Wyre Forest MP Mark Garnier has called for more to be done to support the financial education of vulnerable young people outside of mainstream education. The MP serves as Vice Chair of the All Party Parliamentary Group on Financial Education for Young People, which has published the findings of a 10-month inquiry into the provision of financial education for vulnerable young people in the UK. The report calls for more support to ensure all young people learn how to manage their money, contributing to their financial and social inclusion and improving their life and job prospects.
The inquiry took evidence from charities, education groups and other organisations working with vulnerable young people, as well as a group of young people themselves. Its final report calls on central government, local authorities, financial institutions and other organisations working in this area to do more to support the financial education of vulnerable under-25s. Key recommendations include;
For Government
- To enable statutory bodies coming into contact with vulnerable young people, such as Job Centre Plus, the NHS and Youth Courts, to train their staff to be able to help support and signpost them to manage their money
- To promote improved coordination and partnership working between providers of financial education for vulnerable young people across all sectors
For local authorities
- To take responsibility for the development of coordinated local strategies to develop and improve the financial capability of vulnerable young people
- To review the provision of financial education specifically for those in or leaving care and develop an appropriate tailored strategy embedding good practice
For financial institutions
· To provide young people with appropriate advice around managing their money, particularly when an account is first opened or if difficulties become apparent
For organisations working with vulnerable young people
- To ensure that promoting financial capability is embedded in their policies, procedures and practice
- To take opportunities to engage in and promote partnership working and share expertise and good practice
Mark Garnier MP said: “High quality financial education is extremely important for social mobility and ensuring that the next generation understand more about personal finance and money. It is essential, especially given the current economic climate, that our young people are better able to manage financial demands.
This is particularly important in the case of vulnerable young people who are outside of mainstream education. It is vital that these young people are helped to achieve financial capability and given support and advice from government, local authorities and financial institutions. This report highlights that vulnerable young people need more support so that they can benefit from inclusion and improved job prospects, which result from having the skills needed to manage money.”
The APPG on Financial Education for Young People was launched in January 2011 to provide a medium through which MPs, Peers and interested organisations can discuss and encourage the teaching of financial education in schools and colleges. In December 2011 the group published a report of a major inquiry into financial education in primary and secondary schools, which called for financial education to be made a compulsory part of the National Curriculum. The APPG has since conducted a review of financial education provision in the further education sector.
In September it was confirmed that financial education will be taught in secondary schools in England through the new National Curriculum from September 2014. The move, which follows years of campaigning by the APPG, national charity pfeg (Personal Finance Education Group) and MoneySavingExpert.com’s Martin Lewis, brings England more into line with Scotland, Wales and Northern Ireland.