Financial risk affects 25m people.
Large scale research by the Financial Conduct Authority* shows why Citizens Advice is asked to help so many with debt and other money worries.
Potentially vulnerable covers “those who may be less able to engage with their finances or with financial services. The reasons for this can vary from low financial resilience to suffering a recent life event (such as redundancy, bereavement or divorce) to low financial capability. It may also be a health-related problem that affects their day‑to‑day activities”.
The study points to characteristics of large groups at risk:
Over 75s Health-risk or other factors make 69% vulnerable. Renters 47% say they would struggle if their rent went up by less than £100 per month. Unbanked 1m people without a bank account are vulnerable. Request for financial product declined 4.6m in past 2 years.
At Citizens Advice Reigate & Banstead our advisers helped people tackle over 440 debt issues from April to September 2017. And for many people problems involving benefits and housing were inseparable from finance.
In addition to this vital work we will go on seeking action from government, regulators and financial services to raise the country’s overall level of financial capability.
* Understanding the financial lives of UK adults, Financial Conduct Authority, October 2017 (8.75 MB)