Tyrie (pictured) wrote to chancellor George Osborne on 6 November saying the committee “remains concerned” that the independent review into the service currently underway does not address whether or not the MAS should continue to exist.
Tyrie had previously written to the Chancellor asking for the question of the abolition of the MAS to be “the first question asked” by the review, saying “a review which is not able to consider this question falls far short of what is needed”.
The government launched its independent review into the MAS at the end of May responding to calls from the Treasury Select Committee (TSC) the previous December.
The Treasury Select Committee had found the service is “not currently fit for purpose” in a damning report, which criticised the MAS’ role and reach, and questioned the salaries it pays its top executives.
Tyrie said the committee will look closely at the government’s independent report when it is published at the end of this year.
He also said he felt “reassured” about the decision to remove the MAS as a main provider of the government’s guidance guarantee.
The Chancellor had previously explained to Tyrie the existence of the MAS will not be called into question because the review’s starting point should be to assess “what consumers need in terms of financial education and advice” and because of the tight timescale of the review.
“It is important to set realistic and achievable goals,” Osborne wrote, and “I do not feel it would be appropriate to commit to a continuation of the review beyond the end of the year, as this would be an unhelpful distraction from the important tasks at hand”.
He added he expects MAS to implement the recommended changes as outlined by the review at the end of the year.
The MAS was taken off the panel of at-retirement guidance providers by the government in October.
A separate report into the MAS by the National Audit Office out last December found MAS has started to develop “more targeted advice provision” and will soon be providing value for money.
