An extra £37.8 million support package will be available to debt
advice providers this year (20-21) so they can continue to
provide essential services to help more people who are struggling
with their finances due to Coronavirus, minsters have announced.
The Money and Pensions Service (MaPS), will oversee the
allocation of the funds, including to charities, for debt advice
and other money guidance services.
The support package, which will bring the MaPS budget for debt
advice to over £100 million this financial year, will help
providers to deliver advice to more people in England who may be
experiencing financial problems due to coronavirus. It will also
help providers who have seen a fall in their income streams,
enabling them to continue their vital work and supporting their
staff to deliver these services.
The funding consists of £20.6 million from the government and
£14.2 million raised through a one-off increase to the Financial
Services Levy. In addition, MaPS will also be contributing a
further £3 million from their existing budget.
The Economic Secretary to the Treasury, said:
We know that some people are struggling with their finances
during this difficult time, which is why we want to make sure
people can access the help and support they need to manage
their debts and get their finances back on track. The joint
funding package will help debt advice providers to continue
with - and increase - their vital work.
This extra funding comes on top of the unprecedented package we
have put in place to support individuals, businesses and the
economy through the coronavirus outbreak.
Minister for Pensions and Financial Inclusion, , said:
The Money and Pension Service was set up to provide free and
impartial guidance for those seeking to take control of their
finances. During these challenging times, that work is even
more important, so it’s vital that we provide additional
support for those concerned about their financial wellbeing.
This funding package will help ensure that people can obtain
the quality guidance and help that they need to help manage
their money.
Chief Executive at the Money and Pensions Service, Caroline
Siarkiewicz, said:
The impact the Coronavirus pandemic will have on people’s
financial wellbeing is significant and will continue for some
time. We know there will be increased demand for free, expert
debt advice services over the coming months and this extra
funding will help to ensure that more people can access help
more quickly. Our MaPS services are here to provide support for
people when they need it and to help them navigate the tricky
months ahead.
The government has put in place an unprecedented package of
support to help people with their finances during the Coronavirus
pandemic. This including the Job Retention Scheme, which has
helped to protect 8.7 million jobs with £17.5 billion claimed so
far, and the Self-Employed Income Support Scheme which has seen
2.5 million claims worth £7.2 billion. The government has also
made changes to the welfare system including Universal Credit and
Statutory Sick Pay, making support quicker and easier to access,
as well as more generous. It is also working with the banks and
financial regulators to give people payment holidays on their
mortgages and a range of consumer credit including credit cards,
personal loans, motor finance and payday loans.
The Financial Services Levy provides funding for debt advice
through MaPS and this one-off increase to the levy will see
finance firms providing an extra £14.2 million in 2020-21. The
Financial Conduct Authority (FCA) will consult on the details of
this one-off rise in due course.
Delivery of debt advice is a devolved matter, so the additional
funding will be matched for the devolved administrations,
resulting in an extra combined £5.9 million for Scotland, Wales
and Northern Ireland.
Notes
- MaPS will set out the process for allocating funds in the
coming weeks at www.maps.org.uk
- MaPS’ existing budget for 20/21 is £140.9 million of which
£64.6 million is for debt advice. So the extra funding announced
today brings the budget for debt advice up to £102 million this
financial year.
