An initiative to help improve access to banking services for people who may face barriers to opening a bank account is being expanded, UK Finance has announced.
The expanded pilot programme is being delivered with the help of charity Shelter.
It builds on Shelter’s “breaking the cycle” programme, developed with HSBC UK, and is now being expanded to include Barclays, Lloyds, Nationwide, NatWest and Santander.
Banks will work with Shelter and UK Finance to help improve access to banking services for people who are financially excluded.
Some people do not have the standard identity or proof of address documents required to open a bank account and helping these people to access banking is part of the Treasury’s financial inclusion strategy.
Bank accounts are seen as essential to helping people manage their money and without them people can struggle to receive benefits or wages, pay bills, or find somewhere to live.
To help improve access to banking, where available, customers may be able to use referral letters and provide alternative forms of evidence, including expired or non-standard identification documents, with the aim of providing a practical route into banking for people who may otherwise face barriers to opening an account.
And beyond opening the account, there may also be support to help customers understand and use their account, manage correspondence, and build longer-term financial resilience.
David Postings, chief executive of UK Finance, said: “Being able to prove who you are should never be a barrier to rebuilding your life.
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“That’s why we have worked with our members to make it easier for people without a fixed address to open a bank account.
“This partnership with Shelter and the major account providers is a vital step in ensuring that everyone – including those facing homelessness – can access the financial system, find work, and move forward with independence.”
Rachel Blake, Economic Secretary to the Treasury, said: “Bank accounts are a gateway to the modern economy, whether it’s getting into the job market or securing a stable home.
“It is no exaggeration to say that this pilot will transform lives and I’m delighted that it is being taken forward as part of the financial inclusion strategy.
“I welcome HSBC and Shelter’s leadership on this issue, and the wider collaboration we are seeing from the sector to give people this first step into financial inclusion.”
Sarah Elliott, chief executive at Shelter, said: “Without a bank account, receiving benefits or wages, paying bills or rent, and finding and keeping a safe home can be almost impossible.
“Together with HSBC UK, we’ve supported over 7,000 people experiencing homelessness or housing instability to open a bank account.”