HM Treasury (HMT) has today announced that we (FSA) will lead a pilot project to test delivery of the UK's first national money guidance service.

HMT's decision follows publication of the Thoresen Review of Generic Financial Advice.

Hector Sants, Chief Executive of the FSA, said:

"Otto Thoresen is to be congratulated for producing such a thorough report and setting out a clear road map for taking this work forward. We are delighted to be leading the next phase of work. The FSA recognises that many consumers are not equipped to make informed decisions about their finances and can fall victim to the consequences of those poor choices.

"We launched our national strategy in 2006 to address this and equip people to manage their money more confidently. We are working with many different organisations to reach millions of people and provide clear and impartial information and guidance through our printed guides and website, Moneymadeclear, and recent initiatives like the Parent's Guide to Money."

Launching the report on the new money guidance service, Yvette Cooper, Chief Secretary to the Treasury said:

"It could be working out credit card repayments, budgeting for a new baby, or planning for retirement - people have to make serious financial decisions at every stage of their lives. Getting some free, independent and trusted guidance can make all the difference and can help families manage their budget and get a better return on their savings. It could also help prevent people getting ripped off by loan sharks or caught out by the small print on a dodgy financial deal.

"The Government already offers free debt advice for those with serious financial problems. But plenty of ordinary families could also do with some free money guidance at many points in their lives."