Credit, Collections & Insolvency News
It has been announced that Peter Wyman CBE is to lead an independent review of the funding of debt advice across the UK. The review will seek views from a wide range of interested parties including the debt advice sector itself and recommend an appropriate funding framework for the future.
The review has been established in response to a challenging and complex debt advice funding landscape. This includes an increasing need for advice, growing consumer debt and challenges to sufficient funding for free advice. The review will look at issues affecting some of the most vulnerable people in society who are struggling with money worries.
The review is widely supported across the debt advice sector including debt advice providers, existing funders and the Financial Conduct Authority.
Peter Wyman has broad experience at Board level across a range of different organisations, including many years as a senior partner at PwC. As President of the Institute of Chartered Accountants in England and Wales, he led the accountancy profession in the wake of the Enron/Andersen crisis. He has advised Government on several complex issues including taxation and deregulation. He has wide experience of working with not- for- profit organisations and vulnerable people. He is currently chair of the Care Quality Commission.
Announcing Peter’s appointment Andy Briscoe, Chair of the Money Advice Service and Chair of the Debt Advice Steering Group, said the appointment of Peter to head the independent review had widespread support. Andy Briscoe said: “We are all delighted that Peter Wyman has agreed to lead this timely and critically important review. Each year 1.5 million people seek help from the debt advice sector to cope with over-indebtedness, and these numbers are likely to increase. Meanwhile, the current sources of funding for this vital service are coming under pressure.”
“Peter’s accountancy experience, his many years working with not-for-profit organisations and vulnerable people, and his impartiality fit well with the scope of this review. His distinguished career in the private, public and voluntary sectors make him ideally qualified to engage with current and future funders of debt advice, and the agencies delivering that advice. He is well placed to ensure the review is transparent, credible, and delivers positive and lasting improvements.”
Peter Wyman said “I am pleased to be chairing this review, which tackles a vital issue at the heart of society. Good advice can make all the difference for those struggling with debt, and it is essential the funding model which supports that is transparent and sustainable. I am looking forward to hearing views from across the sector, including those who provide funding, and the businesses and public sector bodies which engage with people in debt.”
The funding review will consider:
Sheila Wheeler, Director of Debt Advice at the Money Advice Service said “Debt advice is a lifeline for a huge number of people across the UK. This review is vital to ensuring that funding arrangements have people’s needs front and centre. Crucially it will consider who should fund debt advice, as well as reviewing where the debt arises, and who benefits from debt advice. I believe this will deliver transparency in the funding arrangements, as well as greater sustainability.”
Peter Wyman will deliver his report and recommendations to the Debt Advice Steering Group, HM Treasury and the FCA. It is anticipated that he will present his findings within the next 12 months. The review and appointment have both been welcomed by members of the Debt Advice Steering Group.
Gillian Guy, Chief Executive of Citizens Advice said “Getting the right debt advice at the right time can transform people’s lives. Demand for debt advice services currently outstrips supply – and is expected to rise – so it’s essential funding to frontline services is maximised to ensure people can get the help they need now and into the future. We welcome this review and look forward to working with Peter Wyman and Money Advice Service to ensure a sustainable, transparent and fair funding system for free to client debt advice.”
Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association, said “When financial difficulties arise, consumers need access to high-quality debt advice. We welcome this independent review looking at how such advice should be properly funded.”
Bob Chapman, Chair of the National Advice Network Wales, said “I am delighted the Money Advice Service has sponsored this independent review of debt advice funding across the UK. It will help us all to establish a model of how we can best help people through indebtedness, and how this work can be integrated with people’s other advice needs.”
