The government has set aside £12m to pay for dedicated staff to work with people who struggle to manage and understand their finances.
Ensuring that everyone in the UK can access the financial system and manage their finances is the objective of a new three-year action plan, launched by economic secretary to the Treasury, Kitty Ussher.
The staff will focus on increasing the awareness and availability of home contents insurance for those on low incomes, particularly those in areas affected by the recent flood events.
They will work with local authorities, social landlords, and other partners, such as the Association of British Insurers.
A further £5m will fund a new service to help prisoners with money matters.
The plan details a number of initiatives to tackle the government’s three priorities for financial inclusion:
- Enabling people to manage their day-to-day money
- Planning for the future and coping with financial pressure
- Dealing with financial distress.
Ussher said: “Exclusion from the financial system brings real costs, often borne by those who can least afford them. This is why promoting financial inclusion continues to be a key priority for the government as part of its commitment to fairness and social justice.
“It is not acceptable that anyone, but particularly the most vulnerable members of our society, should face costs which could easily be avoided.”