The government has agreed to an independent review of the Money Advice Service (MAS) following pressure from the Treasury Select Committee (TSC).
The MAS has been asked to play a role in establishing a guidance-for-all service for retirees following Budget 2014, at which chancellor George Osborne announced both increased flexibility on access to pensions and promised a "right to advice" for all those retiring.
But the government has also agreed to a review of the service.
It follows criticism of the MAS from the TSC, particularly over its value for money.
The chairman of the committee, Andrew Tyrie (pictured), said: "Given the seriousness of the problems identified at the MAS during our inquiry, the Treasury Committee considered an independent review to be essential. I welcome the Government's change of mind. It now agrees that this review should be independent, rather than Treasury-led.
"Our report called for the results of the review to be published no later than summer 2014. Given that the MAS has now been asked to play a role in the new financial guidance for pensioners, it is even more important that the Government gets on with it.
"It was not in a healthy state and some worthy attempts have now been made to reform it. The jury remains out on whether the MAS should be retained in its current form.
"A central task of the review will be to assess whether we should continue to channel £80m or thereabouts each year through the MAS."
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