Financial literacy education provision across Wales is fragmented, according to the Institute of Chartered Accountants in England and Wales (ICAEW).
ICAEW Wales director David Lermon, responding to the National Assembly’s Communities and Culture Committee which is holding an inquiry into Financial Inclusion and the Impact of Financial Education, said while there are or have been a number of worthwhile initiatives, they are not sufficiently joined up and are not always of a sufficient scale.
In his submission, Mr Lermon stressed: “Since many of the issues concern policy areas which are not devolved it is important to ensure that action in Wales is integrated with UK wide programmes – something which we believe the Financial Inclusion Strategy aspires to do.”
He added: “There is a role for the Welsh Assembly Government to ensure that co-ordination is taking place, and that interventions are attuned to Welsh circumstances and the Financial Inclusion Strategy suggests that this should happen.
“It is important, however to make sure that, particularly given the state of the public finances, Wales makes full use of programmes run by UK wide organisations such as the Treasury, Financial Services Authority and the Department of Work & Pensions, rather than developing parallel provision.”
Mr Lermon strongly welcomed the decision to create the Welsh Financial Education Unit, within Department for Children, Education, Lifelong Learning and Skills (DCELLS) and the associated changes to the curriculum to embed financial literacy and capability within the education system.
Mr Lermon concluded: “We think it is possible that integrating financial literacy for adults with the work taking forward the Basic Skills Strategy may not be appropriate. We believe that shortcomings in financial literacy are far more widespread within the population than literacy and numeracy problems (prevalent though these are).There are, for example, significant financial literacy issues among young people studying in Higher Education as is recognised by the experience of the Money Doctors’ scheme.
“Accountants, particularly those in private practice, are important intermediaries who deal with financial issues on behalf of a considerable proportion of the population, many of whom have neither high levels of financial skills or resources. Provided clear and easy-to-access materials can be made available, accountants can be a good source of signposting to impartial money advice services,” added Mr Lermon.
