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MAS posts £786k loss as chief exec pay hits £180k

The Money Advice Service has reported a loss of £786,000 for the year 2014/15 and handed chief executive Caroline Rookes a £20,000 pay rise.

It marks the first time MAS has made a loss since it was launched in 2010. In that time, levy income has more than doubled from an original take of £32m to £80.6m

However, both Rookes and corporate services director Lesley Robinson have been awarded pay rises.

Rookes saw her total pay increase from £163,000 in 2013/14 to £180,000 in 2015/16, while Robinson took home £204,000, up from £187,000 in 2013/14.

All MAS executives are eligible for discretionary performance-related bonuses, set by the advice body at 15 per cent for 2014/15.

MAS levy income rose from £78.8m in 2013/14 to £80.6m, and advisers will see their contributions to the service further increase 16 per cent over the coming year, with the sector’s levy rising from £3.6m to £4.2m.

Levy income for 2014/15 predominately went to the money advice unit, which took in £42.6m, while £38m went to the debt advice business.

However, the money advice unit recorded a loss of £1.4m, while the debt advice business recorded a profit of £1.5m.

The loss was partly driven by increased demand for services, with MAS reporting a surge of almost 90 per cent on numbers of people contacting the service over 2014/15, reaching 8.4m.

MAS spent £45.5m on service delivery, up from £40.9m in 2013/14.

Its money advice unit used the funds for 140,890 sessions of telephone, e-mail and webchat support up from 107,644 in 2013/14, and 95,084 face-to-face sessions, down from 102,720 last year.

The sum also funded 219,700 debt advice sessions in England and Wales at a cost of £29.4m, this represents a sharp increase in 2013/14’s equivalent of 163,000 sessions at a cost of £27.8m.

MAS is currently constructing its response to an independent review which recommended dramatic reductions in its money advice programme.

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  • Steven Balmer 10th August 2015 at 4:42 pm

    David Cameron only gets 145,500k so why do these execs think they should receive so much when they have failed to deliver or control budgets. These bloody quangos are out of control and I suggest we all stop paying…..Oh, we cant.