Today, Lloyds Banking Group and its four charitable Foundations have launched a new joint Financial Resilience fund, with £4.2 million available to the charity sector.

It is aimed to help empower those most in need by gaining confidence and skills to manage their finances, reduce reliance on debt and achieve long-term financial stability.

The creation of the fund follows new research from Lloyds Banking Group and the charitable Foundations which found that in the past three years, 4.3 million individuals have sought assistance from UK charities due to financial hardship.

Over two-thirds (69%) of those surveyed said seeking financial advice was the most important reason for seeking support from charities.

The survey, Financial Resilience and the Role of Small Charities, found that over half (51%) of those taking part felt stigma and embarrassment about their finances, which was the main barrier preventing them from seeking support.

The research also showed that charities are the second most trusted source of advice after family.

Of those surveyed, 90% of people who have visited charities and received financial support were satisfied and are significantly more likely to say that they feel more financially stable than before, compared to those who haven’t visited charities.

The Financial Resilience Fund

The Financial Resilience fund will reach charities through the Lloyds Bank Foundation for England and Wales, Lloyds Bank Foundation for the Channel Islands, Bank of Scotland Foundation and Halifax Foundation for Northern Ireland.

Each of the four Foundations will receive a portion of the £4.2 million and will make a total of 57 grants which are expected over the next 2-3 years.

The aim of the fund is to reach people in new settings, for example via foodbanks or as part of mental health recovery. The fund will have two distinct strategies of support that charities can access, ‘overcoming setbacks’ for individuals in particular circumstances relating to debt or financial distress and ‘establishing a foothold’ which will encompass more general advice and financial support.

By working with communities, the aim is to help empower people by gaining confidence and skills to manage their finances, reduce reliance on debt and achieve long-term financial stability. Every charity that is supported through the fund will have access to Lloyds Banking Group’s Academy resources and skilled staff as mentors and coaches.

Sir Robin Budenberg, Chair of Lloyds Banking Group said: “Our four charitable Foundations play a vital role in communities across the UK and the Channel Islands – enabling grassroots organisations to maximise their impact through direct funding and practical support. The launch of the joint £4.2 million Financial Resilience fund will support small charities and community-led organisations to deliver financial education, inclusion and guidance – assisted not only with funding, but also the expertise and dedication of our colleagues. This is a significant commitment to strengthening financial resilience for people and communities.”

Read the survey here

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