Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 21 January 2022 to Question 106695, on Debts: Advisory Services, what support is available until MaPS identifies a longer-term solution; and what his timeframe is for identifying a longer-term solution.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government and the Money and Pensions Service (MaPS) are committed to ensure that those in financial difficulty who need help can access free of charge debt advice. While MaPS works through their next steps on their commissioning exercise, as set out in their update of 17 December 2021, they have confirmed they will be extending existing grants for a limited period of time.
The Government recognises the sector’s need for planning certainty and is closely engaging with MaPS as they work through the next steps including by making sure they are considering recent representations made by various stakeholders in the sector on how best to deliver locally based debt advice provision going forward.
The Government is working at pace with MaPS to provide further information to the bidders and the sector shortly.
Asked by: Beth Winter (Labour - Cynon Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made by the Money and Pensions Service of potential job losses following its recommendation to reduce community-based debt advice funding provision by 50 per cent.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Supporting people in problem debt is a Government priority. This is why the Government provided recorded levels of funding during the pandemic to the Money and Pensions Service (MaPS) for free-to-client debt advice provision in England.
The Government has also given MaPS a statutory duty to have close regard for vulnerable people and is working closely with MaPS regarding its next steps for local debt advice provision.
MaPS has not recommended a 50% reduction in community-based debt advice funding as part of its commissioning exercise. The evaluation of bids on the regional lot of their commissioning exercise was recently completed. The evaluation revealed concerns that the services being offered would not adequately meet the needs of people in vulnerable circumstances at the scale MaPS had hoped to achieve, or provide value for money. Therefore, MaPS will not be awarding contracts under the regional lot at this time.
The Government is working closely with MaPS to provide further information to the bidders and the sector shortly with regards to its commissioning exercise and next steps.
Asked by: Beth Winter (Labour - Cynon Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to secure the future of face-to-face debt advice in the UK following the Money and Pension Services’ procurement exercise.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Supporting people in problem debt is a Government priority. This is why the Government provided recorded levels of funding during the pandemic to the Money and Pensions Service (MaPS) for free-to-client debt advice provision in England.
The Government has also given MaPS a statutory duty to have close regard for vulnerable people and is working closely with MaPS regarding its next steps for local debt advice provision.
MaPS has not recommended a 50% reduction in community-based debt advice funding as part of its commissioning exercise. The evaluation of bids on the regional lot of their commissioning exercise was recently completed. The evaluation revealed concerns that the services being offered would not adequately meet the needs of people in vulnerable circumstances at the scale MaPS had hoped to achieve, or provide value for money. Therefore, MaPS will not be awarding contracts under the regional lot at this time.
The Government is working closely with MaPS to provide further information to the bidders and the sector shortly with regards to its commissioning exercise and next steps.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with the Money and Pensions Service over the decision on recommissioning of new contracts for local debt advice services in (a) the North East, (b) North West and (c) Midlands; what his timeframe is for agreeing new contracts for those debt advice services; and what assessment he has made of the impact on local communities of the non availability of those services.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government and the Money and Pensions Service (MaPS) are committed to creating a more resilient debt advice sector, which will drive better quality of advice and customer outcomes over the longer term.
As per their update of 17 December 2021, MaPS have evaluated the bids for the regional lot and concluded that the services being offered through submissions would not represent value for money or adequately meet the need of people in vulnerable circumstances. Over the coming months, MaPS intends to work closely with stakeholders to identify the best ways to deliver locally based debt advice provision in England and how best to procure these services on a longer-term basis. MaPS will provide more details on how they intend to carry out this engagement in the coming months.
Asked by: Hilary Benn (Labour - Leeds Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will place in the Library any impact assessment undertaken on the recommissioning of the Money and Pension Service debt advice service.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Money and Pensions Service (MaPS) assesses debt advice demand and makes decisions about advice provision. MaPS’s statutory responsibilities include the need to consider the most vulnerable in its decision-making.
The Government cannot comment in detail on an ongoing commercial tendering process. However, the MaPS-led recommissioning exercise is expected to materially increase the amount of debt advice available to people in England, and ensure services – including face-to-face provision – are built around customers’ needs. The exercise is an important step towards a more resilient debt advice sector and will drive better quality of advice and customer outcomes over the longer term.
Asked by: Hilary Benn (Labour - Leeds Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the number of face to face debt advisers who will be available for appointments with clients after the proposed recommissioning of the Money and Pension Service debt advice service in 2022, compared to the current number of advisers.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Money and Pensions Service (MaPS) assesses debt advice demand and makes decisions about advice provision. MaPS’s statutory responsibilities include the need to consider the most vulnerable in its decision-making.
The Government cannot comment in detail on an ongoing commercial tendering process. However, the MaPS-led recommissioning exercise is expected to materially increase the amount of debt advice available to people in England, and ensure services – including face-to-face provision – are built around customers’ needs. The exercise is an important step towards a more resilient debt advice sector and will drive better quality of advice and customer outcomes over the longer term.
Asked by: Hilary Benn (Labour - Leeds Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the number of face to face debt advice appointments that will be available to people in England after the proposed recommissioning of the Money and Pension Service debt advice service compared to the number of those appointments currently available.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Money and Pensions Service (MaPS) assesses debt advice demand and makes decisions about advice provision. MaPS’s statutory responsibilities include the need to consider the most vulnerable in its decision-making.
The Government cannot comment in detail on an ongoing commercial tendering process. However, the MaPS-led recommissioning exercise is expected to materially increase the amount of debt advice available to people in England, and ensure services – including face-to-face provision – are built around customers’ needs. The exercise is an important step towards a more resilient debt advice sector and will drive better quality of advice and customer outcomes over the longer term.
Asked by: Hilary Benn (Labour - Leeds Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he made of demand for face to face debt advice when recommissioning the debt advice service of the Money and Pensions Service.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Money and Pensions Service (MaPS) assesses debt advice demand and makes decisions about advice provision. MaPS’s statutory responsibilities include the need to consider the most vulnerable in its decision-making.
The Government cannot comment in detail on an ongoing commercial tendering process. However, the MaPS-led recommissioning exercise is expected to materially increase the amount of debt advice available to people in England, and ensure services – including face-to-face provision – are built around customers’ needs. The exercise is an important step towards a more resilient debt advice sector and will drive better quality of advice and customer outcomes over the longer term.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with relevant stakeholders on the potential effect of the timeframe for the recommissioning process for debt advice services on the ability of smaller debt advice organisations and charities to (a) lead bids for one of the three proposed regional debt advice services and (b) become a delivery partner in joint bids; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Money and Pensions Service (MaPS) assesses debt advice demand and makes decisions about advice provision. MaPS’s statutory responsibilities include the need to consider the most vulnerable in its decision-making.
Information on the bids received as part of MaPS’ procurement process is commercially sensitive while that process is still ongoing, with it being set to conclude early in 2022. However, the procurement exercise is expected to materially increase the amount of debt advice available to people in England, and ensure services – including face-to-face provision – are built around customers’ needs. The exercise is an important step towards a more resilient debt advice sector and will drive better quality of advice and customer outcomes over the longer term.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the proposed (a) increase in digital and (b) reduction in community face-to-face debt advice provision under the Money and Pension Services proposed recommissioning model on the adequacy of the levels of face-to-face provision of debt advice for people who (i) are digitally excluded and (ii) have difficulty accessing advice over the telephone as a result of (A) complex mental health issues, (B) disability and (C) language barriers; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Money and Pensions Service (MaPS) assesses debt advice demand and makes decisions about advice provision. MaPS’s statutory responsibilities include the need to consider the most vulnerable in its decision-making.
Information on the bids received as part of MaPS’ procurement process is commercially sensitive while that process is still ongoing, with it being set to conclude early in 2022. However, the procurement exercise is expected to materially increase the amount of debt advice available to people in England, and ensure services – including face-to-face provision – are built around customers’ needs. The exercise is an important step towards a more resilient debt advice sector and will drive better quality of advice and customer outcomes over the longer term.