Introduction

The opening chapters have introduced the concepts of financial inclusion and financial capability. These chapters have presented financial inclusion and financial capability as complementary. If people are to make financial decisions, then they need access to the financial system. This points to the significance of financial inclusion. However, people also need to be able to make financial decisions once they are connected to the ‘financial mains’ but may lack the knowledge, skills or confidence to do so. Furthermore, the capacity to make financial decisions might be deemed an important part of individual freedom. This highlights the significance of financial capability.

This chapter turns from the general discussions in earlier chapters to a study of what financial inclusion might mean in practice. Studying concrete examples of financial inclusion can add flesh to the general discussion of financial inclusion, as well as highlight some of the dilemmas and challenges faced by financial inclusion. There are a wide range of areas that it is possible to study. Chapter 1 mentioned that financial inclusion covers areas such as banking, insurance, credit and savings. There is also a varied range of policies within each of these different sectors. It is not possible to survey all the possible areas of interest. Rather, this chapter concentrates on financial inclusion savings policies as it is a particular area of policy concern in the UK. Data exist which suggest that important parts of the population have little or no savings. For example, around 53 per cent of 22 to 29 year olds in the UK had no savings at all in a savings account between 2014 and 2016. The UK's housing saving ratio – that is, savings as a proportion of household income – halved between 2015 and 2018. The UK's household savings ratio is also lower than the average across the European Union (McKay et al, 2019).

The UK government has sought to address this lack of saving. For example, former Labour Chancellor Alistair Darling promised a Saving Gateway policy would be introduced from 2010 to boost saving. These would be special two-year savings accounts aimed at those on low incomes in which the government would match 50p for every £1 saved by a Saving Gateway account holder (with a maximum of £25 of government contributions each month) (House of Commons Library, 2009; HM Treasury, 2010a).