Money News

Banks: ‘We pay enough to educate public about money’

The government wants to make Brits better at understanding money, but who will foot the bill?

Government plans to improve financial literacy in the UK may face funding issues, as banks say they already contribute enough for money education.

The plans are included in the Financial Services and Business Bill, which was outlined in the Queen’s Speech today.

However, the British Bankers’ Association (BBA), which represents UK banks, said that the industry already pays around £100million a year towards financial education.

In a statement, it said: “Simply asking the industry to pay more is not the best way to achieve the right result.”

It said that banks are committed to financial education and would support moves to refocus and target the money they already pay towards financial education.

The BBA figure of £100million is based on data collated from member banks, according to Brian Mairs, assistant director of strategic communication at the BBA.

He said that member banks fund a variety of initiatives, including the provision of learning materials for schools, but said that the BBA is unable to provide a complete breakdown of how the £100million is being spent.

The Financial Services and Business Bill also includes plans to ban unsolicited credit card cheques and give regulator the Financial Services Authority (FSA) additional powers. It will be published in full tomorrow.