Debt advice funding review is underway

A major Independent Review of the Funding of Debt Advice reached a key milestone this week with the launch of a “Call for Evidence”.

Debt advice funding review is underway

The Review, set up in response to a challenging and complex debt advice funding landscape will make recommendations for an appropriate funding framework for the future, and look at issues that affect some of the most financially vulnerable people in society.

Launching the Call for Evidence today, Peter Wyman said: “There is a widespread view that funding arrangements for debt advice need reconsideration.  I hope this Call for Evidence will encourage relevant parties to share ideas and data on how debt advice is currently funded and operated. 

“This insight will help build a comprehensive picture of what is happening right now and what developments could be made in the future.”

The Money Advice Service have found that one in six adults in the UK at risk of crisis debt, yet less than one in five seek advice.

It also found around eight million people regularly miss bill re-payments or feel overwhelmed by debt and a worrying 10 percent of the population could be suffering in silence with debt.

Sheila Wheeler, Director of Debt Advice at the Money Advice Service said: “Over indebtedness in the UK has reached excessive societal proportions.  A collaborative approach is needed to ensure we meet these issues head on.

“Debt and money worries are often seen as a taboo subject.  It is time to get people talking about the size of this challenge and how more advice can best be offered to prevent unmanageable outcomes.”

The review was initiated by the Debt Advice Steering Group and will report back mid-2018.