Schools: Financial Education

Baroness Twycross Excerpts

Wednesday 31st January 2024 Lords Chamber

[Baroness Twycross (Lab)]

My Lords, I too congratulate the noble Baroness, Lady Sater, on securing this interesting debate, which has had a number of similar but significant contributions from across the House.

I echo my noble friend Lord Parekh’s question about why this gets very little attention—everybody here has found it fascinating—and I have been wondering why. As the noble Baroness, Lady Sater, said, worrying about money causes anxiety, and ensuring children get the knowledge they need is vital to equip them for life. A number of speakers, including my noble friend Lord Watson and the noble Lord, Lord Sandhurst, and the right reverend Prelate the Bishop of Durham have noted how early a child’s money habits can be formed.

Currently, as I think every speaker has noted, financial education is included in the national curriculum only in secondary schools. It is a welcome addition to the curriculum, but it is arguably too little too late. As the noble Baroness, Lady Sater, said, it is subject to a postcode lottery, and the noble Lord, Lord Sandhurst, highlighted that 30 hours a year may be required for this to be effective.

Financial education is not the same as maths; as the noble Lord, Lord Polak, said, it can be woven into many subjects, including Jane Austen, as the noble Lord, Lord Addington, pointed out. Maths skills need to be cemented at a much earlier stage and, as the noble Lord, Lord Hampton, said, this should include practical skills such as comparing prices, budgeting, understanding interest rates and household bills. As my noble friend Lord Watson said, it is also Labour’s view that this should be done at an earlier stage.

I have not got time to go through what everybody else said, but I note an important point made in a paper by the Centre for Social Justice on the number of children who are problem gamblers. Shockingly, according to the NAO, there are 55,000 problem gamblers aged 11 to 16 in England, with a further 85,000 in this age group at risk. I apologise for getting that in at the end, because no one else had raised it, but I wonder how the Government are looking to use financial education to address what seems to be a serious issue, not least in relation to online financial safety. I look forward to hearing the Minister’s response.