The ifs School of Finance was responding to the announcement by the government and QCA on reforms to secondary education in England & Wales. As part of the reform package, 'economic well being' is being hailed as a new subject to ensure young people gain basic skills in personal finance.
However, ifs said there is nothing new in the announcement, with most of the changes having been signalled earlier this year.
Gavin Shreeve, chief executive at the ifs School of Finance, said: “We are disappointed that the announcement is no different to what Government previously committed to, i.e. adding "economic well being" to Personal Social Health Education (PSHE).
"The study of PSHE will remain optional and non-examinable and the economic well being component will be just one small strand of a diverse subject.
"As Ofsted confirmed, some secondary schools do not teach PSHE at all because they want to give more space to academic and accredited subjects. Of those that do teach it, few include any of the Personal Finance elements that are already supposed to be part of the subject. The plans therefore appear highly unlikely to change the financial behaviour of any young person.
In contrast, standalone qualifications in personal finance have been independently proven to make a positive difference to the way in which young people make financial decisions. This is why we are calling on Government to introduce a standalone subject in Personal Finance so that all students have the opportunity to gain what is an increasingly crucial life skill.”
The ifs School of Finance said it is far from alone in believing schools should be compelled to offer their students the opportunity to gain these skills through statutory provision. Some 69% of secondary schools in England & Wales believe financial education should be made statutory (FSA UK Benchmark Study, June 2006) and earlier this year both the Building Societies Association and British Bankers Association called on Government to make financial education a compulsory part of the curriculum.
In addition, almost 90 MPs have now signed EDM 291 calling on the Government to ensure all schools offer a standalone qualification in personal finance.
Earlier this month FSA chief executive John Tiner said that Ed Balls should, “…ask his new colleagues to find room for financial education on the mandatory core curriculum at the earliest opportunity.”
