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insight

Natwest Financial Capability And Young Workers

Evidence type: Insight i

Context

NatWest commissioned the report as a member of the MAS Young Adults Steering Group. They highlighted the needs of apprentices in their own workforce and more widely and have made a number of recommendations, notably in relation to apprenticeship policy. The report argues that apprenticeship training offers a crucial opportunity to improve young people’s financial capability.

The study

NatWest commissioned BDRC to study young workers’ financial attitudes and behaviours, as well as employers’ views of workplace financial capability. BDRC surveyed 1419 consumers and 100 employers in October 2017. They then conducted 910 interviews with “a national representative sample of UK adults of working age, with boosts to include 449 young workers, 124 apprentices and 224 students”.

Key findings

  • Apprentices reported that financial capability was one of apprentices’ top three concerns. 44% found it hard to keep up with bills and other commitments. 23% had difficulty keeping to a budget.
  • 68% worried about short-term saving and 36% about saving for a home.
  • Young women and those aged 18 to 24 were less confident than young men and those aged 25 to 34.
  • 76% overall had asked for help or advice from family and friends, the most popular source of support. 47% did so when they wanted a loan or a credit card.
  • Young people also turned to banks (34%), social media (29%) or online sources (26%) for advice. The report notes that wider low levels of financial capability may limit the quality of support from family and friends, although this was not measured.
  • 90% of employers felt that they should play a role in helping employees’ financial capability, 57% agreeing that it is “the right thing to do”. 43% thought that colleges and 34% thought that banks should too.
  • 55% of employers reported coming across young employees with financial difficulties; 45% had been approached by young people with money worries.
  • Fewer smaller employers (66%) felt confident about supporting young employees’ financial capability than did larger employers (87%).

The report makes five recommendations to enhance financial capability:

  1. Financial capability support should be offered across colleges, training providers and universities.
  2. Employers should include financial capability in induction programmes.
  3. Financial capability should be built into apprenticeship standards and curriculum.
  4. The Education Select Committee should consider financial capability as part of its review of apprenticeships.
  5. Government and business groups should more actively promote apprentice pay rules to employers, while training providers should promote rights and responsibilities to apprentices.

Points to consider

Methodological limitations:

  • The report provides very limited information about methodology.
  • Definitions of “young employees” and “apprentices” are not clear.
  • The report does not always clearly distinguish primary research, other sources and analysis.

Relevance:

  • The study (and the wider interpretation offered in the report) are relevant for employers, the Education Select Committee’s review of apprenticeships, and for government and business groups.

Generalisability/ transferability:

  • The methodological limitations make findings hard to generalise reliably.

Key info

Client group
Year of publication
2018
Country/Countries
UK
Contact information