Financial inclusion: MoneyHelper
Overindebtedness and poverty often go hand in hand, particularly in deprived communities where many people are on a low income and financially excluded – ie, they lack access to basic financial products, such as bank accounts, ways of saving and affordable credit. In addition, financially excluded people can find themselves paying more for essential services, such as fuel, insurance and essential goods, because they only have access to high-cost credit provided by sub-prime lenders or loan sharks.
An important factor in financial inclusion is ‘financial capability’. The Money and Pensions Service’s defines ‘financial capability’ as ‘the ability to manage money well – both day-to-day and through significant life events’.1See Without financial capability, clients risk not getting value for money and the products they obtain not meeting their needs.
Advice on buying a specific financial product from a particular provider is a regulated activity that requires the adviser to be approved by the Financial Conduct Authority (FCA). However, free generic financial advice is available from MoneyHelper (which replaces and brings together the Money Advice Service, Pensions Advisory Service and Pension Wise). Provided by the Money and Pensions Service (MaPS), MoneyHelper is independent of both government and the financial services sector and aims to help people manage their money better by giving clear, unbiased money advice to help people make informed choices.
The service can be accessed at . It publishes printed guides, tools and calculators, and provides support both online and over the telephone. The service is free and impartial, providing advice on budgeting, saving and borrowing, pensions, retirement planning, tax and benefits, but does not recommend specific courses of action, products or providers. It is available for everyone but is particularly targeted at people who are financially vulnerable and those at key life stages – eg, during pregnacy.