UNLOCKing Banking
On this page:
- Summary
- Need
- Background
- Objectives
- Activities
- Achievements
- Media
- Useful Documents
1. Summary Back to top
In 2004, UNLOCK identified that the multiple difficulties of discharged prisoners were being made worse by lack of access to basic banking services. In 2005 we began what became a very successful pilot project, opening bank accounts for prisoners prior to their release. Despite the success of the pilot, as identified by Government, no resources were put in to working with the banking industry to roll out the programme. UNLOCK developed strong relationships with Halifax and Barclays banks and is working to establish sustainable pre-release banking projects in prisons. In addition, UNLOCK has brought Government and the banking industry together to work towards a national agreement and protocol for prison/bank relationships.
2. Need Back to top
UNLOCK first identified the issue of access to banking for former offenders in 2004. We were receiving calls from people who had found employers who were willing to accept their past mistakes and offer them employment. However, the employers were not able to let them start until they could pay them and they could not pay them unless they had a bank account. Some callers simply needed guidance on how to open an account but many, particularly recently released prisoners, had tried but found it impossible.
A Social Exclusion Unit report already indicated that stable employment and accommodation reduced the risk of re-offending by 33% to 50% and 20% respectively. However, it has not been idetified that a bank account is frequently required to get both of these. For those former offenders who have a bank account, accommodation and employment the chances of re-offending reduce significantly.
The National Reducing Re-offending Delivery Plan, published in July 2005, set out the Government’s plans to reduce re-offending within seven distinct pathways. One of the pathways in the Delivery Plan is Finance, Debt and Benefit. From this early stage, the objectives were to bridge the 'finance gap' faced by prisoners on release and to improve access to financial and independent living skills advice and services for offenders in custody.
In December 2004 the Treasury published a strategy to promote financial inclusion. One of the initiatives is to halve the number of adults in households without a bank account.
“For too many people, basic essentials of modern life – like bank accounts – are out of reach."
Stephen Timms
Financial Secretary to the Treasury
3. Background Back to top
The Home Office accepted the principle that the financial exclusion of former offenders was a fundamental barrier to their rehabilitation and reintegration into the community. A criminal conviction is very likely to bar an individual from securing many financial products, leaving former offenders demoralised and discouraged.
In August 2005, UNLOCK began UNLOCKing Banking, a ground-breaking 12 month pilot project to provide access to bank accounts for men and women prior to release from prison, in partnership with Halifax Bank of Scotland (HBOS) plc , and HM Prison Service. The project was established at HMP Coldingley, a category C training prison for men in Surrey and HMP Cookham Wood, a female prison in Kent.
Many issues had to be overcome, including proof of identity, offence histories, card and PIN security, access to accounts and a lack of basic personal finance skills. Over time, a process was developed that integrated support completing applications, a bespoke identification document and tailored basic financial capability training refined by detailed feedback from all participants.
From 135 applications, the project successfully opened 133 basic bank accounts, all for serving prisoners without any mainstream ID. The project had quickly identified the need for finanical capability training tailored towards first time account holders and 98% of participants rated the training as excellent or good. HBOS tracked usage of the accounts after release and found that particpants in the project were statistically better than average basic bank account customers, with low rates of closure, high rates of activity and no charges being levied.
The pilot prompted many people from across the Prison Service to speak out about the lack of training and guidance in this area. As a result, the UNLOCKing Financial Capability project was born with a simple objective, to build the capacity of other organisations to be able to deliver 'UFC' training to their clients.
A post project review was carried out by the National Offender Management Service (NOMS). Further recognition of the project's success came in the HM Treasury Report Promoting Financial Inclusion, and the British Bankers’ Association (BBA) and APACS joint publication Financial Inclusion – Access to advice, banking and credit
With few exceptions, prisoners and prison staff continued to be frustrated in their own attempts to build local relationships with banks. In 2006, the NOMS Reducing Re-offending Action Plan included the roll out of the banking pilot. However, there was no effort or resourcing and so no roll-out occured.
In response, UNLOCK continued to invest in developing pre-release banking, securing the continued support of HBOS, as well as developing a new partnership with Barclays.
Using these partnerships, UNLOCK began to set-up pre-release banking projects, establishing relationships between partner banks, prisons and charitable organsiations.
The Co-Operative and HMP Forest Bank began their own project in 2006, which was also very successful.
In addtion to this ground level work, UNLOCK began working towards a national level agreement and protocol between prisons and the banking industry as a whole.
4. Objectives Back to top
Establish self-sustaining pre-release account opening services in prisons through the development of quality partnerships between banks and prisons
Effect change in government and industry policy and attitude and facilitate the establishment of a simple and secure process by which prisoners in the UK can open a bank account in preparation for their release
5. Activities Back to top
- Train staff at HMP Coldingley, HMP Wormwood Scrubs and HMP Camp Hill to establish and run a banking service in partnership with Halifax
- Train staff at Foundation Training Company to run a banking project at HMP/YOI Norwich, HMP Blundeston and HMP Littlehey in partnership with Barclays
- Provide ongoing active support to staff
6. Achievements Back to top
- HBOSplc was awarded the CommunityMark for its work in partnership with UNLOCK
- Established sustainable banking projects in 6 prisons in partnership with Halifax and Barclays
- Opened bank accounts for over 400 accounts for serving prisoners
- Secured the support of Angela Knight, BBA Chief Executive and senior NOMS officials
- Held two high-level roundtable events in partnership with the BBA, including government, industry and charities
- Identified as best practice by Transact, the National Financial Inclusion Forum
7. Media Back to top
8. Useful Documents Back to top
Briefing Paper for BBA
Banking Pilot Report
Prison Bank Mapping
House of Lords Roundtable Delegate Pack
Leaflet: Guide to Banking with Convictions
Banking Information Pack for Serving Prisoners
UNLOCKing Banking Newsletter
From other organisations:
Co-op Bank Project Evaluation Co-op Bank Project Follow-up Evaluation
Money Made Clear Guide to Basic Bank Accounts
Money Made Clear Proving your Identity
Toynbee Hall ID Guide
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