Martin Lewis’s charity, the Money and Mental Health Policy Institute, is urgently calling for safer and easier ways for vulnerable individuals to receive support from trusted people in managing their day-to-day finances. This appeal comes amid growing concerns that the absence of appropriate financial tools and protections is driving some people, particularly those with mental health problems, to resort to risky “workarounds” such as sharing their PIN or bank details, potentially exposing them to fraud and financial abuse.

Research analysis of the Financial Conduct Authority’s 2022 Financial Lives survey reveals that roughly 22% of people with mental health difficulties have shared sensitive banking information to get assistance. The charity’s findings show that mental health symptoms—such as impaired memory, impulsivity, and low mood—can severely hinder affected individuals’ ability to manage routine financial activities, including bill payments and shopping for essentials. Despite this clear need, financial services firms are not consistently providing effective mechanisms to facilitate supported money management.

For instance, only some banks and building societies offer carers’ cards, which allow trusted persons to buy necessities on behalf of someone unable to leave the house. While a few providers enable trusted people to receive account alerts to identify signs of financial distress or deteriorating mental health, formal legal options like power of attorney often fall short. The charity’s research highlights that many with mental health problems find power of attorney cumbersome to establish and insufficiently flexible given the fluctuating nature of their conditions.

Martin Lewis, chair of the charity, explained how people wish to retain control over their money but recognise there are times when they need help. Unfortunately, financial systems often lack the required tools, forcing individuals to break rules and lose standard protections, thereby increasing their vulnerability to abuse and exclusion from essential services. Lewis emphasised, “The technology is available, we just haven’t seen it used enough to help those with mental health issues,” and called for robust tools so people can safely share financial management responsibilities without risking harm to themselves or their carers.

The Money and Mental Health Policy Institute advocates for a consistent suite of features from current account providers, including carers’ cards, third-party notifications, and payment controls that can block risky expenditures like gambling. They suggest these could form part of a voluntary commitment under the government’s upcoming Financial Inclusion Strategy, mirroring existing agreements on providing basic bank accounts.

The charity’s chief executive, Helen Undy, stressed the gravity of the issue, stating, “It is unacceptable that people have to put themselves at risk of harm to get that support because banks aren’t providing the right tools to do this safely and easily.” Nationwide Building Society, which sponsors the research, acknowledges the need for accessible, flexible tools to help those requiring financial support. Kathryn Townsend, Nationwide’s head of customer vulnerability, hopes industry-wide adoption of such measures will ensure no-one is left behind during critical times.

UK Finance recognised banks’ efforts in offering some support tools but highlighted legal responsibilities that complicate the implementation of more comprehensive and secure options. The trade body emphasised the importance of working collaboratively with regulators and charities, noting that a clearer legislative framework would enable banks to provide more consistent and lawful third-party access solutions for vulnerable customers.

Beyond the immediate practical safety concerns, the Money and Mental Health Policy Institute’s broader research paints a stark picture of financial vulnerability among those with mental health difficulties—who face significant income gaps and lower savings levels compared to the wider population. Their studies show that these individuals are more likely to experience financial instability, such as having no cash savings or struggling to meet payment commitments. This financial precarity, combined with mental health challenges, creates a vicious cycle of hardship, exacerbated by limited access to supportive financial tools.

These findings underscore the critical need for systemic changes in how financial services accommodate and protect customers with mental health conditions. Integrated, flexible, and legally sound solutions could help break the damaging cycle of financial distress and mental health decline, ensuring that individuals receive the support they need without compromising their security or independence.

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Source: Noah Wire Services