MAS’s debt advice budget will also rise to £56.3m (up £8.3m) as the need for debt advice soars. The increased budgets also include an extra £500,000 to help pay for transition to the Single Financial Guidance Body (SFGB).

The budgets, issued in its 2018/19 business plan published yesterday, come as MAS - the government-funded financial guidance body - prepares to transition into a single merged financial guidance body along with Pension Wise and The Pensions Advisory Service (TPAS).

MAS said that the priority for the year 2018/19 was to “work closely with the SFGB programme to enable the setup of the new body.”

It added: “The functions and objectives of the new body have been proposed in a draft bill. These will be subject to change as Parliament debates them.” 

The Financial Guidance and Claims Bill, which will legislate for the set-up of a single financial guidance body, has recently been introduced in the Commons following passage through the Lords.

The legislation will see TPAS, Pension Wise and MAS merge with the aim of creating a better, more joined-up service for consumers. The bill will continue its passage next year, with the SFGB due to launch in Autumn 2018. 

Chief executive of the Money Advice Service Charles Counsell said:“We are excited about the prospect of the new single financial guidance body coming into existence. For us this underlines our convictions about a strategic approach to financial capability, evidence-based decision making, segmentation and prioritisation of our customer base – and partnership working.”

MAS plans to improve access to advice, by developing its online tools, as it has seen a 9% increase in customer contact compared to last year. “This is taking place in our third year of spending no money at all on marketing or search engine pay-per-click,” said the body. 

MAS has in the past been criticised for allocating too much money for marketing and as a result was advised by the government last year to merge into a single financial body that offers money and pension guidance. 

The body also came under fire for spending too much money on staff as it spent £7.355m in 2014. However, the Financial Services Consumer Panel was opposed to a proposed closure of the body, as it will leave consumers “stranded” without access impartial financial advice.

In 2016, the Money Advice Service chief executive Caroline Rookes announced that she will be leaving the company after four ‘roller-coaster’ years.