News in brief

New parents to receive money advice packs

The Financial Services Authority (FSA) the UK’s financial watchdog, have announced that they will give new parents money advice packs. The packs will contain advice on budgeting, benefits and the cost of childcare, and will be distributed by midwives to mothers in the early stages of pregnancy.

The Parent’s Guide to Money (PGM) also addresses topics such as maternity leave and how to save through child trust funds. The scheme is to be taken nationwide this summer. Initially, the pilot pack was distributed to around 1,500 prospective parents via employers, children’s centres and directly to pregnant women.

It included a CD−Rom to help people work out how their income and spending will change after their baby has been born, and whether they will gain or lose financially by returning to work.

An FSA report on the trials said the PGM was well received by all and considered to be a new and helpful means of providing those about to embark on starting a family with all the important financial information they would need. The findings suggest that the PGM has a positive impact on understanding financial matters and encouraging prospective parents to take positive action to prepare themselves financially.

The guide has been designed to give people tools to work out a budget. It also gives them information on benefits they may be able to claim and where they can get more information about that.