Tory's plan to teach people to be debt-free

Monday, 20 November 2006 12:00

The Conservative party will put financial lessons on the school curriculum in an attempt to halt the UK's spiralling debt mountain.

Speaking at a "debt summit" shadow chancellor George Osborne said children will be taught how to handle money and finances from 11 to 18, with exams brought in to test this knowledge.

"Insolvencies are up, bankruptcies are up, and the numbers of people struggling to cope are up," he said.

"This isn't just a problem for the people caught up in rising debts. It's a potential problem for everyone.

"An economy built on borrowed money is an economy built on borrowed time."

The move was welcomed by a string of consumer groups.

Teresa Perchard of Citizens Advice Bureau said: "It is clear from our evidence that people need to be better informed about financial matters in order to avoid getting into unmanageable debt, but there is also a strong responsibility on lenders to look thoroughly at a person's ability to pay before giving them credit."

Sue Regan, chief executive of the Resolution Foundation, added: "Just as in health, where the emphasis is on prevention as well as treatment, the best way of tackling debt is to stop it getting out of control in the first place.

"Our research shows that increasing access to financial advice could dramatically reduce financial stress and enable them to take preventative action before they reach crisis-point."

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