A new pensions body is to be created as a part of a shake up that includes creating a ‘slimmer’ Money Advice Service.

The Pensions Advisory Service and Pension Wise will also be altered in a significant restructure.

The reforms have been outlined in the Budget papers this afternoon but George Osborne did not make mention of these particular details in his speech.

The FT had reported this morning that the under fire Money Advice Service would be axed.

The Treasury papers stated: “The government will restructure the statutory financial guidance providers – the Money Advice Service, The Pensions Advisory Service and Pension Wise – to ensure that consumers can access the help they need to make effective financial decisions.

“The new delivery model will direct more funding to the front line and focus support on areas of greatest consumer need.

“It will include: a new pensions guidance body, to make sure that consumers can get all their pensions questions answered in one place, at all stages of their lives a new, slimmed down money guidance body charged with identify gaps in the financial guidance market and commissioning providers to fill these gaps to ensure that consumers can access the debt advice and money guidance they need.”

Meanwhile, the Government is to consult on introducing a Pensions Advice Allowance.

This will allow people before the age of 55 to withdraw up to £500 tax free from their defined contribution pension to redeem against the cost of financial advice, it said.

The exact age at which people can do this will be determined through consultation. This means that a basic rate taxpayer could save £100 on the cost of financial advice, Treasury officials said.