"A lifeline

when I needed it"

NatWest Group and Responsible Finance Hardship Grant Programme

“At the moment I am waiting for my job to start, however I do not have a single penny to my name, nor do I have savings. I simply needed the money to get me through my essentials until I get my first pay from my new job.”

A rapid response to urgent need

Nearly a quarter of households are struggling to pay for food and other essentials[1] because of the cost of living crisis. Over 5 million adults are in financial difficulty, a 33% jump since last year[2]. And “business has never been so good” for loan sharks[3].

The NatWest Group and Responsible Finance Hardship Grant Programme was designed to help financially vulnerable households. We distributed no-strings-attached grants of £50 to £100 to people who had applied to a not-for-profit lender for a small-sum loan but were turned down.

Small sums of money can make a huge difference: imagine what happens next when someone needs to borrow a couple of hundred pounds but can’t. Perhaps there’s no food on the table. Perhaps they approach an illegal lender.

The grants have helped people feed their children, pay their energy bills, replace broken appliances, and carry on getting to work. They’ve been an immediate lifeline for more than 4,000 households. Some recipients told us that without the grant they would have resorted to borrowing from loan sharks.

Community Development Finance Institutions (CDFIs, our members) have a long history of helping financially excluded and vulnerable people. They operate for social purpose, not profit. They lend fairly and at affordable rates to people who can’t borrow from banks and other lenders, but only if it’s right for the person – they say no to most people who apply to borrow. But they support applicants and customers in lots of other ways.

When NatWest Group wanted to increase their support for communities, CDFIs used their infrastructure to get the funding and support straight to those who needed it most.

4,049 hard-pressed households received £416,600 in grants from CDFIs through the programme, which was covered positively by The Financial Times, The Guardian, New Start magazine and other media. This is the programme impact:

“I am really struggling being disabled and diabetic and could really use any extra help. I would use this money to help replace my washing machine that broke down four weeks ago.”

[1] Personal Finance Research Centre: The ‘new normal’? The financial wellbeing of UK households, May 2023.

[2] Financial Conduct Authority: Financial Lives, January 2023.

[3] Newsnight and Fair4All Finance, June 2023

£416,600 rapidly delivered to meet urgent need by 6 CDFIs

What have the grants been used for?

27% Food
23% Bills and utilities
10% Appliances and furniture

8% Housing costs
5% To repay existing debt

27% Other

"These funds are really helping put food on the table, help transport to work, help with carers."

What impact have
the grants had on people's lives?

“I just wanted to thank you from the bottom of my heart”

“I never expected this or knew it existed. I work the equivalent of two full-time jobs but as a single mother I still struggle with bills being so high. I am overwhelmed you were able to offer me this payment, it will really help me until I get paid.”

Fridge essential for medication and food

“My fridge-freezer broke and I lost loads of food,” says Charlie (name changed), who receives Universal Credit and PIP and lives with underlying medical conditions. “My medication has to be kept cold too, so I was storing it in my neighbour’s fridge.” The grant meant Charlie could get a second-hand fridge-freezer.

Kids get ‘full bellies’ in school holidays

Sheila (name changed) works during term-time as she has no support network to help look after her children, aged 6 and 2. School holidays are tough, especially as her eldest usually receives free school meals. “I’ll use the money to get some food in as I’m having financial difficulties at the moment. Knowing they’ll have full bellies until I can get on my feet again has really eased a lot of stress.”

A fix for Jared’s washing machine

“As I have disabilities and health conditions I can’t do much around the house with a broken washing machine,” says Jared, who lives in Birmingham. “Thanks for your help, the grant will help me to buy a replacement.”

Hospital taxi costs stretched Zadie to limit

“My baby was born nine weeks premature so we had to get to four hospital appointments every week for a while. You can’t get there on the bus. Taxis are £10 each way, which left us really short for food and essentials,” says Zadie (name changed). “I applied for a loan of £150 but was turned down and it was such a relief to get this grant.”

Grant helps domestic violence survivor rebuild

“I had none of the basics like a fridge or a bed, and had to sleep on the floor,” says Rita (name changed), who has secured housing in a different town after fleeing from domestic violence. “I’m so grateful I can start to furnish my new home with this grant.”

NHS worker is roadworthy with tyre bill covered

Working across three hospitals in Scotland, Jane (name changed) is heavily reliant on her car but its MOT revealed it needed a new tyre. “I just didn’t have the money to pay for it,” she says, “but this grant is literally a life saver. I can now pay for the tyre and still get to work."

Nicola needed a washing machine

With a new baby and another child to look after, Nicola was delighted to move into a new property after experiencing homelessness. She’s putting her grant towards the cost of a washing machine and says she was “in desperate need of this appliance.”

Helen’s grant keeps electricity and gas on

34 year-old Sheffielder Helen applied for a small loan to pay off her energy bills. But repayments wouldn’t have been affordable to her. She was delighted to receive a £100 grant which has “helped massively so I can keep the gas and electricity on.”

Grant helps Biockson recover from surgery

“I won’t be able to work while recovering from surgery” says Nottinghamshire-based Biockson, “and I’d applied for a small loan for food and essentials. The grant will support me during my two-week recovery period.”

Part-time work leaves Anisah’s budget stretched

“This grant is very beneficial and will help me to buy groceries to last me for the month and contribute to utility bills,” says Anisah, who lives in London. His income from part-time work is less than £13,000 per year, which doesn’t go far. “I am very grateful to receive it.”

Who did we reach?

62% Female
25% Black, Asian or other ethnic minority
90% age 25 - 64
33% living in social housing
33% living in a private rental
16% living with friends and family

50% benefits income recipient
66% employed
72% with an income under £21,301
20% Living with a disability
32% Lone parent with dependents

Where are the people we’re reaching?*

* % of total grants distributed by region.

CDFI Delivery Partners:

“People have been really grateful because they have been struggling with the cost of living and the £100 has been such a relief, especially as it’s something they don’t have to pay back. Some have used it to pay utility bills, for funeral expenses or other debts they had no way of paying, others to put food on the table.”

Izuka Nnabundo

Underwriting Team Leader, Fair Finance

To learn more about the CDFI sector you can read Responsible Finance’s impact report here.

If you are interested in partnering with the CDFI sector on similar projects please get in touch.