In the Budget, the government committed to raising the limit for employers arranging financial advice for their people, without it impacting tax and NI, to £500 per employee.
This followed a recommendation made by HM Treasury and the Financial Conduct Authority in their Financial Advice Market Review, which recognised that more people now need more guidance and advice, and the workplace is a trusted and effective channel to reach large numbers of these people.
This is a significant increase - the current allowance is £150 per employee - and sends a clear signal to employers to encourage advice arranged in the workplace.
People seeking help with financial planning will be entitled to more tax-free advice through their employers and early access to pension savings to fund the cost of independent retirement advice. The chancellor announced a wide overhaul of government-funded financial guidance, including the abolition of the Money Advice Service. As part of the package, the value of financial advice that can be paid for by businesses without their employees having to pay income tax or national insurance on the benefit increases from £150 to £500.