Financial Inclusion

Lord Watts Excerpts

Monday 11th July 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, I absolutely agree with the sentiments expressed by my noble friend about the importance of financial inclusion. The Government recognise that there has been strong interest in the proposal for the FCA to be given a separate “have regard to” financial inclusion duty. However, at present the Government’s position remains that the FCA’s existing objectives and regulatory principles are already well aligned with the objectives of financial inclusion. We do not believe that a separate “have regard to” financial inclusion duty would necessarily lead to a different approach or tangible improvements over the current arrangements with regard to the aim that we all want to see: greater financial inclusion and less exclusion.

[Lord Watts (Lab)]

My Lords, the Government say that they are in favour of this, but they are watching as banks close in many communities. Many poor areas have no bank, at a time when those banks have seen soaring profits. When are the Government going to act to do something about this, to make sure that people have access to banking services?

[Baroness Penn (Con)]

My Lords, there are existing obligations, which are enforced by the Payment Systems Regulator, but noble Lords will also know that the Government are committed to legislating to protect access to cash. Those measures will be included in the forthcoming financial services Bill.