The Money Advice Service is set to help almost 60,000 more people with free debt advice in England and Wales this year, through a new injection of funding starting on 1 October.
It expects 220,000 people to receive help through the Service’s debt advice partners in the year to March 2015, up from 163,000 in 2013/14. The advice will be provided both face-to-face and over the phone.
A further increase in people helped is envisaged in 2015/16 and beyond.
The new money will be targeted at those parts of England and Wales in greatest need. Areas ranging from Cornwall to Northumberland, from Kent to Lancashire, and from Norfolk to Bridgend are set to benefit, enabling more people to access face-to-face advice.
Over the last year, 88% of people took action to manage their debts after receiving debt advice from the Service’s partners. In the future, the advice provided by its partners is set to become more joined-up with other providers of advice, complemented with basic money skills to help people stay out of debt.
Lesley Robinson, UK debt advice director at the Money Advice Service, said: “High quality debt advice is hugely effective in helping people get their finances back under control. Debt advice improves the well-being of people who are struggling with their finances, it helps creditors get repaid and it means that people can move on with their lives.
“The new funding and the changes we’re generating across advice delivery will transform debt advice in England and Wales, which in turn will transform the lives of hundreds of thousands of people.”
Gillian Guy, chief executive of Citizens Advice, said: “Good advice is key to people taking control of their debt problems. As families across England and Wales continue to struggle to make ends meet, many people are finding themselves caught in a debt trap.
“Talking through money problems with a debt adviser can make all the difference, and this new funding from the Money Advice Service means more people can get the help they need, when they need it. It is really important that people seek help sooner, rather than later, as this will stop their money worries getting any worse.”
