2. Improved access to savings
We want to see an improvement in financial resilience and a reduction in the level of problem debt in Britain. That's why we believe all families should have a minimum of £1,000 saved to help them cope during a 'rainy day'. This amount would save half a million people from falling into problem debt.
We've been calling on the Government to set a target for all households to aim to have this amount available for emergencies.
The challenge is to encourage families to saving by helping them overcome the economic and behavioural barriers which are currently preventing them from saving.
Incentives such as auto-enrolment, matched funding and prize-links have been used successfully in the UK and other countries to encourage families to save. Such incentives could help to address the savings crisis. The UK already has many of the tools needed at its disposal to make this a success. It should use them.
Read more about our recommendations to improve access to savings and download our report, Becoming a Nation of Savers.