Financial Inclusion: Young People

Debate between Luke Charters and John Hayes

Tuesday 30th June 2026 Westminster Hall

[Mr Luke Charters (York Outer) (Lab)]

It is a pleasure to serve under your chairship, Sir John. I commend my hon. Friend the Member for Hertford and Stortford (Josh Dean) on a terrific speech and on gathering us in Westminster Hall today.

May I take a moment to take you back to your first job, Sir John? I am sure you will remember your pride at bringing home your first payslip. In today’s society, young people are turning to TikTok for beauty advice, fashion trends or the latest dance craze. It is where they learn how to spend their hard-earned cash, but it has also become a place of toxic finfluencers, where so-called get-rich-quick opportunities are being targeted at young people. All of a sudden, things on social media can start to feel slightly odd, because for young people those opportunities are often promoted on familiar apps that they know, in formats that they recognise and delivered by people who seem relatable.

An influencer who a young person might like may appear to be educating them about money, as perhaps a big brother or sister would, but we often find that those types of ads and reels can become exploitative. As a former Financial Conduct Authority regulator, I think we are now entering a phase of TikTokification of financial advice. The FCA, my old place of work, must be commended on its work on financial promotions, but unfortunately it has found that in some cases the majority of TikTok ads breach its finprom rules.

I call on social media giants and big tech to do more to take heed from the FCA’s work on two fronts. First, social media giants must ensure that finfluencers properly declare any conflict of interest. Secondly, there must be greater education, almost like public good messaging inbuilt into the algorithms, where officially verified types of financial education filter through them. Aviva found that one in five children under 16 are now getting financial information from social media platforms, and only one in eight said that they would get their financial advice from school or college, so the math really ain’t mathing. Boys in particular are being brought via the toxic hinterlands of the manosphere into Ponzi schemes and get-rich-quick schemes linked to body dysmorphia and other dangerous influences in the manosphere, which is an important link.

A good way to get young people into healthy financial habits is through savings. Gordon Brown understood that, as shown through the child trust fund, which was scrapped in 2011. Today, a child born into a family with money is likely to have a junior ISA opened in their name, as I have done for my children. Compound interest works favourably over the years, so by the time those young people are adults, they have a foundation that can act as a springboard for life. We need to have that nudge theory built into the system from the start. We have to think about how products delivered by fintechs can get young people saving.

I will briefly touch on fraud, because I am concerned that many of the social media ads I talk about are fraudulent. Some 47% of 18 to 34-year-olds have lost money to scams in the past year. The average loss is three grand; that is over a month’s wages. It could be the first home deposit wiped out in one. That is what financial exclusion does.

I am particularly thankful to the hon. Members who have mentioned the car insurance market. There is a phenomenon called ghost broking, where fraudulent car insurance—insurance that does not really exist—is sold to young people. They are a young driver, they think “premiums are high”, they are sold a pup and an insurance policy that does not exist. They then get into an accident, and things go wrong from there. I would like to see social media companies and the Government prioritise ghost broking and for them to listen to the Association of British Insurers’ work on that.

I want my two boys to grow up in a world in which the first financial lessons they receive come not from a stranger with a ring light and a referral code, but from good, hard-working northerners who know how to match that graft with good financial advice. I think that is the world all of us want to see when it comes to sound financial education for all.

[Sir John Hayes (in the Chair)]

Just for the record, my first job was in Chiesmans, a department store that then existed in Lewisham, where I served in the china and glass department.