News & Views

The OBR’s forecast relies on households saving less so they can keep spending, but with little in the bank, most will have to borrow instead. Our measure of household debt burdens shows that this leaves households little to spare. Plausible shocks could push debt stress back to the levels seen before the financial crisis.

The FCA’s affordability rules have been in force since 2018. So why are lenders still lending to households who can’t afford the essentials?

‘Financial inclusion’ should help people withstand financial shocks, not deepen them. Yet the current agenda focuses overwhelmingly on increasing access to credit per se, rather than on credit that people can genuinely afford.

Dr Ana Rita Pena looks at the emerging direction of the Warm Homes Fund following the Government’s recent call for evidence. To work for lower-to-middle income households, Innovative Finance models need to reduce risk, build in trusted advice, and connect to wider delivery models such as property-linked finance and neighbourhood-based schemes.