Concern over NI bank accounts

The report said financial exclusion was acute

A quarter of Northern Ireland people do not have bank accounts, according to a new report.

Latest figures show the number is twice as high as the rest of the UK.

The General Consumer Council fears those without access to banking facilities risk becoming even poorer.

They have less money to begin with but they end up paying more for goods and services

Maeve Bell
General Consumer Council

In its fifth report on the 'Price of Being Poor', entitled Short Changed, council director Maeve Bell said banking had to be affordable and accessible to everyone.

"This report shows that poor consumers are at risk of becoming even poorer," she said.

"They have less money to begin with but they end up paying more for goods and services."

Financial exclusion

The report authors said having a bank account gave access to cheaper credit facilities and helped families otherwise forced to turn to illegal moneylenders for help.

From next April social security benefits will be paid into bank and post office accounts rather than benefits books.

The council recommended the Social Security Agency and Department of Social Development begin a publicity campaign to prepare and reassure people for the change in benefit payments.

It said banks should publicise the existence of new low-cost basic bank accounts.

It also urged the government to tackle financial exclusion alongside initiatives on equality and targeting social need.

The report said financial exclusion was acute in Northern Ireland, with one in five people living more than a mile from their nearest post office compared with one in 10 in Great Britain.