The Money Advice Service (MAS), which has offered financial and debt advice to consumers since 2010, is to end, the chancellor has confirmed.
However, it will be replaced by a smaller advice body, accord
ing to the Treasury.
The Pensions Advisory Service (TPAS) and Pension Wise will also be re organised, to ensure consumers get the financial advice they require.
The two new bodies will offer consumers separate advice on pensions and money.
Together they will deliver “more funding to the front line” the government said, “and offer support on the greatest areas of consumer need”.
The MAS had been criticised in two formal reports.
One study commissioned by the Treasury found that few members of the public had even heard of it.
And two years ago the National Audit Office found the MAS was not always delivering value for money.
“We will work with the government to fully consider the implications of this announcement,” said a spokesperson for the MAS.
“In the meantime we will continue to fulfill our statutory role to help people make the most of their money.”
The MAS spent around £80m a year, but much of its income came from an industry-based levy.
Christine Farnish, a former head of the National Association of Pension Funds – who examined the MAS for the government – said the abolition was good news.
“I think it is a welcome development which will allow a more efficient and focused organisation, which will add more value for consumers,” she told the BBC.
Source: BBC News