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The Minister for Schools (Nick Gibb)
It is a pleasure to serve under your chairmanship, Dame Angela. I congratulate the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) on her appointment as shadow Minister for Schools. I look forward to working with her and debating all these important subjects with her. I also congratulate my hon. Friend the Member for Broadland (Jerome Mayhew) on securing the debate and on the important points that he made in his opening speech. I thank him and the all-party group on financial education for young people for their work on this important issue.
My hon. Friend the Member for Warrington South (Andy Carter), also known as Jo Malone, gave an instructive example of young enterprise and how he gouged his school’s finances. As my hon. Friend the Member for Broadland said, evidence shows that the knowledge, attitudes and behaviour that help people to manage money and achieve good financial wellbeing begin to develop from an early age and continue throughout childhood and the teenage years.
Good maths is the gateway to lifelong financial stability. Evidence from the 2018 programme for international student assessment—PISA—shows that there is a strong correlation between performance in financial literacy and performance in mathematics. The correlation was observed in every participating country. There was also a positive correlation between financial literacy and learning finance-related terms at school.
Since 2010 we have made significant progress in ensuring that pupils have a strong grasp of the basics by transforming the way that maths is taught in schools. To ensure the curriculum is taught effectively, we introduced teaching methods used by top performing countries, particularly in east Asia. The concept of maths mastery aims to ensure that all pupils secure a deep knowledge and understanding of mathematics.
The results of international surveys show that England performs above the international averages for maths in all international studies of school-age pupils. In particular, analysis of PISA 2018 results showed that the performance of 15-year-olds improved significantly in maths, and the trends in international mathematics and science study, known as TIMSS, showed that the performance of England’s year 5 pupils was significantly higher in 2019 than in any previous TIMSS survey. The 2023 Ofsted maths subject report also highlights “notable improvements” at secondary, with a “resounding, positive shift” taking place in primary mathematics over recent years.
Our national network of 40 maths hubs also supports schools to improve their maths teaching, including financial content in the mathematics curriculum, based on best practice from east Asia. To build on progress, the Secretary of State recently announced that we will increase the number of schools supported by the maths hubs’ teaching for mastery programme so that we reach 75% of primary schools and 65% of secondary schools by 2025.
We want pupils to leave school prepared in the widest sense for adult life. From early years onwards, all children should be taught a broad, ambitious, knowledge-rich curriculum, of which quality financial education is an important component. That ensures that all young people are prepared to manage money and make sound financial decisions. Financial knowledge already forms a compulsory part of the national curriculum for maths at key stages 1 to 4 and citizenship at key stages 3 and 4.
I was delighted to hear from the hon. Member for Feltham and Heston (Seema Malhotra) about the success of Martin Lewis’s textbook in schools. It is a knowledge-rich textbook and is a primer to the introduction of financial education and the vocabulary of finance.
In the primary maths curriculum there is a strong emphasis on the essential maths that is vital to underpin pupils’ ability to manage budgets and money, including, for example, calculations with percentages. The secondary maths curriculum develops students’ use of formal maths knowledge to interpret and solve problems such as interest rates and compound interest.
The primary citizenship programme of study equips pupils to understand the sources and purpose of money and the benefits of saving. It makes it clear that financial contexts are useful for learning about making choices and exploring social and moral dilemmas. The secondary citizenship curriculum prepares students to manage their money well and plan for future financial needs, and key stage 3 covers the functions and uses of money, day-to-day money management, budgeting and managing risk. Key stage 4 covers income and expenditure, credit and debt, insurance, savings, pensions, and financial products and services.
My hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates) raised concerns about online issues. Using technology safely and responsibly is now taught at all key stages of the computing curriculum, which provides pupils with the e-safety knowledge that they need to make informed decisions while online or using other digital applications and technologies, including in financial contexts. Through statutory relationships, sex and health education, or RSHE, pupils are taught about internet safety and online harms, such as the risks associated with online gambling and the accumulation of debt. The RSHE curriculum is currently being reviewed, and revised guidance will be published next year.
The 2020 UK strategy for financial wellbeing set a national goal of 2 million more children and young people receiving a meaningful financial education by 2030. The Money and Pensions Service has a statutory duty to co-ordinate the work of the numerous organisations involved in delivering that goal. The service recently published the UK children and young people’s financial wellbeing survey, which provides an initial analysis of the progress made towards that national goal. The report found that in 2022 just under half of children and young people aged seven to 17 were receiving a meaningful financial education as defined by the strategy. That is a similar proportion to 2019, which suggests that progress towards the national goal remains static, as my hon. Friend the Member for Broadland mentioned.
There are positive signs that some of the organisations working towards the national goal have delivered financial education lessons to more young people. For example, the work of UK Finance members, which include banks and other financial services, provided 4,300—sorry, 4 million; I think I need some financial education myself. Some 4,307,000 children received a financial education in a school or community setting in 2022, an increase of 63% on 2021. Other evidence from the Money and Pensions Service shows that too many young people are entering adulthood without the knowledge and understanding they need to manage money well. For example, just over half of young people aged 16 and 17 are unable to read a payslip correctly, almost three in 10 are unable to correctly identify the terms for interest and balance, and around a fifth report feeling anxious when thinking about their money, which rises to 50% for 18 to 24-year-olds.
My hon. Friend the Member for Broadland mentioned the APPG report and the fact that 41% of participating secondary school teachers did not know that financial education was required to be taught under the national curriculum. The Department’s survey found that 69% of secondary schools taught money management to pupils last year, but that suggests that more needs to be done. That is why the work of the Money and Pensions Service, through its data collection, national strategy and delivery plans, is so important, and why we continue to work closely with the service and other Government Departments. We are also using Oak National Academy; it will be producing materials for citizenship and expects to launch the procurement for that next year.
My hon. Friend also raised the issue of teacher training. Of course, recruiting and retaining teachers is crucial to every curriculum subject, and the Department is driving an ambitious transformation programme to overhaul the process of training to be a teacher. That includes stimulating initial interest through the teaching and marketing campaign, one-to-one support and advice for prospective trainees, and the use of more real-time data on applications. The Department has also made a financial incentive package, which is worth up to £181 million, to encourage people to come into teaching. Recruitment to citizenship teacher training courses is unrestricted—there are no caps on it—which means that initial teacher training providers are free to recruit as many future citizenship teachers as they can teach.
The Money and Pensions Service is investing over £1 million through a grant programme that includes testing approaches to embedding and scaling teacher training in financial education. These projects will run until March next year, with evaluation findings for the programme expected in that year. The Prime Minister and the Secretary of State recently announced the launch of a new fully-funded national professional qualification to be available from February next year that will focus on leadership and teach participants how to embed mastery approaches to the teaching of mathematics throughout a school.
Finally—so that I can give my hon. Friend the Member for Broadland a moment to summarise the debate— I reiterate the Government’s commitment to ensuring that all children should be taught a broad, ambitious and knowledge-rich curriculum. Financial education already forms a mandatory part of the national curriculum for mathematics and for citizenship, and rooting financial education in these subjects ensures that the curriculum remains focused on the important knowledge that pupils need to manage their money with confidence.
We have made positive progress in improving attainment in mathematics, which underpins financial application. It is important, though, to build on that success, which is why we are striving to improve financial capability, including through the maths to 18 programme launched by the Prime Minister recently, Oak Academy resources, and the recruitment and retention of excellent teachers. To do this, we need to continue to work closely across Government and in partnership with others. It is right that we approach this in a co-ordinated and joined up way through the work of the Money and Pensions Service’s UK strategy and delivery plan for England.