Financial inclusion entered the realm of public policy in the aftermath of New Labour's electoral victory in 1997, assuming particular importance in the early 2000s. Coming back to power after 14 years in opposition, and inheriting ‘levels of poverty and inequality unprecedented in post war history’, the ‘renewal’ of British society structured around an eradication of social exclusion featured prominently in the incoming government's rhetoric (Stewart and Hills, 2005: 1). Importantly, from a public policy perspective, financial inclusion was identified as one potential mechanism for stitching back a divided society. In part, this reflected an emerging consensus that as one of several expressions of exclusion, financial exclusion was an important manifestation of socioeconomic inequality, inextricably linked to, and indeed exacerbating, broader experiences of social exclusion (Affleck and Mellor, 2006; Edmonds, 2011). As detailed in Chapter One, the inability of individuals and households to participate fully in society was increasingly attributed to an interlocking of marginality deriving from low incomes, poor education, marginal labour market positions, housing situation and exclusion from formal financial circuits (Reagan and Paxton, 2003). Furthermore, the public policy focus on neighbourhood and community regeneration also necessitated an emphasis on financial exclusion given the vital role that finance played in shaping places, such that its withdrawal rendered entire communities vulnerable to under-investment and spiralling degeneration (Marshall, 2004: Wallace and Quilgars, 2005). More broadly, ambitions to create an asset-holding citizenry and undertake welfare reform were crucially tied in with increased access to financial services and products (Reagan and Paxton, 2001).

This chapter charts how financial inclusion policy has evolved in the UK within the context of significant political and economic changes. Pursuing three lines of enquiry, it begins by critically identifying the key policies, programmes and partnerships put in place by the New Labour government, focusing particularly upon banking, saving, affordable credit and financial capability initiatives. It then moves on to consider how these have impacted upon migrant communities in the UK.