Pre-Budget Report: Money guidance to launch in spring

The service will help inform consumers of basic elements of financial products and budgeting. The Governmnet's aim is to help one million people in its first year.

A pilot scheme for the service has been under way for a number of months in the north of England (see the Budget Planning guide).

The Pre-Budget Report states: "Interim evaluation findings show that 'Money Guidance' is proving effective in helping people deal with their finances, from making an informed decision when choosing financial products to dealing with debts before they get out of hand."

Westminster and the Financial Services Authority will provide £20 million in the 2010/11 tax year to fund the national rollout.

The Government also plans to release up to £100 million of the funds expected from the Dormant Accounts Scheme (from unclaimed cash in bank and savings accounts) over "a number of years" to support delivery of the money guidance service.

It was announced last month that personal finance is set to become an obligatory part of the National Curriculum within two years (see the Compulsory Personal Finance Education MSE News story).

See the Pre-Budget Report round-up MSE News story for more info...

Further reading/Key Links

Money management: Teen Cash Class, Student MoneySaving