Money Guidance
What is Money Guidance?
Money guidance is the guidance and information people need on the money matters that shape everyday life. It covers areas like:
- budgeting their weekly or monthly spending;
- saving and borrowing, and insuring and protecting themselves and their families;
- retirement planning;
- understanding tax and welfare benefits;
- jargon-busting – explaining the technical language we use in the financial services industry; and
- money guidance is also completely sales-free.
The money guidance pathfinder
In March 2008, an independent review led by Otto Thoresenfound that significant benefits would flow from a new, sales-free national money guidance service. The review recommended that a large-scale ‘pathfinder’ (or pilot) should be set up.
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.
What we have achieved so far
The development of the pathfinder service is being taken forward under the management of a joint FSA/HM Treasury Programme Board. It will run in the north east and north west of England and will aim to reach up to 500,000 – 750,000 people over a 12-month period from spring 2009.
Development phase – we have built the key components needed to implement and evaluate the delivery phase. These included:
- a strategy and implementation plan for telephone, face to face and online channels;
- selecting partners to deliver money guidance on the telephone, online and face to face;
- setting principles and mechanisms to manage referrals between channels and into and out of the service;
- a training and support plan for those giving money guidance; and
- designing a strategy to engage users with the service through branding, marketing, PR, advertising and sign-posting through trusted intermediaries, building on the work of the FSA-led National Strategy for Financial Capability.
In January 2009 we announced the first group of partners that will deliver the face to face and telephone elements of the service.
Our partners delivering face-to-face guidance:
Citizens Advice
A4E
Liverpool Money Talk
Consortium (RAISE)
Knowsley Advice Forum (led by Knowsley Citizens Advice)
Teleperformance
Consumer Credit Counselling Service
AgeConcern North East and North West
Manchester Credit Union
Association of British Credit Unions Ltd
Police Mutual
Young People’s Support Foundation
Salford Unemployed and Community Resource Centre
Wirral Health and Safety Welfare Advice Centre
Oddfellows Friendly Society and Life Academy
Our telephone partners:
- Teleperformance - a leading provider of outsourced contact centre solutions that has worked with the FSA since 2002; and
- the Consumer Credit Counselling Service - an experienced debt management charity, has offered to provide telephone-based money guidance to its own clients.
What’s next?
The Moneymadeclear money guidance service will be rolled-out across the UK from spring 2010. This follows a successful 12-month pathfinder in North East and North West England. The new government has made a commitment to developing a new 'free financial advice service and a financial health check', and we have already been in discussion with HM Treasury to establish government's expectations for the national Moneymadeclear service.
We will lead the money guidance roll-out, as well as continue to take forward the National Strategy for Financial Capability.