Action plan targets the financially challenged

Published on Monday 7 July 2008 20:56

A SCHEME aimed at helping households with financial difficulties was unveiled yesterday by the UK government.

The Financial Capability Action Plan, launched by the Treasury in conjunction with the Financial Services Authority (FSA), is designed to give families hit by rising household costs better access to financial support and information.

It features an overhaul of the FSA's existing Moneymadeclear website and helpline, which will be expanded and given a significant promotional push in the autumn. The service will be presented as a one-stop shop offering information on financial issues and directing consumers to specialist advice on matters such as debt, mortgages and utility bills.

Under the plan, new funding will be made available to promote personal finance education in schools, with emphasis on the financial decisions children face from when they first encounter money until they leave school.

In addition, a pilot of the "Pathfinder" money guidance service will be rolled out, offering free generic financial advice by phone, over the internet and face-to-face.

The initiative was welcomed by Otto Thoresen, Aegon chief executive and author of the Thoresen Review of Generic Financial Advice, which proposed the Pathfinder initiative.

He said: "The action plan represents an important step forward in helping people in the UK have a better understanding of money issues and therefore encouraging them to make the right decisions and take responsibility for their financial futures."