A National Infrastructure for Money Advice

Analysis

• Four out of five clients currently receive money advice on a face to face basis. Telephone-based services handle only 6% of requests for advice. Yet providers of telephone advice estimate that between 70% and 80% of callers can be helped without the need for face to face advice
• There is significant under-provision of telephone advice at present. In 1999, National Debtline was only able to answer 24,000 of the 140,000 calls received.
• There is scope for expanding the use of debt management programmes (DMPs) through authorised disbursement operators. Only 5,000-6,000 programmes a year are currently arranged, less than 5% of the potential of 150,000 programmes a year.
• Main conclusions: A national grid of money advice services is proposed, within which the provision of telephone advice needs to be greatly expanded. Specialist face to face advice can then be focused on those clients most in need of it. There is scope for greater use of DMPs.

Proposals

• A network of up to 30 telephone advice centres providing national coverage. They will offer a single, easily recognizable and accessible entry point to the service.
• A common standard on the disbursement of repayments to creditors through DMPs. Advisers will choose which disbursement operation to use, but operators will have to conform to agreed protocols.
• The use of franchise arrangements with MAT partner agencies and others to deliver services. This will draw on local knowledge and expertise, but within a framework that guarantees standards and protocols.
• Co-ordination with the new Community Legal Service in England & Wales (CLS) and the DTI's consumer helplines. Each centre will be required to establish partnership arrangements with local CLS initiatives, including accreditation with the appropriate quality mark.
• Greater use of the Internet to exchange information between advisers and to make information available to clients.
• A streamlined organisational structure comprising:
  • Board of Trustees responsible for governance, fundraising, public affairs.
  • Executive responsible for executing the business plan.
  • Franchisees responsible for service delivery.

Implementation

• The early establishment of a small number of pilot centres in England followed by integrated pilots in Scotland and Northern Ireland.. The pilots to test demand, systems and procedures. The cost of the pilots to be shared between the public and private sectors.
• A demanding timetable to maintain momentum. Following funding commitments and project planning, implementation to begin in April 2001.