Debt Management Advice

Lord Low of Dalston Excerpts

Monday 7th September 2015 Lords Chamber

[Lord Ashton of Hyde]

The Government have increased funding to the management advice service to £47 million —an increase of nearly 23%—this year. We also accept that there is a position for fee-paying debt advice, but it has to be regulated properly and to treat consumers fairly. That is what the FCA is in the process of doing. The authorisation process will make some decisions on those individual firms by the end of this year. I should mention that the FCA’s thematic review took a sample of eight firms out of approximately 200.

[Lord Low of Dalston (CB)]

My Lords, picking up on the Minister’s reference to quality, have the Government formed an assessment of how debt advice from the Money Advice Service compares, in quality and amount, with what was previously available under legal aid?

[Lord Ashton of Hyde]

I cannot tell the noble Lord that, but I will write to him on the subject.