Numeracy Review and Petrol Prices
Money Box
This Moneybox episode examines three pressing financial and economic issues facing UK consumers. It begins with a deep dive into the national numeracy crisis,
Key takeaways
- Nearly a third of UK adults believe poor numeracy cost them money last year, with an estimated £25 billion annual economic toll.
- Lord Agnew chairs the House of Lords Numeracy for Life Committee, noting that 40% of lowest earners wouldn't understand a 10% pay rise at £15/hr.
Main topics
- UK numeracy crisis and education policy
- Rising petrol and diesel prices
Notable quotes
"nobody knows nothing."
Conclusion
The episode underscores how foundational financial literacy and low-co
Transcript preview
Speaker 3 (0:00) This BBC podcast is supported by ads outside the UK. Speaker 4 (0:09) Welcome to the Haunted Library. Have you come in search of a tale? This podcast invites you to browse the shelves and find stories that will linger long after you've left this place. From gothic masterpieces to pulpy penny dreadfuls, join me, Colin Morgan, with new episodes twice a week. Find The Haunted Library wherever you get your podcasts. Speaker 2 (0:37) Hello, welcome to this Moneybox podcast. The price of petrol is the highest it's been for nearly four years. How can you pay less? It's 50 years since the invention of an investment that just followed the stock market. But three quarters of our invested money still tries to chase winners, usually in vain. And a review is launched into how firms deal with child trust fund money for hundreds of thousands of young adults. But first... Speaker 2 (1:06) Sit up straight now, no talking at the back, and get your maths books out today. Percentages. Well, if that sends a cold shiver down your spine, you're not alone. A new survey suggested nearly a third of people in the UK believe they lost money last year because of their poor maths skills. And many adults remain afraid of sums. Speaker 5 (1:26) In the early years maths was a struggle. Every time I was asked to do something around maths, a maths question, I would just freeze. Speaker 1 (1:33) Maths was a really difficult subject for me. I was terrible at maths so I really, really struggled. I think I would avoid any situation with maths. I just didn't feel confident with maths. Speaker 2 (1:45) And yet, numbers and arithmetic are all around us. Heating your home will cost 4 % more next month. Switch your insurance to save £200. And how much does a supermarket loyalty card really save? If you struggle to grasp these things, managing a household budget can be very hard indeed. An economic research group also suggests people who struggle with numeracy earn on average £1,600 a year less than people who don't struggle. The government has asked the House of Lords Committee to investigate these problems and its chair, Lord Agnew, will be here with us shortly. But before that, Moneybox reporter Dan Whitworth has been speaking to Anne, Peter and Joe, who we just heard from, about how they learned not to be afraid of sums and how it transformed their lives. Dan. Well, they all got help from the Speaker 3 (2:34) UK charity National Numeracy Pool, and it says around half of the UK's adult population struggles with maths and have the numeracy skills of a primary school pupil. Well, Jo from Wiltshire, she tried to avoid maths for most of her adult life after failing it at GCSE, but she got motivated to study it again after wanting to help her own daughter with her GCSEs. So two years ago, Jo resat her exam, and not only did she pass... but she told me how it's changed her life now at 52 years old so much for the better. Speaker 1 (3:06) It's helped with working out utility bills and price increases, splitting bills with friends at restaurants. It's helped me to work out prices in supermarkets and discounts. And it's also helped me with my hobbies. I'm a keen sewer and it's helped me to work out how much material I need for a project. The word I like to use is empowering and it's certainly given me more confidence. Speaker 3 (3:33) It's a similar story from Peter in Norfolk who struggled with numbers for years after having a tough time at school. He was inspired to study maths in later life after getting a large unexpected tax bill and told me how getting his head around figures helped in many other ways too. Speaker 1 (3:49) Bank statements, all my financials, savings, the interest rates and of course now in older life. You've got to think about insurances. What's the best insurance? What about energy bills and so on? The fact that I can now look at, you know, if I'm going shopping, am I getting the best value? Even restaurant bills. It gives me so much more confidence in whatever I'm doing in everyday life. I'm not phased by finances, by figures. Speaker 3 (4:19) And for a last one, Paul, Anne in Falkirk says she also struggled with maths at school but turned things around so much, she was able to learn maths in adulthood and embarked on a long-held ambition of a career in construction. Speaker 5 (4:31) For me, it's been a game-changer. It's really changed the life that I have. I'm now a homeowner, which again, at that early stages, I didn't think would be something that would be achievable for me because it seemed like there was too much maths involved in that, in those discussions. So it was something I avoided. But it's every day. It's as simple as going to the shops and picking a discount. Speaker 2 (4:54) Experiences there, Dan, and they show, don't they, just how overcoming fear of numbers and arithmetic can help in everyday life. Oh, very much so. Speaker 3 (5:02) And I think what links them all, Paul, is the fact that it is possible. Joe, Peter and Anne, they all struggle with maths at school but got to grips with it later on in life. And the impact on how they're now able to manage their personal finances, Paul, it has been profound. And just lastly, another message from them all was if they can do it, so can anyone. And lots more of the help they got can be found on the website of the charity that helped them, nationalnumeracy.org.uk. Speaker 2 (5:30) Thanks. very much, Dan. Well, let's go live now to talk to Lord Agnew. He is chairing the House of Lords Numeracy for Life Committee. Lord Agnew, you were appointed by the government to look at numeracy in England. What have you found so far? Speaker 1 (5:44) Well, we found that there is a big problem, that there are large swathes of the adult population who really struggle with maths at a simple level. So, for example, 40 % of lowest earners wouldn't understand what a 10 % pay rise meant if they were earning £15 an hour. So one of your interviews there with Joe talks about empowerment. And I think this is the lack of empowerment, which is so... which is so inhibiting. Speaker 2 (6:15) Yes, I mean, in a sense, these problems are familiar, aren't they? We've known there's been this problem for some time. But you chair a trust that runs more than a dozen primary and secondary schools. What are they doing there to boost numeracy among their pupils? Speaker 1 (6:29) Yes, well, I set it up nearly 15 years ago, and it is... It is hard going, but the one key thing that makes a difference is good quality maths teachers. And we're very lucky in my trust over a number of years to have brought together a superb team of really strong maths teachers across the three phases, primary, secondary and A-level. So that's the