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The Treasury Committee has published the response to its report into the government’s Financial Inclusion Strategy.

House of Commons

• Read the report
• Inquiry: Financial Inclusion Strategy

In response to several of the Committee’s recommendations, the Treasury says that it will use its two-year review, due in 2027, to assess the effectiveness of the strategy. This is therefore also when some of the Committee’s suggested changes will be considered. 

The inquiry examined whether the Treasury understands the true scale of the challenge of addressing financial exclusion, as well as what is needed to make a meaningful difference to people’s lives. 

The Committee concluded that the government’s Financial Inclusion Strategy is a welcome first step, but it is not a complete plan to tackle financial exclusion in the United Kingdom. 

A lack of information, such as who is excluded and where exclusion is concentrated, makes it impossible for the Treasury to know whether it is making the right interventions and whether they are reaching those who need the most help, the report said. 

The Committee called for the government to undertake its own quantitative analysis in order to gain a deeper understanding of the issue. MPs also called on the department to set triggers for further intervention if the current voluntary process doesn’t lead to the desired level of engagement from firms. Both issues will be considered as part of the two-year review, the government confirmed. 

The Treasury plans to implement a number of voluntary, industry-led pilots and working groups. The Committee recommended that the department should publish a pilot-to-scale plan setting out detail such as the success criteria, decision points and the action that will be taken once the pilot is complete. The government agreed to include this forward-looking assessment as part of its two-year review. 

Chair comment

Chair of the Treasury Committee, Dame Meg Hillier, said: 

“The minister says that tackling financial exclusion is a personal priority for her during her time as Economic Secretary, so I look forward to working with her on delivering real change for those who need it. 

“Frustratingly, this response essentially parks any assessment of the Financial Inclusion Strategy until the two-year review in 2027. While it would have been our preference to act now rather than lose another year, we will await that work keenly before deciding the Committee’s next steps.” 

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees