Financial services industry unites to demand that dormant assets be used to fund early financial education – FE News


Today, key stakeholders from the financial services industry and financial education sector in the UK have come together to call on the government to secure sustainable funding for the delivery of effective and efficient financial education. high quality for children and youth across the country.

Nearly 30 leading stakeholders, including DCMS, TISA UK and GoHenry, attended an industry-focused roundtable, hosted by financial education charity the Center for Financial Capability, to participate in a discussion on the industry’s view of the dormant asset consultation and why it is important that some of the unclaimed dormant asset funds are used to fund the financial education of children across the UK.

Following the passage of the Dormant Assets Act earlier this year, the Dormant Assets Scheme has been expanded to include insurance, pension, investment and wealth management assets, as well as securities and 880 million additional pounds of unclaimed assets will be released. The Department for Digital, Culture, Media and Sport and the Government are now inviting organizations and individuals to contribute to the Dormant Assets Consultation which will inform the good causes the funds should be used for, including youth, financial inclusion, social investment and community. wealth funds.

Over the past year, the Center has campaigned for a portion of these funds to be earmarked for sustainable financial education for elementary school children. The charity engaged with parliamentarians in the House of Commons and House of Lords during the passage of the Dormant Assets Bill, many of whom were in favor of using unlocked assets to part-fund financial education programs across the UK.

Surprisingly, 96% of teens worry about money every day, and more than half of teens are expected to be in debt by age 17. A June 2021 survey, conducted on behalf of the Center, also found that 25% of children like 6-year-olds are more worried about money because of the pandemic. These statistics are truly disturbing, and it is crucial, now more than ever, that children’s concerns about money are addressed. Money and Pensions Service research shows that money-making habits are formed as early as age seven, making financial education at the primary level vital for future financial stability. As the cost of living crisis has a detrimental impact on young people, it is more important than ever that the next generation is equipped with the necessary tools to help them prepare for future economic shocks.

Administrator of the Center for Financial Capability Carol Knight said:

It was fantastic to speak today at this important industry roundtable on behalf of the Center and to see the UK financial services sector come together to unite behind the common good cause of financial education.

We are currently in a position where millions of primary school age children are not receiving any financial education and the identified dormant assets that need to be released present an opportune time to secure sustainable funding for the delivery of financial education in schools. primaries across the UK. The link between weak financial capacity and unclaimed assets is intrinsic and has resulted in the billions in stranded assets the government finds itself with today. It is therefore essential that the government heed calls from industry to invest in prevention and education, to ensure that young people can live financially independent adult lives.

  1. The dormant asset industry roundtable took place on 15e September 2022. The event was chaired by Center for Financial Capability Trustee Carol Knight and speakers included Lord Watson of Invergowrie, Center Trustee and Co-Founder of GoHenry Louise Hill and Head of Responsible Business at Quilter and Member of the Stewart Poiré Center.
  2. The Center for Financial Capability is a charity whose mission is to ensure that every child in the UK develops the skills and behaviors needed to make critical financial decisions in their lives – starting in primary school. This charity was formed by the backers of KickStart Money, an award-winning coalition of financial services companies founded in response to groundbreaking research from the Money and Pensions Service which showed that financial habits are formed at the age of 7 years. impact of early intervention financial education, Kickstart Money members are placing their commitment on a more sustainable, longer-term basis to address the key challenges that prevent effective financial education for all. The Center will champion a diverse, long-term program of work, which will include continuing to fund the KickStart Money program, fostering innovation, gathering evidence, and supporting research and campaigning for change. More information about the association can be found at:
  3. Supporters of the Center for Financial Capability include Abrdn, ABI, Aviva, AXA Investment Managers, Columbia Threadneedle Investments, CQS, Franklin Templeton, GoHenry, Janus Henderson Investors, Legal & General Investment Management, Liontrust Asset Management, M&G Investments, Newton Investment Management, Quilter, Schroders and St James’s Place Wealth Management.
  4. The Government Dormant Assets consultation is available here:,a%20wider %20range%20of%20sectors.

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