View more on these topics

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 this week, the 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 the 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 with £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.

Speaking to Money Marketing this week, MAS chief executive Caroline Rookes defended the marketing spend and her £140,000 salary while insisting the organisation will do more to signpost to IFAs.

Rookes said: “We need to ensure everything on our site and on the telephone and face-to-face services, points people to professional advisers and makes it easy to get that advice. That is what we are looking at.”

Evolve Financial Planning director Jason Witcombe says: “A 1 per cent cut is just a token gesture to show it is reducing the budget. MAS spends a huge amount that could be better used elsewhere.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm