Bank support for people experiencing homelessness

A new pilot with Shelter and five major UK banks is enabling people at risk of homelessness to open bank accounts.

This will allow shelter to support people without a fixed address, which is a major barrier that stops people being able to get paid work.

Shelter already had a partnership with HSBC, which has helped over 7000 people. Lloyds, NatWest, Barclays, Nationwide and Santander have now joined.

It can be difficult to open a bank account with no fixed address, and even more difficult to find a job or a home without a bank account.

The pilot is part of the new Financial Inclusion Strategy, which is a national plan to make financial services work for everyone.

The Strategy also includes new work with credit agencies to help victims of domestic abuse repair credit records damaged by economic control and support for employers to offer payroll savings schemes.

It also aims to strengthen financial education in schools.

Economic secretary to the Treasury Lucy Rigby said: "This plan is about opening doors – helping people experiencing homelessness into work, helping survivors of abuse rebuild their credit, and helping families save for a rainy day.  

"No one should be locked out of the chance to build a better future. Our strategy gives people the tools to get on and boosts the economy by supporting more people back into work through our Plan for Change."

Lauren Thompson, head of corporate partnerships at Shelter, said: "Our Breaking the Cycle initiative is a vital step in providing essential financial support, housing advice, and resources to help people at risk of or experiencing homelessness.  

"Every day at Shelter, we see the crippling financial pressures often faced by those hit the hardest by the housing emergency. Many are skipping meals just to cover rent, cutting back on essentials, and making impossible choices simply to stay afloat. Access to banking can help people receive financial support, pay bills, and find and keep a safe home. Through our partnership with HSBC UK, pioneers in this space, we’ve supported over 7,000 people experiencing homelessness or housing difficulties to open a bank account. Breaking the Cycle can help support people to regain control, build financial resilience, and rebuild their lives."