Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the Department for Education:
To ask His Majesty's Government, further to the Written Answer by Baroness Barran on 3 April (HL6647), what steps they are taking to provide financial education for those who leave school early.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The department has had conversations with a number of external organisations to understand what financial education programmes they deliver. This includes conversations with Barclays LifeSkills, Santander MoneyWise, the Just Finance Foundation, the Church of England, the Financial Times’ Financial Literacy and Inclusion Campaign, Young Enterprise and KickStart money.
The department has not spoken to the other organisations included in this list, but does work closely with The Money and Pensions Service (MaPS) and His Majesty’s Treasury to consider how we can support the teaching of financial education in schools. MaPS, as an arm’s length body sponsored by the Department for Work and Pensions, published their UK Strategy for Financial Wellbeing in January 2020. This is a ten-year framework to help UK citizens to make the most of their money and pensions. One of the key themes of their strategy is to support the financial wellbeing of children and young people. Their national goal is to ensure that two million more children and young people receive a meaningful financial education by 2030.
Education on financial matters throughout secondary school helps to ensure that pupils are prepared to manage their money well, make sound financial decisions and know where to seek further information when needed. Children should receive age appropriate financial education as part of compulsory education, so that those who leave school early can benefit. Financial education forms part of the citizenship National Curriculum, at Key Stages 3 and 4, but can be taught by all schools at all Key Stages. The subject covers the functions and uses of money, the importance of personal budgeting, money management, and managing financial risk. At secondary school, pupils are taught about income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
The mathematics curriculum includes a strong emphasis on the essential arithmetic that primary pupils should be taught. A strong grasp of mathematics will underpin pupils’ ability to manage budgets and money, including, for example, using percentages. The secondary mathematics curriculum develops pupils’ understanding in relation to more complex personal finance issues such as calculating loan repayments, interest rates and compound interest.
MaPS has published financial education guidance for primary and secondary schools and we will deliver a series of webinars in due course. The MaPS guidance can be found attached.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the potential merits of introducing classes for school leavers to assist with life skills such as budgeting and preparation for work.
Answered by Nick Gibb
Education on financial matters helps to ensure that young people are prepared to manage their money well, make sound financial decisions and know where to seek further information when needed.
Finance education forms part of the citizenship National Curriculum at Key Stages 3 and 4, but can be taught by all schools at all Key Stages. The subject covers the functions and uses of money, the importance of personal budgeting, money management, and managing financial risk. At secondary school, pupils are taught about income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
The secondary mathematics curriculum develops pupils’ understanding in relation to more complex personal finance issues such as calculating loan repayments, interest rates and compound interest.
My right hon. Friend, the Prime Minister, has set out a new mission to ensure all pupils study some form of mathematics to 18, equipping them with the skills they need for the jobs of today and the future. This includes having the knowledge to feel confident with finances in later life, including things like finding the best mortgage deal or savings rate.
The Department works with the Money and Pensions Service (MaPS) and HM Treasury to support the effective teaching of financial education in schools. MaPS has published financial education guidance for primary and secondary schools and the Department will deliver webinars for schools in due course. The MaPS guidance can be found here: https://maps.org.uk/2021/11/11/financial-education-guidance-for-primary-and-secondary-schools-in-england/.
The Department is providing £31 million of funding in 2023/24 to support secondary schools and colleges to deliver high quality careers education and work experience, including the national rollout of Careers Hubs.
The Careers and Enterprise Company (CEC) will ensure that Careers Hubs increase young peoples’ exposure to employers and to more in-depth workplace experiences. These experiences give young people a real feel for work and the knowledge they need to succeed.
Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment he has made of the costs to businesses of the Financial Services Compensation Scheme and similar schemes in other leading financial centres.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Under the Financial Services and Markets Act (FSMA) 2000, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) are each responsible for making rules in relation to the Financial Services Compensation Scheme (FSCS). The PRA is responsible for rules relating to claims in connection with deposits and insurance provision. The FCA is responsible for claims in connection with all other relevant types of financial services activities that are protected by the FSCS.
As part of its responsibilities, the PRA is responsible for setting the depositor coverage limit, which is currently set at £85,000. The PRA has a statutory duty to review this limit regularly, with the next review due by 2025 at the latest. Any change to the limit must be approved by HM Treasury and would therefore be carefully considered by the government.
The FCA is currently reviewing the FSCS compensation framework for areas it is responsible for. In its Feedback Statement published in December 2022, it committed to a number of actions including plans to assess the scope of FSCS coverage, review the current compensation limits and review the current funding class thresholds.
Under the Financial Services and Markets Act 2000, the PRA and FCA are also required to conduct a cost-benefit analysis to ensure the compensation schemes managed by FSCS continue to reflect the total value of the claims made or likely to be made.Both the PRA and FCA would use such assessments in forming its overall judgement on forming rules in relation to the FSCS.
Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the Financial Conduct Authority’s Feedback Statement on the Financial Services Compensation Scheme.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Under the Financial Services and Markets Act (FSMA) 2000, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) are each responsible for making rules in relation to the Financial Services Compensation Scheme (FSCS). The PRA is responsible for rules relating to claims in connection with deposits and insurance provision. The FCA is responsible for claims in connection with all other relevant types of financial services activities that are protected by the FSCS.
As part of its responsibilities, the PRA is responsible for setting the depositor coverage limit, which is currently set at £85,000. The PRA has a statutory duty to review this limit regularly, with the next review due by 2025 at the latest. Any change to the limit must be approved by HM Treasury and would therefore be carefully considered by the government.
The FCA is currently reviewing the FSCS compensation framework for areas it is responsible for. In its Feedback Statement published in December 2022, it committed to a number of actions including plans to assess the scope of FSCS coverage, review the current compensation limits and review the current funding class thresholds.
Under the Financial Services and Markets Act 2000, the PRA and FCA are also required to conduct a cost-benefit analysis to ensure the compensation schemes managed by FSCS continue to reflect the total value of the claims made or likely to be made.Both the PRA and FCA would use such assessments in forming its overall judgement on forming rules in relation to the FSCS.
Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make a statement on plans to update the Financial Services Compensation Scheme.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Under the Financial Services and Markets Act (FSMA) 2000, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) are each responsible for making rules in relation to the Financial Services Compensation Scheme (FSCS). The PRA is responsible for rules relating to claims in connection with deposits and insurance provision. The FCA is responsible for claims in connection with all other relevant types of financial services activities that are protected by the FSCS.
As part of its responsibilities, the PRA is responsible for setting the depositor coverage limit, which is currently set at £85,000. The PRA has a statutory duty to review this limit regularly, with the next review due by 2025 at the latest. Any change to the limit must be approved by HM Treasury and would therefore be carefully considered by the government.
The FCA is currently reviewing the FSCS compensation framework for areas it is responsible for. In its Feedback Statement published in December 2022, it committed to a number of actions including plans to assess the scope of FSCS coverage, review the current compensation limits and review the current funding class thresholds.
Under the Financial Services and Markets Act 2000, the PRA and FCA are also required to conduct a cost-benefit analysis to ensure the compensation schemes managed by FSCS continue to reflect the total value of the claims made or likely to be made.Both the PRA and FCA would use such assessments in forming its overall judgement on forming rules in relation to the FSCS.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the Department for Education:
To ask His Majesty's Government what steps they are taking to promote financial literacy in schools.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
Education on financial matters helps to ensure that young people are prepared to manage their money well, make sound financial decisions and know where to seek further information when needed.
Finance education forms part of the citizenship National Curriculum, at Key Stages 3 and 4, but can be taught by all schools at all Key Stages. The subject covers the functions and uses of money, the importance of personal budgeting, money management, and managing financial risk. At secondary school, pupils are taught about income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
The mathematics curriculum includes a strong emphasis on the essential arithmetic that primary pupils should be taught. A strong grasp of mathematics will underpin pupils’ ability to manage budgets and money, including, for example, using percentages. The secondary mathematics curriculum develops pupils’ understanding in relation to more complex personal finance issues such as calculating loan repayments, interest rates and compound interest.
My right hon. Friend, the Prime Minister, has set out a new mission to ensure all pupils study some form of mathematics to 18. Studying mathematics to 18 will equip young people with the quantitative and statistical skills that they will need for the jobs of today and the future. This includes having the knowledge to feel confident with finances in later life, including things like finding the best mortgage deal or savings rate.
The Department works with the Money and Pensions Service (MaPS) and HM Treasury to support the effective teaching of financial education. MaPS has published financial education guidance for primary and secondary schools, and we will deliver a series of webinars in due course. The MaPS financial education guidance for primary and secondary schools can be found in the attached documents.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 16 March 2023 to Question 162259 on Travel: Insurance, whether his Department has taken recent steps with (a) insurers and (b) the regulator to help increase access to (i) suitable and (ii) affordable insurance for all people.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Ensuring that everyone has access to suitable and affordable financial products and services is a priority for this Government. Last year, the Government published its Financial Inclusion Report 2021-22 which sets out the steps Government has taken to widen access to useful and affordable financial services for all, including insurance.
For example, in addition to the FCA signposting rules mentioned in my previous response, the Government has also worked with industry on wider issues around improving access to insurance, including other signposting initiatives. For instance, the Age Agreement, which we will review this year, offers support for older consumers struggling to access motor and travel insurance.
The FCA has also taken steps to ensure fairer outcomes for all motor and home insurance customers. As of 1 January 2022, insurers cannot charge renewing customers a higher price than they would pay if they were a new customer purchasing via the same channel.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the Department for Education:
To ask the Secretary of State for Education, with reference to Building Beyond Barriers – A roadmap for enhancing financial education in schools of the APPG on Financial Education for Young People, published on February 2023, if she will take steps to help ensure that all school-aged children receive financial education by 2030.
Answered by Nick Gibb
Financial education forms part of the National Curriculum for citizenship at Key Stages 3 and 4 but can be taught by all schools at all Key Stages. More information can be found here: https://www.gov.uk/national-curriculum. The subject covers the functions and uses of money, the importance of personal budgeting, money management, and managing financial risk. At secondary school, pupils are taught income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
The mathematics curriculum includes an emphasis on the essential arithmetic that primary pupils should be taught. A strong grasp of mathematics will underpin pupils’ ability to manage budgets and money, including, for example, using percentages. The secondary mathematics curriculum develops pupils’ understanding in relation to more complex personal finance issues, such as calculating loan repayments, interest rates and compound interest.
The Department works closely with the Money and Pensions Service (MaPS) and HM Treasury to consider the wide range of evidence for financial education and to explore the opportunities to improve availability of high quality financial education. MaPS has a statutory duty to develop and co-ordinate a national strategy to improve people’s financial capabilities and their ten year strategy, published in 2020, set out their national goal that two million more pupils and young people will receive a meaningful financial education by 2030. The strategy is supported by Delivery Plans for each nation of the UK and details can be found here:https://www.maps.org.uk/uk-strategy-for-financial-wellbeing/.
There is a wide range of support available. MaPS published financial education guidance for primary and secondary schools in England to support head teachers and education decision makers to enhance the financial education currently delivered in their schools. This guidance is available at: https://maps.org.uk/2021/11/11/financial-education-guidance-for-primary-and-secondary-schools-in-england/.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the Home Office:
To ask the Secretary of State for the Home Department, whether she has made an assessment of the potential merits of including those with no recourse to public funds in cost-of-living support schemes.
Answered by Robert Jenrick
Successive governments have taken the view that access to benefits and other publicly funded services should reflect the strength of a migrant’s connections to the UK and, in the main, only become available to migrants when they have become settled here with indefinite leave to remain (ILR).
The Government is committed to protecting vulnerable people and has ensured support has been available to those with NRPF when it has been appropriate to do so, including as part of cost-of-living support schemes.
In recognition of the growing cost of living pressures, the £11.7 billion Energy Bills Support Scheme forms part of the £37 billion cost of living assistance package for consumers over the winter of 2022 to 2023 to support families with rising global energy prices. Those with NRPF will be eligible for some support within this scheme.
To assist more families, those with NRPF can now access free school meals and free early years education for two-year-olds, subject to the relevant income thresholds.
Those who have made the necessary national insurance contributions can also claim contributory benefits such as contribution-based Jobseekers Allowance, statutory sick pay, and state pension.
Migrants with permission under the Family or Private Life routes, or outside the rules on the basis of their Article 8 of the European Convention on Human Rights, or the Hong Kong British National (Overseas) route can also apply for free to have their NRPF condition lifted by making a ‘change of conditions’ application. An individual can apply to have their NRPF condition lifted if they are destitute or at risk of imminent destitution, if there are reasons relating to the welfare of a relevant child, or where there are other exceptional financial circumstances.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the Home Office:
To ask the Secretary of State for the Home Department, what steps she is taking to support people with no recourse to public funds, in the context of the cost-of-living crisis.
Answered by Robert Jenrick
Successive governments have taken the view that access to benefits and other publicly funded services should reflect the strength of a migrant’s connections to the UK and, in the main, only become available to migrants when they have become settled here with indefinite leave to remain (ILR).
The Government is committed to protecting vulnerable people and has ensured support has been available to those with NRPF when it has been appropriate to do so, including as part of cost-of-living support schemes.
In recognition of the growing cost of living pressures, the £11.7 billion Energy Bills Support Scheme forms part of the £37 billion cost of living assistance package for consumers over the winter of 2022 to 2023 to support families with rising global energy prices. Those with NRPF will be eligible for some support within this scheme.
To assist more families, those with NRPF can now access free school meals and free early years education for two-year-olds, subject to the relevant income thresholds.
Those who have made the necessary national insurance contributions can also claim contributory benefits such as contribution-based Jobseekers Allowance, statutory sick pay, and state pension.
Migrants with permission under the Family or Private Life routes, or outside the rules on the basis of their Article 8 of the European Convention on Human Rights, or the Hong Kong British National (Overseas) route can also apply for free to have their NRPF condition lifted by making a ‘change of conditions’ application. An individual can apply to have their NRPF condition lifted if they are destitute or at risk of imminent destitution, if there are reasons relating to the welfare of a relevant child, or where there are other exceptional financial circumstances.