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.
 

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I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn

All the recent polling suggests Andy Burnham is losing more votes than anyone else to Jeremy Corbyn, says Diana Johnson MP.

Tom Blenkinsop MP on the New Statesman website today says he is giving his second preference to Andy Burnham as he thinks that Andy has the best chance of beating Jeremy.

This is on the basis that if Yvette goes out first all her second preferences will swing behind Andy, whereas if Andy goes out first then his second preferences, due to the broad alliance he has created behind his campaign, will all or largely switch to the other male candidate, Jeremy.

Let's take a deep breath and try and think through what will be the effect of preferential voting in the Labour leadership.

First of all, it is very difficult to know how second preferences will switch. From my telephone canvassing there is some rather interesting voting going on, but I don't accept that Tom’s analysis is correct. I have certainly picked up growing support for Yvette in recent weeks.

In fact you can argue the reverse of Tom’s analysis is true – Andy has moved further away from the centre and, as a result, his pitch to those like Tom who are supporting Liz first is now narrower. As a result, Yvette is more likely to pick up those second preferences.

Stats from the Yvette For Labour team show Yvette picking up the majority of second preferences from all candidates – from the Progress wing supporting Liz to the softer left fans of Jeremy – and Andy's supporters too. Their figures show many undecideds opting for Yvette as their first preference, as well as others choosing to switch their first preference to Yvette from one of the other candidates. It's for this reason I still believe only Yvette has the breadth of support to beat Jeremy and then to go on to win in 2020.

It's interesting that Andy has not been willing to make it clear that second preferences should go to Yvette or Liz. Yvette has been very clear that she would encourage second preferences to be for Andy or Liz.

Having watched Andy on Sky's Murnaghan show this morning, he categorically states that Labour will not get beyond first base with the electorate at a general election if we are not economically credible and that fundamentally Jeremy's economic plans do not add up. So, I am unsure why Andy is so unwilling to be clear on second preferences.

All the recent polling suggests Andy is losing more votes than anyone else to Jeremy. He trails fourth in London – where a huge proportion of our electorate is based.

So I would urge Tom to reflect more widely on who is best placed to provide the strongest opposition to the Tories, appeal to the widest group of voters and reach out to the communities we need to win back. I believe that this has to be Yvette.

The Newsnight focus group a few days ago showed that Yvette is best placed to win back those former Labour voters we will need in 2020.

Labour will pay a massive price if we ignore this.

Diana Johnson is the Labour MP for Hull North.