Access to financial services has long been out of reach for the country’s most vulnerable groups, particularly those experiencing homelessness. By removing the requirement for a permanent address, the scheme targets one of the most significant barriers to social and economic reintegration.
Major UK Banks Partner With Shelter to Break Banking Barriers
The pilot, launched on 5 November, brings together Lloyds, NatWest, Barclays, Nationwide and Santander in partnership with the homelessness charity Shelter. These five major high street lenders will now enable individuals without a fixed address to open bank accounts, a move designed to support their journey back into employment and housing.
Traditionally, opening a bank account in the UK requires proof of a fixed address, which excludes many rough sleepers and people in temporary accommodation. According to Big Issue, the scheme builds on a previous partnership between Shelter and HSBC, which since 2019 has helped more than 7,000 people access basic banking through its No Fixed Address service.
As part of the new programme, Shelter will vouch for applicants using internal data and will accompany them to appointments at local bank branches. Lucy Rigby, economic secretary to the Treasury, said the scheme is “about opening doors – helping people experiencing homelessness into work” and enabling their participation in both the economy and society.
According to Shelter’s Lauren Thompson, the move is crucial. “Access to banking can help people receive financial support, pay bills, and find and keep a safe home,” she said. The initiative is part of a broader Breaking the Cycle campaign to provide long-term support to those at risk of or experiencing homelessness.
Domestic Abuse Survivors and Financial Education Also Targeted in Wider Strategy
Alongside the banking access scheme, the financial inclusion strategy outlines several measures aimed at increasing financial stability across vulnerable groups. Among them is a new effort to help domestic abuse survivors repair credit ratings damaged by economic abuse. According to The Guardian, credit reference agencies such as Experian, Equifax, and TransUnion will begin reviewing how victims’ credit histories can be fairly reassessed.
The charity Surviving Economic Abuse welcomed the measure, noting that coerced debt is one of the most persistent barriers faced by abuse survivors. Sam Smethers, chief executive of the organisation, called the strategy “a golden opportunity to help survivors rebuild their lives by restoring their credit scores”.
The plan also includes financial education reforms targeting primary school children. According to the Department for Education, key concepts such as calculating interest and basic money management will be integrated into the curriculum, reflecting a growing concern that children are now financial consumers before secondary school age.
Another strand of the strategy focuses on payroll savings schemes, where workers automatically deposit part of their salary into a savings pot. Although popular among employees, these schemes have seen limited uptake due to employer concerns over minimum wage laws. The government now says it will provide the necessary legal clarity to facilitate broader implementation.
The Financial Conduct Authority estimates that 12.1 million people in the UK experienced difficulties accessing financial products between 2020 and 2022. With more than 11.5 million having less than £100 in savings, the strategy signals a significant attempt to tackle financial exclusion at multiple levels.
