INSIGHTS ¦ Consultation on MaPS proposals for the delivery of its debt advice strategy

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Key Take Aways

  1. There is broad support for MaPS continuing to fund a range of debt advice services, from nationally accessible to community-based services.
  2. Respondents highlighted a need for increased funding for community-based debt advice to support vulnerable populations.
  3. Many stakeholders want MaPS to share more data on the effectiveness and cost of current services to enable better decision-making.
  4. There is concern about geographical inconsistencies in funding for community-based services across England.
  5. Business debt advice and the Mental Health Crisis Breathing Space Service (MHCBS) are seen as critical areas for continued funding.
  6. Respondents urge MaPS to consider expanding the scope of advice services to include broader issues like housing and welfare benefits.
  7. A competitive commissioning process for debt advice funding is perceived as a threat to the diversity and quality of services.
  8. Smaller community-based organisations find it challenging to compete for funding in a commissioning environment.
  9. Many stakeholders suggest MaPS should work on improving the wellbeing and retention of debt advice workers by addressing job instability and workload pressures.
  10. There is strong support for MaPS to play a more active role in leveraging technology to improve debt advice services.
  11. Increasing public awareness of debt advice services is viewed positively, but concerns remain about the capacity of services to handle increased demand.
  12. MaPS should focus more on collaborating with other funders to ensure the sustainability of advice services.

Innovation

  • MaPS is encouraged to adopt more innovative approaches to service delivery, particularly by leveraging technology. Examples include improving the Standard Financial Statement (SFS) with open banking compatibility and creating a shared infrastructure for debt advice providers.
  • Respondents propose exploring the development of a technology horizon-scanning function to identify and adopt new technological advancements in debt advice services.
  • There is a call for MaPS to support a cross-sector approach to address pain points in the debt advice process, such as creating more standardised confirmation letters and improving referral mechanisms.
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Key Statistics

  • 64 responses received from stakeholders across various sectors, including financial services, housing, and debt advice providers.
  • The consultation reached 320 attendees from 145 stakeholder organisations through six webinars.
  • Nine individual responses were included in the consultation feedback.

Key Discussion Points

  1. The need to balance national and community-based debt advice services.
  2. A call for MaPS to increase transparency on the effectiveness of its funded services.
  3. Challenges for smaller providers in accessing funding through commissioning.
  4. Concerns about the sustainability of the debt advice workforce due to short-term funding and heavy workloads.
  5. The risk of losing service diversity in a competitive commissioning environment.
  6. Support for the continuation of business debt advice and mental health-focused services.
  7. Mixed opinions on the continuation of Debt Relief Order (DRO) hubs.
  8. The role of technology in improving debt advice processes and reducing manual workloads.
  9. The need to coordinate awareness campaigns with increased service capacity.
  10. The importance of maintaining collaboration with other funding bodies to ensure financial sustainability.
  11. The potential benefits of shared infrastructure in the debt advice sector.
  12. A call for more consistent engagement with stakeholders, particularly community-based providers.

Description

This consultation report summarises feedback on the Money and Pensions Service’s (MaPS) debt advice strategy, collected from 64 responses. The feedback discusses how MaPS should commission services up to 2028, particularly in addressing debt needs at both national and community levels. Key themes include calls for increased transparency, the use of technology to improve efficiency, and the sustainability of funding models for debt advice services. The document also touches on the workforce challenges in the debt advice sector and the potential for more collaborative approaches between funders.


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