The UK government has launched a new campaign targeted specifically at those on a low income, to offer free financial advice on how to handle their money or how they can open a bank account or obtain low-cost loans.
The new multi-media ‘let’s talk money’ campaign is part of the government’s ongoing effort to combat financial exclusion in the UK.
Many consumers, in particular those on a low income, have difficulty gaining access to affordable credit and, in many cases, resort to borrowing from extremely high-cost lenders such as loan sharks, and, in turn, face a lifetime of debt.
In addition, many of these people do not have a bank account and therefore can find it difficult to get a job, as well as being much more vulnerable to loss or theft.
Department for Work and Pensions minister James Plaskitt, who is launching the campaign, said, By working closely with our partners in housing associations, charities and financial institutions on this campaign we can encourage more people to get free financial advice, and show them how getting a bank account and access to affordable credit can help them begin to leave their money worries behind.
The first phase of the campaign will aim to help build awareness of financial exclusion among organizations that have regular contact with people on low incomes, through the provision of relevant information and support. It will also encourage them to work closer together for closer cooperation on financial exclusion at a local level. A network of stakeholder managers, seconded from these organizations, has been set up across the country to work on this.
The second phase will be implemented in the summer, and will aim to encourage financially excluded individuals to enquire into and take advantage of the financial advice, products and services available to them. The campaign will be funded from the government’s Financial Inclusion Fund.