The guidance body boss will retire, she told stakeholders in a letter this morning.

She revealed that her initial plan was to leave after her initial three-year term ended in February but due to the “critical debate” developing at that time around the future of the various money guidance services, she decided it was right to stay on to “help shape that thinking”.

The Government has opted to create a single organisation to replace the Money Advice Service, The Pensions Advice Service and Pension Wise. It will deliver guidance on pensions, money and debt advice.

She said: “Getting the next step right for the interlinked areas of debt and money guidance, and pressing the urgent need to address stubbornly low levels of financial capability is essential. I was therefore delighted to see the Government announcement following consultation that there will be one guidance body rather than the two originally proposed.

“I have been encouraged that the arguments for the critical role in improving financial education, capability and resilience have been recognised. I think this is the right time to pass on the reins to someone else to build on the achievements to date and lead MAS through the transition period. I plan to remain at MAS until next April to ensure a smooth transition, and the Board fully support my plans.”

She added that later this year the MAS will be consulting on its “ambitious and innovative business plan”.

She said her time in charge had been enjoyable.