An independent debt advice funding review is looking at the current debt funding model to see if anything should change. It will focus on the issues that those with money worries face to ensure they get the support they need.
And now, the review is calling for evidence to support its research into debt advice funding. This means that any recommendations will have the data to back them up. And this will help customers get more positive outcomes.
We’ll take you through the debt advice funding review so you understand why it’s happening. And what’s more, we’ll also explain how it can help consumers.
Why is there a debt advice funding review?
The purpose of the review is to take a closer look at debt advice funding. It’s a response to the increasing demand for debt advice as well as the growth in unsecured borrowing. The Money Advice Service (MAS) is behind the review, and it wants to make sure that there’s enough advice to meet needs.
The focus of the review is:
- how much debt advice consumers need now and will need in the future,
- the cost of this debt advice,
- where the funding should come from for debt advice,
- benefits of the current debt funding structure and any improvements needed, and
- how the debt advice sector will incorporate any changes required.
Peter Wyman CBE is leading the independent debt advice funding review. He was a senior partner at PwC for several years and was also President of the Institute of Chartered Accountants in England and Wales. His report to the Debt Advice Steering Group, HM Treasury and the FCA is due in July 2018.
What the call for evidence means
This new request will allow any relevant parties to submit evidence about the current picture of the debt advice sector. It should help to give an overview of the people currently getting debt help, the demand for this and its funding.
According to Wyman, “there is a widespread view that funding arrangements for debt advice need reconsideration.” Hopefully seeking evidence from experts on the debt advice sector will help to address any issues with the market. This should also mean that people actually dealing with those in debt have a say about how help gets funding.
Andy Briscoe, chair of both the Money Advice Service and the Debt Advice Steering Group, said: “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.”
If you have any evidence to submit to the review, you can do this by emailing MAS before December 8 2017 at email@example.com