The Money Advice Service has slammed criticisms levelled at it in a report published this morning, saying it was based on information over a year old.
Earlier today (3 December) MPs slammed the Mas, saying it appears to be expensive and providing a redundant service that duplicates what is already available in the sector which will not be effective in mitigating the ‘advice gap’.
The report went as far as to suggest the Mas be disbanded completely and recommended that an independent review be conducted and published by next summer, a year ahead of the completion of a Treasury review announced earlier this year.
However, Mas chief executive Caroline Rookes said: “The Committee’s findings are largely based on evidence taken well over a year ago. Since then, we have, with the FCA, appointed a new chairman and chief executive, and changed the direction of the organisation to focus much more on working with partners to help customers.
“What’s more, we’ve already done much of what the Committee recommends. The Committee says we should work with the debt advice sector to improve quality, and we’ve done that.
“It says we should work with providers to co-ordinate financial education; we’re going further than that and are bringing together organisations from the public, private and voluntary sector to pull together a Financial Capability strategy for the whole of the UK, not just education.
“The Committee itself acknowledges that we’re forming constructive relationships with existing advice providers.”
Ms Rookes added that since taking on responsibility for funding debt advice Mas has increased the number of people helped by 50 per cent.
However, MPs were sceptical that such a dramatic surge in output would not come with corresponding deterioration in the quality of service.
According to Ms Rookes, more than 300,000 people use the Mas every week and three-quarters of them decide on a course of action as a result.
