digitalisation does not leave people behind and to support the role of banking hubs. I acknowledge that for many people digital access increases the ability to get services, but for others it does not. That shows the need for a range of ways to access financial services, so everybody can access them.

[Adrian Ramsay (Waveney Valley) (Green)]

I thank the hon. Member for securing the debate and for highlighting the importance of addressing branch closures. In the market town of Halesworth in my constituency, the post office closed its doors for the final time last Saturday—I have been pressing the Post Office for a replacement facility as soon as possible—while Barclays, which is the only bank provider in the town, will cease its weekly facility at the library in the coming weeks. This reinforces his point about the importance of banking hubs as a potential solution for in-person support. Will he reiterate the importance of the Government speeding up the roll-out of banking hubs, particularly for rural communities?

[Martin Rhodes]

I agree that there is a need for face-to-face services. Many people rely on that face-to-face support, so access to banking services through banking hubs is important. I welcome the Government’s roll-out of the hubs, and I look forward to what the Minister has to say about how the scheme will be developed.

Beyond the issues that TAG raised with me, there are many other disabled groups with particular needs, such as blind and partially sighted people. The Royal National Institute of Blind People has reported that only two in five blind and partially sighted people manage their finances independently, and over half of those who do not do so say that it is because of their sight loss. The common reasons that they cite are a lack of confidence and facilities no longer being available. Other experiences of financial exclusion that they report include information not being in an accessible format, a lack of trained bank branch staff and a lack of digital literacy for the transition to digital banking. That is just one example that shows how a truly inclusive financial system will have to be tailored and adaptable to the needs of a diverse range of people.

These are reasons why the financial inclusion strategy must be informed and shaped by the experience of people with disabilities and abilities. The Government must facilitate a proper dialogue between banks and disability groups. Disability-sensitive staff training is needed. Access to cash needs to be protected, including with more free ATMs and inclusive banking hubs. More broadly, the Government must tackle barriers to individuals’ and households’ ability to access affordable and appropriate financial products and services.

[Will Stone (Swindon North) (Lab)]

My partner, who is a financial adviser, often tells me that people come to her far too late in life, when they are in trouble. Does my hon. Friend agree that we need to be more inclusive with education on finances, to gear up the next generation to support themselves, set up pensions and so on?

[Martin Rhodes]

I certainly acknowledge the need for financial education from an early age, so that people understand the system. One of the areas of exclusion is the fact that people just do not understand what financial services and products are. We need to ensure that people understand their options and can explore them.

Even if we addressed all the issues with financial inclusion that we have raised in this debate, there would remain fundamental issues of poverty and inequality in our economic system. The pervasiveness of loan sharks, the lack of access to affordable credit and the heightened cost of living crisis, which have eaten into many people’s savings, all contribute to an exclusionary financial system. I look forward to the publication of the financial inclusion strategy, but also to the publication of the child poverty strategy, alongside action to reduce poverty, promote equitable growth and increase opportunities for all. If we get all of that right, we can build an inclusive financial system for all. I know that the Minister takes these issues seriously; I look forward to her response.

Budget Responsibility Bill

Martin Rhodes Excerpts

2nd reading
Tuesday 30th July 2024 Commons Chamber

[Martin Rhodes (Glasgow North) (Lab)]

Thank you, Madam Deputy Speaker, for calling me to make my maiden speech during this debate.

I moved to Glasgow in 1992, expecting to stay for three years. Now, over three decades later, I am pleased to say that I made it my home. For more than 30 years, I have lived in the north of the city, so it is a great privilege and a great responsibility to have been elected to serve the constituency of Glasgow North. It is a constituency of huge variety and diversity. At its northern boundary, there is farmland north of Summerston, and at its southern boundary, at the River Clyde, there is the Scottish Event Campus, the Hydro venue and the city centre. There is the West of Scotland science park at its western boundary and the Glasgow Tigers speedway track towards the eastern boundary. Of course, there is a lot more in between, including Firhill, the home of Partick Thistle; the Kelvingrove art gallery; Possil marsh, a site of special scientific interest; Glasgow Caledonian University; the University of Glasgow; the Glasgow School of Art; the Royal Conservatoire; the Queen’s Cross church of Charles Rennie Mackintosh; the Forth and Clyde canal; the River Kelvin; Ruchill, Maryhill and Dawsholm parks; Kelvingrove park; and the botanic gardens.

Most of all, and far more important than those key landmarks, there are the communities that make up Glasgow North, many of which have faced and still face significant challenges, and have sought to do what they can to support each other in the face of those challenges. Resilience is a thread that runs through the diverse communities of Glasgow North. It is an area that I am pleased to call home and am now privileged to represent in this place.

I wish to recognise the work of my predecessor, Patrick Grady. In his time here, he was chair of the all-party parliamentary group on Malawi. He has a long interest in development issues, which I am sure he will continue to pursue outside this place.

The boundaries of the constituency are different from what they were in previous Parliaments; the constituency now includes parts of the city that were previously in Glasgow North East and Glasgow Central. I know that my hon. Friend the Member for Glasgow North East (Maureen Burke) will want to recognise the former Member for Glasgow North East, Anne McLaughlin, in her first speech, so with no disrespect to her, I will keep my comments to the former Member for Glasgow Central, Alison Thewliss. As Glasgow Central no longer exists, I want to ensure that we as a House do not miss the opportunity to recognise her commitment and work. In her time in this place, and before that, when she was a city councillor in Glasgow, she showed her commitment to serving those she represented.

There is one other former Member for Glasgow North to whom I would like to pay tribute today. Ann McKechin served in this place from 2001 to 2015. She has been a friend and a giver of wise advice for many years. In and outside this place, she has shown her continuing commitment to public service.

All of us here want to ensure that we represent the people we are elected to represent. We recognise across the Chamber all Members’ aspiration to serve, but we need to ensure that this mutual recognition does not blind us to the challenges of politics and public service. A number of events not too long ago have added to and encouraged distrust not just of politicians but of politics itself. The turnout at the general election in my constituency was just over 50%, and across the country it was only around 60%. There are many reasons for that. Certainly, in constituencies such as mine, the large amount of student accommodation lying empty because of the summer break counted towards lower turnout. The fact that the election was held at the start of the Scottish school holidays may have reduced turnout across Scotland, too. However, we should not let those contributory factors hide the clear opinion of many that politics is a self-serving occupation—and people demonstrate their indifference, distrust or disdain for it by not using their vote.

For too long, government and politics have often allowed themselves to be characterised by posturing and positioning, rather than the serious work of analysing problems, assessing solutions and delivering change. The empty charade of superficial posturing can initially seem to excite and engage, but the lack of substance, delivery and integrity can so easily tip the balance from excitement to disillusionment and a sense of betrayal. Thorough analysis, serious discussion and honest decision making must be the basis of politics if we are to rebuild trust. Financial responsibility and transparency are a key part of that.

It is our challenge across this Chamber over the course of this Parliament to rebuild trust in political institutions and processes. We need to show to people out there that politics is acting in their service, and that it can make real and positive changes to their lives and communities. That is the challenge for all of us, and one that I hope that I can meet during my time in this place.