Financial Inclusion Report 2026 | Plend — Left Behind: Five Years of Financial Exclusion

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Our ‘Financial Inclusion Report: the impact of a cost of living credit crunch’ focuses on the impact of the cost of living crisis, personal and household finances, and the resulting impacts on access to financial services in the UK. The findings emphasise how badly some groups – such as young people and ethnic minorities – have been affected more by the crisis than by the pandemic, thereby contributing to the increase in financial exclusion of those looking for support.

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Research conducted by Opinium from over 4,500 respondents shows that 44% of people are struggling to ‘make ends meet’ due to the cost of living crisis, all while affordable credit is becoming increasingly harder to obtain. This report demonstrates that the cost of living crisis is exacerbating pre-existing issues and inequalities, and large sections of the UK population are repeatedly being let down and pushed into further difficulties. The number of people who feel they are being locked out of the financial system is increasing year-on-year – up from 1-in-5 (20%) of those surveyed last year, to more than 1-in-4 (28%) this year.

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The report shows that those who do have access to credit are finding it difficult to pay off debt or balances, with nearly 3-in-4 (72%) people having struggled at some point to pay off their loans, up from 1-in-2 (50%) in last year’s report, suggesting that financial stability among British consumers is worsening.

Without intervention, there is strong evidence to suggest that the use of unregulated and illegal forms of lending may start to surge as people seek other routes to access credit and keep up with the cost of living.

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This year’s report also finds that there is a lack of trust between the public and financial institutions, with only 1-in-5 (21%) credit-holding adults believing that loan and credit card companies are charging fair rates. Nearly 2-in-5 respondents (39%) agreed that if they could access a genuinely low-interest loan, their financial situation would improve; up from 27% last year.

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A collective effort from both industry and the regulator is required to ensure a more equitable and accessible financial landscape for the UK population. An industry commitment to greater transparency around interest rates will be an important step in creating a fairer lending environment. Similarly, the adoption of blind credit applications will promote fairer lending decisions, and provide greater access to affordable loans for those with the means to repay one.

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Robert Pasco, CEO and Co-founder Plend, comments: “These findings highlight the mass inequality gaps in our society, exacerbated by the pandemic and the current cost of living crisis. Those who are already struggling to make ends meet are hit the hardest, with many being forced to turn to high-cost credit to meet their basic needs. This only perpetuates a cycle of debt and financial exclusion, trapping people in a vicious cycle they can’t escape from, contributing to the ‘Great Credit Divide’.

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We must work together to prioritise financial inclusion and create a society where everyone has access to affordable credit, financial stability, and the opportunity to build a better future for themselves and their families.”

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This report was created in collaboration with Nationwide Building Society, StepChange, PFRC Bristol University, Green Finance Institute, Ascension and Fair By Design.
Click here to read the full report.

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Our fifth annual Financial Inclusion Report asks: after five years of tracking financial exclusion in the UK, why has so little changed?

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Researched with Opinium among a 3,000 nationally representative sample of UK adults, plus a 500-person boosted ethnic minority sample, this year's report finds a crisis that is moving inward. 89% of UK adults felt the impact of the cost of living crisis this year. A third are borrowing to pay for essentials like groceries and heating. And 21% could not cover a £300 emergency expense, with 40% of those earning above the median salary.

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For the first time in this research, some headline access metrics are improving. Fewer people feel locked out of the financial system, and average APRs have fallen. But the lived experience of exclusion has not followed. Free support services exist, yet more than half of adults have never used one, and an estimated two million people turned to a loan shark in the last twelve months.

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The report closes with five practical recommendations for government, lenders and the wider industry, starting with the wide-scale adoption of open banking in credit assessment, so people are judged on their real financial lives, not an incomplete history.

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In partnership with Triple Point, with contributions from StepChange Debt Charity, Nationwide and ClearScore.

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Inside the report:

Five years of data on who is excluded from mainstream credit, and how exclusion is now moving up the income scale
New findings on borrowing for essentials, the support gap, and the rising risk of illegal lending
A foreword by Monzo co-founder Paul Rippon, with expert contributions from StepChange, Nationwide and ClearScore
Five practical recommendations for government, lenders and the wider industry.
The case for open banking in credit assessment; judging people on their real financial lives, not an incomplete history

89% of UK adults felt the impact of the cost of living crisis this year, up from 84%

21% could not cover a £300 emergency expense — and 40% of them earn above the ONS median salary

35% of UK adults borrowed to cover essentials like groceries and heating, borrowing an average of £1,120

~2 million people used a loan shark in the last 12 months — and 6.97 million have or would consider using one

93% of those struggling to keep up withdebt repayments are aware free support services exist, yet 35% have never attempted to use one

26% of people feel locked out of the financial system, down from 29% — the first fall in four years

JAMES PURSAILL
CEO & CO-FOUNDER OF PLEND

“Five years of this research tell a consistent story. The lived experience of exclusion has barely shifted. A third of UK adults are borrowing to cover essentials like groceries and heating, and 21% could not cover a £300 emergency expense, two in five of whom earn above the median salary. Millions of people who are entirely creditworthy are still being turned away because the traditional system was never built with them in mind. 43% of those with unstable incomes doubt they could access credit, yet 80% of them meet or exceed their card payments every month. Open banking closes that gap by assessing real financial behaviour rather than an outdated score.”

"THE QUESTION IS NO LONGER WHETHER WE CAN BUILD A MORE INCLUSIVE FINANCIAL SYSTEM. IT IS WHETHER WE CHOOSE TO."

Paul Rippon — Monzo Co-Founder and Director of Plend

This year's report marks five years of tracking financial exclusion in the UK. Some of the headline mechanics are finally improving; fewer people feel locked out than at any point in five years, and the average APR charged on loans has fallen to 22.7% from 24.7%. But the lived experience of exclusion has not followed. Support exists and is not being used, 35% of adults are borrowing for essentials, and an estimated two million people turned to a loan shark in the last twelve months.

The report sets out five practical recommendations for government, lenders and the wider industry, starting with the wide-scale adoption of open banking in credit assessment. 43% of people with unstable incomes are not confident they could access credit, against 16% of those with stable incomes, yet 80% of unstable-income credit card holders meet or exceed their payments. The data exists; the system just doesn't look at it.

In partnership with Triple Point. Special thanks to our contributors StepChange Debt Charity, Nationwide, ClearScore for providing their vital sector insight.

FINANCIAL INCLUSION REPORT 2026LEFT BEHIND:FIVE YEARS OF FINANCIAL EXCLUSION

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