Give schools a stake in NatWest and teach young people to invest, says UK’s first ISA millionaire

Schools should get a share of the Government’s stake in NatWest to teach young people how to invest, according to the UK’s first millionaire ISA.

Lord (John) Lee of Trafford, the first person to earn £1m through a tax-efficient Individual Savings Account (ISA), believes the Government’s stake in the bank, acquired when it was bailed out during the financial crisis in 2008, could be used to educate pupils.

Lee has written a children’s book about the stock market.

The previous Conservative government planned to offer shares to the public in a sale similar to the privatisations of the 1980s.

But last month, Labour’s chancellor of the exchequer, Rachel Reeves, said the £5.6bn taxpayer share would instead be offered to pension funds, insurers and asset managers.

Lee wants her to give every state secondary school in the country shares worth around £5,000, which he says would cost around £20m.

The idea is that pupils will be able to vote on how to spend the £350 annual dividend, for example to fund a school trip, donate to charity or invest in more shares.

“This would be a real practical opportunity for young people,” the Liberal Democrat peer told the Mail.

‘They would increase their knowledge of the stock market and learn about dividends and banks.

“We all agree that financial education in our schools is dismal,” says Lee, who believes it could be a solution to the misinformation found on social media platforms that encourages young people to get carried away with cryptocurrency trading.

He has submitted his proposal to the Treasury and the Department of Education.

Labour’s decision to abandon the sale of NatWest shares to the public has been criticised as a missed opportunity to encourage people to develop investment habits and revitalise the London stock market.

Former chancellor Jeremy Hunt and private investor lobby group ShareSoc were among the most vocal critics.

The previous Conservative government had been planning to launch a “Tell Sid”-style campaign, using the slogan that encouraged the public to buy British Gas shares in 1986.

NatWest had already spent £24m on an advertising campaign to promote the share sale, featuring Sir Trevor McDonald.

But the bank was forced to shelve the campaign, which saw the veteran newsreader ask: “Are you in?”