In Focus Consumer Credit
Future funding in focus for debt advice
A new report provides a way forward for debt-advice funding, but needs further development
Phil Andrew Chief Executive, StepChange Debt Charity
Peter Wyman’s independent review of the funding of debt advice was published last month. With the Financial Guidance and Claims
Bill in Parliament also setting out a new strategic framework for debt-advice funding, the report certainly delivered a frank and timely assessment of where the sector is now.
There is a clear direction of travel for
debt-advice providers, if we are to meet the challenge of getting debt advice to everyone who needs it. The review reaffirms some things that we
know. Problem debt causes people severe harm, which, in turn, creates huge social costs, and debt advice is playing a vital role in limiting harm and cost.
There is a clear direction of travel for debt-advice providers, if we are to meet the challenge of getting debt advice to everyone who needs it
Mr Wyman’s judgment, that the amount
of free debt advice needs to rise by 50% in two years, looks a realistic assessment. But there is currently a gap between
demand for debt advice and the capacity to provide it; the report highlights a general consensus that demand is likely to increase in the future.
Extra resource Here the report is clear: extra resource will be needed to achieve this aim. We welcome the confirmation that the current ‘mixed economy’ of funding methods is working, and no fundamental rethink is necessary. The value, and the central importance
of, fair share in the funding landscape is recognised with a call for fair-share funding to, not only continue, but to expand along the principle that all those who benefit from it should pay. As a charity that is primarily funded
through fair share, we are confident that putting this principle into practice will allow us to help more people with a wider range of needs.
March 2018
www.CCRMagazine.com
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