Housing Foundation calls for Government urgency 3 March 2008 NEWS RELEASE For immediate release: 3rd March 2008 FOUNDATION CALLS FOR GOVERNMENT URGENCY The Resolution Foundation today welcomes the Thoresen Review of Generic Financial Advice’s final report, and calls on the government to adopt a sense of urgency in implementing the national ‘Money Guidance’ service. The report sets out a blueprint for a national Money Guidance service which has the potential to deliver a step change in the financial health of the nation. This is acutely relevant set amid the current economic context. The Foundation which began looking at the provision of financial advice, particularly for low earners, in 2005 has been a keen supporter of the Thoresen Review’s work every step of the way. The Foundation identified that there was an ‘advice gap’ in its first report and is delighted to welcome such a comprehensive and decisive report which seeks to rectify this. The Foundation commends Thoresen and his team on the report’s clear direction of travel. The Foundation is keen to stress that there should be no delay in implementation. Pensions reform and the roll-out of Personal Accounts in 2012 will lead to a surge in demand for advice which means a fully operational, strongly branded, national Money Guidance service needs to be up and running by 2011. There is no time to waste between the pathfinder and full national roll-out. Clive Cowdery, Chairman of the Resolution Foundation, said: ‘The Foundation is delighted to welcome this report. The government must now act quickly on these recommendations to keep the momentum going.’ The Foundation’s research has shown that increasing access to financial advice will lead people to reduce spending on credit and debt products, and invest more in savings, pensions and insurance.2 A Yougov poll carried out for the Foundation last year revealed huge concern about people’s financial health and overwhelming public support for such a service.3 The Foundation’s poll also showed strong public support for the report’s recommendation that the new service should be paid for through a public-private funding agreement between the Government and the financial services industry. This reflects the considerable benefits that the Thoresen proposals would deliver. The Foundation’s research has shown that increased access to financial advice would leave consumers significantly better off, reduce levels of financial stress and provide sizeable savings in public spending on welfare benefits.4 /Ends For further information please contact Cara Brown on 020 7489 4870 / 07813 302801 or cara.brown@resolutionfoundation.org All the Foundation’s research, reports, briefings, seminar notes are available on our website www.resolutionfoundation.org Notes to editor: (1) The Thoresen Review of Generic Financial Advice was announced by the Economic Secretary to the Treasury on 15 March 2007. Its final report is published today. See www.hm-treasury.gov.uk/independent_reviews/thoresen_review/thoresenreview_index.cfm (2) See A national dividend: The economic impact of financial advice which can also be downloaded from the Foundation’s website www.resolutionfoundation.org (3) The sample size for the survey was 2,010 adults. Fieldwork was undertaken from 25-27 July 2007. The survey was carried out online. The results were weighted and are representative of all GB adults (aged 18+). Among the key findings: Nearly 70 per cent of parents worry about how their children will deal with the financial decisions they will face during their lifetime Almost 80 per cent of people admit to worrying about their finances ‘often’ or ‘sometimes’, with 1 in 10 worrying ‘all the time’ Almost 60 per cent of people believe that the average UK person is in a poor state of financial health Over 60 per cent of people think that people find managing personal finances more challenging than they did 10 years ago Nearly three-quarters of people support proposals for a new generic financial advice service, with only 7 per cent opposing this 49 per cent of people who expressed a view said they supported a public-private funding arrangement between the Government and the financial services industry, in preference to it being paid for solely by the Government or the industry (4) See The advice gain: The impact of generic financial advice on the financial services industry which can also be downloaded from the Foundation’s website (5) For details of the pilot schemes, see: www.hm-treasury.gov.uk/independent_reviews/thoresen_review/thoresen_press_100907.cfm
