The Treasury is to launch an independent review of the Money Advice Service before the end of this parliament.
The MAS came under fire during a Treasury select sub-committee meeting in December when it was branded “not fit for purpose”. MPs agreed to grant the service a “stay of execution” subject to an independent review.
In a letter to the Treasury select sub-committee, which was published last week, Treasury financial secretary Sajid Javid said: “The Government agrees with the sub-committee’s central recommendation that this should be an independent review. [It] will bring a fresh perspective to this important issue.”
The Treasury had previously committed to carrying out a medium-term review of the MAS when the service was set up in April 2011 but as a Government-led review.
Treasury select committee chair Andrew Tyrie has called for terms of reference for the inquiry to be published immediately. He also wants the review to be carried out this summer. He says: “Our report called for the results of the review to be published no later than summer 2014. Given the MAS has been asked by the Treasury to play a role in creating the new financial guidance for pensioners, it is even more important that the Government gets on with it.”