Understanding Informal Financial Support and LGBTQ+ Money Issues

The event brought together academics, advice and financial organisations to discuss informal financial support, with a focus on low- and moderate-income households and LGBTQ+ communities.

Real Accounts: Understanding Lived Financial Realities

Dr. Hayley James from the CPFW presented early findings from the Real Accounts project, a study which followed participants over time that examines “financial support relationships”: arrangements in which individuals exchange or manage money collaboratively. This can involve transfers, shared financial products or expenses, and unpaid services like caregiving.

Findings revealed:

• A range of overlooked support structures going beyond traditional understandings of support within family units, and extending into networks of friends, siblings, and ad-hoc, trust-based relationships
• Evidence that such financial relationships are becoming increasingly common due to heightened financial instability, such as the reliance on gig work  
• One way or cyclical transfers of money between generations, and across peer and sibling relationships.

The project also challenges traditional assumptions that informal support systems are always beneficial. While they can offer resilience, they may lack transparency, legal protection, or equity, especially for marginalised groups.

Financial (In)security in LGBT+ Communities

Dr. Lee Gregory from the University of Nottingham presented findings from the LGBT+ Welfare and Assets in Great Britain project. This study combined statistical analysis with qualitative insights from LGBT+ individuals, welfare and community organisations.

Key findings included:

• Bisexual women and lesbians in particular were disproportionately likely to lack savings or disposable income, compared to heterosexuals. There were also lower levels of benefit receipt in this demographic, especially among lesbian individuals and same-sex couples.
• Fears of homophobia or transphobia can lead LGBT+ individuals to avoid jobs or delaying benefit claims
• Financial exclusion also impacted social well-being, as reliance on welfare often restricted participation in LGBT+ community life.

The research dispelled the “pink pound” myth that LGBT+ people are economically affluent. Another key concept developed was the “queer cushion”: small circles of mutual aid among friends filling in for biological families

Implications and Reflections

Participants called for a re-examination of how welfare and financial systems are designed:

• Can creditors and biller offer more flexible payment plans, since customers often do not earn regular monthly incomes?
  • The Request to pay system was highlighted as a useful way  to make payments more flexible.  It can help consumers avoid failed payments and reducing the work on reconciling payments for billing organisations. But uptake and awareness are low among consumers and providers.
• Could eligible benefit claimants be automatically enrolled in social tariffs?
  • This would eliminate the friction of needing internet access or third-party assistance to enrol, especially since not all claimants know they are eligible for social tariffs.
• Could informal lending and repayment histories contribute to credit assessments?
  • From my past research experience, many alternative data tools are being created to evaluate financial risk and improve access to financial services, particularly in Global South countries where formal banking is less common
  • However, such data must be collected and used responsibly, with safeguards in place to prevent high-risk lending to individuals unable to repay.
• How can welfare and advice providers be better trained to offer quality, inclusive help to people who rely on informal support and to LGBTQ+ individuals facing unique challenges?

For Debt Free Advice, these insights highlight the importance of understanding informal financial networks and pushing for fair, inclusive systems that don’t punish people for who their identities.

A challenge for those working in data and evaluation is how to effectively capture and assess these irregular, trust-based forms of support when evaluating individual financial situations.