Financial Inclusion: Young People

Josh Dean Excerpts

Tuesday 30th June 2026 Westminster Hall

[Josh Dean (Hertford and Stortford) (Lab)]

I beg to move,

That this House has considered financial inclusion for young people.

It is a pleasure to see you in the Chair, Sir John. Today, young people are one of the groups most at risk of financial exclusion. Analysis by Fair4All Finance has identified 2 million unsteady starters in financially vulnerable circumstances across the UK. That includes 11% of financially vulnerable adults in Hertford and Stortford. Predominantly under 35, those young people are facing a combination of pressures: low financial resilience, higher housing costs, insecure work, rising insurance costs and a growing exposure to online financial risks. They experience poorer financial wellbeing as a result, closely linked to poor mental health, creating a vicious cycle that can undermine their educational attainment, employment prospects and economic participation.

Financial inclusion is about more than access to banking; it is about access to affordable credit, insurance, savings, trusted financial guidance and opportunities to build a financial track record. I am pleased that the Government have recognised the importance of tackling financial exclusion in the financial inclusion strategy. If we can break down the barriers to financial inclusion, we can improve the lives of millions of people and unlock growth across the country. In this afternoon’s debate, I want to examine the barriers to financial inclusion that young adults face, and consider where Ministers could build on the financial inclusion strategy to prioritise practical interventions to support young people.

Although a young person may pay rent regularly, meet mobile phone payments or have built responsible financial habits, they often lack sufficient credit history to access mainstream financial products on fair terms. We know that young adults are over-represented in the gig economy, temporary employment roles, part-time work and on zero-hours contracts. The insecure and variable income they receive is compounded by the high cost of living. It is harder for them to budget effectively or qualify for mainstream financial products, and they are more reliant on costly forms of borrowing as a result.

As the cost of living crisis continues to eat into disposable incomes, young people struggle to build emergency or long-term savings. They typically have fewer savings than older adults, which leaves them acutely vulnerable to financial shocks: losing a job, an unexpected bill, increased rent or transport costs. In those circumstances, without emergency savings to draw on, many face a poverty premium, paying more in the long term through instalments because they cannot afford the cost of an up-front payment.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing this forward. The situation in Northern Ireland is no different from the one he described in his constituency and the wider United Kingdom. Young people face unprecedented barriers to building financial security. High street bank closures are turning rural and working-class communities into banking deserts. At the same time, the aggressive use of unregulated “buy now, pay later” schemes and predatory online lending apps is driving vulnerable young adults into spirals of unmanageable debt before they even secure their first mortgage or full-time career. Does he agree that the Government must implement comprehensive, mandatory financial literacy education in our schools, as a priority?

[Josh Dean]

I could not agree more about the importance of financial education for young people, which I will come to in my speech.

We can already see how those overlapping pressures exacerbate a young person’s financial insecurity. Insurance is another area where they are left facing vulnerability to financial shocks that they are already ill-equipped to absorb. I was shocked to learn that 18 to 24-year-olds are significantly less likely to hold contents insurance, even though they are more likely to experience flood damage, escape of water, fire damage, burglary and theft. That is especially true when they live in rented accommodation, which many young adults do.

I want to draw particular attention to the cost of motor insurance. Young people often make significant personal investments in driving lessons, to make it easier to get to work or education, only to find they cannot access affordable insurance when they pass their test. That directly impacts their ability to access work, training and other opportunities, especially in semi-rural communities such as the one that I represent, and it highlights how young people can face financial exclusion even when they are doing everything right.

Too often, young people are entering adulthood without the tools, confidence or support networks that they need to navigate increasingly complex financial decisions.

[Rosie Wrighting (Kettering) (Lab)]

My hon. Friend is an incredible advocate for young people in his constituency, but also across the country. What is his opinion of a lot of young people getting financial education from social media or AI chatbots? The Government need to regulate that but also, ahead of the social media ban, ensure that we are bringing financial education into schools and other real-life forums, so that young people do not miss out.

[Josh Dean]

I could not agree more about the importance of regulating access to financial information across social media and AI, which is an emerging challenge. Embedding financial education in school is so important, particularly ahead of the social media ban, which my hon. Friend mentions.

Research has shown that young people have the lowest confidence in managing their money. The latest MoneyView survey from the Money and Pensions Service found that although 41% of adults lack confidence managing money, the figure rises to 63% for 18 to 24-year-olds. That is the highest for any age group.

I welcome measures in the financial inclusion strategy to embed financial education in the primary school curriculum, helping children to develop healthy attitudes towards money at the earliest stage, but there is a need to go further. A report in 2025 by the London Foundation for Banking & Finance highlighted a significant gap in financial education provision. Financial capability programmes are concentrated in primary schools, the early years of secondary school and workplaces. There is comparatively little structured support for young people aged 16 to 24 as they transition to financial independence. That is one of the most financially vulnerable periods in a young person’s life. They have to navigate leaving school, entering work or going to university, and living independently for the first time.

Particularly as students, young people are vulnerable to developing bad financial habits, experiencing a financial crisis or falling into debt. They are often having to balance their education with work. If a financial crisis hits, they face the prospect of sacrificing more of their education to pay down debt, with a potential impact on their future life chances. These significant moments in a young person’s life are when small mistakes and unexpected costs can quickly escalate. Early support in this transition period is critical to prevent longer-term financial problems.

All this takes place in a rapidly evolving digital landscape. Young adults are adopting AI tools faster than older generations, which is providing them with opportunities for more accessible guidance, but leaving them at risk of exposure to inaccurate information, scams and poor or misleading financial recommendations. MoneySuperMarket’s latest Money Talks research with the Campaign Against Living Miserably found that 44% of 18 to 34-year-olds are turning to generative AI as a private space to express their money worries. That is almost half of young people who are being exposed to unregulated financial advice.

Financial exclusion does not only increase economic inequality between those who have savings, access to financial education and good support networks, and those who do not; it also has a significant impact on young people’s mental health. Financial anxiety is no longer associated just with moments of crisis. For many, it has become a daily occurrence. Research from MoneySuperMarket, CALM and UM showed that one in two young adults is in debt, one in four young people has used a food bank in the past year and, more than social media, body image or relationships, money is the topic causing young people the most worry right now. Young adults are 77% more likely to have experienced suicidal thoughts because of issues with money or money worries than the wider adult population. One in 10 young adults with debt will have had suicidal thoughts in the past 12 months because of worries about making repayments.

There is a profound link between financial difficulties and poor mental health. It is often cyclical, with financial stress leading to more mental health challenges, and poorer mental health making financial management harder. We must recognise that relationship and how financial insecurity and exclusion are leaving young people lacking agency in our society and without hope. Beyond arguments about economic growth and inactivity, this alone should spur us on to do better.

What might solutions to the barriers I have set out look like, and where might we be able to go further? First, on credit visibility, small sum lending can support young people with thin or non-existent credit files to establish their financial identity, and therefore access affordable financial products. For example, Fair4All Finance is piloting small sum lending in partnership with Monzo, and I would be keen to hear the Minister’s reflections on the role of small sum lending in that area. What further action can the Government can take alongside regulators to support young people to establish a financial track record?

Secondly, on insurance affordability the interim findings of the recent Milburn review highlighted the stark challenge of 1 million young people who are not in education, employment or training. I know the Government are committed to tackling the high number of NEETs, but I would be grateful if the Minister would set out what work is being undertaken with regulators and industry to improve access to affordable motor insurance for young drivers, and to tackle the prohibitive costs restricting their access to work and education, leaving them financially excluded. Modelling from WPI Economics has found that improvement in that area could increase the UK’s GDP by £369 million annually through increased employment and participation in the labour market—there is an economic opportunity here.

Thirdly, will the Minister reflect on how the Government can expand financial education and support in that critical period of transition for 16 to 24-year-olds, and share what consideration she has given to the growing influence of AI on financial decision making? Finally, on financial wellbeing and mental health, will the Minister commit to working across Departments to ensure that financial resilience forms part of the Government’s wider approach to supporting young people’s mental health and wellbeing?

If we want to grow the economy, tackle the NEET challenge and improve young people’s mental health and wellbeing, we must ensure that they are not excluded from the financial system that underpins modern life. Real financial inclusion must mean that every young person can build a secure and sustainable financial future. A young adult who can save, build a credit history, access affordable insurance and make informed decisions about their finances is more likely to succeed in work, education and life. They will feel that they have agency in our society, and they will have hope for the future.

[Several hon. Members rose—]

--- Later in debate ---

[Josh Dean]

I will keep it brief, Sir John. To add to the trend, I will just share the fact that my first job was in a local coffee shop.

It has been great to hear about rurality, the importance of car insurance, social media, fraud and student loans; I will not share just how high my student loan bill is, having checked recently. The importance of financial inclusion has really been brought to life, as have the challenges that young people face. I thank all Members who have contributed to this important debate, and I thank the Minister for her response. Every young person deserves to build a secure and sustainable financial future. I hope that the Treasury will continue to think ambitiously about how we can support them in doing so.

Question put and agreed to.

Resolved,

That this House has considered financial inclusion for young people.