We define financial inclusion as individuals having access to appropriate financial products and services, including having the skills, knowledge and understanding to use them.
Financial exclusion can be both a symptom of poverty and a cause of poverty. People on low incomes may have difficulty opening bank accounts, getting low cost loans or building up savings. Those who do not have bank accounts cannot use cheaper payment options, such as direct debit, and have to use more expensive forms of credit, such as doorstep lenders. This increases their risk of falling into debt and poverty.
The Scottish Government's approach to tackling financial exclusion is set out in the Financial Inclusion Action Plan. To encourage sharing of knowledge and networking, the Scottish Government held one day conferences (the Financial Inclusion Event) in 2005, 2006, 2007and there was a final information sharing event in 2008.
The Department for Work and Pensions is inviting expressions of interest, by 19 August, to provide the Financial Inclusion Champions team for Scotland - a national strategic champion and 3 regional champions (East, North and West Scotland). Interested organisations must submit a short summary (no more than 500 words) which demonstrates a proven track record in financial exclusion issues; knowledge, skills and experience to be able to influence and deliver at the strategic level required; and evidence of the partners that will cooperate and work with them to deliver solutions. The team's contract will be managed by DWP in partnership with the Scottish Government. For full details, see www.nowletstalkmoney.com (registration with the site required for these).
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