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Money Advice Service cuts budget by just 1% to £77.5m

The Money Advice Service will spend almost one third of its money advice budget on marketing as its cuts its total spend by just 1 per cent from £78.3m in 2013/14 to £77.5m in 2014/15.

In its annual business plan, published today, MAS says it is “acutely aware” of the need to demonstrate how its work benefits the financial services industry.

Last month, the National Audit Office slammed the money advice part of MAS as not value for money.

The organisation also came under fierce attack from the Treasury select sub-committee who said it is “not fit for purpose”.

Next year the MAS plans to spend £43m on money advice services and £34.5m on debt advice, compared to £43.8m and £34.5m last year.

In its money advice arm, the MAS will spend £13.5m on marketing and communications, the same as 2013/14.

This includes a range of campaigns to digital marketing which aim to encourage people to take action.

In its plan, the MAS sets outs its goal of making money “free and impartial advice” a normal and everyday part of life.

It will target younger and lower income families with tailored tools, information and advice designed to get more people saving, managing their debt better, preparing better for retirement, protecting their assets and providing for their dependants.

It aims to make young people more money savvy with new tools for school leavers and parents teaching their children about managing their finances.

The business plan states: “The MAS has a vital role 
to play in filling the ‘advice gap’ and enabling people to make informed decisions about everyday money management and when faced with life events. But we know that we are only one part of the solution.

“We have developed our work with stakeholders and will continue to do so to help ensure that the advice we deliver is timely, relevant and helps shape the tools and services we provide. We are grateful to partners for their contribution to the development of this business plan and their support for so many other areas of our work.”


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There are 7 comments at the moment, we would love to hear your opinion too.

  1. What a waste of money. 33% for advice!!! 67% for expenses. Giving free and impartial advice so when something goes wrong with the advice they giv will they have PI in place or will we have to pick up the bill as well. MAS should be scrapped now

  2. MAS should be “acutely aware” of how much in contempt I hold their decision to only cut their budget by 1%. Not fit for purpose, now or ever.

  3. The business plan states: “The MAS has a vital role ?to play in filling the ‘advice gap’

    Sorry but despite being called an ‘ADVICE’ service I believe that MAS doesn’t actually give financial advice so how can it ever fill the advice gap.

    Seriously, myself, or just about ANY other IFA could provide a far more effective MAS for a tiny fraction of this budget.

    Ridiculous, pathetic and not fit for purpose. Close it now.

  4. Martin I don’t blame you for being incandescent. 1% is just an insult. Better if they had done nothing at all. How much could the reduction have been if they reduced the bloated and unjustified salaries by (say) 15%?
    Am I to infer that Parliament has no jurisdiction? That they can’t impose some sanity?

    As has been said they don’t provide advice – just information and if you go to their website you will find that this information is either out of date or just plain wrong. How in the name of all that is Holy can this expenditure be justified? Is this just another case of Governmental head in sand (like the NHS computer?)

  5. They provide ‘generic advice’ in that they would never go as far as to encroach on PERG, but they will ‘advise’ consumers to pay down debts, put some money away for emergencies and consider saving for thier future; this is the same principle as the Citizens ‘Advice’ Bureau. I agree that the cost of MAS is outrageous but the principle is sound. Its a sad fact that these services are, (and probably always will be) more in demand that full financial advice.

    Whatever your feelings, the only people that can change the way MAS is funded is the government.

  6. F packm fees are due in August I think so June or July is when to start a campaign of resistance/work to rule. The FCA is the debt collector for the MAS, the bilk is split in tik sections so send a cheque for each section and spoil the CQ for the MAS element SK it cannot be processed, better still write the cheque on something ironic, they do not have to be written on an issued cheque book, they can be written on the side of a cow or something mkire appropriate provided they have all the correct bank details in them ( mind you that is based on 1989’s banking practice and law and it may have changed)

  7. A large part ofMAS budget is passed on to CAB I think SK we could just make our cqs payable too the CAB or another worthwhile body like CAP.

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