Independent Debt Advice

Chris White Excerpts

Tuesday 8th February 2011 Westminster Hall

[Chris White (Warwick and Leamington) (Con)]

I add my thanks to those given to the hon. Member for Makerfield (Yvonne Fovargue) for initiating a debate on an issue of massive concern for my constituents. As Members of Parliament, we often have to deal with constituents who, for one reason or another, have fallen into debt and are going through a difficult and distressing time. They need support and advice that is tailored to them directly because that can make the difference between getting back on track or falling off the rails completely.

I am sure that I speak for everyone in the Chamber when I say that one of the most important resources that we call on in our working lives is the local citizens advice bureau. I particularly call on the CAB in Warwick and Leamington, and I thank those who work for the CAB for their contribution to our local communities. Since becoming a Member of Parliament, I have been continually impressed by the work of my local citizens advice bureau, especially its professionalism and dedication. Through the CAB’s work, individuals are able to get the support that they need, and consequently overcome the difficult situations in which they find themselves.

Last year, Warwickshire citizens advice bureaux helped nearly 26,000 individual clients and resolved more than 92,000 problems. Nearly 300 local people gave up their time to help Warwickshire CAB and they generated unpaid work worth nearly £1 million. At my local CAB for Warwick district, 5,000 local people were helped with around 22,000 problems. Around 80% of CAB work is taken up with debt, benefit, housing and employment issues. We simply cannot afford to lose that service. Reductions in funding will damage citizens advice bureaux across the country, particularly in south Warwickshire. Such cuts threaten to create an advice desert for those who have problems with debt and social welfare law. Thousands of individuals could be without the help of organisations such as the CAB, and they will be prevented from receiving the vital help that they need.

It is not as if citizens advice bureaux do not provide value for money. In Warwick district CAB, over the past year, just one money adviser dealt with 217 new clients who owed a total of more than £3 million—an average of more than £20,000 per client. The CAB has saved tens of millions of pounds in the long term and it has brought considerable benefit to local communities across the country by helping people to move forward with their lives and access the support that they need. There is a clear case for maintaining spending on such things, and it makes no financial sense to push problems from one place to another. People’s problems will not go away merely because we stop funding help for them. Such problems will get worse, until the point when the state has to intervene in more expensive and intrusive ways. We are talking about a short-term saving at long-term expense.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

I am hugely enjoying the hon. Gentleman’s speech. Does he agree that it is imperative that we do not lose the highly skilled and trained staff who are employed by the financial inclusion fund, because that too would be a short-term financial gain at the expense of a long-term loss to the service?

[Chris White]

I am trying to impress upon the Minister that these services need to continue and that they are important to our communities. It is important to make that case today. Again, I thank the hon. Member for Makerfield for initiating a debate that gives us the opportunity to raise the profile of our CABs and the important work they do.

Organisations and institutions will still be required to channel their support. The CAB is an example of an organisation that is able to turn the desire of local people to help those in trouble into practical action. Warwick district CAB is assisted by more than 50 volunteers, who are able to make a huge difference to their local community. That capacity will diminish and the opportunity for individuals to help will be reduced if there are not enough full-time staff on hand to train, organise and manage volunteers. The loss of full-time staff will therefore have serious consequences that cannot simply be picked up by extra volunteers. If we reduce the funding given to such important organisations, it sends the wrong message at a time when we are looking to galvanise people into doing more for their local community and spend more of their time helping worthwhile causes. I appreciate why the Government are looking to reduce spending, but I do not believe that the calculus of cost has been accurately measured in this case.

[Duncan Hames (Chippenham) (LD)]

My hon. Friend will be aware that only today the Government have announced that a one-off revenue of £800 million will be generated through changes in taxation on the banks. The interest alone that the Government will save on their own debt financing as a result of that move is enough to continue funding the financial inclusion fund in perpetuity.

[Chris White]

My hon. Friend makes a very interesting point, which I am sure other people will pick up.

When we were campaigning during the last election, we made a promise to protect the front line. It does not get much more front line than the CAB. I urge Ministers to think again and look elsewhere for reductions in public spending. They should engage with the local legal profession, voluntary and community groups and other stakeholders to see whether other long-term savings can be made in an area of justice that will not impact heavily on our front-line services.