Kelly joins financial literacy committee

The Government yesterday signalled a commitment to improving financial literacy among the public, when the Financial Secretary to the Treasury, Ruth Kelly, was named on an influential new advisory body.

The Financial Capability steering group, which will also include the Abbey National and Prudential chiefs Luqman Arnold and David Clementi, will spearhead the Financial Services Authority's drive to improve the level of financial education in Britain.

Last month The Independent launched a campaign for better education, aimed at children and adults, with a call for the creation of a Personal Finance GCSE. John Tiner, the FSA's chief executive, said: "Achieving a step-change in the level of financial capability is critical to ensuring that consumers are financially aware, can take responsibility for their financial affairs, and are able to influence the market."

Mr Tiner will chair the new committee, whose members are Ms Kelly; Mr Arnold, chief executive of Abbey National; Mr Clementi, the Prudential chairman; Ron Sandler of the Personal Finance Education group; and the heads of Citizens Advice, the National Consumer Council, the Confederation of British Industry and the Association of Independent Financial Advisers.

The Government has come under criticism for not doing enough to improve financial literacy and allowing mis-selling to flourish.