HC Deb 19 December 2003 vol 416 cc161-2W
Mr. Gardiner

To ask the Chancellor of the Exchequer what resources he is allocating to increase adult financial literacy so that parents of children with child trust funds can make informed decisions about investments for their children. [145711]

Ruth Kelly

We are working with the FSA and key players in adult literacy from Government and the voluntary sector to identify the needs of parents in relation to managing the Child Trust Fund and the best ways of meeting them.

We will continue to work very closely with the FSA and others, like the Personal Finance Education Group (PFEG), to improve financial literacy standards among the population. I am on the Financial Capability Steering Group led by the FSA.

Research has been carried out into the communication needs of parents whose children are eligible for the Child Trust Fund, particularly those of parents who have little or no experience of saving. The findings will inform the information pack that will be sent out with the CTF voucher and a website on the CTF.

This work will develop over 2004 and involve financial providers and community groups too. We expect a range of explanatory materials to be developed to help families make informed decisions about their Child Trust Funds.

Mr. Gardiner

To ask the Chancellor of the Exchequer what discussions he has had with the Secretary of State for Education and Skills about using the child trust fund to improve financial literacy for children and teenagers. [145713]

Ruth Kelly

I am the Minister responsible for the Child Trust Fund and my officials work very closely with the Department for Education and Skills and others involved in delivering financial capability for young people. I also refer my hon. Friend to the answer I am today giving to his question 145719.

Mr. Gardiner

To ask the Chancellor of the Exchequer what resources will be available to teachers to increase their financial literacy so they are able to inform their pupils about child trust funds. [145719]

Ruth Kelly

We have already committed to commissioning the development of a range of Child Trust Fund (CTF) teaching and learning resources. The Inland Revenue will also work closely with the Department for Education and Skills, devolved administrations, FSA and other organisations to assess what additional support will help children engage with their CTF. This could include joint work to consider the professional development needs of teachers teaching personal finance topics and issuing updated guidance on teaching personal finance incorporating the CTF.

A key point of contact will be a website dedicated to the CTF. It will be developed initially to meet the information and guidance needs of parents, then increasingly over time those of teachers and children.

Ensuring teachers are properly equipped to deliver financial capability is important. We await with interest the outcome of work that has been undertaken independently by the Personal Finance Education Group into these issues, which is due to report in the new year.