Financial Inclusion: Young People

Sarah Olney Excerpts

Tuesday 30th June 2026 Westminster Hall

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairmanship, Sir John. I congratulate the hon. Member for Hertford and Stortford (Josh Dean) on his work to secure this debate and his excellent opening remarks.

The decline of high street services has been an ongoing issue in the UK, with banks and other essential services disappearing at an increasing rate. Local high streets provide a variety of vital services to their local communities, but the current landscape is extremely challenging for many local enterprises. I join other Members by referring to my first job, which was at WH Smith on Camberley High Street; I reflect on how many of the jobs from our small sample this afternoon were in a retail environment on a local high street, and how important that is for young people looking to get their foot on the ladder of a future career.

I am sure that colleagues from across the House have heard from countless local businesses in their constituencies, on their high streets and in the hearts of their communities, about the challenges they face, from the Government’s national insurance contributions rise to sky-high energy bills, and uncertainty about what the Employment Rights Act 2025 means for them. This is placing an unsustainable burden on many businesses and services.

In the past three years, nearly 2,000 bank branches have closed across the UK, due to declining in-person transactions and the rise of online banking. Many villages and small towns now do not have even a single bank, forcing residents to travel long distances for financial services. These challenges are often compounded by limited broadband or limited access to the internet, leading to swathes of people in rural communities being excluded from online services and digital banking. Alternative solutions such as banking hubs are emerging, but there are not enough of them. The Government should be facilitating more to ensure that people across the country can access vital services when they need them and to prevent digital exclusion.

The Liberal Democrats are concerned about the inequality of provision as the 5G network is rolled out. We believe it is wrong that people should be disadvantaged simply because of where they live. I urge the Government to prioritise major investment in broadband for underserved communities. It is deeply concerning that some 2.4 million people are unable to complete basic tasks such as opening an internet browser and that over 5 million employed adults cannot complete essential digital work tasks. It is reported that basic digital skills will become the UK’s largest skills gap by 2030. Beyond that, 1.7 million households have no mobile or broadband internet at home, and around 1 million people have cut back or cancelled internet packages in the past year, as cost of living challenges have forced people to find ways to cut and save. As we live in an increasingly digital world, the lack of access to digital services will exacerbate the difficulties faced by young people in trying to get their first job.

The Liberal Democrats made a manifesto commitment to introduce a national financial inclusion strategy, requiring both the Financial Conduct Authority and the Prudential Regulation Authority to have regard to financial inclusion, such as protecting access to cash, especially in remote areas, supporting banking hubs and expanding access to bank accounts. We are also supportive of the introduction of a fair banking Act in the UK to help to tackle financial exclusion.

Compared with similar economies, the UK has some of the worst levels of financial exclusion, leaving millions without access to essential financial services. Even before the pandemic, over 10 million people in the UK were unable to access affordable credit, with over 3 million resorting to high-cost lenders such as payday loan providers, which often charge extortionate interest rates.

Small businesses also struggle to secure fair financing and receive only a small fraction of bank lending. This has created a multibillion-pound financing gap that stifles economic growth, particularly in underserved regions outside London and the south-east, as well as within marginalised communities. We must do more to bring an end to the affordable credit crisis and help millions of people who are struggling with unsustainable debt.

Regarding broader financial inclusion in education, a lack of financial engagement is an issue that permeates much of the UK beyond the younger generation. Research by TheCityUK shows that the UK has relatively low levels of retail investment compared with international peers, which has implications both for long-term household outcomes and for how effectively domestic savings are channelled into the real economy.

Britain’s investment gap undermines our economic future. The Financial Conduct Authority estimates that around 22 million adults with £10,000 or more in cash savings might be missing out on the benefits of investing, and many small businesses are missing out on the benefits of receiving that investment, which would help them to grow.

The UK continues to have a relatively narrow base of retail participation, with a significant proportion of households not engaging in market-based investment products at all. This limits both wealth creation at the individual level and the breadth of capital available to UK markets. One in four UK adults invest outside their pension, which is the lowest rate in the G7. It is a structural brake on household wealth, economic growth and social mobility.

This is a systemic challenge. Low levels of retail investment reinforce economic inequalities, weaken the link between savers and UK businesses, and reduce the overall effectiveness of the UK’s saving and investment ecosystem. Mobilising long-term savings into productive investment is central to unlocking future growth, strengthening UK capital markets and ensuring that the UK remains internationally competitive.

The investment gap reinforces financial inequality. Those who invest pull further ahead while millions remain outside the wealth creation system. Proactive individual investment can help to bridge the gap, offering the potential for higher returns and greater financial security in later life. However, that requires proper financial education, and the gains are so much greater when young people can start investing earlier and see the value of investing.

The recent review of youth unemployment warned that one in six young people will not be in education, employment or training in five years unless action is taken, with more than 1 million already not in education, employment or training. That is a really alarming figure. The Liberal Democrats repeatedly warned that Labour’s job tax would hammer job opportunities for young people, and that their business rates hikes would kill off high street job opportunities that give so many young people their first job. The Government must urgently take action to unlock the skills and opportunities that young people need to build a future they can believe in, and that includes, critically, ensuring access to financial education, financial services and employment.