Money Guidance
The purpose of this web page is to help all those interested in the Money Guidance service:
- understand the plans we have for developing the service and the role they could play in making it happen; and
- see the progress we are making in developing the pathfinder.
What is Money Guidance?
Money Guidance is the guidance and information people need on the money matters that shape everyday lives. It covers areas like:
- helping people budget their weekly or monthly spending;
- saving and borrowing, and insuring and protecting themselves and their families;
- retirement planning;
- understanding tax and welfare benefits; and
- jargon-busting – demystifying the technical language we use in the financial services industry.
Earlier this year, an independent review led by Otto Thoresen found that significant benefits would flow from a new national Money Guidance service. The review recommended that a large-scale pathfinder should be set up to confirm the hypotheses set out in its report.
The government accepted this recommendation and, in partnership with the FSA, is taking forward a pathfinder programme that will design, deliver and evaluate a money guidance service to 500,000 – 750,000 people over the next two years.
The FSA is leading delivery of the pathfinder. This pathfinder programme is based on the following principles that the Thoresen review said should underpin a money guidance service:
- ‘On my side’: impartial from the government and the financial services industry.
- Supportive: support and guide individuals to help them to make better decisions, take action and change their behaviour so they can make positive steps towards improving their finances.
- Preventative: the service is not designed for those in financial trouble. It should help people budget and plan for both today and the future, and help them withstand financial shocks, avoid problems and reach their goals. People who are having problems can contact the service to find out where to go for help.
- Universal: available to all. Certainly in the medium term, the service should also be free.
- Sales free: the service is not a way to sell products. It cannot recommend a product from a specific provider or tell people to change or get rid of an existing product – this is what regulated advice does. Buying a product or taking commercial advice will be right for many people so the service needs to explain who people should contact in the financial services industry, in line with other principles. This could include explaining the different types of service available, particularly the types of adviser.
The idea behind the service is to make sure everyone has access to more personalised information and guidance on money matters, across a number of channels: on the web, by telephone and face-to-face. It will be delivered jointly with external partners with experience in reaching the people who will most benefit from access to money guidance.
What we have achieved so far
The FSA have created a small team to take forward the work under the direction and management of a joint FSA/Treasury Programme Board. The team is putting plans together for developing the key components of the pathfinder, in particular:
- Engaging with potential users – including branding, marketing, advertising, PR and, importantly, working with trusted intermediaries.
- The content of the service – including training and accrediting partner organisations.
- How the face-to-face and telephone elements of the service will operate and be delivered.
- How the service will deliver web- and paper-based guidance, and how its knowledge management system will operate.
- Evaluation – monitoring the operation and assessing the outcomes of the pathfinder.
For more information, read our pathfinder factsheet.
