The cash will be provided to bodies as part of a 10 year plan to enable the population to prepare for and manage life events, and deal with financial difficulties.

The £7m fund will be available to organisations to help them pilot new approaches to improving ‘financial capability’ and to evaluate their projects.

Funding will be available for the evaluation of “existing interventions” as well as piloting and examining new approaches.

Rookes, chief executive for the Money Advice Service, said: “We are pleased to be able to channel this funding to organisations to deliver projects that can really make a difference to people’s financial wellbeing. It is vitally important to evaluate which interventions work best so that we can channel our efforts in the right places.

“This will help organisations from across the sector to fund and deliver interventions that we know make a difference to people’s financial capability. It will also help to provide the new money guidance organisation with information needed to commission effective services from day one.”

She said: “We would like to see as many eligible projects as possible applying for funding so that we can distribute the fund most effectively across the UK. This is an important step on our journey to achieve our wider aim of improving everyday money management and financial capability across the UK.”