The Treasury select sub-committee is launching an inquiry into the Money Advice Service which will look at its effectiveness and the salaries of its senior management.
This month, Money Marketing revealed one in three people who have taken the MAS online healthcheck did not remember doing so and MAS research suggests the healthcheck is not significantly changing consumers’ behaviour.
The business innovation and skills select committee called for an inquiry into MAS chief executive Tony Hobman’s (pictured) £350,000 remuneration package this month. Treasury financial secretary Mark Hoban has revealed over £100,000 was paid in bonuses to MAS senior staff in 2010/11.
The MAS is funded by a statutory industry levy, which is currently £43.7m, and promotes itself as providing “independent, unbiased advice”.
Speaking to Money Marketing, sub-committee chairman and Labour MP George Mudie says: “The MAS has a very important role to play but it costs a lot of money and we want to look at whether the service is focused enough. We will also be looking at the salaries of its senior management as a matter of course.”
Essential IFA managing director Peter Herd says: “The MAS has serious questions to answer about its role and the remuneration of its staff.”