Financial Education

Claire Hazelgrove Excerpts

Thursday 6th February 2025 Commons Chamber

[Claire Hazelgrove (Filton and Bradley Stoke) (Lab)]

I thank the hon. Member for Broadland and Fakenham (Jerome Mayhew), the chair of the all-party parliamentary group on financial education for young people, for securing this debate. I should first declare not only my interests—I am vice-chair of the APPG, and have been a trustee of Girlguiding Bristol and South Gloucestershire, and of a brilliant local youth work charity, the Foundation for Active Community Engagement—but my deep and long-standing interest in this subject.

Improving financial education for children and adults—our focus is on the former this afternoon—was the policy area among thousands of possible ones that I chose to focus on in my public policy master’s degree. Unfortunately, that was not because I thought financial education was going well, and that there could be lessons to apply to other policy areas, but because of how lacking financial education has been, including in my personal experience. There was a real lack of financial education at school in my otherwise excellent state education. Important information on different types of mortgages and the key differences between secured and unsecured loans should not feel new at the point of major financial commitment and, crucially, at the point of risk.

In January 2020, the TUC reported that total unsecured household debt—that does not include mortgages, and typically has higher interest rates—rose to £407 billion, the highest ever level in the UK, and that was before the pandemic. Despite financial education having been added to the secondary curriculum in England through PSHE in 2014, the Money and Pensions Service found in 2022 that only 38% of young people recalled receiving financial education at school. It is important to be clear that this quest for better financial education is not about placing a higher value on any particular financial choices above others, but everyone should feel capable and confident to make whatever financial decisions are right for them and their circumstances. That is too often not the case.

I believe that a person’s background should not determine their life chances and life choices, and the lottery of financial education quality is a huge barrier to making that a reality. The next generation should always do better than the last. If we act to improve financial education, it will help us to make good on that Great British promise for all young people—for those across the Filton and Bradley Stoke constituency, and beyond.

I mentioned financial education in my maiden speech and was grateful in recent months to have the chance to raise it in the House with our Secretary of State for Education. I asked whether the independent, and welcome, curriculum and assessment review would consider foundational life skills such as financial education at all key stages, along with the resources needed to teach them with confidence as part of its work. While none of us in the House can pre-empt the conclusions of that important review, I was glad to hear the Secretary of State’s confidence that the review would “carefully consider” what young people need in this area and any support that teachers may need for any reformed curriculum.

Reported teacher confidence is understandably low, as we have already heard this afternoon, in teaching a subject that many of them were not taught either. Again, understandably, research shows that teachers struggle to prioritise subjects that are not assessed and are within PSHE. Indeed, The Money Charity’s survey and in-depth interviews with teachers around the country in 2016 found that the prioritisation of assessed subjects was the most commonly identified barrier to delivering financial education, with 80% of teachers citing it. So even when financial education is on the curriculum at secondary level, it does not appear to be there firmly enough.

Teachers give so much and have so much to contend with, and I do not believe that anyone in the House would wish to further overburden them, or indeed the curriculum, by adding more stand-alone subjects. In my view, it is important to consider how financial education can be woven through existing relevant subjects such as maths to ensure that all young people receive the most relevant education to support them to thrive throughout life.

As the daughter of a retired headteacher, I know better than to delve any further into the day-to-day from these Benches, but the evidence suggests that the current approach is not working for anyone. Yet there is a wider issue, too. The University of Cambridge found that financial habits typically form from around age seven. That strongly suggests that early support is crucial if we are to break down this barrier to opportunity.

It is also worth noting that financial education is on the curriculum at both primary and secondary levels in Scotland, Wales and Northern Ireland. It is in England in particular where we are lagging behind, though implementation remains a challenge more widely. While formal education is of course important, there is also a vital role for other organisations, from financial institutions to community organisations. A number are already playing their part, from GoHenry helping young people to save while taking part in money missions to build their long-term financial knowledge and wellbeing to HSBC and Girlguiding working together to help girls and young women build the two things I touched on earlier: capability and confidence. I was thrilled to speak at the launch of its new “I’m money confident” badge, even if I have no longer my own sash to sew it on to.

I will not be able to mention them all, but many more organisations are working in this space, not least Young Enterprise, which provides a diligent and creative secretariat for the all-party parliamentary group. I was also glad to hear recently from Aviva in Stoke Gifford in my constituency about its work with young people.

Madam Deputy Speaker, I hope you will not mind if I share my thanks to all the teachers and wider organisations using their time, resources and creativity on financial education as part of our collective pursuit of supporting all young people to thrive. I look forward to hearing other contributions to the debate and continuing to work for change in this important area and for a fairer future for all.