"Don't cut £25m of debt counselling..." blog discussion

fermi

ricbureau wrote: »

Martin,


FIF - Government announcement due on Saturday

11th February

Many of you have been waiting to hear whether there will be any funding for debt advice following the end of FIF on 31st March. I am pleased to tell you that BIS and HMT will be issuing a statement on Saturday.

Please check the BIS and HM Treasury website for details.

Cannot get any more info on this!

Nope. Nothing atm.

Will keep an eye out though. Thanks.

Jacks_xxx

http://www.guardian.co.uk/politics/2011/feb/12/debt-advice-27m-government-reverses?CMP=twt_fd

Check out those weasels Debt Free Direct trying to cash in! :mad:

fermi

http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=417968&SubjectId=2

Funding of £27 million secures Face-to-Face Debt Advice Programme

12 February 2011 00:01

Department for Business, Innovation and Skills (National)





The future of the face-to-face debt advice programme has been secured today with £27 million of funding for the next year, the Government announced today.


The Government wants to ensure that individuals facing financial difficulty can get valuable impartial advice early, rather than wait until their problems become much more difficult to resolve.

The funding announced today will secure the future of the face-to-face debt advice programme for 2011/12 and will ensure debt advice can continue to be provided by the Citizens Advice Bureaux and other independent advice agencies across England and Wales.

Secretary of State for Business Vince Cable said:

“It’s vitally important that everyone has access to free debt advice, and I am pleased to announce that the Department for Business will provide the £27 million necessary to maintain the programme of face-to-face debt advice.

"While the Government has maintained funding for this programme, it provides only a small part of the revenue necessary to keep the Citizens Advice network fully functioning. I would like to take this opportunity to call on the other funding streams, such as from local authorities, to help provide whatever support they can to keep this excellent service going."

Financial Secretary to the Treasury Mark Hoban said:

“I am very happy to be able to confirm the continuation of this important service. Effective debt advice can be the first step towards regaining control of your finances. It can also help people to make the most of their money in the future and avoid unsustainable debts. Anyone with money worries should seek advice as early as possible before their problems become harder to resolve.

“The Government intends to put the provision of debt advice onto a more sustainable footing. We want to see a flexible and cost effective response to debt problems, so that people can be helped in a way that works for them.”

The Coalition Agreement pledged that the Government would take action to help people to manage their own debts. It has been looking for new ways to encourage debtors to seek this support in its call for evidence on consumer credit and insolvency.

The Government has already asked the Consumer Financial Education Body (CFEB), soon to be known as the Money Advice Service, to deliver a free national financial advice service. Financial advice will be available face-to-face, over the phone, and online and aims to increase levels of financial literacy and empower consumers to take charge of their finances.

The service will include an annual financial healthcheck, which will provide people with a holistic overview of their finances and include a personalised action plan. The healthcheck will be available in the spring.

fermi

Debt help centres saved by government funding U-turn

Debt help centres saved by government funding U-turn


Guy Anker
News Editor
12 February 2011

A successful last-ditch rescue effort has secured the future of many free face-to-face debt advice services for at least another year.

Some 500 advisers across many organisations, mostly from the Citizens Advice Bureau, were set to be made redundant nationwide due to government cuts which could have meant consumers struggled to get vital fee-free help (see the Debt Problems guide).

This was because the government's Financial Inclusion Funding (FIF) to centres was due to end in April, which led to to anger from opposition MPs in Parliament this week.

However, the Department for Business, Innovation and Skills (Bis) will now step into the Treasury's shoes to prop-up the £27 million-a-year fund until at least April 2012.

The announcement today follows crunch talk between Bis and Treasury officials this week.

The rescue does not secure the future of all help centres as many also rely on local government help and other forms of funding.

For instance, five CAB drop-in centres in Birmingham could still close unless talks between CAB officials and local councillors on Monday can save them.

'Free access vital'

Business Secretary Vince Cable says: "It's vitally important everyone has access to free debt advice, and I am pleased to announce that my department will provide the £27 million necessary to maintain the programme of face-to-face debt advice.

"While the Government has maintained funding for this programme, it provides only a small part of the revenue necessary to keep Citizens Advice afloat.

"I would like to take this opportunity to call on the other funding streams, such as from local authorities, to help provide whatever support they can to keep this excellent service going."

Martin Lewis, MoneySavingExpert.com creator, says: "The Government has headed off a massive revolt by resurrecting the FIF.

"We were already due to launch a campaign next week (see campaign against FIF closure) having been swamped by people expressing their anger. I'm glad the short-sightedness has been addressed.

"Never has the country needed to provide decent debt help. Over 135,089 people were declared insolvent in 2010. Debt crisis and bankruptcy don't tend to hit until after an economic downturn, and that means right now we expect peak demand, and it won't get better for a long time.

"The return of this fund is extremely valuable, though the crisis for debt counsellors isn't over, with the spending cuts meaning many local councils are pulling their funding. We still expect some big agencies such as some of Birmingham's CAB centres to close."

SwipernoSwiping

:T

So Debt Counsellors and Legal Aid Centres across the nation. Don't rest on your butts. It's clear they have an eye on your funding - get pro-active now and keep your doors open without having to rely on hand outs.

Lets get this ball rolling now, make them independant of the proverbial handouts.

fermi

Indeed.

This looks good on the surface, but it's only funding found from a temporary source for one year.

This can't be dropped surely Martin?

Some better long term funding for face to face debt advice is essential, and the government ideas on what might be put in place at the end of this 'stay of execution' are extremely concerning.

shadowside

The only solution that makes sense is for funding of debt advice within CAB's to be made permanent. Debt clients usually have other problems benefits,housing, relationships which CAB's are uniquely positioned to advise on.

The money should clearly come from the banks as much debt advice is sorting out problems they have been party to creating. My solution would be to route part of the FSA levy to CAB's but there are many other ways. 1 % of bankers bonusses would more than fund debt advice. Feels fair to me.

ricbureau

Great job everyone!!!

There is a lesson to take from this...

In 2008 the FIF project got extra funding for 3 years...until 31/03/2011.

Now,since then CAB just sat down on that funding extension without working on fund raising....

All agencies must start working in alternative funding for 2012/2013 and so on...That is what we all must do.Set up fund raising teams to secure future funding so that projects like this one will have continuity.

Any way,a BIG THANK U to all out there who have supported us in this difficult times!!!

R L
Money Advice Specialist
(Funded by FIF)

Daisy_Bell

Well - sorry, but I'll have to be the one dissenting voice here; I am sick and tired of people bellyaching on about their debts and blaming all and everyone for them - except themselves that is! They seem to think that other, more sensible and thrifty tax-payers should be forced to help them out of problems created by their own greed. And in most cases, that is exactly what it is! For far too long, people have been buying stuff with money they haven't even earned yet!
At the risk of sounding old fashioned (old fashioned values are the best you know) and speaking for myself, if I have ever needed anything (never mind wanted anything) and I didn't have the money for it, then quite simply, I didn't have it! Simple as that! I saved up for everything; never borrowed on my house (it wasn't allowed in those days anyway; you had to prove you were spending the money on improvements to your home first to get an additional advance on your mortage) and never went into debt for anything. With the result that in retirement, my mortage is paid off and I have sufficient savings to live quite comfortably on the interest from those to prop up my state pension - although these have diminished in the last few years because of the very low interest rates! I have never earned anything but a very modest wage and still the household income is well under £20,000., but find it is more than enough.
We now have a government that is trying to pay off a HUGE debt and making these cuts not because they want to, but because they have to! Otherwise, there will be no money for anyone because the country will go bankrupt! Every cut that has been implemented or even proposed has been vehemently opposed by everyone it is going to affect. If the government were to take notice of all these various interests, there would be no cuts at all!
The last Government was extremely irresponsible in their borrowing, a lot of it to simply give money away in benefits - in part to gain votes from their 'Traditional' followers; this Government has to risk huge unpopularity in order to try and put things on a more even keel. It was ever thus! I have a very long memory!

ricbureau

Daisy_Bell wrote: »

Well - sorry, but I'll have to be the one dissenting voice here; I am sick and tired of people bellyaching on about their debts and blaming all and everyone for them - except themselves that is! They seem to think that other, more sensible and thrifty tax-payers should be forced to help them out of problems created by their own greed. And in most cases, that is exactly what it is! For far too long, people have been buying stuff with money they haven't even earned yet!
At the risk of sounding old fashioned (old fashioned values are the best you know) and speaking for myself, if I have ever needed anything (never mind wanted anything) and I didn't have the money for it, then quite simply, I didn't have it! Simple as that! I saved up for everything; never borrowed on my house (it wasn't allowed in those days anyway; you had to prove you were spending the money on improvements to your home first to get an additional advance on your mortage) and never went into debt for anything. With the result that in retirement, my mortage is paid off and I have sufficient savings to live quite comfortably on the interest from those to prop up my state pension - although these have diminished in the last few years because of the very low interest rates! I have never earned anything but a very modest wage and still the household income is well under £20,000., but find it is more than enough.
We now have a government that is trying to pay off a HUGE debt and making these cuts not because they want to, but because they have to! Otherwise, there will be no money for anyone because the country will go bankrupt! Every cut that has been implemented or even proposed has been vehemently opposed by everyone it is going to affect. If the government were to take notice of all these various interests, there would be no cuts at all!
The last Government was extremely irresponsible in their borrowing, a lot of it to simply give money away in benefits - in part to gain votes from their 'Traditional' followers; this Government has to risk huge unpopularity in order to try and put things on a more even keel. It was ever thus! I have a very long memory!

Have you thought on those ones that have lost their jobs?-relationship breakdown?-Illness?- A death in the family?

There are lots of reasons that can put us in debt in no time. Are you perhaps forgetting creditors that use to do everything that they could to put families into more debt(irresponsible lending)?

To buy,to have its part of human nature. Not to borrow would mean to thousand not to have,not to buy...

Along side with projects like the FIF we should put efforts in Financial Education,don't you think?-Preparing the new generations for this style of life...teaching them how and when they should borrow,so on and so on...