My Lords, my noble friend Lady Altmann has done us a great service by tabling her amendment and the others with which it is grouped, but I am not sure that the issue is as simple as all that. It clearly is not, and I fear that it will be difficult to solve all these problems. It is not just that there is a significant difference between the words “advice”, “counselling” and “guidance” in the way that most people understand them. It is a pity that the good, much used and understood word “advice” has been partially hijacked in that it is part of a regulated activity when it is financial advice. “Counselling” has another connotation and insinuates that the person may also be suffering from some mental illness or disability. “Counselling” is also probably one of the most commonly misspelt words in the English language, because people confuse counsellor and councillor, and it is not so well understood or used.
My noble friend’s amendments do not just replace “advice” with “guidance”—I am not sure whether, to the man in the street, one is clearer than the other. I understand the problem about the regulatory meaning of “financial advice”, but sometimes we have “guidance” and sometimes we have “counselling”. In Amendment 21, my noble friend refers to “individualised independent financial advice”. In that amendment, she seeks to improve,
“public recognition of the distinctions in personal finance terms between ‘education’, ‘information’, ‘guidance’, ‘counselling’ and ‘individualised independent financial advice’,”.
I fear that it is extremely unlikely, without huge expenditure and alteration to the schools programme at all levels, that we will get anywhere near an even basic understanding among the public of the difference in meaning between those terms. In Amendment 38, we have distinctions between “advice” and “guidance”, but does “advice” mean only an activity regulated by the FCA? If so, that is a matter for regret, because “advice” is a very good word.
My noble friend is quite right to table the amendments. As was noted by several noble Lords on Second Reading—I apologise for not having been able to participate due to another pressing appointment—the Government have to consider carefully before deciding on the name and branding of the new body. People go to the citizens advice bureau, not the citizens counselling bureau, to get all kinds of advice, including advice on debt. I note that the Citizens Advice website avoids using the term “debt advice”, preferring to talk about help with debt, although I believe that this gives the impression that the CAB can easily provide the panacea of debt relief through an individual voluntary arrangement. This is complicated, and my noble friend is quite right to raise it.
5.30 pm