Debt advice budget surpasses £100m to support communities
Ministers have announced an additional £37.8m for debt advice providers this financial year (20-21). This will bring the Money and Pensions Service (MaPS) budget for debt advice to over £100m. The money will deliver advice to more people in England who are experiencing financial problems due to coronavirus.
Managing debts during this difficult time
Debt providers themselves have seen a drop in income streams. The additional funding, therefore means that they can continue to maintain staffing levels and provide vital work in communities.
In a statement, John Glen, 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.”
Debt advice funding and distribution in the UK.
As delivery of debt support is a devolved matter, additional funding will be matched by the other British administrations, resulting in an extra £5.9 for Scotland, Wales and Northern Ireland combined.
MaPS will oversee funding distribution across England. It will derive for a number of sources: £20.6m from government, £14.2m through a one-off increase to the debt advice levy and £3m from MaPS itself. The Financial Conduct Authority (FCA) will consult on the details of this one-off levy rise in due course.
The FCA is responsible for collecting funding amounts by government for the purposes of free-to-consumer debt advice provided by MaPS in England.
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