Sharon B Collard

Levels of Financial Capability in the UK

This article presents a new way of looking at and measuring financial literacy. Financial education work to date has focused on managing money, yet the survey described here shows that this is the area where levels of capability are highest. At least half of the UK population needs reminding that it is dangerous to live for the day and make no provision for changes in circumstance, unexpected expenditure, or retirement. In addition, with the low levels of financial capability identified by the survey, it is likely that mis-selling of financial products will continue in the UK. The authors conclude with policy priorities for the government.

Toward Financial Inclusion in the UK: Progress and Challenges

In an increasingly cashless economy, the consequences of being outside the mainstream financial services market have become more serious. This article reviews the progress that has been made in promoting financial inclusion in three areas of financial services provision—banking, consumer credit and insurance— and the challenges that remain.

Workplace Pension Reform: Lessons from Pension Reform in Australia and New Zealand

The UK Governments workplace pension reforms introduce major changes to the way in which employees save for retirement. Eligible employees will be automatically enrolled into a workplace-based pension scheme and, for the first time in the UK, employers will be legally required to contribute to employees’ pensions. This article critically examines the evidence from New Zealand and Australia, two countries that have undergone pension reforms similar in some ways to the UK reforms. We assess what we can learn from their experiences in two areas: firstly, how pension schemes are structured and, secondly, the outcomes for individuals. The evidence highlights the potential of automatic enrolment to overcome peoples disinterest in pension saving. At the same time, relatively few UK employees are likely to choose where their pension savings are invested. As a result, default funds will play an important role in determining the pension outcomes for individuals.

What has debt got to do with it? The Valuation of Homeownership in the Era of Financialization

Abstract Based on comparative focus group data from Norway, Denmark and England, this article asks why people take on substantial mortgages to become homeowners. It argues that financialization of the housing market has resulted in a widespread investment philosophy at the household level and changed the way people think and talk about “the home”. High levels of mortgage borrowing have become commonplace and are justified by social valuations of owner-occupation based on beliefs around freedom through homeownership. Like previous research, the study shows that homeownership offers social identity, stability and belonging. But, this is wrapped up in an investor’s language, such that the distinction between homes as socially valued living environments and homes as investment objects has become blurred. This makes it difficult – perhaps impossible – for households to assess the risks involved in home purchases.

Closing the Savings Gap? The Role of the Saving Gateway

The 2001 election manifesto committed Labour to introducing two innovative policies designed to increase savings and assets among future generations, and the low-income families of today. The Child Trust Fund aims to provide all children with an endowment of assets when they reach the age of 18. Child Trust Fund accounts became available in April 2005 to all children born from 1 September 2002. The Saving Gateway offers a new savings account for lower-income families, designed to encourage savings. The first Saving Gateway pilot took place between 2002 and 2004; a second, larger pilot is currently underway. This article outlines the key findings from the evaluation of the first Saving Gateway pilot.1 Overall, the results are positive—the scheme has encouraged participants to save, and to save regularly. In addition, it seems to have resulted in positive psychological and attitudinal changes among a significant proportion of participants.

Mental health and debt collection: a story of progress? Exploring changes in debt collectors’ attitudes and practices when working with customers with mental health problems, 2010–2016

Abstract Background: In recent years, the UK debt collection industry has taken steps to improve its policies and practices in relation to customers with mental health problems. Little data, however, have been collected to evidence change. Aims: This paper examines whether the reported attitudes and practices of debt collection staff when working with customers with mental health problems have changed between 2010 and 2016. Method: This paper draws on descriptive and regression analyses of two cross-sectional surveys of debt collection staff: one conducted in 2010 and one conducted in 2016. Results: All variables analysed show statistically significant changes between 2010 and 2016 indicative of improved reported attitudes and practices. Conclusions: While results suggest an improvement in attitudes and practice may have occurred between 2010 and 2016, research is required to understand this potential shift, its likely causes, and concrete impact on customers.