THE under fire Money Advice Service has announced it is cutting its budget by 1 per cent to £77.5m.
The organisation, set up in 2010 by the Government to help guide people with their finances, will reduce its spending by £0.8m in 2014/15.
The body, paid for by levies on the financial services industry, was attacked by the cross-party Treasury select sub-committee in early December.
The group of MPs, who conducted a year long review, said they considered scrapping it and called it unfit for purpose.
The National Audit Office also criticised its work in November.
The MAS today published its draft Business Plan for 2014/15, outlining how it sees itself helping people out of debt, and getting more people budgeting, saving and planning for retirement.
It will spend 80% of its money advice budget next financial year on "front line delivery and customer engagement" – the same figure as 2013/14.
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Caroline Rookes, CEO of the Money Advice Service, said: "The Money Advice Service is on a vital mission: to improve the financial capability of the UK.
"In the future, we want to see: fewer people becoming over-indebted; more people keeping track of their finances and budgeting to achieve life goals; more people planning ahead for their retirement; and more people being financially resilient by protecting themselves and their assets.
"We won't achieve this vision alone, or in a single year, but must work in collaboration."
In response to the Treasury sub-committee's report, MAS said it will extend the reach of its free and impartial money advice, with the aim of 15 million customer contacts.