The Money Advice Service has been told to cull up to 60 per cent of its workforce and cut its budget by £30m as part of recommendations of a Treasury-commissioned review.
A draft copy of the review, led by former FSA consumer director Christine Farnish and launched in April, recommends cutting full-time staff from 130 to 50, and reducing the MAS budget from £81.1m to between £50m and £65m, according to The Telegraph.
However, the Treasury has previously ruled out scrapping MAS entirely.
The report says the biggest cuts should be felt by the “money advice” arm of the organisation, with the division that focuses on debt management spared.
The report says firms in the utilities sector have agreed to contribute £2m to the MAS budget this year, with a view to increasing their contribution in the future.
Personal finance media and charities are already providing information being offered by the MAS, the reports notes.
It says: “There is a high degree of duplication between the MAS and other websites which offer content on financial issues.
“We question whether a body like the MAS… should even seek to compete with the wide range of other bodies which already have trusted brands and extensive consumer reach. It still has an important job to do but change is needed.”
It also suggests moving the head office out of central London to further lower running costs.