A new national financial capability programme was launched by the Normanton politician and secretary of state for children, schools and families in his constituency.

Mr Balls and his wife, Yvette Cooper, who is MP for Pontefract and Castleford and chief secretary to the treasury, staged the event at Normanton Common Primary School.

The programme, run by Nationwide Building Society, aims to teach children how to manage money and financial matters. It will be introduced to all primary schools across the UK and to secondary schools in 2009.

Mr Balls said: "I believe all financial institutions have a role to play by sharing their knowledge and know-how with children, schools and parents about how to make the most of their money.

"Too many people are unsure about key financial issues in their lives and I want to see this change. It's important in the ever-changing economic world that we live in that people understand how to make the most of their money and this works best when financial education starts in schools."

During the launch, pupils played games based on money issues and learned how to take care of various financial matters like paying bills.

Headteacher Glyn Bishop said: "We were very pleased to welcome both Ed and Yvette back to our school. They came in and spent a fun hour joining in with a lesson with the children. I think they were very impressed with the understanding and the enthusiasm the children have for this important subject.

"We believe that teaching children about finances and developing sensible attitudes about money are important lessons for life. We want all children who come to Normanton Common to grow up to have successful and happy lives and knowing how to look after your money can play an important part in making that happen."