The Money Advice Service (MAS) is to be scrapped, while The Pensions Advisory Service (TPAS) and Pension Wise – services that provide information to consumers on financial matters - will be merged into one new body, according to new plans.
The government says there are gaps in the guidance available and that duplication across the three publicly funded bodies is confusing for consumers.
To combat this, the government wants to scrap the Money Advice Service and replace it with a new slimmed down money guidance body that will be charged with equipping consumers to make more effective financial decisions by:
- Identifying gaps in the financial guidance market.
- Commissioning targeted debt advice, money guidance and financial capability projects or services to fill any gaps identified.
- Providing funding to third parties to deliver these projects or services.
- It will not have a consumer facing website as the Money Advice Service currently does.
- TPAS and Pension Wise meanwhile will see their functions merged to form a new pensions guidance body.
This will be charged with ensuring consumers can get all their pensions questions answered in one place.
See our Pensions section for information on the state pension, personal pensions, annuities and more.
Both new bodies will be funded by levies on the financial services and pensions sectors.
What happens next?
A consultation on the changes is open until 8 June and the government plans to deliver its final response this autumn.
The three affected organisations will continue to provide guidance to consumers for at least the next two financial years, with the new bodies not taking effect until at least April 2018.
Caroline Rookes, chief executive for the Money Advice Service, says: “We will work with the government to fully consider the implications of this announcement.
“In the meantime we will continue to fulfil our statutory role to help people make the most of their money.”