NEWS: Government announces that Dormant Assets Scheme can be used to support financial education and capability
TISA is delighted at today’s announcement that the Government will be looking at how the Dormant Assets Scheme can be used to support financial education and capability. TISA responded to the Dormant Assets consultation late last year, calling for a portion of the unclaimed monies to be used to fund early intervention financial education.
Whilst Culture Secretary Lucy Frazer MP reiterated the government’s support for those struggling with the cost of living through the provision affordable credit (for which £76 million has been allocated), most industry responses also called for an additional focus on financial education, literacy, and capability.
A number of written responses and roundtable attendees specifically advocated for providing financial education to primary school children, believing that early, preventative interventions would enable children to gain the key financial skills, knowledge, and confidence essential for all aspects of adult life.
As part of TISA’s ongoing work with The Centre for Financial Capability’s (TCFC) on financial education provision, Carol Knight (TISA CEO) joined a roundtable event in September 2022, along with other representatives from the financial service industry and financial education sector. During the roundtable the importance of financial education provision and the benefits of including financial education within the Dormant Assets Scheme was discussed. We are delighted that the Government made specific reference to the TCFC industry roundtable, which DCMS attended to hear the industry’s opinion on where they think the funds should go.
Commenting on the Government Response to the Dormont Assets Consultation Nigel Banfield, Technical Policy Implementation Manager at TISA, said: “We are very pleased indeed that the Government has listened to the advice and contributions from third sector providers, industry members, and associations including TISA and made clear a commitment to increasing financial understanding and education within the United Kingdom, starting at a young age.
“Research conducted by TISA and our members, as well as direct personal experience, has consistently demonstrated that improving financial education must be a major priority in the UK to improve consumer knowledge and understanding, enhance consumer’s financial resilience, and resolve existing problems within dormant assets. This starts with education in schools, however there should be support available to people at every stage of their lives.
“We look forward to reading the details of the Government’s statement of intent later this year. We are ready to contribute constructively and to work with Ministers to ensure improved financial education is given the support it needs.”
We would like to take this opportunity to thank TISA members and everyone who has called has called for financial education to be included in the Dormant Assets Scheme, and to all those who continue to support TISA and the Centre’s work to ensure all children have access to effective financial education. We are so delighted that the Government is listening to our calls for promoting financial education further within the UK, and we look forward to the next stages
Read the Government’s full response here.