The Money Advice Service has brought an end all of its marketing and brand building, according to its latest business plan, as it role in financial services education is significantly scaled back following intervention by the government.
One of the outcomes from this year’s Budget were plans to scrap the quango in favour of a new delivery model, merging the functions of The Pensions Advisory Service and Pension Wise.
In the service’s Business Plan for 2016 to 2017, published today (11 May), chief executive Caroline Rookes said: “Following feedback on our draft 2016/17 plan and the government announcement on the future of financial guidance, we have taken action to cease all marketing and brand building activity immediately.”
Mas has also shifted investment away from the long-term development of its website, in favour of funding ‘front line services’, such as an additional £4m to ‘what works’ initiatives delivered through voluntary partners.
The overall budget for 2016-17 has been reduced by 7.5 per cent, compared with its 2015-16 business plan, with the money advice budget reduced by 12 per cent. It has reduced 30 per cent overall since the publication of the independent review.
According to Mas, the reduction in its money advice budget has been achieved by stopping marketing spend, decommissioning face-to-face money guidance and through a targeted 20 per cent reduction in it digital and support services costs.
Recent research showed cash which could have been spent on the guidance body would have paid for more than a million and a half hours of face-to-face advice.
Over 2015-16 the organisation set aside a budget on top of its mainstream debt advice funding to support clients impacted by changes in the regulation of debt management firms. Across 2016-17 its approach will be to fund such support for impacted clients from our debt advice reserves, if it is needed.
ruth.gillbe@ft.com
