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Citizens Advice calls for Generic Financial Advice service

UK charity Citizens Advice has called for a free national Generic Financial Advice service to be set up.

This follows the evidence from its Moneyplan project which was set up to help people improve their understanding and planning of their finances.

The initiative is a partnership between Citizens Advice and the Personal Finance Society and funded by Barclays Bank and life insurance and pension's firm, Aegon UK. It is currently operating across 28 CABs in conjunction with 30 Independent Financial Advisors who have volunteered to provide free face-to-face generic financial advice.

Moneyplan combined the expertise of CAB workers in benefits, debt and tax credits and a trusted brand with the skills and knowledge of IFAs.

Citizens Advice say there is "significant demand" for a Generic Financial Advice service based on the profile of people seeking advice and their reasons for doing so.

Low-income, owner-occupiers over 50 was the largest group of people seeking advice. The main issues clients sought advice over were:

• Mortgages, including equity release
• Pensions and investments
• Communication with providers, redress, understanding documents
• Insurance, principally life insurance.

This group typically did not consider consulting an IFA because of their perceived high cost and the Moneyplan initiative offered supported in a trusted environment.

The second phase of Moneyplan began in May 2007 and by the end of the year, the programme had helped over 400 clients.

The Head of Partnership Development at Citizens Advice, Jackie Nowell said:

"The results so far of partnering Citizens Advice Bureaux with Independent Financial Advisers in the Moneyplan project indicate both that there is a need for a national Generic Financial Advice service, and that this is an effective model for delivering it. The range of issues presented to the IFAs is broad, but it appears that there is particular demand from those who may own their own homes, but have low incomes. This evidence emphasises that there is a gap in provision which needs to be addressed."