Justin Tomlinson MP speaks at the panel event with (left to right) Teresa Perchard (Citizens Advice),
Justin Tomlinson MP, Paul Lewis (Radio 4), Danielle Walker-Palmour (Friends of Provident
Foundation) & Delroy Corinaldi (Consumer Credit Counselling Service)
Having worked hard in Parliament on the subject of financial education and protecting vulnerable consumers, Justin Tomlinson MP was invited to speak at a Financial Well Being panel event about his thoughts on the future of financial inclusion during and after the economic downturn. The event, which was organised by Demos, Friends of Provident Foundation and the Barrow Cadbury Trust, asked the question ‘How do we foster inclusion during the downturn?’ and invited input from the panellists, including the BBC’s Paul Lewis, and the audience.
In giving his response to the question, Justin Tomlinson MP highlighted a number of key barriers to financial inclusion. These included the need for greater financial education in schools, greater transparency in interest rates and charges, better customer service from banks and the need to protect the most vulnerable customers. Justin went on to discuss how these barriers might be removed to promote greater inclusion, focusing on the need for an approach that looks at both the borrowers and the lenders.
Justin focused on how we can help borrowers, especially the most vulnerable borrowers, make good financial decisions. In the long term this means better financial education in schools. As Chair of the All-Party Parliamentary Group (APPG) for ‘Financial Education for Young People’, Justin spoke of the Group’s work in aiming to make financial education compulsory.
Justin Tomlinson MP said “The APPG has 225 MPs backing it from all parties and is now the largest in Parliament. This demonstrates the wealth of support behind making financial education compulsory in schools as we have a duty to equip the next generation of consumers with the skills to make informed decisions.”
In the shorter term, vulnerable borrowers can be helped to make good decisions by ensuring they have access to basic banking services and independent advice. Justin also spoke about the need to simplify the system, displaying the total cost of the loan in cash terms rather than the more complex APR.
On the subject of lenders, Justin Tomlinson MP raised the need to clamp down on the immoral sales techniques of doorstep lenders as well as address the high cost loan market, introducing roll over limits and credit checks so that lenders only lend to those who can service the cost of the loan. Vulnerable borrowers should also be encouraged to use credit unions, borrowing money from those who put the consumer at the heart of their activities.
Justin Tomlinson MP said of the event “It was a real pleasure to speak alongside such a distinguished panel. I will continue to do all I can to support vulnerable consumers in Parliament.”
Justin Tomlinson MP answers a question from the audience with the BBC's
Paul Lewis (right)