Can Wonga lecture on responsible finance?

And more importantly, would you let them do so to your children?

In the 12 months ending in Q3 of 2011, 1 in 364 people became insolvent. To put that into context, the average in the past 25 years was 1 in 1,655.

This is how Conservative MPs Andrew Percy MP and Justin Tomlinson MP chose to open their report on financial education in schools (found on this website), and apt I think it is too, because shocking figures like this ought to move the government to doing something about the deficit of this type of education today.

It has cross-party appeal. When I spoke to Ian Murray MP, the Shadow Minister for Employment Relations, Consumer & Postal Affairs, he agreed that in order to make effective changes to credit and debt issues today, we have to go "right back to the start".

Financial education in schools, he said, should be perceived much like the obligation to deliver sex education:

Where there is better sex education in schools there is less teenage pregnancies. The same with financial education – where there is better exposure to this, earlier on, it should follow that there are fewer problems later on.

It is certainly not before time. When I spoke to Rod McKee, the Head of Financial Capability at ifs School of Finance, he told me:

When I visited a school in Hackney earlier this year, when we set the students a task of researching financial terms on the internet the only one they didn’t need to look up was loan shark! I do not know if this was because of what they see on television or from local knowledge, although my impression was it was the latter.

Derek Twigg MP went a stage further, agreeing that financial education needn’t be limited to school-aged people alone:

Further education colleges should open up more financial education courses for adults. These could be linked up to crisis support by a local authority for when someone approaches a council debt advice service or their MP.

Twigg suggested that there could even be a levy on banks to fund the courses – part of a bank's commitment to outreach and financial education.

I think this would suit public sentiment. Rather than banks themselves delivering what they perceive to be good financial advice and support for youngsters, they be obliged to fund rigorous educational materials, taught by the likes of Rod McKee – whose school is currently the only specialist provider of GCSE, AS and A level equivalent qualifications in personal finance and financial studies - to get a balanced view.

And if I’m correct in thinking this is the public sentiment, I would like to see the response by parents if they were to find out that Wonga, the online payday lender, were delivering financial literacy skills for school children – as their chief executive Errol Damelin has recently made plans to do.

As part of their charm offensive – which has also seen a controversial partnership between them and Medway Citizens' Advice Bureau to survey those at risk of spiralling debt – Wonga intend to do something they describe as "innovative and educational in a digital capacity" that will help "kids … to know what all the credit alternatives are".

As pointed out on this site last month, Wonga find it difficult to maintain the fabrication that they are just lending short-term loans out to "web-savvy young professionals" – for this reason, allowing them to be trusted with creating a balanced financial education for children should stick in the throats of any parent.

An education... but in what? Photograph: Getty Images

Carl Packman is a writer, researcher and blogger. He is the author of the forthcoming book Loan Sharks to be released by Searching Finance. He has previously published in the Guardian, Tribune Magazine, The Philosopher's Magazine and the International Journal for Žižek Studies.
 

Photo: Getty
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As crime moves online, the police need the investment in technology to follow

Technology offers solutions, not just threats.

It’s perhaps inevitable that as the world becomes more digital, so does crime. This week Alison Saunders, director of public prosecutions, recognised that online crime is as serious as face-to-face crime. “Hate is hate,” Saunders wrote referring to internet abuse, and the police should protect people from it wherever they are. This will add demand to under-pressure police forces. And it is only the tip of the iceberg. 

Forty-seven per cent of crime involves an online element. Police recorded 30,000 instances of online stalking and harassment last year. People are 20 times more likely to be a victim of fraud than robbery, costing businesses an estimated £144bn a year. On a conservative estimate, 2,500 UK citizens use the anonymous dark web browser, Tor, for illegal purposes such as drug dealing, revenge porn and child sexual exploitation.

The police need new technology to meet demand, a Reform report published today finds. Some progress has been made in recent years. West Midlands Police uses an online portal for people to report incidents. Durham uses evidence-gathering software to collect social media information on suspects, and then instantly compile a report that can be shared with courts. Police have benefited from smartphones to share information, and body-worn cameras, which have reduced complaints against police by 93 per cent.

Yet, Theresa May’s 2016 remarks that police use “technology that lags woefully behind what they use as consumers” still stand. Officers interviewed for Reform’s research implored: “Give us the tools to do our job”.

Online evidence portals should be upgraded to accept CCTV footage. Apps should be developed to allow officers to learn about new digital threats, following the US army’s library of knowledge-sharing apps. Augmented-reality glasses are being used in the Netherlands to help officers identify evidence at digital crime scenes. Officers would save a trip back to the station if they could collect fingerprints on smartphones and statements on body-worn cameras.

New technology requires investment, but forces are reducing the resources put into IT as reserves have dried up. Durham plans to cut spend by 60 per cent between 2015-16 and 2019-20. The government should help fund equipment which can meet demand and return future productivity savings. If the Home Office invested the same as the Department of Health, another department pushing “transformative” technology, it would invest an extra £450m a year. This funding should come from administrative savings delivered through accelerating the Government’s automation agenda, which the think tank Reform has previously calculated would save Whitehall £2.6bn a year.

As crime moves online, police must follow. Saunders is right to point to the importance of meeting it. But technology offers solutions, not just threats. Installing the next generation of equipment will give police the tools to do their jobs, addressing online hate and more. 

Alexander Hitchcock is a senior researcher at reform