Press Release

Financial literacy for all demanded by global accountancy body

ACCA’s manifesto for learning and skills calls for urgent change

A radical shift in society’s attitudes to personal finances is called for today by ACCA (the Association of Chartered Certified Accountants) at the launch of its learning and skills manifesto “Championing Learning and Skills – An Agenda for England.”

The manifesto says that financial literacy education is needed from school to post-retirement to stop consumers from spiraling further into debt. To achieve this, ACCA calls for the Government to commit to the introduction of the financial equivalent of Legal Aid.

This Finance Aid would aim to contribute to the work of the current advice network, from Citizen Advice Bureaux to commercial financial advisers. It would identify a network of ‘trusted intermediaries’ to provide guidance, support and information for the consumer.

Clare Minchington, Managing Director – Education, Learning and Development at ACCA said at the launch: “Finance is integral to the operation of every economy and pervades every part of individual and organisational life. The UK must develop a financially intelligent society so it can compete on the global stage.”

Minchington added: “Financial literacy must be embedded in the education and development of all individuals from school to post-retirement. Through education, higher levels of financially responsibility will be achieved. That’s why we’re also announcing today ACCA’s support of The Open University’s new financial capability course, ‘You and Your Money: Personal Finance in Context’, which will deliver financial capability education across the UK.”

The manifesto states that young people should be taught about tax, savings, debt and pensions in school to prepare for adult life. Minchington explained: “Lessons that explain how and why tax and National Insurance is paid, and why making early financial provision for pensions pays, may help alleviate on-going and longer term problems as young people undertake the transition from dependence to independence.”

The manifesto also calls for action from the Government on five other related key areas:
1. Ensure there are employer shaped qualifications: Employers need to be brought fully into the process of curriculum and qualification reform.
2. Recognise Professional Bodies: The Government needs to give appropriate recognition to the role of professional bodies and their expertise in addressing the skills needs of the UK.
3. Introduce a Sector Skills Council for Accountancy: Use the forthcoming reform and re-licensing of Sector Skills Councils (SSCs) as an opportunity to establish a ‘cross-sector’ SSC for accountancy.
4. Commission for Employment and Skills to have accountants on its board: Accounting practitioners should be included on the board of the Commission for Employment and Skills, recognising that accountants are the first choice adviser to SMEs and can offer expertise on, and access to, the SME sector.
5. Ensure immigration policies attract talent: Better information on, and consistency in, the application of immigration policies is needed to prevent an adverse impact on student numbers in the UK.

Minchington concluded: “We’re partnering with the Open University to help them deliver their You and Your Money course to as many people as possible. Our manifesto is a call for action and change in attitudes – which we recognise as being no mean feat. But financial capability for all, a skilled and financially savvy UK plc is a must for the increasingly competitive 21st century – these are imperatives to the future success and growth of the UK economy and its citizens.”