Question 5. Janet Finch-Saunders: What is the Welsh Government doing to improve financial literacy in Welsh communities?

Jeff Cuthbert: The Welsh Government takes the issue of financial literacy seriously. In September, it became a statutory requirement for this to be included within the school curriculum through the numeracy framework. Much good work is also carried out by our partners in the third sector, around debt advice and financial capability.

Janet Finch-Saunders: In Wales, about 1.2 million people have used a store or credit card to pay for items because of insufficient funds. More worryingly, 4% of people in Wales—around 92,000 people—have used the services of pay-day loan companies. I welcome the Bill that my colleague Bethan Jenkins AM is bringing forward because it is widely known now that we have a vicious cycle of financial illiteracy that needs to be broken. The Money for Life Challenge training scheme delivered by ColegauCymru and the National Training Federation and sponsored by Lloyds provides young people with skills to learn how to manage their money. What action is your department taking to further promote financial literacy initiatives for young people in our communities?

Jeff Cuthbert: You covered a number of points in that question. I will be meeting with representatives of the pay-day loan companies within the next couple of weeks, and I think that that meeting will be rather frank, if not robust. I had a meeting with the Archbishop of Wales, Dr Barry Morgan, last week to discuss mutual support for credit unions and better ways for people to borrow money. In terms of your final point, I can tell you that we are supporting Citizens Advice Cymru, which holds the prime contract for delivering face-to-face money advice sessions, and many other third sector organisations delivering advice. That includes the Better Advice, Better Lives initiative, or BABL, which is about making sure that people have the right levels of information so that they, hopefully, do not get into debt in the first place.

Question 12. DR: Will the Minister provide an update on the Communities First Programme?

Janet Finch-Saunders: The Centre for Social Justice has today revealed that households in Britain owe an average of £54,000 in debt, which is an increase from £29,000 10 years ago. Its report also finds that the increases in personal debt contribute significantly to mental health problems, family breakdown, worklessness and addiction. Given that two of the fundamental objectives of Communities First are to achieve healthier and more prosperous communities, how will the Welsh Government utilise this scheme to tackle high levels of personal debt and a lack of financial literacy?

Jeff Cuthbert: I refer the Member to the answers that I have given on related questions earlier, in terms of the work that we are doing with Citizens Advice and other third-party organisations in Communities First areas to provide the sort of advice that she is referring to.