Following consultations which started in March, the government announced today that it will go ahead with its proposals to axe the three existing consumer guidance bodies with the aim of having a new merged organisation in place after autumn 2018. MAS, TPAS and Pension Wise will continue to run until the new body is launched.
The delivery of government-backed financial support will be overhauled to make it easier for consumers to get guidance they need, officials said. With the exception of debt advice, the new body will not fund regulated financial advice, but will signpost consumers to other providers to ensure that consumers’ guidance and advice needs are met.
Richard Harrington, Minister for Pensions, said: “We want to ensure that everyone has access to high quality and impartial financial guidance, to help them make the most of their hard earned savings.
“This new single body will be a place people can go for free, impartial financial guidance, and I look forward to hearing people’s views on our proposals.
“The single financial guidance body will help consumers get the support they need to make effective financial decisions, and provide a simpler service to help consumers with multiple financial guidance needs.”
It will be responsible for:
- debt advice for those in debt problems
- guidance and information on matters relating to occupational or personal pensions, accessing defined contribution pots, and planning for retirement
- providing information to help consumers avoid financial fraud and scams
- guidance on wider money matters and co-ordinating and influencing efforts to improve financial capability
- co-ordination of non-governmental financial education programmes for children and young people
The body will have a “strategic function, focusing on ensuring that the market understands and meets consumer demand, delivers value for money, and scales up financial capability projects that have been proven to work”.
The Government is seeking views on today’s announcement until Monday 13 February.