More access to bank accounts

The Government have announced plans to slash the number of people in the UK who do not have access to a bank account.

The Treasury said it would add £6 million to the £120 million already pledged from the Financial Inclusion Fund to support community development finance institutions.

The decision should see more banking services available to financially excluded households in the some of the UK's most deprived areas.

The number of adults living without a bank account was two million in 2005/2006. The Government aims to slash this number to 1.4 million, although they have not set a time frame for this goal.

Ed Balls, economic secretary to the treasury, said: "We have made real progress on financial inclusion but there is still a lot more to do.

"Tackling financial exclusion is essential for both our economic prosperity and for social justice. It is good for individuals, for society and the economy as a whole."

Nicola O'Reilly, senior policy advocate at the National Consumer Council said: "The Government's long-term commitment to financial inclusion is great news.

"In order to reduce the number of unbanked further, a real push is now needed to ensure that basic bank accounts are an attractive proposition for those without accounts.

"NCC research shows banks must deliver good customer service and a basic account that meets the needs of people new to banking," she said.

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