Bank accounts for prisoners have positive impact

A pioneering scheme, which enables offenders to open a Co-operative Bank account whilst in prison, appears to be having an impact on the rate of re-offending and should be replicated by other banks.

That is the conclusion of an authoritative report into the scheme by Paul Jones of Liverpool John Moores University published today (3 December).

The report shows that in the first two years of the project, which began at Forest Bank Prison, Salford, in 2006, 256 prisoners have opened accounts with the Co-operative Bank whilst serving their sentences. Of those 193 have been released and only 72 have since returned to prison. These early results suggest that opening a bank account can positively impact on re-offending rates.

The Co-operative Bank has now accepted applications from 28 other prisons bringing the total of accounts opened, since the scheme began, to 1,392.

Paul Jones said: "Bank accounts are not the panacea for reducing re-offending rates but the scheme at Forest Bank has important lessons for everyone involved in the prison service.

"It is clear that bank accounts are an important element in enabling ex-prisoners to become valuable members of society and other banks should now consider copying the excellent pioneering work carried out by the Co-operative Bank."

As one former inmate told the researchers "It seems superficial doesn't it just to say the most important reason for me is that I can be like anybody else."

Another ex-offender explained: "It is hard to explain, I felt better me when I got the bank account, you've got something, I felt better inside. I can't wait to get my wages paid in."

The report urges other banks to follow the lead set by the Co-operative, but it also recognises that the issue needs a society-wide responsibility in which prisons, banks, National Offender Management Service (NOMS), Government, the voluntary sector and others all have a role to play.

In all the report makes 24 recommendations designed to make access to bank accounts an important element of the rehabilitation process.

The Chief Executive of The Co-operative Bank David Anderson said: "We understand that access to employment and housing are extremely important factors in reducing the risk of re-offending but these can only be obtained if ex-offenders have bank accounts.

"The Co-operative Bank now has a relationship with 29 prisons, which represents nearly 20 per cent of all the prisons in the UK but we cannot tackle this important issue alone. Therefore, I would encourage other banks to play their part in providing accounts for prisoners so all inmates can have this opportunity."