We are just back from the 2024 Labour Party Conference, with Labour in power after more than a decade of a Conservative government.
Economic growth was certainly at the heart of many fringe events, and was the Chancellor’s go-to phrase of the conference. The phrase inclusive growth was also used a lot, with a powerful case made by the new CEO of Fair4All Finance, Kate Pender, at their fringe event on access to financial services.
Of course, the highlight of the conference for me was the focus on a new Labour strategy for tackling financial exclusion. The scale of the problem is known: a quarter of British households are estimated to experience at least one type of poverty premium – meaning they’re charged more for essential services because they are on a low income. When it comes to financial services specifically, there are over 20.3 million people living in financially vulnerable circumstances in the UK, who are unable to turn to safety nets such as credit, savings and insurance.
Following the announcement that Labour would introduce a national financial inclusion strategy if it came into power, Fair By Design teamed up with The New Statesman to discuss what this new strategy could look like. Tulip Siddiq, the Economic Secretary to the Treasury, opened our fringe event with enthusiasm and passion, which set the tone for the whole debate, with representatives from the Financial Conduct Authority, the Association of British Insurers and Fair4All Finance all singing from a similar hymn sheet.
Two of the most important takeaways from the discussion were also the most important ingredients that will make the new strategy successful: the need for consumers to be at the heart of it and working in partnership.
Consumers at the heart
Siddiq stated that we need to have broad representation from across the sector. This is welcome. If we are to tackle financial exclusion in a meaningful way, low-income people and consumers in vulnerable circumstances need to be at the heart of decision-making. There is a major role for civil society, and appropriate representation of consumers, who need to have an active voice and firm place at the decision-making table.
Working in partnership
There was overwhelming consensus that we’ll all have to learn to work together. Nobody claimed there was a silver bullet or that change would be instant. However, with the government leading a new strategy, there now existed a vehicle to bring everyone together. Consumers’ lives don’t respect regulatory, government and industry boundaries. The best solutions cannot come about unless all three work together to ensure everyone can have access to those financial services that nobody can live without.
Sheldon Mills, executive director for consumers and competition at Financial Conduct Authority (FCA), conveyed a sense of optimism that financial exclusion issues can be solved with partnership working, and highlighted the need to address digital exclusion if we are to make headway for some of the most excluded.
Likewise, Hannah Gurga, director general of the Association of British Insurers (ABI), spoke enthusiastically of the role the insurance industry wants to play. She reminded the audience of the success of Flood Re as a model for partnership working. Hannah talked about the ABI’s own work to tackle affordability of car insurance and how it is working with its consumer advisory group and members to tackle exclusion. In turn, Sarah Poretta, deputy CEO of Fair4All Finance, made a clear link to the Prime Minister’s speech and how financial inclusion will help ensure everyone has an equal voice when it comes to accessing financial services – giving people the breathing space and calm to focus on the little things in life without anxiety.
Financial exclusion is a key barrier to wellbeing, security, and prosperity. If we can break down this barrier, as well as the barriers of siloed working and absence of consumer voice in policy-making, we can improve the lives of millions of people, unlocking growth and opportunity across the country.
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