Today we launch the latest findings from the All Party Parliamentary Group on Financial Education for Young People, following an inquiry into provision of support for vulnerable groups, with the aim of improving financial capability at a local and national level.
Accessible, high quality financial education is an entitlement for all young people in this country. The inclusion of financial education in the National Curriculum for secondary schools has been a big step forward – but it is essential that vulnerable young people outside mainstream education are not left behind.
This year, the APPG on Financial Education for Young People began an inquiry into the best way to meet the financial education needs of vulnerable young people. Our inquiry has identified a serious need for more to be done to support the financial capability of this group of vulnerable under-25s, and we have outlined specific ways in which this can be achieved.
We took evidence from charities, education groups and other organisations working with vulnerable young people, as well as a group of young people themselves. The final report calls on central government, local authorities, financial institutions and other organisations working in this area to do more to enable, protect and support the most vulnerable in our society.
From the outset, we deliberately did not define vulnerability, in order to be as inclusive as possible. However, our findings have led to this definition becoming more refined and the focus of Financial Education for Vulnerable Young People is on youth homelessness, Looked After children and care leavers, and young people who are NEET (not in education, employment or training). Although there is an urgent need to do more, our findings give us reason to be hopeful; we have heard of excellent practice, examples of partnership and met some exceptional young people who have been supported by charitable and corporate organisations.
We recommend that government enable statutory bodies coming into contact with vulnerable young people, such as Job Centre Plus, the NHS and Youth Courts, to include financial education as a crucial component of their staff’s training, and encourage these organisations to signpost young people to existing support to help them manage their money. Government can also promote improved coordination and partnership working between providers of financial education for vulnerable young people across all sectors.
To better enable joined-up community working, we recommend that local authorities take responsibility for the development of coordinated local strategies to develop the financial capability of vulnerable young people. LAs can also take a lead on identifying and promoting good practice and partnership working, especially with local voluntary sector provision of which we found some excellent examples. We found particular cause for concern surrounding financial capability for Looked After children and care leavers, and recommend that local authorities review provision for this group and develop appropriately tailored strategies.
Financial services institutions already do an enormous amount in developing the financial capability of young people, in partnership with youth and education services to reach deprived communities and hard to reach young people outside of mainstream education. However, it is apparent that the industry has scope to do more in its relationship with young people as consumers’ of its products and services. We recommend that financial institutions signpost and provide young people with appropriate support around managing their money, particularly when an account is first opened. The industry could also adopt a policy of specific caution for under 25s, recognising the particular barriers to financial capability in the transition to adulthood, and that the service should proactively intervene with appropriate support and be alert to young customers’ financial difficulties, for example tell-tale signs of recurring overdraft charges.
Organisations working with young people can also ensure that financial capability is embedded in their policies, procedures and practice, especially in the training of staff that work directly with young people. These organisations can and often do take opportunities to engage in partnership working, and they should be encouraged and supported in every way to share expertise and good practice.
We hope that the government, local authorities, financial institutions and other organisations working in this area study our findings and work together to improve provision of these vital life skills to young people in particular need of support.
Fiona Bruce is MP for Congleton and Chair of the Inquiry into Financial Education for Vulnerable Young People.
The APPG on Financial Education for Young People was launched in the House of Commons on 31st January 2011. It has since grown to be the largest group of its type within Parliament, with 253 members and a raft of supporting organisations. The APPG has previously conducted inquiries Financial Education & the Curriculum (2011) and Financial Education in Further Education (2012). It led the successful campaign to include financial education in the National Curriculum from September 2014.The report Financial Education for Vulnerable Young People will be launched this afternoon in the House of Commons.
The APPG’s secretariat is provided by
pfeg(
Personal Finance Education Group), the UK’s leading financial education charity. The work of the APPG has in the past been supported by funding from MoneySavingExpert.com and
pfeg. This independent inquiry into provision for vulnerable young people has been made possible thanks to the support of Lloyds Banking Group.