Banking for young people - financial inclusion or exploitation

The panel included Tracey Bleakley, chief executive of pfeg; Lord Newby, deputy Government Chief Whip in the House of Lords, Anthony Browne, chief executive of the British Bankers Association, Seyi Obakin, chief executive of Centrepoint and Linda Jack, Lib Dem chair of the Youth Policy Working Group.

The theme of their series of events this year is on banking for young people and ensuring that they are not excluded from banking opportunities over issues like lack of identification.

Panel members were in wide agreement over the importance of this issue. Opening up financial products to young people is a crucial step towards financial inclusion. Lord Newby said that when young people are given a national insurance number at 16 they should automatically be allocated a bank account.

Linda Jack suggested when MPs write to young constituents as they approach voting age (currently 18) to also send out information about setting up a bank account.

Tracey Bleakley referred to pfeg's joint research with the BBA which shows that primary school age children are now being increasingly confronted with decisions about money and personal finance. Anthony Browne said the banking sector was committed to financial education and said that a better understanding of various financial products and services benefitted both the consumer and the finance sector.

Seyi Obakin from Centrepoint raised the fact that some young people are not able to provide photo ID, which is required to open a bank account. Anthony Browne from the BBA admitted this was an issue across the sector and something he would take forward, however he also pointed out that letters about Universal Credit will shortly be acceptable as a form of ID.

Linda Jack on behalf of the Lib Dem youth policy working group added:
"More young people bank, but there are still 1 in 5 who dont. The major issues are clearly ID requirements and payday loans".

Linda also highlighted the importance in Scotland of the 'Young Scot card' which is sent out to young people as they turn 18 and can then be used as ID to set up a bank account.

pfeg will be keeping up the pressure on this issue and running similar events at both the Labour conference in Brighton and the Conservative conference in Manchester.