Source · Select Committees · Education Committee
Recommendation 2
2
Acknowledged
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Early financial education in primary school is crucial for children's future financial literacy.
Conclusion
Effective financial education needs to begin early, during primary school years. We have heard evidence that the limited provision of financial education in primary school mathematics does not adequately prepare children for the fast-changing financial world in which they increasingly participate. Building a strong foundation for financial education at primary school would also ensure that as children develop their cognitive abilities and a sense of delayed gratification, they will do so informed by good financial practice.
Government Response Summary
The government agreed that maths is fundamental for financial management and is committed to improving early maths education standards. It noted existing primary maths content that supports financial understanding and mentioned that the Curriculum and Assessment Review (CAR) would consider curriculum breadth. Oak National Academy will also release new financial education lessons by Spring 2025.
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Government Response
Acknowledged
HM Government
Acknowledged
The government agrees that maths is a fundamental skill that underpins effective financial management, including financial risk, and the confident and competent application of financial skills and tools. The Programme for International Student Assessment (PISA) results show a strong correlation between results in financial literacy and maths, with a correlation, on average, of 0.871 across the Organisation for Economic Co-operation and Development (OECD) countries. The foundations for mathematical understanding are laid in the early years and the Early Years Foundation Stage Profile is clear that the full breadth of maths should be taught from birth. However, our latest data (2023 to 2024 academic year)2 indicates that 27% of children are not meeting the expected level of development by the age of 5, which is why we have committed to drive up standards in early maths education, increasing the quality of early maths provision for all children. The primary maths curriculum includes arithmetic knowledge that supports pupils’ ability to manage budgets and money, including, for example, calculations with money and percentages. In secondary maths, pupils are taught topics such as how to calculate compound interest, which is relevant for personal finance. International comparison studies of school-aged pupils show that England performs above the international averages for maths for all age groups3. Although still behind pre-pandemic levels, the percentage of pupils meeting the key stage 2 expected standard in maths in the 2023 to 2024 academic year was 73%, unchanged from 2022 to 2023 and with a small improvement on 71% in 2021 to 2022.4 At key stage 4, gaining level 2 skills in maths and English gives students the opportunity to progress in life, learning and work. However, as set out later in our response, around one third of 16-year-olds do not achieve this by the time they leave year 11. To support these students to progress, students on a 16 to 19 study programme, who have not attained a level 2 qualification in their maths at 16, are required to continue studying maths. Ofsted published their latest maths subject report5 on 13 July 2023. It found that, in the last few years, a resounding, positive shift in maths education has taken place in primary schools. Curriculum is now at the heart of leaders’ decisions and actions. We now see high quality curriculums, collaborative support for teachers and a focus on maths teaching. Ofsted’s report also found that previous deficiencies in curriculum guidance and weaknesses in professional development for staff, are now much less likely to be evident in secondary schools. The 2023 report recommended that “curriculums emphasise secure learning of, rather than encountering, mathematical knowledge and that curriculum sequencing prepares pupils for transitions between key stages and phases”. Nevertheless, the government recognises that there is more to do to ensure that all pupils leave school with a solid grasp of maths, which is crucial for a variety of professional fields, and unlocks doors for pupils. In particular, despite a positive picture overall in international tests, in PISA 20226 in England, there was a significant difference in performance between the most and least disadvantaged pupils. As noted above, the CAR, covering ages 5 to 18, will seek to deliver a rich and broad curriculum that readies young people for life and work. Maths is one part of the review which aims to secure excellent foundations for all pupils. The review will consider children and young people’s education and experiences from the beginning of key stage 1 through to key stage 5, ensuring that children build on their learning and development in the early years. We know there is also more to do to address the shortages of qualified teachers across the country. Maths continues to be a subject that is challenging to recruit to; the post-graduate initial teacher training (ITT) target for maths has not been met in recent years. In the 2024 to 2025 academic year, there were 2,221 new trainees starting postgraduate ITT in maths7. This was a 24% increase on the numbers starting maths postgraduate ITT in the 2023 to 2024 academic year. However, this represented only 72% of the 2024 to 2025 postgraduate ITT recruitment target for maths. To help address this, we are making available bursaries of £29,000 tax-free and scholarships of £31,000 tax-free for trainee maths teachers. Maths teachers in the first five years of their careers who choose to work in disadvantaged schools are also eligible for a Targeted Retention Incentive worth up to £6,000. The government notes the Committee’s recommendation that more financial content should be incorporated into the maths curriculum. The committee mentions the Oak National Academy (Oak). An independent evaluation8 shows that Oak was used by around 1 in 3 teachers in the 2023 to 2024 academic year, across all types of school and school phase. Maths resources wer