New Report Finds Financial Inclusion Could Unlock £6.4 Billion for UK Economy

Friday 1 August 2025

Improving financial inclusion could add up to £6.4 billion annually to the UK economy, according to new economic modelling by WPI Economics, commissioned by Fair4All Finance.

The study models the impact of three specific scenarios: low productivity due to poor financial wellbeing, low personal savings, and the poverty premium on car insurance. Its findings reveal that improving financial wellbeing could raise £5.9 billion annually through increased productivity and employment. Additionally, £110 million could be added to the economy through higher personal savings, and £368 million could be generated by making affordable car insurance more accessible to consumers.

Currently, over 20 million people in the UK are financially vulnerable, and these three scenarios represent only a fraction of the broader economic benefits of enhanced financial inclusion. The report urges both government and industry to act on these findings to create a more inclusive financial services sector, which would not only help individuals but also drive overall economic growth.

The research also underscores the importance of community finance, with Fair4All Finance’s own findings in Merseyside showing that increased access to affordable credit leads to significant improvements in people’s financial situations and overall health. More than two-thirds of respondents in Merseyside reported a positive change in their finances, while over 80% saw improvements in mental and physical health, which in turn contributed to higher economic productivity.

CEO of Fair4All Finance, Kate Pender said: “This research and modelling explores three specific areas where targeted action by government and industry can improve millions of people’s lives and generate billions for the UK economy. Constructive action here could have an immediate impact, leading to a healthier, more productive and larger workforce as well as contributing to the Government’s overall growth ambitions.

“We are supporting the Government with the development of the upcoming National Financial Inclusion Strategy and look forward to seeing an ambitious strategy published later this year, which will make the financial services sector more inclusive and deliver better financial outcomes for everyone.”

Commenting on the report, ABCUL Chief Executive, Matt Bland said: “We welcome this report and its emphasis on the power of inclusion to create real economic value. It reflects what credit unions see on the ground every day – lives transformed through access to affordable credit. Credit unions stand ready to power that progress.

“We thank Fair4All Finance for commissioning this valuable research, which shines a light on the scale of the opportunity for our sector.”

Read more details and download the full report here.