The Financial Inclusion Strategy for Wales aims to improve access to financial services and education through collaborative efforts. It identifies five strategic themes: access to banking and affordable credit, access to debt and financial advice, improving financial literacy, and maximizing income through claiming eligible benefits. The strategy recognizes that financially excluded individuals often live in social housing and aims to engage housing providers to help residents access services like banking, credit unions, money advice, and education programs to improve their financial capability. Significant contributions to advance financial inclusion in Wales include establishing teams to promote inclusion, developing education programs in schools, and securing funding to support credit unions and combat predatory lending.

1. Financial Inclusion Strategy for Wales “Taking Everyone into Account” Bill Hudson Financial Inclusion Unit Welsh Assembly Government

2. Financial Inclusion Strategy Launched in July 2009 Emphasis on collaborative working Joint-agency approach to financial inclusion Backed by a detailed action plan

3. 5 Core Strategic Themes Access to mainstream financial services - 8% of the adult population in Wales do not have a bank or building society account Access to affordable credit and savings - Excluded pay on average £129 per month in interest alone. Poverty premium in excess of £1,000 per annum Accessible financial and debt advice - 111,000 + people contacted Welsh CABx in 2008-2009 over debt problems – 37% total client base – 9,500 new debt problems each day Financial capability and literacy - 33% of people in the UK lack any confidence in handling money - MORI – 7 out of 10 young people believe their education did not prepare them for the world of work – Income maximisation - Each year in excess of £9 billion goes unclaimed in eligible State benefits

4. Financial Inclusion – Links to Housing 70% of financially excluded live in social housing 81% have no savings account 91% have no home contents insurance cover More likely to be targeted by predatory lenders – Save the Children 2009 survey shows that 55% of families earning £12,000 or less a year will turn to high-interest lenders

5. Key Strategic Role for Housing Recognition of importance of Financial Inclusion to tenants – Financial Inclusion Strategies/Action Plans Housing providers - Key role as funders and providers of services and financial inclusion initiatives Helping low income households: - access free debt/money advice/guidance - access to affordable credit - credit unions/CDFI - access mainstream banking - income maximisation - eligible benefits take-up - promoting financial education – Consumer Financial Education Body (CFEB)

6. Significant Contributions to Financial Inclusion Agenda Establishment of Welsh Financial Inclusion Champions Team – Future role? Establishment Welsh Financial Education Unit – primary/secondary schools Development of the Consumer Financial Education Body (formerly part of the FSA) – improving financial capability and providing money guidance Establishment of the Welsh Illegal Money Lending Unit – combating predatory lending Securing of £3.4m European/Assembly Government funding for credit unions 2010-2013 Arrival of Moneyline Cymru to further improve access to affordable credit