Financial capacity: the government of the long-term approach

The government has set up its long-term approach in the financial capacity Financial capacity: the government of the long-term approach published on January 15, 2007. The report states that the government aspirations in the long term to ensure that:

* All adults in the UK have access to high quality generic financial advice to help them interact with their financial affairs and to make informed decisions about their money;
* All children and youth have access to a planned and coherent programme for the education of personal finances, so they leave school with the skills and confidence to manage their money, and
* A range of government programs focused on improving the financial capacity, particularly to help those who are most vulnerable to the consequences of bad financial decisions.

The government will also:

* Establish an independent feasibility study, headed by Otto Thoresen, CEO of AEGON UK, to research and develop a national approach to generic financial advice;.
* Create a ministerial group, chaired by the Economic Secretary to the Treasury, to develop, oversee and coordinate the work of the Government, and
* Publish a plan of action, by the end of 2007, setting out how the financial capacity will be integrated into existing services, especially for those who are most vulnerable to the consequences of the poor financial skills.

This document set out the general government action plans for achieving the vision of more financially capable consumers. There is more detailed work to be done, both on access to generic and advice on how to use the levers of government to integrate the financial capacity to education and other programs where they will have the most impact. To inform this work, the government would like to hear from a wide range of stakeholders. Written answers to any of the issues raised in this paper would be welcome.