2014/15 Business Plan

Transcription

1 2014/15 Business Plan

2 2 Money Advice Service Section Money Advice Service 2 Business Plan 2013/14 Contents Chairman s foreword 3 Chief Executive s foreword /15 Business Plan Highlights 5 Chapter 1 - Introduction to the Money Advice Service 6 Chapter 2 - A look back at 2013/14 10 Chapter 3 - Focus on 2014/15: Our strategic themes 16 Chapter 4 - Theme 1: Deliver a highly effective service, making a real impact on people s lives 21 Chapter 5 - Theme 2: Improving access to high quality debt advice for over-indebted people 26 Chapter 6 - Theme 3: Drive the wider agenda to improve people s financial capability 31 Chapter 7 - Evaluation of the Service and measuring our impact 36 Chapter 8 - Resource summary 2014/15 44 Chapter 9 - Responses to the public consultation and changes to the draft Business Plan 50 Northern Ireland - Business Plan Appendix 54 Scotland - Business Plan Appendix 57 Wales - Business Plan Appendix 60 moneyadviceservice.org.uk

3 Chairman s foreword 3 Chairman s foreword This is the first Money Advice Service Business Plan I have overseen as Chairman of the Service. I am delighted to be chairing an organisation that is so important to people s lives and has such a big job to do. Although there are encouraging signs that the economy has turned a corner, it is likely to continue to be tough for very many people. With more than half the population saying they are struggling to make ends meet, there is a significant need for people to have access to free, impartial advice about how to handle their money better so they can look after themselves and their families. The Money Advice Service exists to meet that need. We are very conscious that we cannot do this on our own. We need to work in partnership with a wide range of organisations central and local government, financial services firms, charities, voluntary groups and a host of others to reach out to our customers and deliver the advice and support they need. This partnership model has been at the heart of the Service s work and will continue to be in the year to come. We will be looking to build new and stronger partnerships, exploring as many channels as we can, so that as many people as possible are getting the full benefit of the services we and our partners provide. Getting good advice on how to manage your money and acting on it can be a transformative experience. The sense of being in control, having a plan and taking action to turn that plan into a reality, is as important to people s well-being as the numbers on their bank balance. Our service gives people a wide range of helpful tools and information but it also aims to provide the support and encouragement people need to take what are often difficult steps to take control of their money. That is why it is particularly gratifying that so many of our customers tell us that the service we have given them has helped them decide on a course of action, that they would recommend us to others, and that they will return to us again themselves. And it is why I believe it is right that we are continuing to set ourselves challenging targets around customer satisfaction and how our service is changing people s behaviours. It is important too that the Service should seek to identify how best to make a difference and focus on interventions which work. To that end, a major priority for next year is continuing the work which will lead to the publication of A Financial Capability Strategy for the UK. This is a great example of the Service using its unique insight and experience to lead a wider collaborative process, bringing together contributions from a wide range of stakeholders and partners. The Service has made great progress in the last year, reaching more people than ever before and beginning to make a real impact. It was encouraging to see the National Audit Office s verdict that our debt advice work was providing value for money and that on money advice, we were moving in the right direction. I am confident that with this plan, the Service can continue its positive direction of travel and begin to deliver that step-change in money management skills we all want to see. Andy Briscoe Chairman, Money Advice Service

4 Chief Executive s foreword 4 Chief Executive s foreword The Money Advice Service is about helping people change their lives by managing their money better. Looking back over my first full year with the Service, it has been a period of steady progress in achieving that aim. By working with a wide range of partners, we ve been able to reach more people than ever before we are averaging 1.3 million customer contacts every month in 2013/14 - and help them to take control of their finances. When people come into contact with the Service whether it is online or talking to an adviser on the phone, via web-chat or face-to-face we want to give them what they need to make the right decisions for themselves and their families and point them in the right direction to take the next steps. With 75 per cent of our customers saying we have helped them decide on a course of action, we re already getting the message through. As the largest funder of debt advice in the UK we are also supporting our partners in delivering more than 3,000 debt advice sessions a week to people in England and Wales. Since we took responsibility for funding and co-ordination of debt advice, our partners have delivered 50 per cent more advice sessions at no extra cost and whilst maintaining the same high standards. But we know we need to do much more. Our research last year, The Financial Capability of the UK, highlighted the scale of the challenge. People of all ages and backgrounds are struggling to make ends meet and failing to save regularly. And of the 9 million over-indebted people in the UK, fewer than one-fifth are receiving the debt advice that could help turn their lives around. In short, there are still way too many people who could benefit from our help, not getting the advice they need to make a real difference to their lives. We want to change that to make seeking advice about money a normal part of life. Building on the solid foundations laid this year, we ve developed an ambitious set of performance indicators for the year to come indicators which set out to measure the impact our service is having on people s lives. We want to get many more people to stop, think and engage with their money on a regular basis. The plan sets out how we intend to make that aim a reality. The indicators will show how successful we are. One of the most heartening aspects of the past year has been to find such a strong appetite from a range of stakeholders for working with us. The development of A Financial Capability Strategy for the UK, to be published later this year, is a case in point a genuinely collaborative process involving a large number of organisations who share our vision of improving the nation s financial well-being. I would like to thank all the organisations and individuals who have helped us develop this plan and particularly those who took the time to respond to the consultation. In the coming year, we will be looking to establish relationships with a host of new partners, and work ever more closely with existing ones, so that we can reach out to more and more people. This plan points the way to doing just that. Caroline Rookes Chief Executive, Money Advice Service

5 2014/15 Business Plan Highlights /15 Business Plan Highlights This year s business plan is designed to build upon the achievements of the past three years. It is a plan with partnership at its heart, based around evaluation and service improvement, and making a real difference to people s lives. During 2014/15 we will: Continue to deliver a highly effective service, making a real impact on people s lives by: Extending the reach of our free and impartial money advice, with the aim of 16 million customer contacts to the Service. Stepping up efforts to stop people when they are going about their daily business, getting them to think about their money and taking action to improve their finances; our target is for 4.5 million positive actions to be taken by people after coming to the Service. Helping customers to get advice from regulated advisers or elsewhere, if we are unable to provide it ourselves. Improve access to high quality debt advice for over-indebted people by: Introducing new three year funding arrangements in England and Wales. We will increase the funding for debt advice in England and Wales by 3.6m to enable more people to access the advice they need. Working with the debt sector to ensure that advice is provided where there are gaps, to get advice to those who need it most and to ensure that people are able to access advice in the way that best suits their needs. Integrating financial capability into debt advice to give people the skills and knowledge to reduce the risk of falling into unmanageable debt. Drive the wider agenda to improve people s financial capability by: Developing and delivering the Financial Capability Strategy for the UK in collaboration with stakeholders. Enhancing the evaluation of our Service and other financial capability initiatives to understand what really works in changing people s financial behaviours. Continuing our innovative customer insight and research programme and sharing this insight with others. Through this, we hope to take further steps towards our ultimate goals of more people accessing money and debt advice, more people managing their money better, fewer people in debt, and a UK which is more financially capable.

6 Section 6 Chapter 1 Introduction to the Money Advice Service What our customers say Excellent. They knew their stuff and they were very knowledgeable. It is nice to know that there are people on hand to help people in desperate need. Credit to the service.

7 Chapter 1 - Introduction to the Money Advice Service 7 Our roles and ambition for the future The Money Advice Service exists to change people s lives, by helping them make the most of their money, both through our own Service and by working with others. We know that the need for free, unbiased money advice is growing across the UK: in 2013 over half of UK adults struggled to keep up with their bills and credit commitments, compared to just over a third in Around 9 million people in the UK are over-indebted 2 and less than a fifth of these people are currently accessing advice to help manage their debts. 3 We also know that the need for money advice is not equal across the population some groups of people struggle with their finances more than others. This could be because they have a limited income, because they are financially excluded, or because they lack the skills and knowledge to manage their money well. So, whilst our Service is for everyone, there are some people who would benefit from our help more than others. We aim to meet this need by fulfilling three key roles: First, we provide people with generic information about money matters covering a wide range of issues and life events and we help them take action to better manage their finances so that they can manage day-to-day, cope with financial shocks, and achieve their life goals. We do this directly, primarily on the web, but also over the phone and face-to-face, and in partnership with other organisations. Second, we help people who are facing unmanageable debt get their finances back in order. We do this by funding a proportion of free debt advice in England and Wales, co-funding programmes in partnership with the governments of Scotland and Northern Ireland, and by coordinating efforts across the debt advice sector to improve the quality, consistency and availability of debt advice. Third, we are a leader and influencer beyond our own Service. We coordinate and facilitate the improvement of the financial capability landscape across the UK by working closely with stakeholders to agree priorities and action plans. We share insight and research about how best to help individuals improve their money management with other organisations, including government, the financial services industry, other advice providers and consumer and education groups. 1 p.10, The Financial Capability of the UK, Money Advice Service, These are individuals who have been behind with their bills in three months of the last six, or have said that they feel their debts are a heavy burden. 3 p.3, Indebted Lives: The Complexities of Life in Debt, Money Advice Service, 2013.

8 Chapter 1 - Introduction to the Money Advice Service 8 In fulfilling these three roles, it is important that we complement the work of other organisations. We will work with the financial adviser community to make sure that customers who need regulated financial advice are directed to the right part of the financial services system at the right time. We also want to make sure that we avoid duplicating the content and services provided by other advice organisations, whilst maintaining a coherent source of advice, only creating content or delivering services where there is a gap or unmet customer need. For example, we provide comparison tables on financial products like mortgages because we believe there is a need for an independent and whole-of-market summary. Our ambition for the future is to be highly effective across our three roles and, through this, contribute to improving the overall financial capability of the UK. In the future, we want to see: nfewer people becoming over-indebted nmore people keeping track of their finances and budgeting to achieve life goals nmore people planning ahead for their retirement nmore people being financially resilient by protecting themselves and their assets What is financial capability? We have worked with stakeholders across the sector to define financial capability. A financially capable person is someone who keeps track of their money, plans ahead, and is able to make informed decisions about their finances, understanding the risks and benefits of particular options. We know that financial capability is underpinned by the right skills, knowledge, attitudes, motivations and opportunities. We also know that there are close links between financial capability and numeracy. These are ambitions that the Money Advice Service cannot achieve on its own. They are influenced by a range of factors: both external (economic and regulatory), and internal (personal circumstance, skills, attitudes, motivations). No one organisation can influence all of these factors. Therefore, improving the financial capability of the UK requires close collaboration between all stakeholders. To support this collaboration, the Money Advice Service is working with stakeholders to develop and deliver A Financial Capability Strategy for the UK (referred to in this Business Plan as the UK Strategy ). This is a strategy for the whole of the UK, owned by stakeholders across the advice landscape. The Service will coordinate the development of the UK Strategy and work with stakeholders to deliver a comprehensive understanding of financial capability initiatives, what is effective and what isn t, shared priorities for action and a common evaluation framework.

9 Chapter 1 - Introduction to the Money Advice Service 9 As part of the UK Strategy, the Service will continue to monitor the financial capability of the UK, as well as that of our own customer base. In 2013 we developed five key indicators of basic money management: saving regularly, managing debt, protecting dependents, protecting assets and saving for retirement. We are currently tracking how many times the Service has helped people take any of these basic steps, as well as tracking the UK population s behaviour against these five indicators. We will add basic budgeting to this list, and continue to refine these indicators going forward. The three roles described in this chapter reflect a more mature service. The first three years of our operation involved building an advice model and the means to deliver it, making people aware of our free and impartial service, and crucially in 2012, taking on the responsibility for coordinating debt advice in the UK. We have now reached a point in the evolution of the organisation where we will focus on further refining our offer to really change people s financial behaviours. Our Business Plan for 2014/15 sets out how we will be more effective and efficient across our three core roles, to deliver a more engaging service for customers, based on deeper evaluation of what we do and further collaboration with stakeholders. Our statutory objectives The Money Advice Service exists to help people in the UK to understand financial matters and better manage their money. This purpose is set out in the Financial Services Act 2012, which outlines our three core objectives: Improving people s understanding and knowledge of financial matters Improving people s ability to manage their own financial affairs Assisting members of the public with management of debt with a view to improving the availability, quality and consistency of debt advice services across the UK. The advice that we give to our customers is generic and intended to improve people s basic skills and knowledge, as well as inform their attitudes and motivations to make good decisions about their money. Our advice is not regulated by the Financial Conduct Authority (FCA) and if a customer needs to access money advice on a topic that is regulated by the FCA, we set out when and how they should do this. We operate across the whole of the UK and recognise that the role of the Service must be consistent with and complement the Programmes for Government in Wales, Northern Ireland, and Scotland. We will continue to work closely with the devolved nations and regional authorities to ensure that we support their work and that we respond to local issues in designing and delivering our service.

10 Section 10 Chapter 2 A look back at 2013/14 What our customers say Can I just say the planner is amazing! It s brought our spending under control and reduced stress levels. I ve recommended it to friends. Well done to the people who created it, as it s very thorough. Love it!

11 Chapter 2 - A look back at 2013/14 11 This chapter looks at the experiences of 2013/14 and the delivery of our previous business plan, to draw out key lessons for developing the Service further in 2014/15. A fuller update on our progress and our final year figures will be published in July, as part of our Annual Review. Overall, we believe the Service has made good progress against the strategic themes set out in the 2013/14 business plan. Strategic theme 1: Giving advice and empowering people to take action, on our own and with others nmore people have used the Service than ever before, due to targeted campaigns and increased awareness of the Service. We have averaged approximately 1.3 million visits to the website a month in 2013/14 so far we anticipate about 16 million contacts to the Service in total in 2013/14. Just over 185,000 people have used our telephone, web-chat and face-to-face money advice services. n349,000 basic money steps were taken by customers as a result of the Service in the first half of 2013/14 these steps included managing debt, saving regularly, saving for retirement, protecting assets and providing for dependents. nwe have engaged with over 150 organisations. Forty organisations from across financial services, private sector, third sector, and government have syndicated our tools and content. We have developed links with key referrers, including Gov.uk, retail banks, supermarkets, parenting websites and many other organisations. nthe table below gives an overview of our to date performance against our 2013/14 key performance indicator targets. Key Performance Indicator 2013/14 Target 2013/14 Performance to end of February Total customer contacts 5.45 million 14,438,904 Positive outcomes across 480, ,000 4 five key outcomes Budget planner completions 200, ,870 % of customers who agree they have 82% 85% (YTD) / 84% (Feb) been provided with the information they required % of customers who agree we have 70% 73% (YTD) / 70% (Feb) helped them decide on a course of action % of customers who agree that they will 88% 92% (YTD) / 93% (Feb) revisit the Money Advice Service % of customers who would recommend the Money Advice Service 85% 90% (YTD) / 88% (Feb) 4 This figure is for April September 2013 only.

12 Chapter 2 - A look back at 2013/14 12 Strategic theme 2: Improving the quality, consistency and availability of debt advice services across the UK nwe have helped over 150,000 people in crisis debt in England and Wales receive high quality debt advice this year. We also provide funding in Scotland and Northern Ireland, through partnerships with their governments, to support people who are over-indebted. nworking with the sector, we have agreed and implemented a new framework which sets a quality standard for debt advice delivery at organisational and individual level (the quality framework). Organisations and advisers are able to have their quality standards and membership codes accredited against this framework. nwe developed and published a new evaluation framework to measure the effectiveness of debt advice provided both by those organisations that we fund and by the wider sector. The framework was developed through primary research with over-indebted people, through testing with the advice sector, and expert input from Bristol University. It will give a much richer picture of the effectiveness of debt advice sessions. nwe introduced a new stream of funding via the Scottish Legal Aid Board to promote debt advice for particularly marginalised groups. This has resulted in partnerships with new organisations such as Scottish Women s Aid, Shelter Scotland, NHS Greater Glasgow and Deaf Action Scotland. Based on the successful development of this programme, the Scottish Government have decided to invest further funds to expand its reach. nwe published research setting out the different attitudes, behaviours, and needs of the over-indebted population in the UK (referred to in this document as our customer segmentation research ).

13 Chapter 2 - A look back at 2013/14 13 Strategic theme 3: Equipping young people with the skills, attitudes and behaviour to manage their money more effectively nwe published research into the financial capability of year olds. This research showed that the biggest influence on young people and their spending habits is their parents and that they will emulate their parents money behaviour good and bad. nwe published research into the formation of money habits in young children. This research showed that money habits are formed at a very young age, and modelled primarily on the behaviour of parents. As a result of these insights, we have produced content and videos for parents to help them teach their children good money habits. nwe have conducted research into the financial regrets of those in their 20s and the impact of peer advice. This research will be published in the first half of nwe produced specific tools and content for young people including new saving and sensible borrowing mobile phone apps co-created with young people which will launch in the first quarter of 2014/15; we also developed a money tips for graduates tool and a number of videos where young people talk about their first financial decisions. nwe have developed a young people and parenting hub containing all our research, content, advice and videos so that parents can easily access all our resources in one place, and we will launch this in the first quarter of 2014/15. nwe have produced a financial capability toolkit for youth practitioners to use with at risk groups of young people. nthrough the UK Strategy we have identified and mapped gaps in financial education provision. We will continue to work with stakeholders over the next year to ensure these gaps are addressed. nin the 2013/14 plan, we said that we would develop a code of practice for financial capability programmes for young people, to help providers align their programmes with need, and use best-practice interventions. However, in light of the UK Strategy, we have reframed this particular piece of work and incorporated it into the wider evaluation framework that will be developed for all financial capability programmes.

14 Chapter 2 - A look back at 2013/14 14 Strategic theme 4: Influencing the financial capability landscape nwe commenced the biggest and deepest study of financial capability in the UK, publishing a new baseline of UK financial capability in August, which we will continue tracking in 2014/15. nwe commenced development of A Financial Capability Strategy for the UK. This strategy aims to increase the financial resilience of the UK population by improving individuals financial capability. We define financial capability as the ability to plan ahead, make ends meet and make informed decisions. Importantly, the strategy will prioritise groups who are at a higher risk of detriment because of low financial capability. na key starting point for the strategy in 2013/14 was bringing together as many organisations as possible with an interest in this area. We have created appropriate governance structures, overseen by a steering group of stakeholders, and enabling us to support a cohort approach to the Strategy key groups of stakeholders will look at the needs of different age groups. nthis cohort approach led to the creation of three working groups, involving stakeholders from across the financial services, government and the advice sector, to address the needs of young people, working age people and older people. These groups have started to analyse the evidence base, which will inform which priority areas the strategy will focus on. Organisational culture In 2013/14, we developed and embedded new organisational values. These values describe the principles that underpin our business decisions, the way the organisation operates and the capabilities that are promoted, recognised and valued by the Money Advice Service. Our values are about being: ncustomer focused: enabling and empowering customers to take action ncollaborative: working constructively with others to deliver positive outcomes for people npassionate: work characterised by commitment, care and enthusiasm nopen: honest, straightforward, trusting and trustworthy nlistening and Learning: always seeking to understand, improve and innovate In 2013/14 these new values have influenced both our internal and external approaches, creating a strong customer-centric organisational culture, and forging good relationships with a wide stakeholder network. The values will continue to underpin how we operate in 2014/15.

15 Chapter 2 - A look back at 2013/14 15 Key reflections on 2013/14 We want to build on the achievements of 2013/14 and help even more people manage their money better. We expect more people to contact the Service in the future, particularly via our website. Our focus must be on making these visits more engaging and more useful for people, so that customers go away with a real understanding and confidence about what to do next. Developing effective partnerships was a big theme for us in 2013/14. We have made connections with a wide range of organisations, and will strengthen these and build new relationships in the coming year. A key way to make the Service more useful and engaging for people is through careful evaluation of our content and tools. Whilst we already survey customer satisfaction, we want to undertake a much more rigorous evaluation of what does and doesn t work to help someone make a positive decision about their money. This insight will be valuable for stakeholders and the wider advice sector, as well as for the Service. Over the last year, we have learnt that evidence around successful intervention programmes to improve people s financial capability is lacking. We intend to gather more evidence through the development of the UK Strategy. Another key lesson we have learnt is that there is an appetite for more collaborative working across government, the financial services industry, the voluntary sector and the advice sector. The UK Strategy will play a key role in helping to identify priority areas for action and set out a plan for the next few years. In December 2013, the House of Commons Treasury Sub Committee (TSC) and National Audit Office (NAO) published reports on the Service. The NAO report looked at the Service s value for money and concluded that the Service delivers value for money on our debt advice work, and is heading in the right direction on money advice. Encouragingly, the NAO s recommendations cover activities which are already underway, or planned for 2014/15 and beyond. This includes a new evaluation framework for the Service, focusing on the impact we have on customers. The main recommendation of the TSC was to bring forward the planned review of the Money Advice Service. This will happen during 2014/15. In a number of areas, we have already taken on board the TSC s views and we will continue to reflect on what more we can do. The following chapter outlines our key priorities and work for 2014/15, and the strategic themes that will frame this work.

16 Section 16 Chapter 3 Focus on 2014/15: Our strategic themes What our customers say I was given advice I couldn t get from anywhere else.

17 Chapter 3 - Focus on 2014/15: Our strategy themes 17 Our strategic direction in 2014/15 is a consolidation and evolution of last year s business plan. We have drawn out three strategic themes to help shape our business and set our objectives, activities, and key performance indicators in 2014/15: Theme 1: Deliver a highly effective service, making a real impact on people s lives Theme 2: Improving access to high quality debt advice for over-indebted people Theme 3: Drive the wider agenda to improve people s financial capability What do these strategic themes mean we will do in 2014/15? Strategic theme 1: Deliver a highly effective service, making a real impact on people s lives We will engage with the UK population in a way that makes seeking money advice the normal thing to do. We will enhance our impact by focussing on providing more people with the help they need, when they need it, and supporting them to take action, be that on the phone, face-to-face, or online. We will do this through our own Service, and through others, either in partnership or through referrals. This means not just waiting for people to come to our Service, but getting more people to stop, think, and engage with their money as they go about their daily routine. We will also evaluate the Service to understand what does and doesn t work, and make improvements so we are more engaging and help more people take action. We will seek the views of expert researchers to help us evaluate the Service. We will continuously improve our tools and content based on this insight.

18 Chapter 3 - Focus on 2014/15: Our strategy themes 18 Strategic theme 2: Improving access to high quality debt advice for over-indebted people We will aim to increase the number of people taking action after receiving high quality debt advice through our funded projects and work to improve the overall quality of debt advice across the sector. We will implement new three-year funding agreements with providers in England and Wales, based on a range of principles aimed at improving the quality, consistency and availability of debt advice. As part of this we will ask the providers to guide people to the most appropriate channel for their needs, so that face-to-face advice is available for vulnerable customers who would most benefit from this channel. We will also work with other funders to improve the supply and uptake of quality debt advice across the whole sector, promoting consistent processes and evaluation. We will do more to link up our debt advice work with efforts to increase the general population s financial capability helping to reduce the risk of more people becoming over-indebted. Strategic theme 3: Drive the wider agenda to improve people s financial capability We will do more to help people manage their money better, across the UK, by collaborating with and supporting other organisations to boost people s financial capability. A key driver to support other organisations and boost financial capability is A Financial Capability Strategy for the UK, which we will coordinate, but which will be co-created and owned by organisations across the sector. Through the UK Strategy, the Service will work with stakeholders to understand the needs of different groups, existing interventions, gaps in provisions, and collectively agree priorities for action. Alongside this, the Service will deliver a framework for evaluating financial capability programmes. Our research and customer insight will also serve to drive the debate about what everyone (advice providers, the financial services industry, regulators and government) can do to improve people s financial capability.

19 Chapter 3 - Focus on 2014/15: Our strategy themes 19 Our target audience and vulnerable people We want to ensure that people who are at most risk of detriment as a result of poor financial capability, or people who are financially marginalised, get the support they need. In the 2013/14 plan, we identified a target audience 10.2 million people, not taking action against four out of five outcomes of managing debt well, saving regularly, saving for retirement, protecting your assets and providing for your dependents. These people need help to better manage their money and this group remains relevant in 2014/15 in helping us target and reach people who will benefit from our Service. We want to continue to develop our understanding of groups in the population that may be most at risk of detriment, as a result of poor financial capability. Within the UK Strategy, we will be working with the sector to understand the advice needs of the population, the detriments if these are not met, and the groups who would benefit most from support. This analysis will take into account existing financial capability interventions, identifying possible gaps in provision, and recommending how organisations (including the Money Advice Service) might improve coordination and address gaps in provision. We will also be looking at how we can continue to support vulnerable people, both through our Service, and in partnership with other organisations. Young people In last year s plan, we highlighted young people as a distinct group to help. We have decided not to treat young people separately this year. Instead, this year s business plan includes our activities to support young people under each of the strategic themes. Young people remain a priority for the Service. As part of the UK Strategy, we are working closely with the sector to identify and agree priorities for supporting young people, gaps in existing provision, and how we will collectively address these. We will add value to the work which is already happening, by helping to coordinate resources to target need, and by developing a better evaluation framework so that best practice can be shared more widely.

20 Chapter 3 - Focus on 2014/15: Our strategy themes 20 Priorities for the Service in the devolved nations Across all these themes, it remains a priority for the Service to work closely with the devolved nations in 2014/15. The Scotland, Northern Ireland and Wales governments all have distinct Programmes for Government and policies around financial capability. The Service has a dedicated manager in each of the nations to liaise with the government, local authorities, advice organisations and representatives from industry and third sector groups. In 2014/15, our devolved nation managers will continue to work closely with key departments within each government to support their respective financial capability and inclusion agendas, and help ensure that people are supported to manage their money throughout the introduction of major welfare reform. Our work with devolved nations is explained in more detail in appendices at the end of this plan. A few examples of our devolved nation-specific work include: nworking with partners in Wales to deliver the outcomes within the Welsh Government s Tackling Poverty Programme and the implementation plan of the Money Advice Service s Wales Strategy. nsupporting the Scottish Government and Money Advice Scotland to develop a Scottish National Standard for financial capability, and ensuring financial capability underpins the Child Poverty Strategy. ncontinue to work closely with the Department of Enterprise, Trade, and Investment to support the Northern Ireland Executive s Financial Capability Strategy. The rest of this document sets out our objectives and initiatives across each of the three themes and our Key Performance Indicator (KPI) framework to measure our success. The plan concludes with a budget summary for 2014/15.

21 Section 21 Chapter 4 Theme 1: Deliver a highly effective service, making a real impact on people s lives Our objectives against this theme are to: Help people stop and think about money, making seeking advice a normal part of everyday life Reach and interrupt people at the right time in the right place Ensure people take action to manage their money better What our customers say Excellent. Very good information and the way they dealt with me. It s a bit embarrassing when you have money problems but they dealt with it straight away.

22 Chapter 4 - Theme 1: Deliver a highly effective service, making a real impact on people s lives 22 This theme is about giving people the help they need to overcome their financial inertia, engage with their money, and take steps towards positive money management which will help prepare them for income shocks and achieve their life goals. We know there is a real need to help people our recent Financial Capability research showed that people are struggling to manage their finances. In 2006, a third of people were struggling to pay bills on time and this has risen to over half in Over a third of consumers in the UK sometimes or often run out of money. Overall, our research suggests that people are focused on the here and now, rather than planning for the future, including for unseen emergencies. 5 We will continue to offer our free, impartial advice service across all our channels through our website, on mobile devices, face-to-face, phone, web-chat, and of course through our partners, providing people with content and interactive tools on a diverse range of money matters. What will we do differently in 2014/15? Our focus in 2014/15 will be on making seeking money advice a normal part of everyday life. Our first objective against this theme is to get people to stop and think about their money this means prompting people everywhere to engage with financial matters which they may otherwise feel uncomfortable about or may ignore. Money advice should be easy to find, something that friends and family talk about, and an accepted part of everyday life. A key lesson we have learnt about money advice, through our research, is that people often know what they should do, but don t act on this knowledge. This could be due to inertia or uncertainty about what to do next. So, our second objective is to reach and interrupt more people at the right time, and in the right place when they are most receptive to advice about their money and will benefit from making the right decisions in the short term and the long term. Our research suggests that people are receptive to money advice when they are facing big life events - such as buying a home, going through a divorce or separation or retiring. These are also the times when there is a risk of financial detriment if people do not make the right decisions. We want to reach out to people who are experiencing key life events, interrupt their thinking at a timely moment, and prompt them to consider the implications of their choices, including the benefits of seeking more information. 5 The Financial Capability of the UK, Money Advice Service, 2013.

23 Chapter 4 - Theme 1: Deliver a highly effective service, making a real impact on people s lives 23 Our third objective in this theme is to help more people take action to manage their money effectively. This is about helping people take positive steps to change their behaviour towards their money. Basic money steps could include budgeting, reducing debt, saving regularly, preparing for retirement, and preparing for possible financial shocks. We will support this objective by enhancing our customers experiences making sure we quickly recognise their needs and preferences and direct them to the right information. If customers need the help of another organisation or advice provider, we can refer them onwards in the most effective way. We will provide new step-by-step advice journeys for customers on the website for when they face big financial events. The journeys will be designed to coach customers through significant events that have financial consequences. They will be interactive customers will be prompted to ask questions and will be led to the appropriate answer. The big life events we will focus on in 2014/15 include buying a house, approaching retirement, and separation or divorce. We will underpin this approach with deeper insight about customer needs. Finally, we will base our approach on thorough and continuous evaluation of the Service. We will open up this evaluation process to our stakeholders setting up a Research and Evaluation Group REG of external experts to help us measure our success and apply improvements to the Service to give customers the help they need. Making a difference in 2013/14: Case study Face-to-face advice - delivered through A4e, South Shields The client wanted to work part-time but was concerned about the effect on his income. We discussed his circumstances he s 62 and lives alone and went through his income, expenditure and in-work costs in detail. We then discussed the client s eligibility for working tax credits and back-to-work help. Following this detailed review we worked out that working for 16 hours a week would give him enough income. We then called the Pensions Advisory Service to see if he was entitled to pension credit, which he was. We also looked at other benefits he could apply for. The client was delighted as he d been struggling with his finances for several years.

24 Chapter 4 - Theme 1: Deliver a highly effective service, making a real impact on people s lives 24 Strategic Objective: Help people stop and think about money, making seeking advice a normal part of everyday life How we will do it Engage with the UK public on a subject which many find intimidating, confusing and unexciting What we will deliver - examples of initiatives Maintain a stronger presence in people s everyday lives through key campaigns and other activities to engage people. The focus will be on helping people understand why they should think about the benefits of engaging with their money. Educate consumers on key financial issues that could impact them and give them helpful information what about to do next Targeted activity to provide educational messages to people on specific consumer issues for example, helping people understand and manage their credit rating, or encouraging people to build a savings buffer (save 3 a day) to cover unexpected costs. Strategic Objective: Reach and interrupt people at the right time in the right place How we will do it Be present in people s everyday lives, directly and through partners, providing relevant advice to help inform their money decisions and drive positive actions What we will deliver - examples of initiatives Build on existing partnerships and form new partnerships across charities, government, financial and public sector organisations, to reach and help people at key life events, for example: buying a home, taking a loan, claiming benefits, starting a family. Targeted activity, through partners and directly, to interrupt people, get people to think about their finances and provide them with the advice they need. Key points to target people are when: They n are searching about financial matters or life events online: we will match terms they search with money advice content. They n receive correspondence about a financial product: we will provide printed guides with relevant information. For example, letters from pension providers to people considering retirement will include a guide from us. They n are seeking new employment or thinking of claiming benefits: we will provide printed guides in Jobcentre Plus. Further n develop the Partnerships self-service hub which allows other organisations access to our content to embed relevant tools from our website into their own service.

25 Chapter 4 - Theme 1: Deliver a highly effective service, making a real impact on people s lives 25 Strategic Objective: get people to take action to manage their money better How we will do it Continue to enhance our digital advice channels to provide a more engaging experience that makes it easy for people to get the help they want and take action What we will deliver examples of initiatives Make the website more accessible on mobile devices like smartphones and tablets. Maintain and evolve the Service s action led content, tools, calculators and comparison tables and develop new material, with input from stakeholders, to meet changing demands. An improved referral process from the Service to other sources of advice, including regulated advice. Ensure that our offline channels face-to-face, telephone and web-chat meet the needs of our customers Continue to maintain levels of high quality face-to-face, telephone and web-chat services which meet demand and respond to specific needs of customers. An improved strategy across channels: better integration of customer data across all channels and smooth transition between online and offline services. At the heart of this will be an enhanced Customer Relationship Management system that will share customer information across all our services. Improve integration and referrals between debt advice and money advice delivery channels to ensure people are served by the right channel first time. Develop engaging step-by-step journeys to guide people through big financial decisions, encouraging them to take positive action New online and interactive life event journeys for customers to be taken through, step-by-step, on the website. Topics we will cover in the first phase of this work include: buying a house, facing divorce/separation and approaching retirement. We will also support people through budgeting and saving for major expenses. New tools and content to support the life event journeys, including flagging where individuals should seek professional financial advice or need to be aware of legislative changes that could affect their decision. Build and maintain customer relationships so we are more timely in responding to needs and can help prompt people to take positive actions A more personalised relationship with customers through regular and relevant communications such as newsletters, s and prompts to encourage them to take action. Continuously improve our Service through the use of market and customer insight to determine what aspects of our service are most effective in helping people take action Develop and implement a new evaluation strategy to measure the effectiveness of our content and tools in helping people change their behaviour. This will involve collecting and analysing more customer data to show what they are using, how they are using it, and what is supporting people to take action. An enhanced customer testing framework: a new panel of users to test tools, and a new knowledge hub with detailed information about customer feedback. Establish a Research and Evaluation Group. This group will bring together academics and evaluation experts from across the sector to assess and improve the way the Service is evaluating its success and turning this insight into a better service for customers.

26 Section 26 Chapter 5 Theme 2: Improving access to high quality debt advice for over-indebted people Our objectives against this theme are to: Increase the number of positive outcomes for debt advice clients using our funded projects Increase uptake of high quality advice across the sector and fulfil it with available supply Promote the use of preventive measures to reduce levels of over-indebtedness What our customers say I m very pleased that I sought advice. This sounds very strong but I do believe they kind of saved my life. They didn t save my marriage which came hand in hand with the debts but I do think they saved my life, because I was on the edge when I contacted them.

27 Chapter 5 - Theme 2: Improving access to high quality debt advice for over-indebted people 27 This theme is about supporting more people with financial difficulties to take control of their lives by helping them to manage their debts and become more financially capable. To do this we will further enhance the capabilities of our funded programmes, continue to coordinate positive change across the sector, and help reduce over-indebtedness by focussing on preventive measures. In 2013/14, we have worked with the sector to develop new frameworks to improve the quality of debt advice at both the individual and organisational level. In 2014/15, we will build on this foundation, embedding these frameworks into our new funding arrangements and promoting their adoption across the debt advice sector. We will continue to fund the Department of Enterprise, Trade and Investment to enable them to finance and deliver a multi-channel debt advice service in Northern Ireland, provided by Advice NI. We will also continue to work with our partners at the Scottish Legal Aid Board to fund debt advice programmes in Scotland. What will we do differently in 2014/15? The biggest change in 2014/15 will be our transition to a three year funding arrangement with debt advice providers in England and Wales, which will begin in October These new agreements will sharpen the focus of our funded services around a new set of objectives and will directly lead to better outcomes for over-indebted people. These objectives are to: nreach all over-indebted client groups, including those currently marginalised nlocate services in the areas of greatest client need ndeliver face-to-face advice on the basis of need nwork to the Money Advice Service accredited quality standard ndeliver outcomes measured against the Money Advice Service evaluation framework nintegrate financial capability into debt advice delivery nbuild effective referral partnerships that meet clients need for holistic advice npromote access to telephone and digital debt advice nuse a consistent common initial assessment to direct customers to the most appropriate channel for their needs nuse a single, recognised budget template based on standard calculations This enhanced set of objectives combined with a three year funding period allows us to maximise the impact of our resources, ensuring that face-to-face advice is used by those people who need it, including the most vulnerable, whilst still addressing the needs of other over-indebted clients through other channels. In order to further increase the number of people that our partners help through high quality debt advice, and to support our partners in delivering the enhanced levels of service delivery we will expect under our new agreements, we are increasing the funding we provide to partners by 3.6m in England and Wales. We are currently assessing the detailed plans we have received from our partners in the sector and will proceed to sign three year agreements when we are content that they will deliver to the new objectives, supporting more people to access free, high quality advice

28 Chapter 5 - Theme 2: Improving access to high quality debt advice for over-indebted people 28 across all channels and taking active steps towards preventing the recurrence of debt crises. We will finalise the agreements in the first half of the year. This move will help to increase the number of debt advice clients reaching positive outcomes. We have defined a number of outcomes as part of our evaluation framework, including clients knowing what steps to take to resolve debt problems, taking action, or bringing their situation under control. 5 We intend to move towards a similar long-term arrangement with our partners in Scotland and Northern Ireland in the future. Over the course of 2014/15, we will work with Scotland and Northern Ireland s governments to consider and develop proposals for these longer term funding arrangements. In setting up these agreements, we have integrated requirements for funded projects to adhere to our quality standards framework, and we will assess their performance against our evaluation framework on an annual basis. We will also ensure quality through peer review, getting advisers from different organisations to review each other and provide feedback on the quality of advice. Our focus for 2014/15 will also be on increasing the supply and uptake of debt advice. One of the ways we will do this is through a new forum, bringing together relevant stakeholders to promote consistent evaluation methods and more joined up commissioning approaches to target the supply of debt advice towards those areas where there is particularly high demand. We will also use our recent customer segmentation to target those most in need of help, and make them aware of free debt advice, initially through a pilot with our partners in the advice sector. We know that there is much more that we, and others across the debt advice sector, can do to give over-indebted people the skills to manage future income shocks and avoid becoming over-indebted again. Our third area of focus is around taking preventive measures to reduce levels of over-indebtedness, by giving over-indebted people the skills to become more financially capable and by working with creditors to better identify those people who are at risk of becoming over-indebted. Making a difference in 2013/14: Case study Debt advice - delivered through Southwark Citizens Advice Bureau The client was a housing association tenant who presented with a number of priority and non-priority debts including council tax and rent arrears totaling 14,400. The debts arose during a period when she had separated from her partner, which had led to overpayments in benefits. This caused very complex issues regarding liability of debts. After establishing liability we went through the debt options and assisted the client with a Debt Relief Order (DRO). This was approved and means that she is now able to manage her rent and meet her obligations, both improving her financial health and relieving her stress it also prevented homelessness through eviction for the rent arrears. She is also better able to budget and adjust to future changes. 5 For the full list of outcomes, see the evaluation framework:

29 Chapter 5 - Theme 2: Improving access to high quality debt advice for over-indebted people 29 Strategic Objective: increase the number of positive outcomes for debt advice clients using our funded projects How we will do it Sign new three year grant agreements with partners in England and Wales What we will deliver examples of initiatives nin October, put in a place a new funding arrangement to help more overindebted people reach positive outcomes Strategic Objective: increase the uptake of high quality advice across the sector and fulfil it with available supply How we will do it Encourage better cooperation and coordination between funders of debt advice Increase awareness of free-to-client debt advice in targeted segments What we will deliver examples of initiatives Set up a new forum to encourage adoption of na needs-based approach to commissioning na single, recognised budget based on standard calculations ncommon initial assessment principles to direct customers to the most appropriate channel nstreamlined referral processes nthe Money Advice Service quality framework nthe Money Advice Service evaluation framework Design, implement, and pilot a direct-to-consumer marketing campaign based on insights from our customer segmentation research, with a focus on promoting telephone and online advice.

30 Chapter 5 - Theme 2: Improving access to high quality debt advice for over-indebted people 30 Strategic Objective: promote the use of preventive measures to reduce levels of over-indebtedness How we will do it Improve clients financial capability through the debt advice journey What we will deliver examples of initiatives Improve ways in which customers are referred from our offline money advice channels to crisis debt advice and vice versa. Require our funded programmes to embed financial capability into their debt advice programmes. This means providing clients with the skills, knowledge, and confidence to prevent them becoming over-indebted again. Work with creditors and other key stakeholders to promote intervention before customers get into financial difficulties Engage with creditors to identify best practice in identifying and helping people before they fall into arrears and push for consistent implementation across the sector. Work with regulators to influence policy and improve the landscape for customers Work with the FCA as they take on responsibility for consumer credit from April Work to embed the Service s quality framework in the process by which consumer credit organisations are authorised by the FCA.

31 Section 31 Chapter 6 Theme 3: Drive the wider agenda to improve people s financial capability Our objectives against this theme are to: Enhance the financial capability debate by sharing research and insight Lead and coordinate joint efforts to improve the financial capability of the UK through A Financial Capability Strategy for the UK Support and contribute to other organisations efforts to improve financial capability What our customers say Helpful he knew his stuff and I felt that I could trust him, which is important. Very happy.

32 Chapter 6 - Theme 3: Drive the wider agenda to improve people s financial capability 32 This theme recognises that our statutory duties require the Service to go further than providing direct money advice and coordinating debt advice in the UK. We also need to lead and bring together organisations that share the goal of improving the financial capability of the UK. The Service has millions of visitors every year, giving us a unique insight into what customers need and which interventions have the biggest effect on changing financial behaviour. In 2014/15, we will share more of our research and customer insight about what works, to identify gaps across the sector, drive debate and help shape the development of new policy, regulation, products and services. We will take a more open and collaborative approach to evaluation, by setting up a Research and Evaluation Group (REG), made up of external research and evaluation experts. As well as helping the Service to evaluate its own performance, this group will consider how the effectiveness of financial advice more broadly is evaluated and make recommendations for improvements. We will lead and coordinate joint efforts to improve the financial capability of the UK through A Financial Capability Strategy for the UK (the UK Strategy). We will bring together stakeholders from across the financial capability landscape, so that we can collectively address needs, set out immediate priorities and agree a common approach to evaluation. We will support advice providers and others by providing the means to share evidence and best practice. Finally, we will support and contribute to other organisations efforts to improve financial capability. We will work with our partners in governments, industry, and the advice sector, to feed our insight into policy development, so that it better meets the needs of consumers. A key element of supporting other organisations is our work with the devolved nations which have specific financial capability requirements. Each nation has different legislative responsibilities and Programmes for Government. We will continue to deliver nationspecific advice, where appropriate, and material in Welsh in line with the Welsh language scheme. For each devolved nation, we have a dedicated manager who hosts a national forum, works with key government bodies, and who works on behalf of the Service in that nation to build strong relations with stakeholders and encourage joint approaches to meeting people s financial capability needs.

33 Chapter 6 - Theme 3: Drive the wider agenda to improve people s financial capability 33 A Financial Capability Strategy for the UK the journey so far We issued a call for evidence in summer 2013, to collect information on existing financial capability interventions and evaluation methods. We had a good range of responses from organisations across the UK, and the findings of this call for evidence have recently been published. We commissioned the University of Bristol to carry out more in depth analysis of our Financial Capability Tracker data to identify the characteristics of those with poor financial capability who are most at risk of detriment. That analysis will inform further strategy areas for working age people. To help shape the direction of the strategy, we set up a steering group of key stakeholders from across the advice sector, including industry, charity, and government representatives. We have also set up three working groups concerning young people, working age people preparing for later life, and older people. Each of these groups is made up of key stakeholders who have the most experience of working with these respective age groups and issues. Currently, the working groups are considering detriments facing these groups, existing interventions, and broader evidence bases, to collectively determine priorities for each of the groups and appropriate interventions. Initial findings will be published in summer At this stage, we will welcome input from the wider landscape to add insight and comment on our proposed direction. Throughout the year, we will meet with stakeholders and participate in key forums across the UK to get input, learn from others, and share information on progress.

34 Chapter 6 - Theme 3: Drive the wider agenda to improve people s financial capability 34 Strategic Objective: enhance the financial capability debate by sharing research and insight How we will do it Extend our innovative research programme across money advice and debt advice and share our insight and research with stakeholders What we will deliver examples of initiatives Establish a Research and Evaluation Group REG to help us evaluate the success of the Service and consider evaluation across the wider financial advice landscape. Continue tracking the UK s financial capability against our baseline, and against key indicators of financial capability, including: managing debt well, saving regularly, saving for retirement, budgeting, protecting dependents and protecting assets. We will refine these indicators through consultation with stakeholders to ensure they are the right ones to use to measure financial capability. Conduct new, regular surveys of customers to investigate the range of actions they are taking as a result of coming to the Service. A new evaluation strategy across the Service linking insight about customers experience and actions with improvements to the business. Conduct research and further pilots to determine what influences young people s behaviour over time. Continue to build our insight about different needs across the UK population and the risks that different groups face Joint work with the FCA and other stakeholders to share our customer segmentation research to reach a collective view of need, risk and detriment if we do not take action. Strategic Objective: lead and coordinate joint efforts to improve the financial capability of the UK through A Financial Capability Strategy for the UK How we will do it Coordinate the UK Strategy to agree priorities for financial capability among key stakeholders What we will deliver examples of initiatives Support a steering group of stakeholders to lead the co-development of the UK Strategy. Working with stakeholders, publish the first iteration of the Strategy in summer Support development of other financial capability programmes and facilitate the evaluation of programmes and sharing of best practice Deliver an evaluation framework in consultation with other organisations to assess the effectiveness of financial capability programmes. Deliver a financial capability micro-site, which will host research, share best practice in interventions, forums, and the evaluation framework.

35 Chapter 6 - Theme 3: Drive the wider agenda to improve people s financial capability 35 Strategic Objective: support and contribute to other organisations efforts to improve financial capability How we will do it Work closely with government and regulators to provide input on development and roll-out of policy What we will deliver examples of initiatives Work with the Department for Work and Pensions to help prepare people for the introduction of Universal Credit, and support their budgeting needs as they adapt to the new arrangements. Work with the Department of Health and others ahead of, and during, the roll out of social care reform to help make sure people get the information they need about possible impacts on their budget. Work with the FCA on the development of new regulations around payday loans. Share insight around the risks of vulnerable groups taking out payday loans and work with other organisations to help ensure that people considering taking out a payday loan are fully informed about alternative options and potential risks. Work closely with the devolved nations of the UK to address their specific financial capability needs Chair and participate in key financial capability forums across all nations in the UK, bringing together government, third sector and industry. Work with partners in Wales to deliver the outcomes within the Welsh Government s Financial Inclusion Strategy Taking Everyone into Account. Support Scottish Government and Money Advice Scotland to develop a Scottish National Standard for financial capability. Continue working closely with the Department of Enterprise, Trade, and Investment to support the Northern Ireland Executive s Financial Capability Strategy. Work with Scottish Government to ensure that financial capability underpins the Child Poverty Strategy. Working with the Department for Social Development in the development of a Financial Independence Strategy for people affected by welfare reform in Northern Ireland.

36 Section 36 Chapter 7 Evaluation of the Service and measuring our impact What our customers say The service by the gentleman was brilliant. They explained everything in great detail. I was treated like a customer and not just a number.

37 Chapter 7 - Evaluation of the Service and measuring our impact 37 Evaluation of the Service and measuring our impact Evaluation of impact is a key focus for 2014/15. We want to fulfil our statutory objectives of enhancing the financial knowledge and ability of people to manage their finances and improving the quality, consistency and availability of debt advice. We also want to influence and coordinate the wider financial capability landscape. And we want to be a highly efficient and effective organisation. Measuring our impact will be essential to evaluate our success against these ambitions. In 2014/15 we will develop and build on our existing framework of key performance indicators. The diagram below sets out our framework for 2014/15: Key Performance Indicators Framework 2014/15 Business plan theme Role Indicators Deliver a highly effective service, making a real impact on people s lives A universal information and resource hub Total customer contacts and satisfaction Number of times we have provided customers with help they required A targeted behaviour change catalyst Number of actions taken as a result (in full or in part) of using the Service Support over-indebted people to access high quality debt advice across all delivery channels A coordinator of debt advice nnumber of debt advice sessions nnumber of actions taken as a result of debt advice sessions neffectiveness in improving the quality, consistency and availability of debt advice across the sector Drive the wider agenda to improve people s financial capability An influencer of the sector nstakeholder view of the Service s influence (money advice and debt advice) Become a more efficient and effective organisation An efficient organiser noutputs: Annual Report and accounts

38 Chapter 7 - Evaluation of the Service and measuring our impact 38 We have added five new KPIs to reflect our role as a provider of information to help people manage their finances and take positive action. The new KPIs also reflect our role as a funder and coordinator of debt advice, and as an influencer of the wider landscape. As in 2013/14, we will continue to measure the total number of customer contacts, customer satisfaction targets, and number of debt advice sessions. In 2014/15 we will be much more collaborative and open with stakeholders about how we measure our impact directly on customers and more broadly through our coordination and influencing role. We will work with stakeholders through the Service s new Research and Evaluation Group (REG) to make sure our evaluation strategy is robust and the Service is able to continuously improve its provision. The REG will meet at least four times a year to review progress made on the Service s evaluation strategy and provide expert advice on how to improve our measurement of our impact on customers. Measuring financial capability In last year s business plan we introduced five high level outcomes, which we treated as indicators of the type of behaviour commonly associated with financial capability. Throughout 2013/14, we have tracked the behaviour of customers and the UK population against these indicators, which included: managing debt well, saving regularly, saving for retirement, protecting your assets and providing for your dependents. We set ourselves a target in 2013/14 of achieving at least 480,000 positive actions against these high level indicators. In the first half of 2013/14, we have reached 349,000 positive actions, and are on track to exceed our target for the full year. Although we are not explicitly setting a target for 2014/15, we still consider these to be key indicators of financial capability and will continue to track these indicators, through our Financial Capability tracker, across the UK population and the Service s customer base. In 2014/15 we will add maintaining a budget as a sixth indicator, reflecting the importance of regularly reviewing incoming and outgoing costs. Over the long term, this tracking will give us a good picture of the broader impact of the Service in helping to make a difference to the financial capability of the UK.

39 Chapter 7 - Evaluation of the Service and measuring our impact 39 Values for our Key Performance Indicators The following table sets out values for our KPIs in 2014/15: Key Perfomance Indicators Target Total customer contacts 16,000,000 Number of times we have given customers the help they required (new) 6,000,000 Number of actions taken as a result of the Service (new) 4,500,000 Number of face-to-face debt advice sessions (April September 2014) 87,500* Number of actions taken as a result of debt advice sessions (April September 2014) (new) 78,750* Customer satisfaction measures customers: nagree they have been provided with the information required (replacing information with help in 2014/15) nagree we helped them decide on a course of action nagree they will revisit the Money Advice Service nwould recommend the Service Number of clients supported by debt advice that: (new) nworks to a standard that meets our quality framework (quality) nuses a Single Financial Statement (consistency) nhelps them access the right channel (availability) A leader and coordinator across the sector: (new) Providing effective leadership in the area of financial capability Improving the quality, consistency, and availability of debt advice in the UK 82% 70% 88% 85% 2014// //15 * Six month target, see below for further details

40 Chapter 7 - Evaluation of the Service and measuring our impact 40 The targets in the table are based on performance data from 2013/14. For example, the help received and actions taken targets are based on customer exit polls in 2013/14, and a one-off deep action survey about the range and frequency of different actions our customers take. Going forward, we will use new methods to track this information, including new customer exit poll questions and a regular survey to understand the impact of the service on customers behaviour and what actions they are taking to stop, think and engage with their money. This may mean that we will need to revise the projected targets for the KPIs in 2014/15 based on new data coming in throughout 2014/15. We will do this in consultation with stakeholders through the REG and update on any changes through our quarterly performance reports. The KPIs for debt advice (face-to-face sessions and actions taken) only cover the first 6 months of 2014/15. This recognises that the Service will move to the new funding arrangement with debt advice providers in England and Wales from October The following section explains each KPI in more detail, and how we will measure them: Total number of contacts: 16,000,000 This year we are aiming to attract 16 million contacts to the service across all channels. Contacts can include repeat visits to the site. This figure only represents contacts that directly access the Service, and not those who view our content on partner sites. This reflects our focus on improving levels of engagement among customers, rather than driving up customer numbers. Number of times we have given customers the help they required: 6,000,000 Our Service is about more than just providing people with information: we want to help them with their money needs. This new KPI will measure the quality of contact with our customers by showing how many times we give customers the help they require. It will help us to understand which parts of our Service are meeting customer needs, and which parts need to be refined and improved. Currently, we ask customers whether we have given them the information they required. We will be refining this question to ask did you get the help that you required?

41 Chapter 7 - Evaluation of the Service and measuring our impact 41 Number of actions taken as a result of the Service: 4,500,000 This KPI is designed to evaluate the impact of the Service on people s behaviour, and the extent to which, based on help from the Service, people take steps to stop, think and act to better manage their money. We will track this through a new quarterly survey which will look at the steps customers take following interaction with the Service, across all channels. This will provide us with a more comprehensive indication of which areas of our Service lead customers to take positive actions, and the effectiveness of each of our delivery channels (website, web-chat, phone and face-to-face) in helping to facilitate this. Importantly, following and understanding the steps customers take will enable us to have a much better understanding of our impact on our customers, and help us to drive actions that can improve people s financial capability. The diagram below demonstrates the types of actions we can help people take, and how these relate to broader financial capability outcomes. The wide range of actions reflects the diverse needs of the people who come to the Service for help some will need help with basic budgeting, or for preparing for retirement, while others will need help to manage their debt well. The actions in the table are not final we are currently testing survey questions with consumers. This survey and final set of questions will be refined with the help of the REG, and we will begin the process to support the survey from Spring 2014.

42 Chapter 7 - Evaluation of the Service and measuring our impact 42 Customer impact improving financial capability Examples of positive actions we expect customers to take after using the Service* Budgeting to live within means ni only borrow what I can repay on time ni stick to a budget and avoid overspending ni have taken steps to maximise my income (e.g. claimed benefits, increasing hours, etc.) ni plan major spending in detail (e.g. buying a car, buying a home, going on holiday) ni shop around for the best deals Managing debt well ni have contacted people I owe money to about my debt problems ni have a debt repayment plan in place and stick to it ni have sought independent debt advice ni have made sure I am borrowing in the cheapest way Total number of actions Saving regularly ni have started to build a savings buffer to cope with the unexpected ni have started saving for the major things in my life (e.g. moving house, having a baby, buying a car, etc.) excluding retirement ni am now saving more than I was previously Being prepared for later life and saving for retirement ni have started to pay into a pension ni have started to increase my pension contributions when I can ni have compared annuity options and selected the right one for me n have calculated how much money I will need to have the standard of living which I want ni have a plan for my / our future care needs Protected against the unknown protecting assets and dependents ni have taken out appropriate insurance so that my critical assets are protected ni have taken out appropriate insurance so that my dependents are protected *These actions are based on results from a deep impact survey conducted in 2013 which captured the types of actions customers take following help from the Service. This diagram groups the actions against broader outcomes to improve financial capability.

43 Chapter 7 - Evaluation of the Service and measuring our impact 43 Number of debt advice sessions: 87,500 (UK wide - six month target) We have set a target of 87,500 face-to-face sessions across the UK for the first half of 2014/15. This recognises that we will introduce a new three year funding arrangement from October We will set a value for this KPI in July 2014, when we publish our first quarter performance results for 2014/15. Number of actions taken as a result of debt advice sessions: 78,750 (UK wide six month target) This KPI is about measuring the impact of debt advice on clients. We have only set a six month target, recognising that we will expand this KPI after October 2014 when new three year agreements come into force. For the first six months of 2014/15 we would expect at least 78,750 positive actions to be taken by clients as a result of face-to-face debt advice sessions we fund. This is based on Money Advice Service research, which indicated that 90% of debt advice sessions led to a client taking action. After October 2014 we intend to expand this KPI so that it reflects more broadly all of the positive outcomes people can experience from debt advice sessions (across all channels), as defined in our evaluation framework. For example, through our new debt evaluation framework, we will capture whether a person s knowledge of what they need to do is improved and whether a client s financial situation is improved. Therefore, from October 2014, we will rename this KPI positive outcomes from debt advice sessions. We will set the value for this revised KPI in July when we publish our first quarter performance results for 2014/15. Number of clients supported by debt advice that: nworks to a standard that meets our quality framework (quality) nuses a single financial statement (consistency) nhelps them access the right channel (availability) We have a statutory objective to improve the quality, consistency, and availability of debt advice. This does not only apply to our own funded projects, but to the whole debt advice sector. This new KPI is a quantitative measure to assess our effectiveness against our statutory objectives. In 2014/15 we will conduct research to establish how most effectively to measure this and set a baseline, before setting a target in 2015/16. Influence over the sector: nproviding effective leadership in the area of financial capability nimproving the quality, consistency, and availability of debt advice in the UK In addition to our direct offer to customers, we are working towards better co-ordination of the wider financial capability and debt advice sectors. This will involve sharing research and insight, putting in place frameworks to help the sector evaluate the effectiveness of projects and measure quality in a consistent way, and working closely with key stakeholders from across both sectors. To track how effective we are as leaders and partners across the advice sector, we will use our annual stakeholder survey to set a baseline, which will give an indication of stakeholder opinion in these key areas. We will use this insight to tailor our approach, and in 2015/16, we will work to improve on our 2014/15 baseline.

44 Section 44 Chapter 8 Resource summary 2014/15 What our customers say Really love this service you don t know what a difference this has made to my life to find and fill this out today, to really get to grips with my numbers. I ve been worried about my debts for months

45 Section Chapter 8 - Resource summary 2014/15 45 This chapter provides a breakdown of the total Money Advice Service Budget for 2014/15, and a comparison against the 2013/14 budget. The total Money Advice Service budget for 2014/15 is 81.1 million, an increase of 2.8m from last year s budget. This increase is accounted for entirely by the increase in the debt advice service delivery budget. Separate budgets for money advice and debt advice make up the total this reflects the separate levies on the financial services industry for each stream. The Service is spending 80% of its money advice budget on frontline delivery and customer engagement, as it did in 2013/14, with 10% being spent on enablers. Support services have been held at a consistent 10% of total budget. For debt advice, 94% of budget is utilised for frontline delivery and its advice services (as in 2013/14), with 4% on coordination and research activities and a further 2% on support services. The table below shows the high level breakdown of the total budget, compared to last year: 2014/ /14 Movement Total Money Advice Service budget 81.1m 78.3m 2.8m Money advice budget 43.0m 43.8m* ( 0.8m) Debt advice budget 38.1m 34.5m 3.6m The Service s budget was settled before the Chancellor s Budget announcement on 19 March 2014, which included initiatives to help people save and prepare for retirement. The government is currently consulting on these proposals. We will work with HM Treasury and the FCA to understand their expectations about how the Money Advice Service and the wider advice sector can be involved in this work and whether this will have any budgetary implications for us throughout the year. The following tables provide a further breakdown of the separate budgets for our money advice provision and our debt advice provision. For both budgets, we provide a summary of variance in the budget for 2014/15 compared to the previous financial year. Some budget figures in the following tables have been reforecast since we published the budget for consultation in December For example we have increased the money advice budget for face-to-face to take account of a new channel strategy, which we will test and refine in 2014/15, and a potential increase in the number of sessions. We have decreased the money advice budget for digital development, proposition and product development and partnerships since the consultation, recognising that these services are now better established and are being delivered in a more cost effective way. *Net cash received was 43m, as a result of 0.85m being returned to levy payers in 2013/14, relating to the previous year.

46 Section Chapter 8 - Resource summary 2014/15 46 Money advice budget with staff costs included Money Advice Details of expenditure 's Frontline delivery 's Movement 000's Face-to-Face Delivery of face-to-face sessions 7,951 6,525 1,426 Telephone and web chat Delivery of telephone, web chat and 1,299 1,774 (475) sessions Printed guides Print and distribution of guides 1,056 1, Digital Website development, user experience, 5,708 5,724 (16) testing, maintenance and hosting Proposition and product development Develop step-by-step life-event 1,795 3,696 (1,901) journeys for the website, enhance existing products to meet customer need and research and develop new products that meet our customers needs Partnerships Delivering advice to people through 1,940 1,948 (8) our partners websites and services, and developing specialist products for partners Total front line delivery 19,749 20,737 (988) Enablers Policy Consumer Insight and Research Corporate Comms & PR Developing the Financial Capability Strategy for the UK and hosting events and forums around the UK to coordinate financial capability activities Gaining insight from customers, testing products with customers, continuation of financial capability tracker and measuring our impact PR campaign activities, stakeholder engagement and internal communications 1, ,245 2,206 (25) Total enablers 4,218 3, Customer Engagement A range of activity, from campaigns to 13,246 13, digital marketing, aimed at encouraging people to take action Support Services Delivery of IT systems and data, 4,487 4,637 (150) facilities, procurement, HR and finance Board and Executive Team Board and Executive leadership team 1,316 1, (includes administrative support) Total* 43,016 43,762 (746) *Please note: staff costs are now included in function.

47 Section Chapter 8 - Resource summary 2014/15 47 Summary of movement in money advice budget Money Advice Front line Delivery Enablers Customer Engagement Support Services Board and Executive Team Summary of expenditure as a percentage of total budget Face-to-face, telephone and web chat, digital and website development, product and proposition development Development of the UK Strategy and the Service s own strategy; research, insight and measuring impact; PR and stakeholder engagement Customer communications and engagement IT systems and data, facilities, procurement, HR and finance Board and executive leadership team (including administrative support 43.0M 43.8M 0.8M Movement 47% 47% No change 10% 9% -1% 30% 30% No change 10% 11% 1% 3% 3% No change Total 100% 100% 0% Money advice budget breakdown 2014/15 3% 10% 30% 47% 10% Key Front line Delivery Enablers Customer Engagement Support Services Board and Executive Team

48 Section Chapter 8 - Resource summary 2014/15 48 Debt advice budget with staff costs included Debt Advice Details of expenditure 's Front line delivery 's Movement 000's England and Wales Funding for provision of debt advice to 30,577 26,952 3,625 people in England and Wales Scotland Funding for provision of debt advice to 2,762 2,754 8 people in Scotland Northern Ireland Funding for provision of debt advice to people in Northern Ireland Total front line delivery 34,153 30,245 3,636 Second Tier Support Specialist support Action on hearing loss Language line Training Capacity building (achieving standard) Funding to support provision of specialist advice to third sector debt advisers Service available to grant-funded debt advisers to enable provision of advice to the hard of hearing Service available to grant-funded debt advisers to enable provision of advice to those who cannot speak English Provision of training to face-to-face grant-funded debt advisers Funding to enable our delivery partners to implement changes to comply with new standards (1) (50) Total Second Tier Support 1, Co-ordination Support for non-funded projects Accreditation Design and implementation Funding to enable implementation of changes to comply with new standards Design and implementation of Money Advice Service quality framework Common initial assessment development, integration and new tools (50) (774) (145) Peer review New peer review process for advisers Communications Communication of debt advice services Total Co-ordination 1,778 2,297 (519) - Policy & Research Funding a supply/demand study, (50) evaluation of advice delivery Support Services Delivery of IT systems and data, facilities, procurement, HR and finance Total* 38,075 34,478 3,597 Please note: staff costs are now included in each function.

49 Section Chapter 8 - Resource summary 2014/15 49 Summary of movement in debt advice budget Debt Advice 38.1m m m Movement Front line Delivery Provision of face-to-face sessions in 90% 89% +1% England, Wales, Scotland and Northern Ireland Second Tier Support Support of specialist advice to third 4% 3% +1% sector debt advisers Co-ordination Enabling delivery partners to implement 4% 6% -2% any changes to comply with new standards Policy & Research Funding a supply/demand study, 1% 1% No change evaluation of advice delivery Support Services IT systems and data, facilities, 1% 1% No change procurement, HR and finance Total 100% 100% 0% Debt advice budget breakdown 2014/15 1% 1% 4% 4% 90% Key Front line delivery Second tier support Coordination Policy and Research Support Services

50 Section 50 Chapter 9 Responses to the public consultation and changes to the draft Business Plan What our customers say They were extremely helpful, very good. It was a bit daunting at first. She was inspiring. Gave me confidence to see it through to the end.