The Tackling Problem Debt Group
On 1 January 2019, the Scottish government took control of the Financial Conduct Authority (FCA) levy funding for Scotland.
It created a forum for discussing the future direction of debt advice in Scotland. The Tackling Problem Debt Group was formed from representatives of the government and other interested bodies such as Money Advice Scotland, CAS, COSLA, StepChange and the Scottish Legal Aid Board.
Its vision is for a free debt advice system that is:
•User-centred. Free debt advice must focus on responding to the needs of those who seek it. While the quality of service and availability should, as far as practicable, be comparable across Scotland, it should reflect the differing circumstances of communities and user groups and allow them to make choices that are right for them on how and where to seek help.
•Collaborative. The free debt advice sector consists of many advice providers and funders. It is important that the expertise of each is recognised, as is the value of overlapping services where these reach different communities or groups. However, we must also recognise that user needs can be well-served by more joined-up services, where users can easily be referred from one provider to another. Sharing expertise can also reduce costs and workloads for advisers, leading to better morale and service provision.
•Sustainable. A free debt advice service must have a range and breadth of providers supported by adequate funding to allow them to survive. In turn, these advisers must have the requisite staff and expertise to provide a high-quality service to support users. Both goals require investment that finds the balance between supporting immediate service needs and developing services for the future.
It has since come up with a ‘route map’, with nine recommendations.
Scottish government’s debt route map 1 1. Ensure that levy funding reflects the needs and experiences of users and potential users of debt advice.
2. Develop a debt helpline that is Scottish-focused and better integrated with Scotland’s advice landscape.
3. Develop a three-year funding model for levy-funded debt advice.
4. Operationalise the Funders Framework to bring more consistency and clarity to advice funding.
5. Develop a model of Scottish government levy funding that is transparent, independent and rigorously reviewed and evaluated for impact.
6. Develop a more integrated funding landscape for free debt advice.
7. Harness the potential of technology in a way that practically improves the experience of both providing and receiving debt advice.
8. Develop a workforce strategy for the free debt advice sector.
9. Ensure sustainable funding is available to achieve the outcomes identified above.
More detailed information on the route map can be found on the Scottish government website.2