Social inequality and the financial sector
The gap between rich and poor has widened in recent years and the perma-crisis we are experiencing has hit the most vulnerable the hardest.
In-work poverty is increasing, and the Trussell Trust states that it distributed more than 3.1 million emergency food parcels last year – a 94% increase on five years ago.
The FCA’s Financial Lives Cost of Living report from earlier this year adds more detail, stating that 28% of adults were not coping financially or finding it difficult to cope with the highest proportion being from low-income households, single parents, carers and those living in deprived areas.
There’s a great deal of work to be done to grow living standards, enable social mobility and support the most marginalised and vulnerable in our communities.
This is very true for the younger generation of adults; the millennials and Gen Zs. OneFamily's research has shown that less than a third of this population are saving to buy a first home – they’re simply too busy struggling to pay their bills and trying to keep on top of their rent.
What we're doing at OneFamily to help reduce financial and social inequality
1. Improving life chances for young people
As the UK’s biggest child trust fund (CTF) provider, we’ve a long history in helping young people to be socially mobile and to achieve their dreams.
For example - Freya’s £5,000 CTF nest-egg enabled her to study at drama school and she is now looking forward to a career in the theatre or on television. And, since 2011, we’ve been continuing our support in underpinning future life chances of young adults with our junior ISA accounts.
OneFamily is partnered with RedSTART, a charity that works with disadvantaged children across the UK with the aim of improving their life chances and aspirations through financial education. It’s a very important cause to support.
And we don’t just donate money, we’ve been hands-on with children visiting our Brighton HQ to have fun sessions with our team that teaches them essential life skills – which is especially important during a cost-of-living crisis
2. Offering accessible investment products
We demonstrate our commitment to addressing social inequality with accessible investment products that are easy to understand and have transparent pricing and low minimum contribution levels of just £10 each month.
3. Offering alternative ways to invest with us
We help the digitally excluded with telephone and written access to accounts, making it simple for people to contact us in the way that they are most comfortable with.
4. Campaigning for fairer rules
We have been campaigning for four years for the government to simplify access to savings for young people who lack mental capacity, whose families currently have to undertake the stress of going to the Court of Protection and completing numerous complex forms.
In the meantime, we have put our own process in place to make it easier for families to access their child’s savings.
5. Volunteering and donating to causes that share our values
Helping to reduce poverty in our local community with our support of charities and projects that are specifically targeting those who are in most need, the socially excluded, vulnerable and the young.
Jim places great value on the importance of education, citing it as the foundation stone upon which social mobility can be built. As OneFamily’s CEO, he wants to hold out his hand of support to those who don’t know where to turn and to use his platform to lift people up and inspire them to fulfil their potential.
He encourages thinking big, having great aspirations and setting audacious goals to free potential. With education, encouragement and empowerment he thinks that any child can achieve their biggest and most colourful of dreams.
Jim was appointed as Chief Executive Officer of financial mutual, OneFamily, in December 2023.
OneFamily is the UK’s third largest mutual with over 2m customers.
'Five key trends' series
We’ve identified five key trends that we think will need to be addressed by the financial services industry and our new government over the coming years.
'Social inequality' is one, the rest are:
You may also be interested in:
AI – How can it help our customers?
According to a recent report, 32% of people feel that AI will benefit them. Jim explores how we can use AI to make OneFamily better for our customers.
How to add rocket fuel to a child’s ambitions
How can financial service providers help young people understand the basics of money, such as budgeting, saving and paying bills?
Young adults need our help as they battle against the cost-of-living crisis
Jackie discusses the impact of rising costs on young people and how it’s stopping them achieving life goals.
Volunteering – a little drop of compassion goes a long way
We all have our skills, talents or aptitudes that will be valuable to others, writes OneFamily CEO, Jim Islam.