New strategy to solve personal finance problems

LEADING FIGURES from across the financial services industry, government, third sector organisations and charities have come together to launch a major initiative to address the stubbornly low levels of financial capability in the UK.
By The Newsroom
Published 28th Oct 2015, 00:03 BST
Sir Sherard Cowper-ColesSir Sherard Cowper-Coles
Sir Sherard Cowper-Coles

The Money Advice Service, in conjunction with the UK Financial Capability Board, has today published a 10-year strategy which aims to improve people’s ability to manage money well day to day, prepare for and manage life events, and deal with financial difficulties.

Its focus will be on developing people’s financial skills and knowledge as well as their attitudes and motivation.

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Based on extensive research among 5,000 people and consultation with key organisations and institutions, the strategy spells out in stark terms the problems the nation faces and an approach to resolve them.

Key research findings include:

• Only half of families have any life cover

• 21 million don’t have a modest £500 in savings to cover unexpected bills like replacing the fridge or mending the car

• 19 million don’t have an approach to budgeting that they feel works

• Around 8 million have problems with debt. Of those, just one in six is seeking help.

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The strategy will target people of all ages and aims for cross-sector coordination to maximise impact.

Board members include former diplomat Sir Sherard Cowper-Coles, chairman of the Financial Inclusion Commission.