Paul Fox, Regional Partnership Manager, Money and Pensions Service (MaPS)
Can you start by telling us about the Money and Pensions Service (MaPS): Who are you, and what do you do?
We are a relatively new body; the Money and Pensions Service came together in 2019 as an amalgamation of three legacy organisations: The Money Advice Service, The Pensions Regulatory Service and Pension Wise. We report to the Department for Work and Pensions (DWP), and we advise the Treasury on things like financial capability, debt, and various aspects of consumer protection.
Our role as an organisation is twofold: it’s to help people to have a better relationship with money and with pensions throughout their lives, as well as to provide people with free and independent and impartial financial guidance, whatever financial challenges or opportunities they might be facing.
I head up MaPS for the southwest of England, but across the country, in each of the English regions and each of the devolved nations, I have a counterpart. You can find their details on the Money and Pensions Service website, and you’ll find my colleagues who cover other regions.
What is the positive social outcome that the Government wants the MaPS to deliver?
It’s what we call financial wellbeing: for communities, for employers, and for employees. The government want people to feel financially resilient, confident, and empowered.
So we look at areas such as budgeting, managing money, managing debts, support, and financial planning. But we also educate people on using credit. We’re highly concerned at the moment that there is a significant rise in the number of people using inappropriate credit channels and loan sharks because they’re struggling to make ends meet. All of these pillars come under our Agendas for Change Strategy, and if we’re successful in meeting our hard objectives by 2030, we will have helped improve the lives of many people in the UK.
How have you seen your support for people or organisations have real, positive social impact?
There are so many stories which come to mind. But before Christmas I visited an army base in Gloucestershire, and delivered a talk to 400 personnel. I received feedback in January from a Colonel who said that as a direct result of that presentation, numerous young service-personnel had come to him to report that they had money worries. And those conversations wouldn’t have happened without that intervention.
And the military have a very holistic approach to the wellbeing of their people. Someone who is worried about money or in debt is not going to be effective at work.
But really, that’s the same whether you’re a serving personnel in the forces, working an office job, or you’re in the GIG economy. So, from both a wellbeing and a productivity perspective, employers should do what they can to support the financial wellbeing of their employees.
There are some employers who may think that the financial wellbeing of their staff is not their responsibility; they may think that their responsibility stops when the salary reaches their employees’ bank accounts. What would you say to that?
As someone who has previously been an MD in my career, I know it can be easy to default to asking ‘what’s in it for me?’
But it’s important to understand that money worries are at the top of their employees’ agendas at the moment. The recent data we have shows that around 13 million worker days were lost in 2021 due to financial worries and absenteeism due to financial distress. We estimate it costs UK employers around £2.5bn per year.
What are some of the things that employers can do to promote financial wellbeing?
There are so many low-cost, low-effort things that employers can do. Organisations can start by signposting and sharing resources from organisations like MaPS and Money Helper, our consumer-facing brand. For example, we’ve recently launched a Guide to Financial Wellbeing for Employers, or there’s the Money Helper website.
You can share these resources on your company intranet, in staff newsletters, or even on the bottom of a payslip each month. We’re currently working with a payroll services provider to explore opportunities to reach people through payroll communications and share financial wellbeing support.
Another popular initiative we see rolled out by larger companies is the appointment of Financial Wellbeing Champions in conjunction with Mental Health/Wellbeing Champions within the business as part of a wider approach.
We also have training opportunities available, but they’re somewhat in their infancy. We operate a programme called Money Guiders which is for anyone operating in the non-regulated space who is having conversation with colleagues, service users or with customers.
It's not all about increasing pension contributions or raising salaries; it’s also about taking time to share resources and offer support to employees and empower them to talk about money and money worries. Whether they’re struggling due to the cost-of-living challenges, or perhaps they’re starting or planning a family, or they’re thinking about retirement and want to understand what their options are.
Your employees will be at different stages of their lives, and will have different wants and challenges. And employers can engage with people at those different points in their lives, and have an opportunity to support people as they make big life decisions.
Do you have any advice on how organisations can assess or measure the social impact that their financial wellbeing initiatives have on people?
A way to begin is via survey, perhaps annual or bi-annual. Organisations will already have all staff surveys, and an easy place to start is by including a section on financial wellbeing. Another way is by measuring the uptake in appointments with the Pension Wise Service from your organisation. A further way is by monitoring absenteeism; the driver of absenteeism today in the UK is that people are worried about their finances. If you embed a financial wellbeing programme as a large employer, and you monitor your absentee rate for the following 12 months, it’s highly likely that your absentee rate will have decreased by 15-20%.
MaPS are happy to share information and support organisations in any endeavours to support and promote financial wellbeing of their employees.
“There’s a massive opportunity for employers to play their part; they will not only support their employees, but also improve their own productivity, become a more ethical business, and play a part in creating social value. ”
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