In recent years, the term ‘targeted support’ has been used widely. It has become a political and media shorthand for directing help to the people who need it most in recent weeks, with the UK’s energy crisis dominating headlines. Broadcasters and newspapers are using the phrase to describe government relief packages designed to shield households from soaring heating oil prices and wider inflationary pressures. BBC Radio 4’s Today Programme and Money Box have framed emergency energy measures as ‘targeted support’, cementing the term firmly in the public consciousness.
Earlier this year, the term was also used as part of government plans to reform the special educational needs and disabilities (SEND) system in England.
But while the media has focused on the government’s interventions, ‘targeted support’ is also gaining prominence in a very different, yet equally critical, context: improving people’s long-term financial resilience. And right now, as an industry, we’re on the cusp of a significant regulatory shift that will reshape how millions of people get help with their money.
Positive association
When people hear ‘targeted support’, they intuitively understand it means something more purposeful, more immediate, and more personalised than one-size-fits-all help. That creates a powerful foundation for the financial services industry as we introduce the FCA’s new Targeted Support framework aimed at giving people practical, personalised help with key money decisions, bridging the gap between generic information and paid financial advice.
It is a timely evolution for financial decision-making. Right now, millions of people are grappling with financial decisions that feel overwhelming. Our industry’s longstanding advice gap, where the majority of consumers cannot or do not access full, individualised financial advice, has left many navigating difficult choices alone.
We’ve already seen just how much potential the new regime holds. In early testing, customers who received Targeted Support felt more confident and better equipped to take action with their pensions and long‑term savings. This isn’t about replacing financial advisers. Fully individualised financial advice remains vital, especially for people with complex circumstances.
Targeted Support simply introduces a new rung on the advice ladder, deliberately designed to give people actionable help that reflects their situation, while maintaining clear regulatory guardrails. Grouping customers by shared characteristics or circumstances allows firms to provide relevant recommendations without crossing into fully individualised advice. That boundary may be portrayed as a limitation, but in practice it is what makes the regime workable.
Clear boundaries create confidence. They give firms certainty about what they can deliver and consumers clarity about what they are receiving. The FCA’s framework is explicit about where Targeted Support ends and individualised advice begins, ensuring that consumers are protected while unlocking the innovation to reach many more people with meaningful help.
Targeted Support cannot do everything. It does not claim to take account of every individual nuance, and nor should it. There will always be moments where a customer’s needs go beyond what a segment‑based recommendation can deliver. Crucially, the regime recognises this and is designed to act as a gateway, highlighting when a customer may benefit from full advice and making upgrade pathways clearer rather than more confusing.
For employers and workplace schemes, the benefits are immediately clear. Targeted Support can help address stubborn challenges such as under‑saving, low financial resilience and patchy engagement across employee populations.
Help when it’s needed most
The FCA’s new rules start at a moment when the public is already attuned to the meaning of targeted help. Whether it’s supporting families hit hardest by rising energy prices or ensuring children with SEND receive the right interventions, ‘targeted support’ has become a phrase synonymous with fairness, focus and urgency.
In financial services, the concept means something just as human: help for people when they need it most.
With the FCA’s Targeted Support regime having launched earlier this week, that clarity of message is essential. This is our opportunity to show how well‑designed, data‑informed support can help millions of people make better financial decisions, exactly when they need it.
Royal London has played a leading role shaping and delivering Targeted Support, via the industry working group, government engagement and the FCA’s policy sprint. We were one of the first to have regulatory permission and we are now actively building solutions that align with the incoming regulatory framework, demonstrating our readiness to innovate to meet evolving customer needs.
