Income and Financial Inclusion

Four million low-income households have poor access to mainstream financial services. People living in poverty pay an additional ‘poverty premium’ of around £490 a year for a range of everyday goods and services. This is because they have to use more expensive pre-pay meters for electricity, can’t pay for services by the cheapest billing method or can only access higher-cost credit.

Social impact investment is supporting social business models that provide ethical finance, helping people buy affordable household items with affordable credit, and supporting small businesses. These business models mainly generate revenue through interest and repayments of loans. There is growing evidence of the wider impact of both financial capability and inclusion, and we encourage this increase to continue. This will help build a clearer understanding of how social impact investment can be best used alongside other forms of support.​

Social enterprises, charities, and social purpose organisations are supporting people to manage their finances and access financial advice, products or services. They’re also building awareness of more ethical, responsible and suitable financial services.