Financial information and advice NAFAO conference 24 th September 2014 fincap.org.uk, #fincapUK

Overview Introduction The issue Financial Capability Strategy for the UK Discussion and feedback

Introduction: The Money Advice Service Empowering people to be financially resilient and able to cope with life’s financial ups and downs and For those who fall into crisis debt, increasing access to and availability of high quality debt advice that is of a consistent high standard. We want to address the gap in financial capability. We do this by: 3 Multi-channel delivery of financial information and guidance and debt advice Digitalwww.moneyadviceservice.org.uk Telephone Face to face Debt advice

The issue Most people do not plan ahead for care costs Only 37% of older people agree that they have a plan to pay for any care they need in old age For people who do plan ahead, future care costs are very challenging to predict. “I haven’t given it any thought – maybe it’s just me but I don’t really think about it because I don’t want to think about the ordeal”. Female, 60+ Source: Ipsos Mori (2014) Consequently most decisions about long-term care are made at the point of crisis rather than as a result of careful planning. For individuals and families in these circumstances there is typically not a clear pathway to independent financial information, guidance and regulated advice. Making an informed financial decision is challenging.

What needs to happen? Strategy recommendation 9: Department of Health work with local authorities, Money Advice Service and regulated financial advisors to help people make informed and sustainable decisions about funding long-term care.

Financial Capability Strategy for the UK A cross-sector strategy – over 50 partners involved The strategy provides a focus and a vehicle for coordination and delivery across partners We welcome your input today and through the formal consultation Consultation closes 24 October – Priorities for action: – Children and young people – Preparing for later life – Older people in retirement – People with financial difficulties – Ease and accessibility of financial products and services – Influencing social norms – Evidence and evaluation

Older people in retirement: insights

Individuals and families: key issues Engagement and messaging to encourage people to plan ahead for care costs Coordination of existing information and advice – better referrals and signposting Unmet or new needs What is the customer journey(s)?

Local authorities: key issues Care Act - new duty on local authorities “The service that local authorities are required to establish and maintain must include financial information and advice on matters relevant to care. It should provide some of this information directly to people in its community. However, the local authority should have an important role in facilitating access to independent financial information and advice, where it would not be appropriate for a local authority to provide it directly.” What support or resources do local authorities need to help meet the duty?

Existing Money Advice Service resources Paying for Care online information and guidance hub Local Authorities can signpost clients to the site We are keen to hear views on how this resource can support LAs to meet their new duty

“Department of Health work with local authorities, Money Advice Service and regulated financial advisors to help people make informed and sustainable decisions about funding long-term care.” 1.What is your view of the Strategy recommendation? How could it be improved? 2.What support or resources do individuals and families need to help them make informed and sustainable decisions about funding long term care? 3.What support or resources do local authorities need to help meet the duty? Discussion and feedback