In a world where your postcode can dictate your future, is it any wonder that social mobility remains a distant dream for so many?
The stark reality is that too often, where you come from determines where you can go.
This shouldn’t be the case, yet it remains a persistent issue in the UK.
Your parents' jobs, the school you attended, and even your hometown can shadow your opportunities.
Social mobility is about breaking free from these constraints, ensuring that everyone, regardless of background, has a fair shot at success.
However, when it comes to financial inclusion, the barriers are more like mountains.
Financial vulnerability is a big issue in the UK. Rising homelessness and the number of people without access to basic banking services highlight the severity of the problem.
The Combined Homelessness and Information Network recently reported a staggering 37 per cent increase in new rough sleepers compared to last year, with London witnessing a 36 per cent year-on-year rise in street homelessness.
Meanwhile, more than 117,000 households found themselves in temporary accommodation as of March 2024 – a troubling 12.3 per cent increase from the previous year.
These statistics are more than just numbers. They reflect the deepening struggles of people who are being left behind in an increasingly unequal society.
One of the most significant hurdles to social mobility is the lack of access to financial services. Without a bank account, individuals struggle to receive benefits, wages, or even secure housing.
For those experiencing homelessness, opening a bank account can seem like a challenge. This is where initiatives such as HSBC UK's No Fixed Address initiative can help.
Now in its fifth year, this programme provides essential support to those facing housing instability, helping them open bank accounts even without a fixed address. It’s a small but critical step in addressing the broader issue of financial exclusion.
In an era where homelessness is on the rise, initiatives like this are vital. Such services offer more than just a bank account; they provide a lifeline to individuals who are otherwise excluded from participating fully in society.
As former economic secretary to the Treasury John Glen said: “Everybody should have access to financial services, regardless of their circumstances.”
Ensuring social mobility means that everyone should have a chance to succeed. It requires concrete actions that break down the barriers holding people back.
Financial inclusion is a crucial starting point. Without it, social mobility will remain a distant goal for far too many people.
The UK's rising homelessness and the number of unbanked individuals are clear indicators that much more needs to be done.
The fight for social mobility is far from over, and financial inclusion must be at the forefront of this battle.
