City of London Corporation leads call for an evidence-based approach to how financial firms communicate.

The Lord Mayor, Nicholas Lyons, has led a group calling for a raft of new measures to tackle financial illiteracy in the United Kingdom.    

Our Chief Executive, Mike Ellicock, enthusiastically joined forces with the Financial Literacy and Inclusion Steering Group, led by the Lord Mayor of the City of London. The Group have announced a six-point plan to address low levels of financial literacy and numeracy across the country.  

Alarming statistics reveal that there are 17.5 million people in financially vulnerable circumstances – nearly a third of all adults in the UK. Within this number, there are millions unable to access the safety nets others rely on such as affordable credit, insurance and savings. This number is on the rise as the pressures of the pandemic and the cost-of-living crisis remain.    

The six-point plan shaped by the Steering Group encompasses both private sector and government interventions to improve financial literacy, inclusion, and numeracy.   

Of note within this plan are two pivotal points related to the Plain Numbers Approach. The Group has issued a call to action for the private sector to adopt evidence-based communication methods that enhance accessibility for consumers, considering the prevalent low baseline of numeracy skills and confidence among the population. It also urges all regulatory bodies to incorporate the necessity for accessible communications, grounded in evidence-based methodologies, with the goal of instituting a similar requirement across all government departments and other government bodies in the future.  

Recognising the urgency of the situation, we understand that effective communication is paramount to assisting the multitude of adults in the UK with low numeracy skills. By providing the information in a manner that empowers individuals to make sound financial decisions, we can significantly contribute to their financial well-being.  

The Steering Group members include the City of London Corporation, National Numeracy, Fair4All Finance, The Financial Inclusion Commission, PSHE Association, and the Financial Times Financial Literacy and Inclusion Campaign.   

 This collaborative effort represents a crucial step toward creating a more financially literate and inclusive society for all. 

Nicholas Lyons, the Lord Mayor of the City of London, said: 

“Low numeracy is one of the largest consumer vulnerabilities affecting the UK. Around half of working-age adults in the UK have the numeracy level expected of a primary school child while millions of adults across the UK do not feel confident to manage their money day-to-day. Not only does this impact the most vulnerable households across the country, it also places an often underestimated deadweight on economic growth.     

“This six-point plan outlines how the private sector, regulators and Government can collaborate to address financial inclusion and illiteracy from the youngest age upward to create a more resilient and equal society that equips and empowers people to make effective financial decisions.” 

Mike Ellicock, Chief Executive of Plain Numbers, said: 

"Firms Partnering with Plain Numbers are taking important steps to enhance how they communicate numbers, particularly within a population where nearly half of adults possess limited numeracy skills. However, it's evident that there remains huge room for improvement, not only among other businesses but also within regulatory frameworks. Simple changes can create substantial improvements in consumer comprehension. Our collective mission is to empower individuals with better understanding, enabling them to make informed decisions that positively impact their financial well-being."