Media comment: TSIP report

Tuesday 10 March 2015

On the launch of the TSIP report, Caroline Rookes, Chief Executive for the Money Advice Service comments

“We welcome TSIP’s proposals to get more people saving. Getting more people saving is essential if we are to achieve our ambition of a nation where people are resilient to withstands life’s financial shocks. That’s critical now, in the early 21st century, when unexpected life events such as redundancy and separation have become much more common and that there are fewer certainties in life than there used to be. “We’re pleased to see the recommendation that more should be done to co-ordinate financial education programmes across industry, government and others. That is exactly what we are doing with the Financial Capability Strategy for the UK, which we are leading, with the support of a range of partners. In the next few weeks, we will be holding a summit to bring together the funders of financial education and beginning a series of pilots to help parents teach their children about money. We’ll also be launching an initiative to ensure that projects designed to help people manage their money are evaluated in a consistent way. All this should help people to be better money managers, and better savers.”

For background: TSIP recommendations:

  1. Digital passport: developing a secure digital identity that can be used to revolutionise and simplify how consumers manage their money, making it easier to save money in the first instance as well as managing their savings pots.2. Increasing financial capability: making the provision of financial education more effective by enhancing consumer engagement and understanding of the benefits of savings through greater co-operation across financial services education programmes and working with government.3. Financial guidance: developing a framework for financial guidance that can be adopted by financial service firms, greatly increasing access to guidance for the public and supporting them in making sound financial decisions.4. Pensions taxation: provide expertise to any government led initiative to reform pension tax relief with a view to making the benefits of pension saving clearer, improving incentives and increasing overall levels of pension saving without incurring additional costs for the Treasury.5. Automatic escalation of pension contributions: Save More Tomorrow - using ’nudge’ techniques to encourage and facilitate employees to automatically increase their pension contributions by small increments as their income increases to levels that will provide a meaningful income in retirement 6. Savings Minister: create a new position with accountability for promoting all forms of consumer saving within government, to be a champion of financial education and guidance, and to promote ’Invest in Britain’

About the Money Advice Service

The Money Advice Service is an independent organisation. Set up by government to help people make the most of their money, it gives free, unbiased money advice across the UK – online, over the phone and face to face. Paid for by a statutory levy on the financial services industry, raised through the Financial Conduct Authority, its statutory objectives are to enhance the understanding & knowledge of members of the public about financial matters (including the UK financial system), and to enhance the ability of the public to manage their own financial affairs.

For more information, please contact: The Money Advice Service press office on 020 7943 0593 or email pressoffice@moneyadviceservice.org.uk