|
Path: Home > Influencing Public Policy > FSA > Financial Capabilities |
Towards a National Strategy For Financial Capability
A response from NIACE
Published: January 2004
NIACE welcomes the move towards a strategy for financial capability and offers this response.
As the paper notes, a quarter of the population where the head of household is single, have no “mainstream financial products”. In addition, over 15 million adults in England have a level of numeracy which is insufficient for their needs.
NIACE agrees with the summary of the problem and the reasons why a strategy is needed. We also agree that the paper’s wish to have a strategy is important and applaud the recognition that financial education is a crucial component.
NIACE has some concerns about the paper, which we would wish the FSA to take into account.
First, the nature of the word ‘consumers’. This is not a problem solely focused on the consumption of financial services. Finance is something that dominates peoples’ lives in all kinds of ways, particularly for those who are poor, unable to save, or in debt.
Second, the solutions proposed are sound in general, but NIACE suggests that benchmarks are created, as well as agreed common goals (p.10). We welcome the recognition of the need to understand ‘those we want to reach’. However, the solution is not just about people recognising ‘they have needs for financial services’ (p.10). NIACE welcomes the recognition of the wealth of experience to change behaviours in health education (p.11), but we would like to see an equal recognition of the contribution of the voluntary and community sector, of adult education services and colleges to the financial education of adults.
Third, the scope of the strategy is helpful, especially about what the strategy won’t do. NIACE particularly welcomes the clear areas of financial education, information and advice. We are concerned, though, about the implication that “government” won’t be part of the strategy (p.12).
Fourth, NIACE would want to support the strategy strongly and urges the Steering Group to co-opt a member with a substantial understanding of the education of adults as well as children. The Steering Group will be authoritative in relation to the financial services industry, the media and the advice services. However, it lacks a really strong educational voice and education is a core component of the strategy. NIACE has seen many good ventures fail because wrong assumptions were made about how education providers worked.
Fifth, the finance industry already makes a good contribution to financial literacy and there is a willingness to do more. Education funders and providers have also made a significant contribution. For example, in the last few years we have created an online resource on financial education ‘Money Matters to Me’ ( www.moneymatterstome.co.uk ) supported by Prudential plc. This involves good materials for adult educators to use in college or community centres. Our research and development work on the education of older people resulted in ‘Old Money’ guidance to education providers and policy makers on what the financial education requirement might be for older people, funded by the Department for Education and Skills, and Halifax plc. This year we intend to create a Research Fellow on financial education for adults.
Finally, NIACE would be happy to participate in developing the strategy, as we did in earlier attempts to address the vast difficulties posed by a drive for better financial literacy.
NIACE would be happy to play a part in the development of the strategy, and attach a note of who we are and what we exist to do.
Contact: Dr Peter Lavender, Director for Research, Development & Information, Tel: 0116 204 4206, Email: peter.lavender@niace.org.uk
NIACE, the National Institute of Adult Continuing Education, is the leading non-government organisation working with adult learners in the UK. NIACE is a registered charity and a company limited by guarantee. It is a membership organisation, with individual members and more that 440 corporate members across the full range of providers, policy makers and users of adult learning opportunities, including all local education authorities, many universities, colleges and voluntary bodies; broadcasters, the TUC and the Ministry of Defence. NIACE headquarters are in Leicester, England and Cardiff Wales. The organisation employs 112 permanent staff.
NIACE’s aim is to support an increase in the total numbers of adults engaged in formal and informal learning in England and Wales; and at the same time to take positive action to improve opportunities under-represented in current provision. NIACE undertakes this work through:
 |
research, enquiry, publications, arranging seminars and conferences |
|
advocacy |
|
collaboration with providers across all sectors of the post-compulsory education and training; and through fostering progression routed for adults seeking to develop pathways as learners |
|
supporting evaluation and monitoring to secure a high quality service |
|
managing grant programmes |
|
fostering transitional links for the sharing of good practice |
|
coordination of Adult Learners Week and other promotional campaigns designed to motivate increase participation |
|
effective networking in order to ensure that lessons learned in one part of the system can be drawn on elsewhere. |
The work of NIACE crosses the sectoral boundaries of post-16 education and training. It works in all fields of UK education and training, including local authority-organised provision, the further education college sector, higher education in universities and colleges of HE, employment-led learning involving both employers and trade unions, learning in the voluntary sector and through the media.
NIACE has a particular concern for widening access to learning opportunities and increasing participation among those groups currently under-represented and in danger of exclusion from education and training.
