Wealth & assets

Tackling the financial capability deficit

Patrick Stevens
Patrick Stevens

This briefing sets out the evidence from a new poll commissioned by the Resolution Foundation from YouGov. The poll suggests that people in the UK are in a poor state of financial health, with parents in particular concerned about how their children will cope with the financial decisions they will face and large numbers of people regularly worrying about their finances. 

Key findings

  •  The Financial Services Authority (FSA) has made good progress in recent years in leading efforts to improve ‘financial capability’. There are also welcome indications that the Government is giving increasing priority to improving the UK’s financial health, with a financial capability action plan due later in the year and a review, led by the Chief Executive of AEGON UK, Otto Thoresen, currently taking place to determine how to deliver ‘generic’ financial advice on a national basis.
  • As managing personal finances becomes a more complex task, our poll reveals strong support for these initiatives. In light of these findings, the Foundation is underlining the opportunity for the Government to earmark funding in the forthcoming Comprehensive Spending Review to deliver a national generic financial advice service, following the publication of the Thoresen Review’s recommendations in the New Year.

Further reading

Ineffective Savings Accounts
·
Molly Broome
In too deep?
The impact of the cost of living crisis on household debt
·
Felicia Odamtten, Simon Pittaway
Precautionary tales
Tackling the problem of low saving among UK households
·
Molly Broome, Ian Mulheirn, Simon Pittaway
Patrick Stevens
Patrick Stevens Trustee