Recommendation 18

HM Government Rejected

4.1 The government disagrees with the Committee’s recommendation. 4.2 As set out above, the government remains committed to ensuring all children and families with a matured CTF can access it and will continue to support activity to address the barriers highlighted in the committee’s report for certain groups by working collaboratively across government. 4.3 However, the government believes that the existing policy framework of supporting and encouraging people of all incomes and at all stages of life to save is the right one and addresses the recommendation. The Help to Save scheme is intended to promote financial resilience among working households on low incomes by encouraging a regular, long-term savings habit and building a financial buffer to help people to plan and prepare for the future. The Junior ISA allows parents and family to save for a child’s future in a tax-free environment while the introduction of the Lifetime ISA supports those saving for a first home or later life. Savers also benefit from the Starting Rate for Savings of up to £5,000, the Personal Savings Allowance of up to £1,000 and the annual ISA allowance of £20,000. As a result of current savings tax reliefs, 95% of individuals with savings income outside of an ISA in 2020-21 did not pay tax on said income. 4.4 The government recognises that economic and financial education are important parts of a broad and balanced curriculum which provides the essential knowledge to ensure that young people are prepared to manage money well and make sound financial decisions. Pupils currently receive financial education through the maths and citizenship elements of the National Curriculum, which is compulsory in maintained schools. While Academies and free schools have greater freedom and autonomy in how they operate in areas such as the curriculum, they are expected to teach a curriculum that is comparable in breadth and ambition to the National Curriculum, and many choose to teach the full National Curriculum to achieve this. 4.5 In 2021, MAPS published financial education guidance documents for primary and secondary schools in England. That guidance encourages conversations about money in the classroom by setting out ten steps schools can take to boost the delivery of financial education throughout a child’s school career. 4.6 HMRC also supports the work being undertaken by Industry bodies such as The Investing and Savings Alliance (TISA) to address gaps in the personal finance knowledge of young adults in the workplace through training courses such as ‘The Essentials of Money Management’, which aims to help firms support their staff to make informed financial decisions.