Five major UK banks are joining forces with Shelter to help thousands of people experiencing homelessness open bank accounts.
The announcement comes as part of a new government Financial Inclusion Strategy launched today.
Lloyds, NatWest, Barclays, Nationwide and Santander are expanding Shelter’s existing partnership with HSBC, which has already supported over 7,000 people. The initiative addresses a critical barrier facing homeless individuals: without a fixed address, opening a bank account is nearly impossible, yet without one, securing employment or housing becomes even harder.
The pilot scheme will allow Shelter to vouch for people without permanent addresses, removing obstacles that prevent them from accessing paid work and rebuilding their lives.
As part of the programme, domestic abuse survivors will receive support to repair credit records damaged through economic control, working with credit agencies to address unfair credit score damage and help victims regain financial independence.
The strategy also encourages employers to offer payroll savings schemes, targeting the one in ten adults with no savings. The government is providing clarity on statutory obligations to encourage widespread adoption of these workplace savings programs, which automatically set aside a percentage of workers’ salaries.
What’s more, the initiative complements wider cost-of-living support measures, including 30 hours of free childcare saving families £7,000 annually, free breakfast clubs, and expanded school meals for Universal Credit recipients.
To maintain banking access nationwide, the government is backing 350 new banking hubs by the end of Parliament, restoring face-to-face services in communities that have lost their last branch. Ministers will open the 200th hub later this year.
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.’
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