Making counter-fraud education compulsory within the PSHE Curriculum at Key Stage 3/4

Cifas fraud-risk data shows an alarming increase in young people being victims of scams and identity fraud, and nearly a quarter of money mules are aged under 21. However, despite the significant risks to young adults and children, financial harms education isn’t compulsory in the PSHE curriculum. Jenny Barksfield, Deputy Chief Executive and Director of Education for the PSHE Association, provides insight into why a change would be welcomed to better support Key Stage 3 and 4 learners. 

Personal, social, health and economic (PSHE) education is the school curriculum subject that provides protective, preventative education for children and young people. PSHE content relating to relationships, sex and health education (RSHE) has been compulsory since 2020, but there has been little obligation on schools to learn about financial harms and risk – including fraud – despite their increasing complexity and crossover with statutory RSHE areas such as digital literacy and online safety. 

We therefore welcome the first Cifas Fraud Pledge calling for this imbalance to be addressed. Economic wellbeing is an established part of the PSHE curriculum – so it’s not about adding something new, but strengthening this crucial aspect of the subject so that all children benefit, not just the lucky few.  

PSHE education is only compulsory in its entirety, including economic wellbeing, in independent schools and it’s unfair that many pupils in maintained schools and academies currently miss out. It is also particularly unfair that students from disadvantaged backgrounds are most likely to be deprived of this learning – a UCL study suggests that (i) financial skills of 15-year-olds from socio-economically disadvantaged backgrounds are four years behind those from advantaged backgrounds, and (ii) they are less likely to learn about money in school or discuss it with their parents. 

A survey from the Office of the Children’s Commissioner found that young people were much less likely to report learning about finance topics than any other aspects of PSHE education. Yet in cases where they did learn about economic wellbeing, 88% of pupils said it was the most helpful PSHE topic they were taught. And there is clear evidence that when it is taught, it is effective so we know a successful framework exists in which to deliver important content on fraud and other financial harms.    

This is also something that the government can address without additional legislation, given that a power exists within section 35 of the Children and Social Work Act for the Education Secretary to make additional PSHE education content – including content related to economic wellbeing – compulsory in all schools. This would also complement related, yet distinct, learning in Citizenship (on the ‘public’ aspects of financial education vs the personal) and Maths (regarding numeracy). 

So, the opportunity is there, and has widespread and growing support. The Education Select Committee 2024 inquiry into financial education concluded that:  

“Making the economic and financial elements of PSHE education statutory at primary and secondary school level appears to us to be a simple and effective way of expanding financial education at both levels and signalling the increased importance of the subject to all students”. 

The Centre for Social Justice, Financial Education APPG and the Lord Mayor of London came to the same conclusion in their respective inquiries.  

These reports and recommendations all conclude this is a necessary step to keep children and young people safe, in light of the significant safeguarding risks. This goes beyond seeing financial education as being just about pounds and pence, but about protecting children from significant harms, including those encountered online. As Cifas fraud-risk data shows, there's a huge rise in young people under 21 becoming the victims of identity fraud. Additionally, the organisation notes that 23% of money mules are also aged under 21 – so the problem is not going away and will only continue to get worse if not addressed. 

Making financial education statutory would also support the work that we, Cifas and others are doing together to help tackle child financial harms, ensuring that there is a better understanding of the problem, and what solutions PSHE education can provide.  

Young people deserve the opportunity to explore how their finances can be managed online and when and how to spot online scams. With the increase in frictionless online payments, young people are more at risk than ever of overspending, spending before checking the reliability of sites, or falling prey to fraudsters.  

Education to identify warning signs, make spending decisions as critical consumers and seek support, will empower young people to manage their finances more effectively, both on and offline. It is crucial that this learning is available to all young people, in all schools, and the most effective and straightforward solution is for the government to take on board this key counter-fraud recommendation from Cifas.  

To find out more about materials currently available for teaching about financial harms in PSHE education, visit the PSHE Association’s website and in particular the Money and Careers topic page. 

Additionally, alongside lesson plans for Key Stage 3 and 4, Cifas has fraud and scams advice for young people here.