An independent review has said the Money Advice Service needs to “reboot its business model” as part of wide-ranging changes.
The review by Christine Farnish, the former chief executive of the NAPF, said the service should focus on filling advice gaps in the market and avoid duplicating services which already exist.
Her proposed changes would allow the government to halve Mas’s £43m budget and would involve the service giving out grants to fill advice gaps.
The 83-page report also said Mas should establish a debt advice steering group to broker agreements with creditors on providing a common system to guide people to debt advice.
It also said Mas should minimise its spending on marketing while suggesting that the FCA could require firms to promote its website and helpline.
Economic secretary to the Treasury Andrea Leadsom said: “Making sure that customers have access to high-quality financial education and advice is a key part of our long term economic plan.
“I am grateful to Christine for her work in leading this review, which makes a number of important recommendations for improving the way Mas is run.”
Mas and the FCA have said they will jointly consider the recommendations and submit an action plan to the government in the autumn.
