Financial Conduct Authority: Financial Inclusion

Baroness Tyler of Enfield Excerpts

Tuesday 22nd March 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, financial education is covered within both the citizenship and mathematics curricula, and primary schools are strongly encouraged to teach citizenship, including financial education. In addition, the Money and Pensions Service published financial education guidance for primary and secondary schools last year to support school leaders in enhancing the financial education that is currently delivered in their schools to make it memorable and impactful.

[Baroness Tyler of Enfield (LD)]

What assessment have the Government made of the effectiveness of the FCA in tackling the poverty premium—that is, the extra cost that people on low incomes pay for essential services and products such as prepayment energy meters? Does the Minister agree that, as the cost-of-living crisis grows, the FCA could make more progress on this vital issue if the regulator were required to consider financial inclusion across all areas of its work?

[Baroness Penn (Con)]

My Lords, the Government are conscious of the poverty premium, and so is the Financial Conduct Authority. We are committed to ensuring that all consumers can access financial services and products that are affordable to them. There are examples of concrete action in this area—for example, a pilot of a no-interest loans scheme and a pilot of prize-linked savings schemes for people who are struggling to access appropriate and affordable financial services. That is something that we want to continue to build on.