Low-income homeowners 'need financial advice'

Posted on 15 January 2008 by Charcol

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There is a need for generic financial advice (GFA) to be made nationally available, according to Citizens Advice.

A pilot study that linked 28 Citizens Advice Bureaux with 30 independent financial advisers (IFA) in the UK suggested that there was "significant demand" for a national GFA service, the charity said.

It added that clients of the trial service were often seeking advice following illness, bereavement, retirement or redundancy, and that many may not have been able to afford to pay for an IFA.

The trial was conducted as part of the Thoreson Review of Generic Financial Advice, which is looking at whether to set up a national service. It was announced in September 2007, ahead of the review's interim report in October.

"The results so far... indicate both that there is a need for a national Generic Financial Advice service, and that this is an effective model for delivering it," said Jackie Nowell, head of partnership development for Citizens Advice.

"The range of issues presented to [the financial advisors] is broad, but it appears that there is particular demand from those who may own their own homes, but have low incomes. This evidence emphasises that there is a gap in provision which needs to be addressed."

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