Question to the HM Treasury:

To ask Her Majesty's Government, further to the report by Christians Against Poverty Shipshape or sinking ship?, published on 21 July, what plans they have to annually assess levels of financial wellbeing across the UK.

The Government recognises that the full impact of COVID-19 on people’s personal finances is still unfolding, and that some are struggling with their finances during these challenging times. The Government is committed to helping people improve their financial wellbeing, and is working with stakeholders from the public, private and third sectors on these issues.

In 2020, the Money and Pensions Service (MaPS), an arms-length body of Government, published the UK Strategy for Financial Wellbeing, which sets out five goals to improve financial wellbeing in the UK by 2030. These include increasing the number of children and young people receiving a meaningful financial education, encouraging saving, decreasing the number of people often using credit for food and bills, increasing the number of people accessing debt advice, and helping people plan for later life. It also includes cross-cutting workstreams focusing on gender, mental health, and wellbeing in the workplace.

The Government also works closely with Fair4All Finance, an independent body which was founded in 2019 to improve the financial wellbeing of those who are financially vulnerable through fair and affordable financial products and services. Since 2019, the Government has provided £96 million of dormant asset funding towards financial inclusion, which are being distributed by Fair4All Finance.

The Government has close and regular engagement with the financial services regulators on issues which contribute to financial wellbeing. For example, in February 2021, the Financial Conduct Authority (FCA) published its finalised guidance for firms on the fair treatment of vulnerable customers. The Government is supportive of recent FCA work on vulnerable customers.

In addition, at Budget 2021, the government announced up to £3.8m for a pilot No-Interest Loans Scheme to support vulnerable consumers who would benefit from affordable credit to meet unexpected costs as an alternative to relying on high-cost credit.

Finally, the Government considers financial inclusion and capability as key determinants of financial wellbeing. The Government reports annually on progress made on financial inclusion through the Financial Inclusion Report. Furthermore, MaPS monitors levels of financial capability in the UK through the Financial Capability Survey, a nationally representative survey of adults living in the UK.