Christopher Fraser, MP for South West Norfolk, in the House of Commons called on the Government to do more to encourage people on low incomes to save money and manage their money better.
Referring to a press report in the Eastern Daily Press, Christopher Fraser said research indicated that more than one in ten East Anglian families cannot afford food or medicine. Around the same number risk eviction because they are too poor to pay rent. The research, by Barclays and children’s charity NCH, suggests that this situation is largely due to poor financial knowledge and a lack of understanding of financial terminology. More than 1,000 adults in the East of England were approached in order to carry out the research.
Speaking afterwards, Christopher Fraser said: “Poverty amongst low income families is a far bigger problem than most people suspected. I was shocked to learn that people on the lowest incomes are six times more likely to have gone without food at some point, than those on higher incomes. As the research shows, around 50 per cent of people who earn less than £15,000 a year understand basic financial terminology, compared to 82 per cent of those who earn £45,000-plus. A lack of financial knowledge can be extremely damaging for a family who is already struggling with money. For those who live on a low income, knowing how to manage money in an effective and capable way can mean the difference between meeting the basic needs of their families and struggling to buy food and medicine. Clearly, the figures show that more needs to be done in this area.
“I am pleased that the Financial Secretary to the Treasury recognises this. While the launch of incentives to save money, such as Child Trust Funds, are a step in the right direction, there has been a less-than-satisfactory uptake on CTFs due to lack of information. I will be monitoring closely how the Government intends to respond to this important issue.” |