The programme aims to give Britons greater understanding and confidence in making financial decisions and will provide free and impartial information and advice on money matters.
Yvette Cooper, Chief Secretary to the Treasury, claimed it could help up to 0.75 million people get free financial advice during the course of the pilot.
The £12 million project will be funded jointly by the government and the FSA, with the Thoresen Review recommending the cost be split equally between the government and financial services industry.
The service will work in partnership with a range of organisations and will be delivered through a mixture of online, face-to-face, and telephone advice.
The Thoresen Review said that by 2060, UK consumers could be up to £15 billion better off if people had access to high-quality, personalised and impartial guidance on financial issues.
Otto Thoresen, author of the report, said: “Good money sense needs to be as much part of people’s lives in the 21st century as healthy eating and keeping fit. ‘Money Guidance’ will help people deal with the money matters that shape their everyday lives.”
Mark Chilton, chief executive of Homeowners Mortgages, commented: “The devil is always in the detail. In principle, it’s a very good idea – there are sectors of the population that are financially illiterate, but we can’t pass judgement until we see the initiative in action. It’s all very well to set it up, but then you need to make the people who need it aware of it.
Chilton added: “There are a lot of help facilities; the question is how people find out where to go for information. That’s going to require a big financial campaign. If they were to insist that documents we send out included the information, that would go a long way to help.”
