A new report published by the London Assembly Economy Committee has recommend new policies to assist young people with finance.
The report ‘Short changed: the financial health of Londoners’ has a number of recommendations for mayor of London Sadiq Khan, including:
- creating a young person’s banking charter to ensure all 16- to 18-year-olds have a bank account by including a commitment from banks to provide young people with a bank account by default
- commissioning an annual survey of London households on financial activity to get a better understanding of London’s ‘underbanked’ communities
- holding a Money Advice Week to promote affordable credit and promote credit unions through TfL advertising space
- working with schools, charities and the financial services industry to deliver financial education to young people.
Caroline Russell, chair of the economy committee, said: “The cost of living has increased in the capital and many Londoners are cut off from accessing affordable financial services, such as loans and credit cards.
“They have to turn to high-cost credit, like payday lenders, to make ends meet.
“While technology and innovation is one part of the solution, we want the mayor to show real leadership in improving the financial health of Londoners.
“It is absolutely crucial that young people are given the right support in terms of their finances, when they leave school.
“For many, it is the first time they will be responsible for their own money.
a“Education and support are key, as actions at this critical stage can have real consequences in terms of credit ratings and long-term financial health.”
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