Expert view: Johnny Timpson on the need for a long-term change programme for financial inclusion
Improving work participation and return, closing our UK financial inclusion gap and improving resilience to income and expenditure shocks will offer the opportunity to unlock inclusive economic growth by bringing all stakeholders together in a virtual ‘workplace health service’ to both shape and deliver a long-term change programme for financial inclusion.
In the spring of this year, the FIC commissioned research from the University of Birmingham’s Centre on Household Assets and Savings Management (CHASM). It revealed that millions of UK consumers are underserved by financial services, with the UK advice and guidance gap now a crevasse for many. This results in reduced resilience to financial shocks, plus potentially affecting their physical, mental and financial wellbeing, as well as economic participation.
The Building Resilient Households Group (BRHG) report speaks of the growing number of people unable to work because of ill health, reduced consumer resilience to shocks, and, often, poor awareness of available occupational and welfare benefits and support, together with the need to reform statutory sick pay.
In addition, it flags the pressing need to improve access to financial information, tools and support via the workplace, as well as the provision of opt-out workplace savings schemes, vocational rehabilitation support and occupational income protection insurance.
FIC and BRHG would welcome the opportunity to collaborate with REBA in progressing workplace financial inclusion and resilience discussions with both the government and all stakeholders.
