The Money Advice Service will spend £20m of its new budget on marketing and brand awareness.
Around £7m will be spent on staff, £6.6m on delivering face-to-face and phone services and about £2m on digital products for 2012/13. A further £6.7m will be spent on web and digital build costs.
The MAS published its business plan this week, which confirms its total budget has increased from £43.7m for 2011/12 to £80.8m for 2012/13 due to new debt responsibilities.
Of the total, £46.3m will be spent on delivering “money advice” while the remaining £34.5m will be spent on debt advice.
An industrywide FSA levy funds the money advice element while the debt advice element is paid by a levy on banks, building societies and lenders.
Operational costs including rent and IT are estimated to be £2.8m, with £979,000 spent on research.
Facts & Figures Financial Planners managing director Simon Webster says: “The MAS is a joke on every level. It seems to have become a financial advice firm with no liability, no responsibility and no accountability. The whole thing is a travesty.”
Philip J Milton & Company managing director Philip Milton says: “It seems like money for old rope. There are other entities out there doing what the Money Advice Service does and they are doing a better job. The money would be better spent on improving financial education.”