Create financial advice charities

The financial and pension industries should establish two charitable advice services to help people on low incomes.

The Low Incomes Tax Reform Group (LITRG) said financial advisers should create an organisation to mirror the services offered by the tax and debt charities. A similar service should be set up to give advice about pensions to complement the government’s Pension Wise service. The LITRG’s comments came in a response to the government’s consultation on public financial guidance.

Staffed by qualified financial advisers who would probably be acting as volunteers the advice should take account of users’ circumstances such as their health family commitments assets state benefits and their aspirations.

The services should be funded by the regulated financial industry in the same way as the tax charities’ advice services are funded by the tax profession with contributions from government. They along with the current...