The government will replace the statutory guidance providers the Money Advice Service, The Pensions Advisory Service and Pension Wise with new bodies following a further review.
The Treasury said it will introduce a new pensions guidance body and a new, slimmed down money guidance body in their place.
It will be funded by a levy on the financial services and pensions sectors.
It outlined its views in a proposal for consultation published today.
Budget documents, also out today, said: "The government will restructure the statutory financial guidance providers to ensure that consumers can access the help they need to make effective financial decisions.
"The new delivery model will direct more funding to the front line and focus support on areas of greatest consumer need."
The new pensions guidance body will be charged to make sure that consumers can get all their pensions questions answered in one place, at all stages of their lives.
While the new money guidance body will seek to identify gaps in the financial guidance market and commissioning providers to fill these gaps to ensure that consumers can access the debt advice and money guidance they need.
A partnership agreement will sit between the pensions guidance body and the money guidance body to ensure that consumers who need broader financial guidance on both pensions and money issues can be directed to the right places.
The three organisations will continue to provide guidance to consumers for at least the next two financial years, the government said.
It based its proposals on an attempt to remove the duplication of services in the market.
It acknowledged the MAS, alongside other companies and charities, had provided "high quality financial guidance" but that, with the exception of the specialised impartial pensions guidance provided by TPAS and Pension Wise, "much of the financial guidance delivered by publicly funded organisations is also being provided by others in the market".
It also said it believes the statutory regime underpinning MAS is flawed and that it had "insufficiently well-defined" statutory objectives and an unclear accountability regime which had limited its effectiveness from the outset.
The ten-year financial capability strategy, launched by the MAS last year, will be reviewed by the new money guidance body.
The move followed the Financial Advice Market Review which was published on 14 March.
It had incorporated a comprehensive review of the advice and guidance markets to improve consumer access to financial help following the government's pension freedom reforms.
MAS chief executive Caroline Rookes said: "We will work with the government to fully consider the implications of this announcement. In the meantime, we will continue to fulfil our statutory role to help people make the most of their money."
The government wants to hear from industry by 8 June. It will outline its response in the autumn.
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