Government rejects call to wind up Money Advice Service

IFAonline reports that the government has given its backing to the Money Advice Service (MAS), in spite of growing discontent with the industry-funded operation within Westminster. They say that a written question by Lord Naseby asked the Treasury whether, in light of the £46.3m budget for the service for 2012/13, and on top of other industry concerns, it would consider winding it up.

Lord Sassoon, the commercial secretary to the Treasury, replied: “The service has an important responsibility to develop consumer financial education, raise public understanding and knowledge of financial matters and the ability of people to manage their own financial affairs. It offers impartial information and advice on money matters nationally and is available to all online, by telephone and face-to-face. The government are, therefore, not considering winding up the service.”

Appearing before a Treasury Select Committee sub-committee earlier this year, MAS bosses also came under fierce criticism over its budgeting and effectiveness, with Labour MP George Mudie branding it a “playground bully” for its disruptive influence on the industry.

For the whole article, see Govt rejects call to wind up Money Advice Service