§ Mr. GogginsTo ask the Chancellor of the Exchequer what action he is taking to encourage better access to financial services for low income households. [120452]
§ Miss Melanie JohnsonThe general theme of the Treasury Policy Action Team (PAT 14) report on "Access to Financial Services" is that tackling financial exclusion requires the development of new financial services products and new ways to access them. There is no single solution: diversity and choice are the watchwords.
The Government have made clear their expectation that the banks and building societies will play their part in combating financial exclusion. In particular a number of banks already offer basic bank accounts with no overdrafts and no charges which are suitable for those on low incomes. All Banks have been asked to provide such accounts by October. The Post Office also has a key role to play in delivering a range of banking services. The Government are contributing almost £500 million to the capital costs of computerisation of the Post Office network. A number of banks and building societies have formed partnerships with the Post Office.
422WOn 16 November 1999, I announced moves to boost credit unions which will provide a new central services organisation and changes to the regulation of credit unions to help them to deliver a more consistent and flexible service to their members.