The Treasury Committee has opened a new inquiry into the government’s financial inclusion strategy, examining whether ministers fully understand the scale of financial exclusion and what further action may be needed to address it.

FOCUS ON ACCESS AND EFFECTIVENESS

The inquiry will assess whether existing measures are sufficient to improve financial inclusion, alongside the effectiveness of initiatives such as banking hubs.

MPs will also explore whether additional interventions are required to ensure people can access essential financial services and avoid falling further behind.

The launch follows the Committee’s earlier report on cash acceptance, which warned that a lack of government action risked creating a two-tier society in which the most vulnerable are left disadvantaged as more businesses stop accepting cash.

COMMITTEE CALLS FOR STRONGER STRATEGY

Dame Meg Hillier, chair of the Treasury Committee, said: “The government has set out its stall on improving financial inclusion in this country, so now the Committee will have a closer look at whether it’s likely to make a meaningful difference to people’s lives.

“Improving financial inclusion must not be a box-ticking exercise. Words must lead to action. The Treasury must have a strategic vision, supported by concrete, integrated plans with clear methods for measuring their impact, and they must work closely with the private sector on this.

“My Committee will work to ensure that happens.”

The Committee will gather evidence in the coming months as it assesses how well the Government’s strategy addresses the needs of those most at risk of financial exclusion.