The Money Advice Trust, the charity that runs National Debtline and Business Debtline, has welcomed today’s announcement of a £37.8 million package of funding to increase capacity in the debt advice sector.
The one-off package of support includes funding from both the government and the financial services industry, and is accompanied by £5.9 million being allocated to Scotland, Wales and Northern Ireland as part of devolution arrangements.
Joanna Elson, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “Tackling problem debt will be key to the UK’s recovery from Covid-19 – and we are pleased the government has recognised the central role that debt advice will play in helping households out of this crisis.
“This welcome funding will make a significant dent in the problem of getting free debt advice to everyone who needs it. The impact of Covid-19 on household and small business owners’ finances will of course be felt for many years – and additional funding will need to be sustained well beyond the current year.
“It is also important that the government, regulators and creditors work together to flatten the curve in debt problems in the months ahead. The withdrawal of temporary relief measures introduced to help households through the outbreak must be slow, cautious and co-ordinated – with people in financial difficulty given the time they need to receive free debt advice and act on it.”