Sustainable approaches to funding debt advice
Having access to free independent advice to deal with crises is a key element of financial inclusion. Unfortunately, access is unevenly distributed and patchily funded throughout the UK.
A recent report from Glasgow Caledonian University estimates there are half a million people whose current demand for advice is not being met; there is a further 1.5 million who would benefit from advice or will need advice due to the economic downturn of 2008. Such additional advice - presuming a similar service model that includes face-to-face advice - would require an additional £110 million per annum. The current funding is piecemeal rather than strategic and overwhelmingly from the public sector (only 3% was identified from private sector sources including financial services). We judge the current funding framework to be inadequate and unsustainable.
Following on from our work on this issue, our key objective is to work towards the development of sustainable, accessible, efficient and on-going funding streams in support of what is arguably a social service.
Examples of what the Foundation might fund in pursuit of this outcome include:- further research and exploration of the funding and support for debt advice in the UK; campaigning for more sustainable support for debt advice; and greater sector infrastructure coordination initiatives.
