New report on financial capability endorses NYA’s approach

9 Mar 2018

A new report on young workers and financial capability calls on employers to do more to skill up their young recruits on money matters, as nearly half struggle to pay their bills.

The report, by NatWest, argues that financial capability training should be classified as off the Job Training and built in to future apprenticeship standards and curriculum.

The report features a case study from the National Youth Agency’s My Money Now programme, funded by the Money Advice Service through the What Works programme. It delivers training to improve the financial capability of 16-21 year olds embarking on an apprenticeship.

Citing NYA’s scheme as an effective way for smaller employers to help equip and support their employees with their finances, the report quotes the experiences of Collins Kiplimo, an apprentice with Midland Training Group, based in Coventry who attended NYA’s 6 hour training.

Collins said, “I learned how to read a bank statement properly, there are so many details on there that I had never thought about before, and I learned about different types of bank account and what they were for. We also looked at long-term saving using case study examples to illustrate how much you could save by saving different amounts over different timescales. There was some great advice on managing your money.”

Leigh Middleton, National Youth Agency’s CEO, said, “We’re delighted to see growing recognition of the importance of young people’s financial capability, and we endorse the findings of this report.

“NYA’s experience of delivering My Money Now has shown us that smaller employers struggle to offer the support young apprentices need. We often hear about very large employers who invest huge sums into training. Yet SMEs will be the bedrock for apprenticeships – if we can help them support apprentices effectively with their money, we can provide a vital life skill for the next generation of employees.”

The report’s finding and recommendations will be considered by the Education Select Committee, as part of a wider inquiry into improving the quality of apprenticeships.

Robert Halfon MP, Chair of the Education Committee, said: “Apprenticeships provide a great opportunity for people from all backgrounds to earn as they learn. We must make sure that all young apprentices have the financial capability to take on this responsibility and that they are getting the high quality training and support they deserve. As part of our inquiry into the quality of apprenticeships and skills training we will be looking at what more can be done to ensure this and make sure they have the right support to climb the ladder of opportunity.”