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.
 

Daily Mail
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Who "speaks for England" - and for that matter, what is "England"?

The Hollywood producer Sam Gold­wyn once demanded, “Let’s have some new clichés.” The Daily Mail, however, is always happiest with the old ones.

The Hollywood producer Sam Gold­wyn once demanded, “Let’s have some new clichés.” The Daily Mail, however, is always happiest with the old ones. It trotted out Leo Amery’s House of Commons call from September 1939, “Speak for England”, for the headline on a deranged leader that filled a picture-free front page on David Cameron’s “deal” to keep Britain in the EU.

Demands that somebody or other speak for England have followed thick and fast ever since Amery addressed his call to Labour’s Arthur Greenwood when Neville Chamberlain was still dithering over war with Hitler. Tory MPs shouted, “Speak for England!” when Michael Foot, the then Labour leader, rose in the Commons in 1982 after Argentina’s invasion of the Falklands. The Mail columnist Andrew Alexander called on Clare Short to “speak for England” over the Iraq War in 2003. “Can [Ed] Miliband speak for England?” Anthony Barnett asked in this very magazine in 2013. (Judging by the 2015 election result, one would say not.) “I speak for England,” claimed John Redwood last year. “Labour must speak for England,” countered Frank Field soon afterwards.

The Mail’s invocation of Amery was misconceived for two reasons. First, Amery wanted us to wage war in Europe in support of Hitler’s victims in Poland and elsewhere and in alliance with France, not to isolate ourselves from the continent. Second, “speak for England” in recent years has been used in support of “English votes for English laws”, following proposals for further devolution to Scotland. As the Mail was among the most adamant in demanding that Scots keep their noses out of English affairs, it’s a bit rich of it now to state “of course, by ‘England’. . . we mean the whole of the United Kingdom”.

 

EU immemorial

The Mail is also wrong in arguing that “we are at a crossroads in our island history”. The suggestion that the choice is between “submitting to a statist, unelected bureaucracy in Brussels” and reclaiming our ancient island liberties is pure nonsense. In the long run, withdrawing from the EU will make little difference. Levels of immigration will be determined, as they always have been, mainly by employers’ demands for labour and the difficulties of policing the borders of a country that has become a leading international transport hub. The terms on which we continue to trade with EU members will be determined largely by unelected bureaucrats in Brussels after discussions with unelected bureaucrats in London.

The British are bored by the EU and the interminable Westminster arguments. If voters support Brexit, it will probably be because they then expect to hear no more on the subject. They will be sadly mistaken. The withdrawal negotiations will take years, with the Farages and Duncan Smiths still foaming at the mouth, Cameron still claiming phoney victories and Angela Merkel, François Hollande and the dreaded Jean-Claude Juncker playing a bigger part in our lives than ever.

 

An empty cabinet

Meanwhile, one wonders what has become of Jeremy Corbyn or, indeed, the rest of the shadow cabinet. The Mail’s “speak for England” leader excoriated him for not mentioning “the Number One subject of the hour” at PM’s Questions but instead asking about a shortage of therapeutic radiographers in the NHS. In fact, the NHS’s problems – almost wholly caused by Tory “reforms” and spending cuts – would concern more people than does our future in the EU. But radiographers are hardly headline news, and Corbyn and his team seem unable to get anything into the nation’s “any other business”, never mind to the top of its agenda.

Public services deteriorate by the day, George Osborne’s fiscal plans look increasingly awry, and attempts to wring tax receipts out of big corporations appear hopelessly inadequate. Yet since Christmas I have hardly seen a shadow minister featured in the papers or spotted one on TV, except to say something about Trident, another subject that most voters don’t care about.

 

Incurable prose

According to the Guardian’s admirable but (let’s be honest) rather tedious series celeb­rating the NHS, a US health-care firm has advised investors that “privatisation of the UK marketplace . . . should create organic and de novo opportunities”. I have no idea what this means, though it sounds ominous. But I am quite certain I don’t want my local hospital or GP practice run by people who write prose like that.

 

Fashionable Foxes

My home-town football team, Leicester City, are normally so unfashionable that they’re not even fashionable in Leicester, where the smart set mostly watch the rugby union team Leicester Tigers. Even when they installed themselves near the top of the Premier League before Christmas, newspapers scarcely noticed them.

Now, with the Foxes five points clear at the top and 7-4 favourites for their first title, that mistake is corrected and the sports pages are running out of superlatives, a comparison with Barcelona being the most improbable. Even I, not a football enthusiast, have watched a few matches. If more football were played as Leicester play it – moving at speed towards their opponents’ goal rather than aimlessly weaving pretty patterns in midfield – I would watch the game more.

Nevertheless, I recall 1963, when Leicester headed the old First Division with five games to play. They picked up only one more point and finished fourth, nine points adrift of the league winners, Everton.

 

Gum unstuck

No, I don’t chew toothpaste to stop me smoking, as the last week’s column strangely suggested. I chew Nicorette gum, a reference written at some stage but somehow lost (probably by me) before it reached print.

Editor: The chief sub apologises for this mistake, which was hers

Peter Wilby was editor of the Independent on Sunday from 1995 to 1996 and of the New Statesman from 1998 to 2005. He writes the weekly First Thoughts column for the NS.

This article first appeared in the 11 February 2016 issue of the New Statesman, The legacy of Europe's worst battle