Community Debt Advice Services

Debate between Diana Johnson and Emma Hardy

Wednesday 1st December 2021 Westminster Hall

[Emma Hardy]

I absolutely agree with my right hon. Friend. As debt advisers say, the first face-to-face appointment can be extremely emotional for many people. Sometimes it is the first time they have ever told anybody about their debt problems. For a number of reasons, they might not be able to discuss them at home. Sometimes people feel ashamed and unable to tell their partner that they are suffering from debt. They do not want to be seen as not being able to cope. They could also be a victim of financial abuse—a form of domestic abuse—and they might not want to tell someone of the situation they are in. Sometimes, as my right hon. Friend said, they have accumulated so much correspondence that they are afraid to open it. Bringing those letters to a face-to-face appointment provides the emotional support they need to address the problem.

Debt is often multifaceted. It is a mistake to think that it is an easy financial problem that can be solved by someone at the end of a telephone following a flow chart and using a script. It is not, and nor is it as easy as someone clicking options on a website. People might start with information from a website, then use the phone and finally need a face-to-face appointment with a case adviser. Those face-to-face advisers know their community. They are not just experts in debt advice; they have links to other charities, councils, jobcentres and even local bailiffs. As debt advisers, they have a relationship with those organisations, and they can speak to them and sometimes resolve the problem. When someone enters Citizens Advice with debt advice problems, there are experts there checking what benefits someone is entitled to and that they are getting them. They might say, “Here is where you can get mental health support in the community.” They know the area because they are based there. Moving services to national or regional call centres breaks that connection, which is a disadvantage to everyone.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

I congratulate my hon. Friend on securing this important debate. She knows well the high levels of indebtedness in Hull. The fact that there is such an excellent service operating through our local citizens advice bureau is of huge benefit to many people. We know that demand is only going to get higher with the cost of living crisis, which she has so ably outlined. Does she think that having a hybrid system, where there is accessibility through face-to-face appointments as well as telephone advice, is the way to go, rather than moving to telephone advice only?

[Emma Hardy]

As I mentioned at the start, my right hon. Friend has been with me from the beginning, looking at this issue and campaigning on it. She is absolutely right. I accept that some people might want to access more virtual appointments and information on a website, but it cannot come at the expense of the face-to-face component. We cannot lose that face-to-face part.

MaPS is changing the way funding is provided. Although, it is increasing the money for debt advice—I want to acknowledge that, and it is set to increase to £77 million in April 2022—the bulk of that funding is moving to call centres and online services. At a meeting on 17 November, the MaPS chief executive and commissioning team told We Are Debt Advisers, which is a group representing debt advisers, that 20% of the £77 million had been allocated to face-to-face appointments. That amounts to £15.4 million. They also said that regional providers currently spend 56% of their existing £33 million on delivering this way, which is £18.5 million. By their own admission, this is a cut of just over £3 million to face-to-face services. That is made worse by the replacement of the grant system with contracting, which in its current form will exclude many smaller providers active in the sector from being able to bid for contracts at all.