A new “simpler” model has been set out for a financial guidance body the government estimates will replace the Money Advice Service (MAS).
A consultation paper was published this week (December 19) and outlines how publicly funded debt advice, pensions and money guidance will be brought together into one body.
The government said the new organisation will be ready by no earlier than Autumn 2018.
A statement from the Treasury and the Department for Work and Pensions said the new body will aim to provide a simpler service.
It will commission advice for those in problem debt, co-ordinate efforts to improve financial capability and provide information relating to pensions.
Economic secretary to the Treasury, Simon Kirby, said: “We want to help people take charge of their finances and make the financial decisions that are right for them.”
The new body will also be responsible for helping consumers avoid financial fraud and scams and co-ordinate non-governmental financial education programmes for children and young people.
Emma Lovell, a director at insolvency trade body R3, said: “A co-ordinated effort from the new body, the debt advice sector and the insolvency profession would help to ensure that consumers have the opportunity to deal with their debts in the most appropriate way for their circumstances.”
The consultation will run until February next year and the government is encouraging further responses and submissions from interested stakeholders.
Ahead of the new body’s introduction the MAS, the Pension Advice Service and Pension Wise will continue to operate as normal.
A link to the consultation paper can be found here.