Independent lead appointed to review debt advice funding

The Money Advice Service (MAS) announced last week, July 20, that Peter Wyman would carry out the review and look at issues that affect the most vulnerable people in society struggling with money.

The review will consider:

• How much debt advice is needed as well as how much it will cost, now and in the future;
• How debt advice should be funded and by whom;
• The benefits of the current debt funding model, as well as where this could be improved, based on people’s needs;
• If changes are required, how the sector should transition to the new model.

The debt advice sector will be invited by Wyman to recommend an appropriate funding framework for the future.

Wyman has spent time as a senior partner at PwC, as president of the Institute of Chartered Accountants in England and Wales and is currently chair of the Care Quality Commission.

Andy Briscoe, chair of the Money Advice Service and 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.”

Gillian Guy, chief executive of Citizens Advice said: “Getting the right debt advice at the right time can transform people’s lives.

“Demand for debt advice services currently outstrips supply - and is expected to rise - so it’s essential funding to frontline services is maximised to ensure people can get the help they need now and into the future.”

Peter Wyman is expected to deliver his report and recommendations on the review to the Debt Advice Steering Group, HM Treasury and the Financial Conduct Authority before July 2018.