Yorkshire Building Society puts forward five opportunities for the new government

Yorkshire Building Society is calling on the new government to support first-time buyers, savers and the mutual sector.

The Society also wants to boost skilled jobs outside London and is proposing that all primary school children in England should have lessons on managing money.

The mutual is contacting MPs and sharing its five ‘Opportunities for Government’ in its regular meetings and events with politicians.

Susan Allen, Chief Executive of Yorkshire Building Society, said: “Our customers continue to face challenges such as the affordability of housing, higher mortgage rates and cost of living pressures.

“As a mutual, we are owned by our members and are committed to supporting them and helping them achieve important life goals.

“Supporting home ownership is at the heart of who we are as a building society. I welcome the government’s commitment to house building, but they must ensure the homes of the future are sustainable and help first-time buyers onto the housing ladder.

“Our research shows that, if the government makes improvements in the areas we’ve highlighted, it will make a real difference to people’s lives. Building a habit of saving regularly and owning a home can significantly improve people’s financial and mental wellbeing[1].”

The Society’s five ‘Opportunities for Government’ are:

1. Help first-time buyers and build new, green homes

The UK housing market is broken, with the supply of homes both to purchase and rent not meeting the diverse and evolving needs of today’s population. The Government must introduce policies that provide a place to call home: support the provision of new, sustainable homes, help people to make their homes sustainable and help first-time buyers onto the housing ladder.

2. Increase the Personal Savings Allowance

In the current high interest rate environment, the Personal Savings Allowance limits are no longer protecting ordinary savers’ interests. The current allowance has not been reviewed since its inception in 2016 when the Bank of England rate was at 0.50%. The Government must increase the Personal Savings Allowance from £1,000 to £5,000.

3. Financial education for all primary school children in England

Financial education is vital to provide children with good financial management skills and to support the development of healthy financial habits as they grow older. The Government must make financial education mandatory on the curriculum for all primary school children in England.

4. Build a pipeline for high-quality skilled jobs outside London

The Government must work closely with the financial and professional services sector, regional combined authorities and educational organisations, to collectively address the skills challenges the sector faces. These future skills are vital to maintain a strong and competitive sector, both nationally and regionally.

5. Help mutuals and co-operatives grow

To encourage and support a thriving mutual and co-operative sector, the Government must build a level playing field for mutual organisations and create a Minister for the Mutual Sector.

Yorkshire Building Society has a record of campaigning, innovating and making a difference in these areas. For example:

• The Society’s recent research[2] found people are delaying major life milestones – like getting married and starting a family – because they’re struggling to get on the housing ladder. For first-time buyers, raising a deposit is a bigger barrier than affordability, and in March the Society launched its £5k deposit mortgage to help make home ownership happen.
• Last year the mutual began campaigning for the Government to increase the Personal Savings Allowance to avoid ordinary savers falling into a tax trap.
• Society colleagues provide free ‘Money Minds’ sessions to improve financial understanding and budgeting. Since its launch in 2015, more than 35,000 children in the UK have benefitted. Last year alone, colleagues delivered over 1,000 sessions.
• Yorkshire Building Society formed the Yorkshire and the Humber Financial and Professional Services Skills Commission, which produced a report[3] this year recommending employers, education providers and government work together to ensure the continued success of the industry in the region. The financial and professional services sector in Yorkshire and the Humber generates over £11.8 billion of economic value and employs 149,000 people.

[1] Saving just a small amount can help people escape the cycle of poor financial and mental wellbeing | YBS

[2] Major life milestones being postponed for homeownership, research finds | YBS

[3] Action needed to expand the financial and professional services talent pipeline in the Yorkshire and Humber region | YBS