Joined up government, and on something that really counts

A couple of weeks ago, the Government and FSA put out ‘Helping you make the most of your money: a joint action plan for financial capability’. This modest document talks about how the Thoresen Review's Money Guidance proposals will be taken forward. Exactly as Otto suggested, there'll be a two year Pathfinder project delivering web, phone and face-to-face advice across the North of England. It'll be true to the principles Otto set out for it - preventative, supportive, impartial and sales-free. The aim is to reach 750,000 people with guidance about budgeting, borrowing, saving, protection, retirement planning, tax, benefits and jargon-busting. It'll go live early in 2009, with FSA spending the rest of 2008 completing the design work and developing partnerships on the ground. National roll-out will follow.

The paper also highlights the Government's programme to get financial education into schools. It'll be part of the core curriculum in all four countries of the UK from next term. FSA is already spending £16 million on support for teachers and young people, and the Government's adding another £11.5 million. Much of this work is being done by the charity pfeg, whose work AEGON has been separately supporting for the last couple of years.

The schools work and Money Guidance join up to make a coherent package for instilling and maintaining financial knowledge - and above all the confidence to apply knowledge - throughout life. The vision, for once, is clear: lifelong support for people to engage with their financial lives, and build secure and independent futures. There are hard-edged targets, and a framework for evaluation.

It's a great story, and the impact on the industry, the market place and the financial lives of millions of people could be transformational.

This blog doesn't normally sing the praises of the Government and FSA. But credit where it's due. The only cautionary note I can think of is this: as you comb through the paper, you get the impression of lots going on between now and about 2011, and not much about what happens afterwards. Like so much else, consistency is key. Changes of political wind, and a return to less worrying economic times, must not reduce the impetus of this crucial work.

Francis McGee
Head of Corporate Affairs

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Important note

This blog provides the views of our industry lobbying team. The views are the opinion of the person writing the entry of the blog and don't necessarily represent the views of AEGON in the UK. They are based on their interpretation of industry developments and their current understanding of UK proposed and actual legislation, and should not be interpreted as recommendations or advice.