Abacus Daily Debt News

Call For Government Sponsered Financial Advice Scheme

With So many UK consumer experiencing debt management problems, there is clear need for financial educational from an independent body.

A report by  Otto Thoresen Review of Generic Financial Advice, commissioned by the government, recommended a £12 million, 2 year pilot project.

The proposed advice would by give by telephone, Internet and face-to-face and be funded by the government and by profits from the financial services industry.

The main areas covered would be:

• Budgeting household spending.
• Saving and borrowing.
• Protecting and insuring the family.
• Planning retirement.
• Understanding tax and welfare benefits.
• Translating financial jargon.

The review suggested that people would use such a sales-free service for significant life events that affect finances, such as starting work, buying a house, having a baby, divorce or retirement.

Teresa Perchard, public policy director of Citizens Advice, which already runs similar services, said more investment was needed in advice services stating. “Our service is busting at the seams with demand from people needing help with debts.”