The Treasury and the Financial Services Authority (FSA) have unveiled a package of measures to help people manage their money better. It includes expanding the FSA’s consumer website Moneymadeclear, which will be backed by a significant marketing campaign after the summer.
The Financial Capability Action Plan unveiled today (July 7) sets out measures to give people free advice and assistance to help them better manage their finances and includes recommendations from the Treasury-backed Thoresen report published in March.
Yvette Cooper, chief secretary to the Treasury (pictured), says the Government needs to make it “much easier” for people to get access to information, help and advice.
The MP adds: “Many families are feeling the pinch as a result of high fuel and food prices, and the impact of the credit crunch on mortgage lending. But when people are facing money worries they often don’t know where to turn.”
The Thoresen Review of Generic Financial Advice, written by Otto Thoresen, the chief executive financial services group of Aegon UK, suggested the financial services industry could save £57m in marketing costs each year by supporting a government-backed cash education scheme (MW March 5).
At the time, the Government committed £12m on a pilot Money Guidance scheme recommended by Thoresen. The Treasury has now confirmed the scheme will run across the North West and North East of England from next year.
The Government has also confirmed support for personal finance education in schools through a £11.5m three-year programme My Money and the FSA’s £16m Learning Money Matters scheme. It will work with children as young as four, and up to the age of 19, will be targeted.
The FSA one-stop shop, which will be “widely promoted” after the summer, will also direct people worried by rising energy bills towards independent sources of advice.