Financial Inclusion: Young People
House of Commons · Westminster Hall · 30 Jun 2026 · 26 speeches · Official Report
I beg to move, That this House has considered financial inclusion for young people. It is a pleasure to see you in the Chair, Sir John. Today, young people are one of the groups most at risk of financial exclusion. Analysis by Fair4All Finance has identified 2 million unsteady starters in financially vulnerable circumstances across the UK. That includes 11% of financially vulnerable adults in Hertford and Stortford. Predominantly under 35, those young people are facing a combination of pressures: low financial resilience, higher housing costs, insecure work, rising insurance costs and a growing exposure to online financial risks. They experience poorer financial wellbeing as a result, closely linked to poor mental health, creating a vicious cycle that can undermine their educational attainment, employment prospects and economic participation. Financial inclusion is about more than access to banking; it is about access to affordable credit, insurance, savings, trusted financial guidance and opportunities to build a financial track record. I am pleased that the Government have recognised the importance of tackling financial exclusion in the financial inclusion strategy. If we can break down the barriers to financial inclusion, we can improve the lives of millions of people and unlock growth across the country. In this afternoon’s debate, I want to examine the barriers to financial inclusion that young adults face, and consider where Ministers could build on the financial...
I commend the hon. Gentleman for bringing this forward. The situation in Northern Ireland is no different from the one he described in his constituency and the wider United Kingdom. Young people face unprecedented barriers to building financial security. High street bank closures are turning rural and working-class communities into banking deserts. At the same time, the aggressive use of unregulated “buy now, pay later” schemes and predatory online lending apps is driving vulnerable young adults into spirals of unmanageable debt before they even secure their first mortgage or full-time career. Does he agree that the Government must implement comprehensive, mandatory financial literacy education in our schools, as a priority?
I could not agree more about the importance of financial education for young people, which I will come to in my speech. We can already see how those overlapping pressures exacerbate a young person’s financial insecurity. Insurance is another area where they are left facing vulnerability to financial shocks that they are already ill-equipped to absorb. I was shocked to learn that 18 to 24-year-olds are significantly less likely to hold contents insurance, even though they are more likely to experience flood damage, escape of water, fire damage, burglary and theft. That is especially true when they live in rented accommodation, which many young adults do. I want to draw particular attention to the cost of motor insurance. Young people often make significant personal investments in driving lessons, to make it easier to get to work or education, only to find they cannot access affordable insurance when they pass their test. That directly impacts their ability to access work, training and other opportunities, especially in semi-rural communities such as the one that I represent, and it highlights how young people can face financial exclusion even when they are doing everything right. Too often, young people are entering adulthood without the tools, confidence or support networks that they need to navigate increasingly complex financial decisions.
My hon. Friend is an incredible advocate for young people in his constituency, but also across the country. What is his opinion of a lot of young people getting financial education from social media or AI chatbots? The Government need to regulate that but also, ahead of the social media ban, ensure that we are bringing financial education into schools and other real-life forums, so that young people do not miss out.
I could not agree more about the importance of regulating access to financial information across social media and AI, which is an emerging challenge. Embedding financial education in school is so important, particularly ahead of the social media ban, which my hon. Friend mentions. Research has shown that young people have the lowest confidence in managing their money. The latest MoneyView survey from the Money and Pensions Service found that although 41% of adults lack confidence managing money, the figure rises to 63% for 18 to 24-year-olds. That is the highest for any age group. I welcome measures in the financial inclusion strategy to embed financial education in the primary school curriculum, helping children to develop healthy attitudes towards money at the earliest stage, but there is a need to go further. A report in 2025 by the London Foundation for Banking & Finance highlighted a significant gap in financial education provision. Financial capability programmes are concentrated in primary schools, the early years of secondary school and workplaces. There is comparatively little structured support for young people aged 16 to 24 as they transition to financial independence. That is one of the most financially vulnerable periods in a young person’s life. They have to navigate leaving school, entering work or going to university, and living independently for the first time. Particularly as students, young people are vulnerable to developing bad financial habits,...
Order. I should remind Members that they need to bob, though I see they already know that. I call Robbie Moore.
It is a pleasure to serve under your chairmanship, Sir John. I commend the hon. Member for Hertford and Stortford (Josh Dean) for securing this important debate, and congratulate him on his speech-I thought he made some excellent points. Many young people are entering adulthood without the knowledge, confidence and access to the financial services that they need to build secure futures. Some 70% of adults believe that better financial education in their younger years would have improved their ability to manage their finances, and two thirds of young people believe that the lack of financial education has played a role in their amassing the debts they hold. I wish to talk through a few issues that have been raised with me, particularly regarding access to apprenticeships and the challenges that those in our rural economy face with increased costs. I recently visited Keighley college in my constituency, where I met the principal Kevin O’Hare. Kevin highlighted to me a key issue that is putting young people undertaking apprenticeships at a financial disadvantage compared with those who decide to stay in full-time education, if they are from financially deprived backgrounds. Currently, young people who remain in full-time education after the age of 16 continue to be treated as dependent children for the purpose of a range of household benefits. In contrast, young people who enter an apprenticeship are generally treated as employees, which can lead to a loss of income-related...
Order. Four Members are standing, so they have about five minutes each.
It is a pleasure to serve under your chairship, Sir John. Thank you for allowing me to speak. I thank my hon. Friend the Member for Hertford and Stortford (Josh Dean) for giving us the opportunity to reflect on the importance of financial inclusion among young people. As the former co-chair of the all-party parliamentary group on financial education for young people, I am really pleased to see the work that the Government have already done to expand education to support young people. I will focus on financial education as a way to remove the barriers to financial inclusion for young people. In its 2025-26 review, the London Foundation for Banking & Finance found that 64% of young people surveyed felt anxious about money, and that only 19% could answer basic financial literacy questions. It is therefore vital that we roll out our curriculum changes as soon as possible, as 80% of those youngsters wanted to learn more about finance-they are willing and ready. Will the Minister set out how we will provide financial education for young people? How will we ensure that there are enough teachers and that they are supported to teach that vital skill? It is crucial that we do not focus just on those still in school. Financial inclusion for young people must also include young people over 16. Before coming to this place, I worked for a housing association, and I undertook a significant piece of work on financial and digital inclusion. It was immediately clear that many adults need...
It is a pleasure to serve under your chairship, Sir John. I commend my hon. Friend the Member for Hertford and Stortford (Josh Dean) on a terrific speech and on gathering us in Westminster Hall today. May I take a moment to take you back to your first job, Sir John? I am sure you will remember your pride at bringing home your first payslip. In today’s society, young people are turning to TikTok for beauty advice, fashion trends or the latest dance craze. It is where they learn how to spend their hard-earned cash, but it has also become a place of toxic finfluencers, where so-called get-rich-quick opportunities are being targeted at young people. All of a sudden, things on social media can start to feel slightly odd, because for young people those opportunities are often promoted on familiar apps that they know, in formats that they recognise and delivered by people who seem relatable. An influencer who a young person might like may appear to be educating them about money, as perhaps a big brother or sister would, but we often find that those types of ads and reels can become exploitative. As a former Financial Conduct Authority regulator, I think we are now entering a phase of TikTokification of financial advice. The FCA, my old place of work, must be commended on its work on financial promotions, but unfortunately it has found that in some cases the majority of TikTok ads breach its finprom rules. I call on social media giants and big tech to do more to take heed from the...
Just for the record, my first job was in Chiesmans, a department store that then existed in Lewisham, where I served in the china and glass department.
It is a honour to serve under your chairship, Sir John. My first job was on the deli counter of my local supermarket. I congratulate the hon. Member for Hertford and Stortford (Josh Dean) on securing this important debate. In the middle of a cost of living crisis, whether a young person knows how to manage their money, can afford to stay in education, can access affordable financial services and advice they can trust, can avoid problem debt and can build a secure future has never mattered more. Young people are facing challenges that previous generations did not. Money has changed. For previous generations, it was coins in a pocket or cash in a wallet. Today it is numbers on a screen-online banking, apps, digital wallets, “buy now, pay later” schemes, cryptocurrency and social media influencers offering financial advice that often benefits themselves rather than the young people following them. We assume that because young people are comfortable with technology they are financially literate, but those are not the same things. The Milburn review laid out the importance of financial inclusion for young people. Between January and March of this year, 1.01 million people between the ages of 16 and 24 were not in education, employment or training. The number of young adults regularly relying on borrowing has increased by 45% in just one year. Many are using unsecured loans and buy now, pay later products to cover everyday essentials, while one in five were employed on zero-hours...
It is a pleasure to serve under your chairship, Sir John. I thank my hon. Friend the Member for Hertford and Stortford (Josh Dean) for securing this important debate on an issue that matters greatly to my constituents. My first job was as a paper boy; I would not say that I had to lie, but I certainly had to say that I was a little bit older than I really was to secure the job. In a debate about financial inclusion, it would be remiss of me not to mention student loans, one of the greatest barriers to young people achieving financial security. In the financial inclusion strategy, the Government rightly recognised the importance of embedding financial literacy in the curriculum to empower young people to make informed financial decisions. However, there remains a glaring gap when it comes to student loans. Young people seeking to go to university do not have a proper understanding of what they are signing up to. They are either unaware of the scale of the student debt they may incur or are misled into believing that student loans are not real loans. Some are told, “You don’t even have to pay them back.” One constituent told me that although she wanted to pursue an apprenticeship, she was instead encouraged to go to university. All the virtues of university were relayed to her, but none of the drawbacks. She was told that student loans would be the easiest loans she would ever take out. Now she is saddled with tens of thousands of pounds-worth of debt and mounting anxiety...
It is a pleasure to serve under your chairmanship, Sir John. I congratulate the hon. Member for Hertford and Stortford (Josh Dean) on his work to secure this debate and his excellent opening remarks. The decline of high street services has been an ongoing issue in the UK, with banks and other essential services disappearing at an increasing rate. Local high streets provide a variety of vital services to their local communities, but the current landscape is extremely challenging for many local enterprises. I join other Members by referring to my first job, which was at WH Smith on Camberley High Street; I reflect on how many of the jobs from our small sample this afternoon were in a retail environment on a local high street, and how important that is for young people looking to get their foot on the ladder of a future career. I am sure that colleagues from across the House have heard from countless local businesses in their constituencies, on their high streets and in the hearts of their communities, about the challenges they face, from the Government’s national insurance contributions rise to sky-high energy bills, and uncertainty about what the Employment Rights Act 2025 means for them. This is placing an unsustainable burden on many businesses and services. In the past three years, nearly 2,000 bank branches have closed across the UK, due to declining in-person transactions and the rise of online banking. Many villages and small towns now do not have even a single bank,...
It is a pleasure to serve under your chairmanship, Sir John. You have launched an unfortunate trend of people fessing up to their first jobs; however, it gives me the opportunity to make a point about the context in which we are debating the financial inclusion of young people. My first job-probably illegally, at the age of about 10-was a Saturday job helping out a milkman on the milk round. I then had a Christmas holiday job helping the Royal Mail to deliver Christmas letters, and a summer job packing electric parts, all of which I did in Bedford. The key point, which relates to financial inclusion, is that a lot of what this Government are doing is turning employers away from being able to offer those job opportunities to young people. I really hope that they will rethink that, because as we have heard, the number of young people out of employment is going up quite considerably. I congratulate the hon. Member for Hertford and Stortford (Josh Dean) on securing this debate. I also thank him for the tone and the insights with which he opened it, which all subsequent Members reinforced, and would like to refer to some of the points made. The first was from the hon. Member for Hertford and Stortford, who recommended more action to support small sum lending and spoke about the beneficial effects that that can have on credit track records; I will reinforce that point a little later in some questions to the Minister. My hon. Friend the Member for Keighley and Ilkley (Robbie Moore)...
I call the Economic Secretary to the Treasury. Rachel, could you allow a short time at the end for Josh to wind up and for me to put the Question?
It is a pleasure to serve under your chairmanship, Sir John. I am grateful that my first chance to speak as the Minister in Westminster Hall is in such a thorough and rich debate on this topic. Let me join in with the tradition of talking about our first job by saying that I spent many a happy afternoon doing a Saturday job on the high street in a sadly now-closed women’s retailer. I am very proud that jobs like that still exist: it gave me a thorough and deep understanding of the importance of the high street. It would be impossible to cover or respond to all of the rich and broad points that have been raised this afternoon. I also want to give my hon. Friend the Member for Hertford and Stortford (Josh Dean) a chance to respond; I thank him for securing this debate and for all his work to focus the Government and colleagues on young people and the particular challenges that they face. We have had a really broad range of contributions, including from the hon. Members for West Dorset (Edward Morello) and for Keighley and Ilkley (Robbie Moore) and from my hon. Friends the Members for Ilford South (Jas Athwal), for North West Leicestershire (Amanda Hack), for York Outer (Mr Charters) and for Kettering (Rosie Wrighting). It has been a powerful debate. We can all agree on the importance of ensuring that everyone across the UK has access to affordable financial products and services to enable them to engage in the economy. In responding, I want to talk briefly about youth...
I welcome the Minister to her place. On the issue of mental health, many young people in my constituency raise the challenge of getting into work. With youth unemployment now at record levels, does she realise that one of the best ways of tackling mental health issues is to enable people to get into the job market in the first place, so that they do not have the additional pressure and anxiety of not being able to earn funds? Does she not recognise that things like employer national insurance, the Employment Rights Act 2025 and minimum wage increases have exacerbated the unemployment figures? Will she work with industry to address the concerns that are being raised with me and, I am sure, with her in her new role?
As the hon. Member will expect, I disagree with his characterisation of employer NI and the Employment Rights Act. I remind him of the positive impact that both those measures are having on workers, our NHS and the services that they are funding, and of the specific ways in which they operate with young people. His evidence base therefore does not entirely stack up. I turn to the issue of building up a credit record. The Government are continuing to engage with the FCA on its work with industry to tackle thin credit files. As part of that, the FCA has recently consulted on introducing mandatory credit information sharing by regulated firms, which would mean that any firm reporting to one designated credit reference agency must report the same information to all such agencies, ensuring full and consistent information on a consumer’s file. To give my hon. Friend the Member for Hertford and Stortford a chance to respond, I will rattle through actions on insurance. The Government recognise the important role of insurance in supporting individuals’ financial resilience. There are pilots among social renters, led by Fair4All Finance, and the Government also recognise that affordability is a key issue. We have had quite a thorough discussion about scam ads. The Online Safety Act 2023 places duties on the largest social media platforms to tackle fraudulent adverts. Ofcom is due to consult on those measures later this year, and once they are implemented it will be able to impose...
Will the Minister give way?
No, I have finished.
But we have half an hour.
No, only three minutes.
Absolutely. You missed the cut there, Robbie. I call Josh Dean to wind up very briefly.
I will keep it brief, Sir John. To add to the trend, I will just share the fact that my first job was in a local coffee shop. It has been great to hear about rurality, the importance of car insurance, social media, fraud and student loans; I will not share just how high my student loan bill is, having checked recently. The importance of financial inclusion has really been brought to life, as have the challenges that young people face. I thank all Members who have contributed to this important debate, and I thank the Minister for her response. Every young person deserves to build a secure and sustainable financial future. I hope that the Treasury will continue to think ambitiously about how we can support them in doing so. Question put and agreed to. Resolved, That this House has considered financial inclusion for young people.
Sitting adjourned.