The government have launched a consultation to seek views on the creation of a single body following a previous consultation in March 2016 on government’s plans to replace the Money Advice Service with a new money guidance body and to bring together the Pensions Advisory Service (TPAS) and ‘Pension Wise’ guidance into a new pensions guidance body.

The new body will focus on ensuring that the market understands and meets consumer demand and delivers value for money.

With the exception of debt advice, it will not fund regulated financial advice, but will signpost consumers to other providers.

The government has identified five areas where the SFGB will deliver or commission services. These include:

• debt advice for those in problem debt;
• information and guidance on matters relating to occupational or personal pensions, accessing defined contribution pension pots, and planning for retirement;
• information to help consumers avoid financial fraud and scams;
• provision of information for people on wider money matters and co-ordinating and influencing efforts to improve financial capability; and
• co-ordination of non-governmental financial education programmes for children and young people.

The new body could also take on a strategic role, working with the charity sector and financial services sector to understand and meet consumer need in a value for money way.

The consultation says the SFGB will have its own website and will provide a telephony service and webchat service that will give pensions guidance or signpost consumers to help from other parties or regulated financial advisers or debt advice providers. The government expects that guidance on pensions will continue to be delivered through a telephony channel, but for other matters the government expects that the SFGB will generally provide signposting or handoffs for consumers in need of broader guidance on financial matters, or financial advice.

It also says that ‘some’ face to face guidance remains available, including for those who are unable to access other forms of guidance due to poor internet and/or phone coverage in their area.

As is the case currently for MAS, TPAS and DWP’s ‘Pension Wise’, the new body will be funded by levies on the financial services and pensions industries. The government’s expectation is that the amounts charged to the levies to deliver information and guidance will remain in line with the amounts charged before the new arrangements take effect. However, as the efficiencies generated from merging the three current services into a SFGB begin to materialise, it may be possible to reduce the overall cost over time.

Simon Kirby, economic secretary to the Treasury, said: ‘We want to help people take charge of their finances, and make the financial decisions that are right for them. This new body will ensure that help is readily available for people who need to access debt advice, information on their pensions or guidance on other money matters.’

Richard Harrington, minister for pensions, said: ‘We want to ensure that everyone has access to high quality and impartial financial guidance, to help them make the most of their hard earned savings.

‘This new single body will be a place people can go for free, impartial financial guidance, and I look forward to hearing people’s views on our proposals.’

Ahead of the new body’s introduction, which is expected to be no earlier than autumn 2018, MAS, TPAS and Pension Wise will continue to operate as normal.

The consultation closes on 13 February.

Public financial guidance review: consultation on a single body is here.