Money Advice Service

Lord Davies of Oldham Excerpts

Thursday 12th March 2015 Lords Chamber

[Lord Davies of Oldham (Lab)]

My Lords, the Minister replying to this debate and I share a common problem: the report has not been published. The difference between us is that it is his Government’s fault that we are debating a report that we anticipated would have been published long since. As my noble friend Lord Stevenson said in introducing the debate, the report looks as though it will join the long list of challenges that will await the May election and will be passed on to the next Administration—a role we will, of course, fulfil with enthusiasm.

The other difficulty in dealing with the report is that comments made on it vary considerably. It is clear that some consider that the Money Advice Service has an important role to play in the significant area of dealing with personal debt and that its performance passes muster. However, there are indications of failure elsewhere which have led to the calamitous situation of the collapse of morale in the organisation. There are even suggestions that the staff may be cut by as much as one half and the budget reduced by nearly 40%.

This is a grim situation to confront an organisation that clearly has a role to play. The Treasury Select Committee, which also was dealing with partial information before the report was published, said in a forthright manner that it did not consider the Money Advice Service fit for purpose. It is not surprising, therefore, that there is consternation all round on the role that the organisation should play in the future, if at all.

I am very grateful to my noble friend Lord Stevenson for having identified and highlighted this issue against a background where, as the right reverend Prelate, joined by the noble Baroness, Lady Coussins, emphasised, personal debt is a major issue for our society. We are approaching the record levels of personal debt that preceded the great crash. One would have thought that the Government might address themselves to a report that has significant things to say about an agency that is meant to help people in these circumstances, yet they have merely rendered its future uncertain.

Therefore, I hope that the Minister will today be able to give some reassurances. One matter on which we would certainly want some reassurance from the Administration is the clear criticism in the report of the service’s potential role in relation to pensions advice. That issue will imminently be upon us in substantial numbers. People who are at the age at which they can take decisions about cashing in elements of their pension for a cash pot will need dispassionate, objective advice. The MAS would almost certainly be a body to which some would look, yet there are references to its lack of capacity for handling advice in this area.

We need these issues cleared up. I agree with the noble Baroness, Lady Coussins, that this debate would have had a very long list of speakers today if we had had the report before us and were able to consider in full how we expect people to be advised and how institutions will respond in giving dispassionate, accurate advice to so many of our people in need. As the right reverend Prelate mentioned, the church, among other organisations, is acutely aware of the pressure of debt. That pressure is shown in the recourse that people have to food banks. The right reverend Prelate came very close to home when he mentioned Christ Church in Ware, as I live only four miles away from the church and know the excellent work that it does in this area.

However, we all recognise that such levels of support do not necessarily provide 100% coverage—far from it. All those organisations have limited resources, so we want the fullest contribution from those who have the requisite level of expertise and we want the Government to insist on priority for this area. As my noble friend Lord Stevenson made abundantly clear—I do not need to repeat many of the points he made—the Government’s delay and hesitation over the publication of the report, far from tackling the issue, merely creates uncertainty where we need certainty for a rather desperate public.