ANNEX TWO OVERVIEW OF KEY DEBT ADVICE SERVICES AND PROJECTS
Current money advice provision is a diverse and ever-changing network of delivery channels and funding arrangements (which are often short-term and patchy).
In addition to CABx, advice UK members, Law Centres, Legal Aid solicitors, local authority services and other "mainstream" agencies such as Age Concern branches, there is a vast number of community and faith groups, often operating with a tiny resource base, sometimes without fixed premises, attempting to serve the needs of a wide range of constituent groups … Some employers and student welfare services also offer money advice (Fearnley 2007: 7).
The following overview should not be regarded as comprehensive. Indeed, there is a perception that money advice and income maximisation provision in Scotland is patchy and inadequate in some areas due to local finance pressures and priorities. It is difficult to verify this position, however, without conducting a more comprehensive mapping exercise of current provision.
Advice NI
Advice Northern Ireland is an independent advice network offering advice and training to its members. It works with members to provide an independent advice sector to provide the best quality advice to those who need it. Members operate regionally across Northern Ireland. Advice NI is an established training provider, accredited with the Open University to offer National Vocational Qualifications in Advice and Guidance, and the Assessor and Verifier Awards. The organisation delivers money advice training under the wiseradviser programme, provided by the Money Advice Trust ( MAT), and is currently progressing an online guide to Tax Credits.
AdviceUK
The organisation is the largest network of free, independent advice providing organisations. It does not give advice itself. Advice UK has a regional structure which mirrors the Government Office regions of the UK. Members in each region elect one Director to Advice UK's Board. Its members thus have a guiding influence on the organisation's direction. Advice UK has just fewer than 1000 organisations in membership. Its members range from small volunteer only services run from makeshift premises, through to large national advice organisations.
Services for members include:
- Information on advice UK's Guardian recruitment, payroll service, stationary, data recovery, and more
- Management support services
- Insurance schemes
- Training
- Information services
- Money advice support
Advice UK is starting work on researching existing provision in geographical areas with high levels of financial exclusion.
AdviceUK's RADICAL Advice & Legal Services Project
The RADICAL Advice & Legal Services Project takes an alternative approach to the design, coordination and integration of advice and legal services. Adapted from the Toyota business improvement system, RADICAL is intended to develop a lean systems design model (as opposed to a command and control model) which aims to demonstrate how advice and legal services can be improved by re-thinking methods of design and delivery. 42 The lean systems thinking approach is highly customer focussed, with design based entirely around responding directly to expressed needs rather than seeking efficiencies by speeding up individual activities. Involving the contrasting localities of Powys County and Oxford City, the RADICAL project will run from summer 2007 to spring 2008.
Citizens Advice Bureau ( CAB)
A charity reliant upon the help of over 20,000 volunteers, the CAB helps people resolve their legal, money and other problems by providing free information and advice, and by influencing policymakers. The organisation operates from over 3,200 locations and helps to resolve over 5.5 million problems each year. It supports local bureau with information, training and other services and also co-ordinates social policy, media, publicity and parliamentary work whilst maintaining an information and advice website.
Debt has been the largest and most consistent growth area for the CAB (Fearnley 2007: 5). Debt is the biggest area of advice the CAB Scotland deals with and consumer debt accounts for around 68% of all new debt enquiries (ibid: 6). 43
Citizens Advice Scotland ( CAS)
Citizens Advice Scotland is the national umbrella body that provides support services for Scottish Citizens Advice Bureau and collates client case evidence to shape policy in Scotland and the UK. In particular, CAS:
- Provides a range of services and the best possible advice and support to its member bureau to meet the needs of existing and potential clients
- Sets quality standards and audits bureau compliance with these standards
- Is the voice of the CAB Service in Scotland and its clients to raise the profile of the service and make changes to social policy.
The Citizens Advice Bureau ( CAB) Service in Scotland is an independent network that helps people resolve their money, legal and other problems. It provides information and advice, and influences government and organisations to bring about changes in policy and law. Advice provided by the CAB Service in Scotland is free, independent, confidential and impartial, and available to everyone. Most CAB staff are trained volunteers, working at more than 200 service points across Scotland.
Citizens Advice Direct
Based in Glasgow and run as a free, independent and impartial telephone advice and information service, Citizens Advice Direct aims to increase access to advice and information and enable individuals to resolve their own difficulties. As a telephone based service it provides services to those previously excluded by social or geographical circumstance. Referral to a local advice bureau can be arranged where appropriate. The project also provides targeted advice services to partner organisations such as Age Concern Scotland and Macmillan Cancer Relief.
Community Legal Advice ( CLA)
Community Legal Advice provides free help or legal advice over the phone for problems with debt, housing, employment, education and welfare benefits and tax credits. CLA is paid for by Legal Aid and can give free, specialist, confidential legal advice over the phone to those who qualify for legal aid. Established in 2004, the organisation helped nearly 300,000 people in the last year alone.
Consumer Credit Counselling Service ( CCCS)
The CCCS is the largest debt advice charity in the UK and is funded entirely by the credit industry. 44 It offers free counselling, advice and support over the telephone, online through CCCS Debt Remedy or through a face-to-face counselling appointment. The organisation negotiates with creditors to devise Debt Management Plans. Face-to-face counselling and the helpline are core activities for CCCS. The organisation has ten regional centres.
Credit Action
Credit Action is a national money education charity which gives out advice about money management. The organisation is historically rooted within the church and maintains this ethos through a commitment to helping people manage their money better. It offers a range of resources, tools and training. Credit Action operates at a national level through advocacy, collaboration and partnerships with various groups and companies, such as the debt counselling charity the CCCS. It also operates locally through a variety of targeted projects, with a particular emphasis on those most vulnerable to financial difficulties.
The Debt Advice Trust
The Debt Advice Trust is a UK registered not for profit organisation which exists to enable people in serious debt to get advice on various debt solutions ranging from Bankruptcy to IVA (Individual Voluntary Arrangements), and Debt Management Plans.
The organisation provides expert, honest and impartial advice about getting out of debt. Fully trained Counsellors will help ensure advice is provided in response individual's particular situations.
Development Trusts
The work of development trusts in eradicating poverty has recently been scrutinised by Arradon and Wyler (2008). The Development Trust Agency ( DTA) reviewed a wide range of actions undertaken by member trusts, of which there are over 450 in the UK, to consider how effective they are at tackling poverty at a local level. The report draws a distinction between existing community organisations which draw from traditional grant programmes and the growing number of confident, aspirational, community owned social enterprises such as development trusts. The authors argue that this growth reflects a shift in policy and practice towards a more 'can-do', community led response to challenging poverty. Access to finance programmes which deliver 'head-on' debt advice, micro-credit programmes (such as Fair Finance in East London) and credit unions are sited as key examples of successful practice.
As well as surveying existing development trust services, "the DTA has been working with its member organisations to identify particular community enterprise actions, which may form the basis of a national programme of poverty alleviation through community-based organisations" (Arradon and Wyler 2008: 4). Both the existence of a network of community-based development trusts which currently provide forms of financial assistance and the fresh approach they are taking to alleviating poverty, are worth noting for the purposes of this literature review.
Money Advice Trust
MAT is a charity funded by both Government and the private sector to increase the quality and availability of free, independent money advice in the UK. As well as planning a national strategy for money advice services, the trust offers debt advice to the public and provides training for money advisers. MAT support the sector through training, specialist support, quality assurance developments, policy, research and evaluation and fundraising. It supports clients through National Debtline and Business Debtline.
The trust is developing and online information hub to offer access to a wide range of information on debt, credit and money advice issues (Fearnley 2007: 4). It is hoped this resource will provide support sector-wide research, policy, fundraising and planning initiatives to enhance the availability of money advice (ibid).
National Debtline
National Debtline is a free national telephone helpline for people with debt problems in England, Wales and Scotland. Specialist advice over the telephone is backed up with written self-help materials and assistance with setting up a Debt Management Plan if appropriate. The organisation uses Language Line which enables them to respond to calls in over 100 languages. National Debtline is a member of Advice UK.
Payplan
Payplan claims to be the UK's largest provider of free debt solutions, including free debt management plans and Individual Voluntary Arrangements ( IVA). The organisation helps 100,000 new clients each year and states it can help individuals find a debt solution within 24 hours. They work in partnership with organisations like the CAB and National Debtline. Payplan is funded through donations from the credit industry.
Developing an IVA can help an individual to become debt free within 5 years. The IVA will also provide legal protection from further interest and charges being added to debts. Payplan have 15 years experience providing IVAs for people with debt problems and do not charge up front fees.