New help for people managing money worries
7th July 2008Action to give people more support to tackle their money concerns is being announced today by Yvette Cooper MP, Chief Secretary to the Treasury and Hector Sants CEO of Financial Services Authority (FSA).
The Financial Capability Action Plan sets out new measures to give people free advice and assistance to help them to better manage their finances. The action plan also makes further progress towards the FSA's and the Government's goal of helping people become better informed, better educated and more confident with money.
The key initiatives outlined in the plan, include:
- Development of an expanded one-stop-shop for information and support based around the FSA's Moneymadeclear website and consumer helpline, to be promoted widely after the summer. This will direct people to specialist advice on issue such as problems with debt, mortgages or utility bills, as well as provide information for first time buyers or other people looking for financial help.
- A new GBP12m programme to deliver new free advice on money matters including budgeting, money management and planning to help hundreds of thousands of households across the North West and North East of England as part of the Money Guidance "pathfinder" recommended by the Thoresen Review of generic financial advice. It will be launched early next year, providing personalised support to people looking to make their money go further.
- Support for personal finance education in schools, through the Government's new GBP11.5m three-year programme My Money and the FSA's GBP16m Learning Money Matters programme. This programme will support financial capability for children and young people from ages four to nineteen, focusing on the financial decisions children meet from when they first encounter money until they leave school.
The measures will help households facing money worries access a wide range of specialist help and advice, making it easier for families to get support from the GBP200m programme of debt and financial advice services funded by this Government. Once in place the FSA one stop shop will also direct people worried by rising energy bills towards independent sources of advice to save consumers money on utility bills.
Launching the Action Plan, Chief Secretary to the Treasury Yvette Cooper MP, said:
"Many families are feeling the pinch as a result of high fuel and food prices, and the impact of the credit crunch on mortgage lending. But when people are facing money worries they often don't know where to turn. We need to make it much easier for people to get access to information, help and advice
"The Government is also determined to do more to create an environment where people get personal finance education and information from the start of their lives to the end; helping them with money problems and supporting them at key points in their lives, for example moving into higher or further education, having a baby, or planning their retirement."
Hector Sants, Chief Executive of the FSA added:
"We are delighted that together with our partners in the Treasury we are able to announce our chosen regions for the money guidance pathfinder, as well as new plans to extend our information campaign to benefit the many people who may be struggling with their finances in these tougher times.
"In the past three years, the FSA has made great strides in tackling the low levels of financial capability in the UK and helping everyone to get to grips with their finances. In partnership with the Government, we want to develop money guidance to help consumers to be able to make sound money choices, to know what questions to ask of their financial service provider, and, just as importantly, to have the confidence to do so and to know where to go if things go wrong."
Economic Secretary to the Treasury, Kitty Ussher MP said:
"Learning to manage money is an essential skill for everyone and I'm thrilled that we are able to announce the new GBP11.5m funding for the My Money scheme today. This Government is committed to ensuring that at every age people have the education, support and skills they need to make the right money choices, plan for their future and provide financial security for their families. I'm convinced that the My Money programme along with the FSA's Learning Money Matters initiative will have a long-term impact on the financial security of future generations."
