Site search
  • Sustainable Debt Advice Project

Sustainable Debt Advice Project

Background Information

What issue is this project seeking to address?

The free debt advice sector needs to develop alternative sources of funding if it is to have the capacity to meet the demand for debt advice now and in the future.  This is because the sector does not have the capacity to meet current demand and this situation is deteriorating as demand increases and capacity reduces due to cuts in public sector funding following the Comprehensive Spending Review.

What will the project try to achieve?

The project seeks to establish whether or not the Fair Share creditor contribution model is a viable model for sustainable funding of the debt advice members of the AdviceUK network in particular and the free debt advice sector in general.  (Under a Fair Share model, a debt advice agency receives a fee income from contributions from creditors to whom debt payments by clients are distributed.)

A secondary outcome is to establish a clear path for the rollout of this model, in the event that independent evaluation finds that it is viable.

The project builds upon the existing Fair Shares creditor contribution model in three significant ways: -

·          It will be made available to a wider client base, i.e. to clients who are only able to make token payments or who have very low disposable income

·          It will provide a payment disbursement system that will include payments to priority creditors as well as consumer credit debts

·          It intends to incorporate an enhanced range of services to clients, including a streamlined application process for a basic bank account and a prepayment card for clients who do not have or do not wish to open a bank account.

When will the project run? 

The project is intended to run for 18 months from September 2011 until February 2013.

Who might be interested in the project?

This project will be of interest to providers and funders of free debt advice including independent advice centres, creditors, central and local Government, as well as a range of other stakeholders including regulators and policy makers.

How can I find out more?

Contact Andrew Hull at AdviceUK on 020 7469 5700 or at andrew.hull@adviceuk.org.uk or refer to our Frequently Asked Questions.

Pilot Agencies

The following agencies will be participating in the pilot stage of the project:

Advice NI

Bristol Debt Advice Centre

The Crosby Community Association

Fair Money Advice

Homemaker Southwest (Money Advice Plymouth)

Luton Rights Ltd

Money Advice Plus Services

West View Advice & Resource Centre Ltd

Two Pennies Money Advice (previously Worcester CASH)

Pilot agency guidance notes can be found at the bottom of this page.

Project Advisory Group

A Project Advisory Group draws on the practical experience and knowledge of its members to:

·         Advise the project team and other participants as to the likely effectiveness, relevance and applicability of plans and activities

·         Propose additional activities and refinements to activities in support of the project and its aims

·         Promote the aims of the project with interested parties

·         Facilitate stakeholder engagement

·         Advise Friends Provident Foundation Trustees on the project

·         Assist in sharing the learning arising from the project

·         Support plans for the wider rollout of the model that is being trialled (if the pilot is successful)

Its membership is as follows:

Andrew Thompson, Grants Manager, Friends Provident Foundation

John Fairhurst, Managing Director, Payplan

David Hawkes, Sustainable Debt Advice Project Executive and National Money Advice Co-ordinator, AdviceUK

Paul Jones, School of Sociology and Social Policy, Liverpool John Moores University

Colin Kinloch, Money Advice Service

Fiona Magee, Deputy CEO, AdviceNI

Paul Ross, Director, Retail, British Bankers' Association

Caroline Siarkiewicz, Executive Director, Institute of Money Advisers

Colin Trend, Project Director, Money Advice Plymouth

Peter Wallwork, Chief Executive Officer, Credit Services Association; Debt Buyers and Sellers Group

Independent Evaluator

Public Perspectives Ltd has been appointed as independent evaluator to assess the success of the project pilot. The Invitation To Tender document relating to this role can be found at the bottom of this page.

Attached documents