Lloyds Banking Group Launches £4.2 Million Fund to Strengthen Financial Resilience Through Charities
Lloyds Banking Group, in partnership with its four charitable Foundations, has announced the launch of a new £4.2 million Financial Resilience Fund aimed at supporting UK charities in empowering individuals facing financial hardship. The fund will help people build confidence and develop the skills needed to manage their money, reduce reliance on debt, and work toward long-term financial stability.
The initiative follows new research by Lloyds Banking Group and its charitable Foundations, which revealed that 4.3 million people have turned to UK charities for financial help over the past three years. The study, Financial Resilience and the Role of Small Charities, highlights the crucial role charities play in supporting the most financially vulnerable members of society.
Charities: A Trusted Lifeline for Those in Financial Distress
According to the survey, 69% of respondents identified financial advice as the primary reason for seeking help from a charity. Despite this, over half (51%) reported that feelings of stigma and embarrassment were key barriers to accessing support. Charities were ranked as the second most trusted source of financial advice—just after family members—underscoring their importance in community support networks.
The impact of charity services is significant. Among those who received financial guidance through a charity, 90% expressed satisfaction and were far more likely to feel financially stable afterward compared to individuals who had not sought such support.
Addressing a Sector Under Pressure
While the value of charity support is clear, many organisations continue to face major challenges—particularly in funding, staffing, and resources. These limitations hinder their ability to meet rising demand for financial advice and support.
Previous research has shown that people facing acute financial hardship are more likely to turn to a charity than to a bank for help—a trend this new fund aims to address by building capacity within the third sector.
A Nationwide Effort
The £4.2 million Financial Resilience Fund will be distributed via the four Foundations:
- Lloyds Bank Foundation for England and Wales
- Lloyds Bank Foundation for the Channel Islands
- Bank of Scotland Foundation
- Halifax Foundation for Northern Ireland
Together, they will allocate 57 grants over the next two to three years, targeting charities working directly with people in financial need.
The fund will support two primary areas:
- Overcoming Setbacks – helping individuals facing acute debt or financial crisis
- Establishing a Foothold – providing general advice and preventative financial education in accessible settings such as foodbanks or mental health services
Each participating charity will also gain access to Lloyds Banking Group’s Academy resources, as well as mentoring and coaching from trained bank staff.
Long-Term Commitment to the Charity Sector
Lloyds Banking Group has a longstanding history of supporting the charity sector. Over the past 40 years, it has donated £800 million to its Foundations, enabling support for nearly 70,000 charities across the UK and Channel Islands. Looking ahead, the Group has committed to contributing an additional £100 million by 2030.
Through this new fund, Lloyds and its Foundations aim to deepen their impact—helping more people navigate financial hardship and build stronger, more resilient futures.
