The Treasury select committee has attacked the Money Advice Service for not being clear about its objectives and spending, claiming it “does not know what it is doing” in regards to delivering financial advice.
MAS chief executive Caroline Rookes faced criticism over the 2013/14 business plan at a TSC sub-committee inquiry into MAS last week.
TSC sub-committee chair George Mudie said: “Your business plan says out of a £46.5m budget you only spend £8.8m on service delivery. That is the underlying unease we have about the flowery language in this report. We do not know what the hell you are doing with it.
“If you cannot find ways of delivering a service on money advice and you have to spend it on marketing, transition costs and core operations, it leads us to believe that your organisation doesn’t know what it is doing on money advice.”
Conservative MP Andrew Tyrie said the business plan is “meaningless” and there is “considerable unease” about how money is being spent.
Rookes, who took over the top job in January, said: “I know there was a lot of concern about the MAS and what it was not doing. I think it has a good business plan and we published results for the MAS performance last year and it was good. It is an organisation that is performing well. There is a long way to go but it is going in the right direction.”
Hudson & Green Associates director Ian Hudson says: “MAS is a waste of money and over-hypes what it can do through its television adverts. It cannot tell people where to invest their money, you need proper advice for that.”