The Parliamentary Under-Secretary of State for Education (Janet Daby)
I congratulate the hon. Member for Broadland and Fakenham (Jerome Mayhew) on securing a debate on this important subject. I also thank the all-party parliamentary group on financial education for young people for highlighting the importance of financial education through its focused inquiries, and I absolutely recognise that it is an esteemed APPG. I will endeavour to respond to the points that the hon. Member has made, but I also wish to acknowledge the many points made by hon. Friends and hon. Members from across the Chamber.
My hon. Friend the Member for Filton and Bradley Stoke (Claire Hazelgrove) spoke about people’s confidence in making the financial decisions that are right for them, and highlighted the fact that she mentioned financial education in her maiden speech. The hon. Member for Mid Leicestershire (Mr Bedford) spoke about online purchases and the importance of making sure that we fully understand what is happening in that space. My hon. Friend the Member for Swindon North (Will Stone) spoke about self-employed people and the need to understand pensions. The hon. Member for Guildford (Zöe Franklin) spoke about the importance of financial literacy from an early age.
Many other hon. Members—my hon. Friends the Members for North West Leicestershire (Amanda Hack), for North Warwickshire and Bedworth (Rachel Taylor), for Southend West and Leigh (David Burton-Sampson), for North East Derbyshire (Louise Jones) and for York Outer (Mr Charters)—spoke about investments, banks, parents, and various things to do with financial education for children and young people. My hon. Friend the Member for Harlow (Chris Vince), a teacher himself, spoke passionately about financial education, and I should add that the alarm that went off was a school alarm. Of course, the shadow Minister, the hon. Member for Reigate (Rebecca Paul), also spoke about this important topic.
The skills, knowledge, attitudes and behaviour that help people to manage money and achieve good financial wellbeing begin to develop from an early age and continue to develop through childhood and the teenage years. Research shows that financial education in schools has a positive impact on children’s and young people’s financial capabilities. The Money and Pensions Service’s survey of children and young people found that those who recall learning about money at school were more likely to be active savers, have a bank account that they used, be confident with money management, and have positive attitudes towards money. It is so important to teach those things at the right time, and it is never too early to start. Young people may be making financial decisions about digital transactions and in-game currencies, and they need to be aware of the issues and potential dangers.
Maths underpins effective financial management, understanding of financial risk and the confident and competent application of financial skills and tools. The Programme for International Student Assessment shows a strong correlation between results in financial literacy and in maths, with an average correlation of 0.87 across OECD countries. The primary maths curriculum includes arithmetic knowledge that supports pupils’ abilities to manage budgets and money, such as knowledge to do with calculations involving money and percentages.
In secondary maths, pupils are taught topics such as how to calculate compound interest, which is relevant for personal finance.
The non-statutory primary citizenship programme of study at key stages 1 and 2 equips pupils to understand the sources and purpose of money and the benefits of savings. It makes it clear that financial contexts are useful for learning about making choices and exploring social and moral dilemmas. The national curriculum for citizenship at key stages 3 and 4 prepares students to manage their money well and plan for future financial needs. 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. However, more obviously needs to be done to embed learning and ensure that children and young people fully understand it.
The computing curriculum provides the fundamental e-safety knowledge and thinking skills that empower children to make well-informed decisions about technology, which may include using it in a financial context. Through statutory relationships, sex and health education, pupils are taught about internet safety and online harms, such as the risks associated with online gambling and the accumulation of debt. Pupils also learn how debt is generated, collected, shared and used online.
Moving to the curriculum and assessment review, which has been mentioned by Members across the Chamber, high and rising school standards are at the heart of the opportunity mission for this Government. That is why we have established an independent, expert-led curriculum and assessment review, covering ages from five to 18, chaired by Professor Becky Francis CBE. The review seeks to deliver an excellent foundation in core subjects, including maths, and a rich and broad, inclusive and innovative curriculum that readies young people for life and work. The review group will publish an interim report in early spring setting out its interim findings and confirming the key areas for further work, and it will publish its final report with recommendations this autumn. We will take decisions on what changes need to be made in the light of those recommendations.
Ofsted inspections currently consider whether pupils are receiving a rounded education and evaluate the quality of education, including pupils’ achievement over time, behaviour and attitudes, personal development, and leadership and management. All schools, regardless of category and phase, are inspected for their ability to deliver a broad and balanced curriculum. Ofsted inspectors evaluate the quality of education, and elements of financial education may be in scope when Ofsted conducts a deep dive into mathematics.
The Government’s Money and Pensions Service is an arm’s length body of the Department for Work and Pensions, with a statutory duty to co-ordinate the UK strategy for financial wellbeing. It published the UK strategy for financial wellbeing in January 2020, which is a 10-year framework to help UK citizens make the most of their money and pensions. One of the key themes of the strategy is supporting the financial wellbeing of children and young people. It set a national goal to ensure that 2 million more children and young people receive a meaningful financial education by 2030.
As a Government, we will consider further the suitability of the support available to schools in the light of the curriculum review outcomes. However, it may be helpful to the House if I set out what is already available by way of support. The Money and Pensions Service has published guidance setting out how schools can improve the financial education they deliver, and signposting to services and resources. The financial education quality mark, funded by the Money and Pensions Service and delivered by Young Enterprise, quality-assures resources for teachers and others to support the provision of financial education. Resources with the financial education quality mark are freely available on the Young Money resource hub.
Support for curriculum delivery is also available through optional, free and adaptable resources from Oak National Academy. Oak has completed its initial curriculum resources for maths, and it will be producing additional lessons on financial education and applying maths in real life contexts across key stages 1 to 4. Those are expected to be available from spring 2025, and lessons on finance and the economy also featured in Oak’s new citizenship curriculum, launched earlier this academic year. Teaching resources for those lessons will be released by autumn 2025.
His Majesty’s Treasury works closely with the financial services sector to ensure that providers play a role in supporting people to manage their money. In 2021, financial services organisations were the largest funders and providers of financial education programmes, with 46 programmes reaching 4.7 million children and young people, and a total spend of £7.5 million. In 2023, members of UK Finance, including banks and other financial service providers, provided financial education lessons to more than 4.1 million children and young people in schools and community settings.
On 5 December it was announced that the Government will develop a financial inclusion strategy, alongside a supporting committee to tackle the problem of financial exclusion. The Government will work with consumer groups and industry on the development of that strategy, which will aim to tackle barriers to individual and household ability to access affordable and appropriate financial products and services. As part of that, the committee will consider the role played by financial capability in consumer use and understanding of products.
In conclusion, I thank the hon. Member for Broadland and Fakenham for securing this debate, as well as those who have contributed to it so knowledgeably and articulately. Many schools already have high-quality financial educational provision in place, but every child and young person should have every opportunity to achieve and thrive. The reforms I have set out will ensure that every child is set up for the best start in life, including a curriculum that is rich, broad, inclusive, innovative, and that readies young people for life and work. There is always much that needs to be done, and we must and do take responsibility. We will build on our early efforts and work at pace to ensure that every child has the qualified expert teachers they need.
We recognise that training needs to evolve so that teachers remain competent and confident to teach and adapt the curriculum. That is why the work of the Money and Pensions Service, through its data collection, national strategy and delivery plans is so important. We must continue to work closely across the Government and in partnership with others to ensure that we approach challenges in a co-ordinated and evidence driven way. We will consider what more we can do in the context of the curriculum and assessment review, with workforce reforms to ensure that the financial education pupils receive is relevant and taught with passion by confident and committed teachers.