Financial Education

Amanda Hack Excerpts

Thursday 6th February 2025 Commons Chamber

[Amanda Hack (North West Leicestershire) (Lab)]

I thank the hon. Member for Broadland and Fakenham (Jerome Mayhew) for bringing this crucial conversation to the Chamber. We are not born with the ability to open an ISA, choose a private pension or invest our savings. We do not have a natural intuition about how to save or manage debt, or how the tax system works, so why are we sending young people from school with little or no formal financial education?

Having worked for Leicestershire Training and Enterprise Council 25 years ago, where we supported young people and adults into education, and having held a number of roles in the social housing sector supporting tenant welfare, it is clear to me that there is a gap in people’s financial knowledge. I am really proud of some of the work that I did before coming to this place—particularly leading a team to set up the financial and digital inclusion project Moneywise for Leicester, Leicestershire and Rutland, targeting individuals, including in my constituency of North West Leicestershire, who were digitally and financially excluded. From running that project, the lack of basic skills around financial education, and how much it was holding people back, became clear to me. Through the project, we were able to empower people to have a much more positive relationship with their finances.

As a member of the Work and Pensions Committee, it has already become apparent to me that a lack of conversation and knowledge, and probably confidence, about long-term financial planning, is having a detrimental impact on our relationship with our finances. By providing financial education to young people, we have an opportunity to reset our relationship with money and skills. A study by Compare the Market and the financial education charity MyBnk found that almost two thirds of adults surveyed said that they did not recall receiving financial education at school. The same study found that only two in five respondents considered themselves financially literate.

There is hope, though. My son is currently studying core maths at AS-level, and we have had many conversations about financial management, from insurance to rent, and mortgages to savings, just because of that course. This is an issue that can unite us across party lines. Our young people deserve that. At the very least, they deserve a basic understanding of how to manage their future finances. It is not just current and future generations that could benefit; the Investing and Saving Alliance projected that, were the Government to prioritise financial education, we could inject an extra £7 billion into the economy each year. That would make a real, measurable and tangible difference to so many young people. I look forward to the Minister’s response.