Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what support he plans to provide for increasing Government-funded debt advice.

The Government recognises the vital role that debt advice providers play in helping people in vulnerable circumstances. This is why the Government provided record levels of debt advice funding to the Money and Pensions Service (MaPS) for free-to-client debt advice provision in England in 2020/21 and 2021/22. The Government and MaPS remain committed to help individuals in problem debt get their finances back on track, especially as some now face new challenges in the shape of the sharp rise in inflation.

On 14 February, MaPS confirmed funding levels for debt advice services in England over the next three financial years. Its budget for the delivery of frontline debt advice provision in England has risen to £76 million for each of the next three financial years (subject to the usual annual budget setting by the Government), recognising an anticipated increase in the need for debt advice. This represents a significant increase from pre-pandemic levels of funding, which totalled £43 million in 2019/20.