The work and pensions select committee suggests in its latest report that the personal accounts system, which was proposed in a government white paper last December, would need a national financial advice service to ensure its success.
However, with millions of people facing debt management troubles across the country, the government has no idea how much a financial advice service would cost to establish, warned the recent report.
“The provision of generic financial advice and well-signposted routes to individualised personal financial advice will be key to making personal accounts a success,” the select committee report read.
“Government, industry and the financial sector should work together to ensure that we do not inadvertently create a generation of non-savers.”
A recent study by the Consumer Credit Counselling Service suggested that the UK’s debt management burden is increasingly shifting on to older generations.