Credit, Collections & Insolvency News
The Money and Pensions Service (MaPS) has announced significant changes to its plans for the commissioning of debt advice services, with funding allocated to vital face to face services being increased by 50% (to £30 million).
In December 2021, it announced changes in the timeline for awarding the contracts for the National Services, Business Debt and DRO Hub Lots, and that it would be implementing short-term grants to protect the ongoing delivery of advice whilst MaPS worked with debt advice clients, advice organisations and other stakeholders to identify the best ways to deliver locally based services.
For the next three financial years, MaPS will have a maximum annual funding envelope of £76 million for the delivery of debt advice services in England, subject to the usual annual budget setting by government. The funding represents a significant increase from pre-pandemic funding levels, which totalled £43 million in 2019/20. This is also an increase in its business as usual funding for debt advice services in 2020/21 and 2021/22, excluding additional funding received in response to the pandemic.
MaPs will allocate this funding for Lots 1, 3 and 4 as follows:
The rationale for allocating funding for Lots 1, 3 and 4 in this way is to maximise the number of clients advised, and maintain the viability of the contracts and lots to ensure value for money is achieved.
Commenting on the funding Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said “Today’s announcement is effectively a 50% increase in funding for face to face debt advice, compared to the plans announced before Christmas. This is absolutely the right thing to do, protecting vital services that are relied on by so many people, particularly those with mental health problems who can struggle to use online or telephone advice.”
“We’re delighted that the Money and Pensions Service has listened to our research, and to campaigners who have been calling for this change.”
