Financial Education Forum Papers, May 2020 2
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Financial Education Forum Member Updates May 2020 FINANCIAL EDUCATION FORUM PAPERS, MAY 2020 2 Introduction from Sharon Davies Chief Executive of Young Enterprise These are extraordinary times that we are living through, and firstly, I very much hope that you and your families are safe and well. The Covid-19 pandemic presents extreme challenges for all members of our financial education community in terms of economic impact, as well as personal impact. Speaking from the charity perspective here at Young Enterprise and Young Money, the charity sector overall has been particularly hard hit. Most charities are seeing a very sharp drop in income, and this is not just in the short-term during lockdown. For the months to come we will be experiencing the ramifications of Covid-19 in terms of vastly reduced income for our charity sector. We will have to see how successful the Government’s support package is in supporting the economy and specifically the charity sector. Returning to the Financial Education Forum, our last meeting in October 2019 seems like a lifetime ago. We have since had the General Election and have formally exited the EU. We have of course also had a Government reshuffle or two – Gavin Williamson remains in charge of Education, with John Glen still Economic Secretary at HM Treasury, but with changes to other key portfolios such as the Chancellor. The APPG on Financial Education for Young People, for which Young Money acts as Secretariat as you know, was formally reconstituted as a group in January, as required following a General Election. The new vice Chairs of the APPG have been elected, Chaired by Julian Knight MP. There is of course a large group of MPs who are new to Parliament, with a lot of interest from these new MPs in the APPG. Julian Knight MP, our Chair of the APPG, has been selected to be Chair of the DCMS Select Committee, though he has affirmed his strong commitment to the cause of financial education and remains firmly in charge of the APPG. We shall see over the coming months how the Parliament handles its hybrid remote working arrangement, and how successfully Government is held to scrutiny. Ministers will no doubt be preoccupied with Covid-19 response, as will backbenchers with constituency concerns. I wish you all the best for the weeks and months to come. Sharon Davies, May 2020 ………………………………………………………………………………………………………………………………………………………………………. The Financial Education Forum – bringing our financial education communities together FINANCIAL EDUCATION FORUM PAPERS, MAY 2020 3 Financial Education Landscape – an update New Government Following the General Election in December 2019, the Prime Minister appointed a new Cabinet and there has also been a reshuffle. Key appointments for our financial education community are: Gavin Williamson has taken over from Damian Hinds as Secretary of State for Education. Nick Gibb MP remains Minister for School Standards. John Glen retains his post as Economic Secretary with responsibility for financial inclusion, and Guy Opperman MP retains responsibility for the Money and Pensions Service and financial inclusion. New Select Committee Chairs and their members have also been selected. For Education, Robert Halfon MP retains his Chairmanship. Mel Stride MP is Chair of the Treasury Select Committee and Stephen Timms MP is Chair of the Work and Pensions Select Committee. Labour’s new Leader has announced his new Shadow Cabinet. Rebecca Long-Bailey has the Education portfolio, Jonathan Reynolds is Shadow Work and Pensions Secretary and Anneliese Dodds is Shadow Chancellor. APPG on Financial Education for Young People The APPG was formally reconstituted at a meeting in January 2020, following the General Election. The Chair remains Julian Knight MP. Vice Chairs elected for the APPG were Jonathan Reynolds MP, Jerome Mayhew MP, Drew Hendry MP and Marion Fellows MP. There has been a lot of new interest from MPs in the group. How does Parliament sit under Covid-19? The House of Commons has published details about how it will function. Up to 120 MPs are to take part in proceedings virtually, while around 50 remain in the chamber under strict social distancing rules. All Members are encouraged to work virtually, especially as any MP in the Chamber will be treated the same as one appearing virtually and would only be called to speak if listed. Some MPs will be able to take part in Prime Minister’s Questions, any urgent questions and statements via video link for the first two hours of each sitting day. A number of screens will be placed around the chamber to allow the Speaker and MPs present in the chamber to be able to see their ‘virtual’ colleagues. To ensure all Members are treated equally, those joining by ‘Zoom’ will be expected not to display or draw attention to objects to illustrate their contributions. There will be no opportunity for interventions and no points of order should be raised. If a Member is called but cannot be heard or seen for technological reasons, it will be possible for them to be called later in the proceedings. ………………………………………………………………………………………………………………………………………………………………………. The Financial Education Forum – bringing our financial education communities together FINANCIAL EDUCATION FORUM PAPERS, MAY 2020 4 News from Financial Education Forum Members The following section provides an opportunity for Forum Members to share information and updates on current financial education activities for children and young people with fellow members. If you would like to contribute to future editions, information relating to submission dates and formatting are included in Forum invitation emails. Updates should be in Word format and should contain a maximum of 500 words. Updates can include pictures (with the necessary permissions in place), but should be no more than one A4 side in total, and will be adjusted to fit our template if necessary. Although we try to be flexible, updates arriving after any given deadline are not guaranteed to be included. Young Enterprise is not responsible for the content of member updates. This issue we have received updates from the following organisations: • Money and Pensions Service ……………………………………………….. 5 • Money Saving Expert ………………………………………………………… 6 • City Pay It Forward …………………………………………………………… 7 • Building Societies Association ………………………………………………. 8 • Just Finance Foundation …………………………………………………….. 9 • MoneyTime ……………………………………………………………………. 10 • LifeSkills / Barclays and Hopscotch Education ……………………………. 11 • MoneySense / NatWest ……………………………………………………… 12 • MyBnk ………………………………………………………………………….. 13 • Money Academy / The Nottingham Building Society ……………………… 14 • Stop Loan Sharks / The England Illegal Money Lending Team …………. 14 • Young Money …………………………………………………………………. 15 ………………………………………………………………………………………………………………………………………………………………………. The Financial Education Forum – bringing our financial education communities together FINANCIAL EDUCATION FORUM PAPERS, MAY 2020 5 The vision of the Money and Pensions Service (MaPS) is everyone making the most of their money and pensions. We are an arm’s length body of government committed to ensuring that people throughout the UK have guidance and access to the information they need to make effective financial decisions over their lifetime. UK Strategy for Financial Wellbeing: In January 2020, MaPS published the UK Strategy for Financial Wellbeing. The strategy is a 10-year framework, which will mobilise key sectors to achieve five National Goals. One of these is a goal of two million more children and young people getting a meaningful financial education. MaPS has brought together two groups, one cross-sector and one Financial Services, to develop a set of recommendations to meet the goals. These ‘Challenge Groups’ will be the source of ideas that will drive delivery plans to enable each four nations of the UK to contribute towards the national goals. In light of COVID-19, the Challenge Groups will be making short term recommendations in July 2020 regarding how the country should rebuild people’s financial wellbeing. To provide context to each challenge, we have created a series of challenge packs. The Challenge Groups will deliver UK wide plans by March 2021. The UK Children and Young People’s Financial Capability Survey: MaPS has conducted a nationally representative survey of the financial knowledge, attitudes, mindsets and behaviours of 7-to 17-year-olds and their parents, living in the UK. We found that only 38% of children and young people recall learning about how to manage money at school, down from 40% in 2016. 4-6-Year-Old Financial Capability Qualitative Study: MaPS has undertaken a qualitative study to better understand the financial skills, knowledge and attitudes of 4-6-year olds and their primary carers. The study shows that young children’s understanding about money primarily comes from home and family. School lessons provide the necessary mathematical skills and role-playing scenarios to support this real-life learning. Pathfinder programmes: We are working with partners to co-design and test ways to embed and scale quality, evidence-based, financial education. The total budget for CYP pathfinders is over £2million. The Covid-19 crisis has undoubtedly created new challenges. Plans on how to deliver the pathfinders under new circumstances are being considered – however the pathfinders will remain focused on the following areas: • Delivering financial education to 20,000 16-17-year-olds in England to prepare them for independence. • Delivering Talk Learn Do, a financial capability