Building a stronger safety net: how MaPS is helping shape the future of debt advice

The Money and Pensions Service (MaPS) is committed to helping people take control of their finances and build a secure future. As the largest funder of free debt advice in England, we support debt advice providers to help those in financial difficulty.

Our work doesn’t stop there, we collaborate with the wider sector and other influential stakeholders to create a stronger, more connected support network for those facing financial challenges.

Why is debt advice so important?

Our annual Debt Need Survey tells us that 30% of social housing residents could benefit from independent debt advice. This is double the 15% figure for the wider population. Residents who miss payments to priority bills tend to access high-cost forms of credit, making them more subject to enforcement action.

I am sure these figures are of no surprise to your busy welfare teams. Debt has become a significant issue for many households, with factors like inflation, rising energy bills, and stagnant wages pushing more people into financial distress. Existing debt advice services are facing increasing demand.

Debt Advice Strategy Consultation

To tackle demand, MaPS launched a Debt Advice Strategy Consultation to improve our debt advice services. The consultation received valuable feedback from a range of stakeholders, including debt advice providers, financial institutions, and government agencies. It offered valuable insights into how MaPS debt advice funding can better meet the needs of financially vulnerable individuals by offering:

• Proactive outreach to vulnerable groups.
• Improved integration of support services.
• A more sustainable funding model for the wider debt advice sector.

Insights from our Debt Advice Strategy Consultation

Improving accessibility

The consultation stressed the need for debt advice services to be more accessible. Many people avoid seeking help because of stigma, fear of judgment, or simply not knowing where to turn.

Respondents suggested launching more targeted outreach campaigns, particularly in communities with high levels of financial distress. They felt services should be available in a range of formats, such as online, telephone, and face-to-face. This would ensure that everyone, regardless of their access to technology or their personal circumstances, receives the help they need.

Additionally, tailored services for specific groups, such as younger and older persons, or those with mental health issues, were seen as a key priority.

Integrating services for a holistic approach

Many respondents noted that those facing debt often struggle with other overlapping issues, including housing problems, mental health challenges, or unemployment. Navigating multiple services for diverse needs can be confusing and stressful, so respondents called for better integration between debt advice services and other public services, such as social care, housing, and welfare services, to provide a more streamlined and holistic approach.

Ensuring sustainable funding for debt advice

The consultation also highlighted the financial strain on the debt advice sector. While demand for services is increasing, funding has not always kept pace. Many respondents called for a more secure, long-term funding model to enable debt advice providers to better support individuals in financial crisis.

Prevention and early intervention

Several respondents emphasised the importance of tackling debt before it becomes a crisis. Early intervention strategies, such as financial education, budgeting advice, and better regulation of high-interest credit providers, could help people avoid falling into debt in the first place. By focusing on prevention, we could help reduce the number of people facing serious financial difficulties in the long term.

Moving forward: what’s next for debt advice?

To meet the growing demand for support, stakeholders encouraged us to focus on improving accessibility, ensuring services are integrated, securing sustainable funding, and adopting a preventative approach to financial hardship.

We offer several free tools that could help Housing Associations support their residents, such as our bill prioritiser and benefits calculator.

As the UK continues to grapple with rising living costs, a robust and adaptable debt advice strategy will be crucial in helping people regain control of their finances, avoid long-term hardship, and build a more financially secure future for all.

Please get in touch for more information.