The Consumer Financial Education Body (CFEB) has had £12.5m worth of government funding slashed from its budget.
According to the CFEB 2010/11 business plan, the coalition government has cut the proposed Treasury grant, worth £12.5m, preferring that the body is funded completely by the industry.
It states: “When CFEB was created in April 2010, our budget had been approved by the Financial Services Authority (FSA) as £45.4m — £32.9m of this was to come from FSA firms via the levy, and a further £12.5m was to be received in the form of a grant from the Treasury.
“Following the change of government in May, the coalition government put in place their stated policy that, while supportive of our work, they believed our funding should come completely from the industry. As a result, we did not receive a grant from the Treasury.” (article continues below)
In June the coalition announced in its emergency Budget that it would introduce a national financial advice service, in place of Money Guidance, in Spring 2011. Money Guidance was initially due to launch in 2010/11.
The Budget states: “The government has asked the Consumer Financial Education Body to develop a new annual family financial healthcheck. This will be introduced in spring 2011 as part of the national financial advice service.”