The Centre for Financial Capability

The Centre for Financial Capability is a financial education charity which brings together key stakeholders across the primary financial education space, to achieve shared aims and to effect change to ensure all children receive a high-quality and effective financial education starting at primary-school level. The Centre is working to improve access and quality of financial education, bringing organisations together and campaigning for greater investment and attention in this important area.

Parliamentary drop-in event

In March, we hosted a parliamentary drop-in event where parliamentarians were able to speak to representatives of MyBnk, RedSTART, Young Enterprise and GoHenry, and learn about the benefits of financial education from a young age and what actions can be taken to ensure all children have the opportunity to learn the skills needed to have a good financial future. During the event Parliamentarians had the opportunity to sign a letter calling on the Prime Minister to ensure every primary-aged child receives an effective and high-quality financial education by 2030.

The Government’s Dormant Assets Consultation response

Following the Centre’s continued campaigning for a portion of the £880 million unclaimed dormant assets to be put towards sustainable financial education for children and young people, and a response to the Dormant Assets Consultation, we were delighted by the Government’s announcement that it will be exploring how financial education and capability can be supported through the Dormant Assets Scheme in the future. We were also delighted that the Government referenced the industry roundtable we hosted in September 2022, which was attended by many financial education stakeholders, representatives of financial service firms and DCMS officials.

Buy-Now-Pay-Later Polling and Consultation

At the end of last year, the Centre conducted its annual Buy-Now-Pay-Later (BNPL) polling. We found that over a third of UK adults used BNPL services, an increase on the number who said the same the previous year. The usage of such schemes increased amongst all age groups, with over 20% of over 65-year-olds saying they had used BNPL services. Amongst those who had used or intend to use BNPL schemes, 25% have been charged late payment fees, 18–34-year-olds are most likely to have been charged a late fee with nearly two fifths (37%) experiencing this.

The Centre also welcomed the news that the Government plans to increase the regulation of Buy-Now-Pay-Later schemes, and responded to the consultation on draft legislation, sharing our findings on the usage and impact of the schemes.

Research

The Centre will be working on two separate research projects in the coming month. The first will seek to explore the views and needs of grass-roots community organisations at the frontline of the cost-of-living crisis. The second project will build on recent research on the barriers preventing teachers delivering financial education in the classroom. These research projects are part of the Centre’s work to promote further innovation and evaluation in financial education and we look forward to sharing more information on these projects in the coming months.

Looking to the future

The Centre has continued to focus on promoting the crucial role primary-aged financial education has in preparing the next generation with the knowledge and schools to make good financial decisions. Looking ahead, the Centre will continue to support the delivery of financial education programmes, contribute to research on financial education and raise awareness of the need to expand primary-aged financial education.

To find out more about the Centre you can read about our work and our policy proposals, or visit our website.

Centre for Financial Capability