Credit, Collections & Insolvency News
The Government has announced that they will be creating a new single public body responsible for delivering advice to consumers on money, debt and pensions. The new service will replace the Money Advice Service (MAS). The government thinks a single advisory body will be more efficient but has yet to decide how the new service will actually work. Like the MAS, the new organisation will be paid for by a levy on financial services companies. The new body will also take on the roles of the Pensions Advisory Service, and Pension Wise – an organisation set up in response to pension reforms introduced in 2015.
The government looked at setting up two bodies to replace the MAS and pensions services. But industry and consumer finance groups raised concerns over how they would work together effectively. The new body as yet has no name and there is no timetable for its creation. MAS was set up to help people who face problem debt to find the help they need, to help consumers understand financial services and to make better decisions. Various money-management tools are available on its website. It came under fire for duplicating work already provided in the private and charitable sectors and for failing to reach those who needed its help the most. It was set up in 2010 in response to a review which estimated 19 million people in the UK would benefit from generic financial help.
In response to the announcement, Gillian Guy, Chief Executive of Citizens Advice, said: “The right guidance can be an essential part of a secure financial future. We help with 1.8 million financial issues a year and know that people’s problems and questions often cut across the different areas of their finances. What’s best for consumers needs to be at the centre of the changes to public financial guidance. It is important that there is a holistic approach to guidance and debt advice offering the opportunity for money, debt and pensions services to be interlinked so as to address people’s financial queries as a whole.
“Government could also consider how guidance could be offered at key stages of people’s lives – like starting a new job or having a baby – so people get their questions answered when their finances change. We’ll continue to work closely with government as these plans are developed.”
