Prisoners and ex-offenders

Banking on a fresh start

A research study into the impact of The Co-operative Bank’s project to enable prisoners to open a basic bank account.

Click here for the Banking on a Fresh Start Report (2008)

Click here for the Banking on a Fresh Start Executive Summary (2008)

Click here for the Still Banking of a Fresh Start Report (2009)

The Co-operative Bank’s project to enable prisoners to open a basic bank account was explored in depth in the 2008 LJMU research report, ‘Banking on a fresh start’ This study (2008), commissioned by Co-operative Financial Services, investigated the impact and effectiveness of the prisoner banking initiative established as a partnership project with HMP Forest Bank in Salford, Greater Manchester. The study analysed the nature, dynamics and extent of prisoner and ex-offender financial exclusion, and examined the importance of access to banking within current Government penal policy.
 
The research study further explored how the delivery and operation of the bank account project could be developed to serve the ongoing needs of prisoners and ex-offenders after release. It took a holistic approach to assessing the contribution access to a bank account could make to the long term social and financial inclusion of ex-offenders and to the reduction of re-offending rates.

A follow-up report, Still Banking on a Fresh Start (2009), revisited some of the key themes of the original study and offered an update on the development of the initiative and its impact on policy within the wider banking sector. It explored how The Co-operative Bank’s initial pilot project has expanded significantly and has now become part of a mainstream service offered to HMP Forest Bank and to nearly 30 other prisons throughout the country.

Importantly, it examined the impact of access to bank accounts on reoffending rates among prisoners at HMP Forest Bank and revealed a significant reduction in re-offending rates among account holders in comparison with national averages.

Main Impact

The research study contributed directly to widening access to banking for prisoners in prisons throughout the UK through revealing the importance of the issue within prisoner rehabilitation and demonstrating how banks can develop positive partnership relationships with prisons. The study directly informed the national political and Ministry of Justice agenda on banking and prisoner rehabilitation; and, through the British Bankers Association, contributed to the development of policy on prisoner banking.

Speaking about the research study, Tim Franklin, Chief Operating Officer of The Co-operative Financial Services, said:
 

"Access to a bank account is necessary for people to fully participate in modern society. Not having an account can jeopardise job opportunities, make obtaining rented housing more difficult and complicate access to education grants – all conditions that contribute to re-offending with consequences not just for individuals but for society as a whole.

“The report – ‘Banking on a Fresh Start’ - has enabled The Co-operative Bank to focus attention on how the industry can help to tackle social and financial exclusion amongst ex-offenders as they re-integrate into society. Contributing to the national debate, the report has shown the important role that bank accounts can have in prisoner rehabilitation and, supports The Co-operative’s call for all banks to play their part to ensure that, where appropriate, all inmates have this opportunity."

Trevor Shortt, director of HMP Forest Bank prison, also spoke of the impact of the report in developing banking services within the prison estate,

"Before the HMP Forest Bank and The Co-operative Bank banking project, the fact that many prisoners could not open a bank account before or after release presented a real hurdle to assisting them into employment, housing, education and training after their release.

The research study, "Banking on a Fresh Start", carried out in the prison by Liverpool John Moores University, has made a significant contribution to strengthening the working relationship between the bank and the prison and, by highlighting the issue of bank accounts for prisoners on the national stage, the report has assisted in development of new approaches to banking policy and practice throughout the prison estate. The LJMU study revealed how the Co-operative Bank's intervention to enable prisoners to open a bank account has been a major contribution to the reduction of re-offending rates of prisoners leaving Forest Bank."

The importance of the study was confirmed by Angela Knight CBE, Chief Executive, British Bankers' Association, when she wrote of the importance of the work:

“The BBA and its members recognise the important benefits that access to a bank account can bring to prisoners and ex-offenders. Having a bank account can help a prisoner make a fresh start and can reduce the likelihood of reoffending, to the benefit of the individual and to society as a whole. BBA's members are involved in a number of projects with HM Prison Service (HMPS) and National Offender Management Service (NOMS) designed to encourage prisoners to apply for accounts and for banks to accept such applications, where appropriate. The Co-operative Bank has been at the forefront of this work and its experiences at HMP Forest Bank and elsewhere are proving valuable in assisting other banks to play their part in this important area of financial inclusion. This is a worthwhile piece of work towards combating financial exclusion and has contributed to the national debate."

UNLOCK, The National Association of Reformed Offenders has also recognised the importance of the report. Chris Bath, UNLOCK’s Director of Projects, wrote:

"LJMU's research reports have certainly made a significant contribution to UNLOCK's efforts to expand access to banking across the entire prison estate. By highlighting the potential for reducing financial exclusion and re-offending, without over-claiming, they have provided an independent evidence base for policy makers and other banks. The focus on practical challenges made them a vital resource when developing national guidance for prisons and banks on working in partnership."

Other Impacts

• The research study highlighted the issue of banking and prisoner rehabilitation generally within the British population. Both research reports were widely reported in the press and on radio and television. The Daily Telegraph wrote in December 2009:

  “A study carried out by Liverpool John Moores University of 107 prisoners who opened an account with The Co-operative Bank in October 2007 found that their reoffending rate was well below the national average across all prisoner categories”

• The study assisted the British Bankers Association to prompt the National Offender Management Service to introduce a revised Prison Service Instruction regarding identification for prisoners wishing to open bank accounts. It is now easier for UK prisons to operate banking initiatives for prisoners.
  
• In 2009, The Co-operative Bank received a Big Tick award from Business in the Community (BiTC), this recognition was reaffirmed with a re-accreditation from BiTC in 2010. The LJMU research study provided the evidence which formed the basis of the award.
  
• In November 2010. HMP Forest Bank, run by Sodexo Justice Services (formerly Kalyx), won the prestigious Guardian Public Services Award at a ceremony held in London, for its partnership working with The Co-operative Bank in developing the bank account scheme for prisoners. The Award was made on evidence gained from the LJMU research reports. The Guardian wrote at the time of the award,
  

  “The initiative at HMP Forest Bank, Salford, is the result of a unique partnership between Kalyx, which manages the category B prison, and the Co-operative Bank. It has now been extended to more than 30 prisons nationwide, a policy that is supported by research from Liverpool John Moores University showing that having a bank account can help reduce reoffending rates by almost a third. (Guardian, November 2010)