£38m support package for debt advice providers

The government has tasked the Money and Pensions Service (MaPS) with the task of overseeing the allocation of the funds, including to charities, for debt advice and other money guidance services. 

The support package, which will bring the MaPS budget for debt advice to over £100 million this financial year, will help providers to deliver advice to more people in England who may be experiencing financial problems due to coronavirus.

It will also help providers who have seen a fall in their income streams, enabling them to continue their vital work and supporting their staff to deliver these services.

"We know that some people are struggling with their finances during this difficult time, which is why we want to make sure people can access the help and support they need to manage their debts and get their finances back on track," said the Economic Secretary to the Treasury, John Glen.

"The joint funding package will help debt advice providers to continue with – and increase – their vital work."

The funding consists of £20.6 million from the government and £14.2 million raised through a one-off increase to the Financial Services Levy. In addition, MaPS will also be contributing a further £3 million from their existing budget.  

The government also announced that the additional funding will be matched for the devolved administrations, resulting in an extra combined £5.9 million for Scotland, Wales and Northern Ireland.