Policy & Insights 1 May 2024

Future of Debt Advice Commissioning

London Citizens Advice argues that MaPS should redesign its debt advice commissioning around local, community-based services rather than centralised or overly standardised models. It stresses that debt advice demand has risen sharply because of the cost of living crisis, with London facing especially severe and unmet need. The response warns that past commissioning approaches were too top-down, based on outdated assumptions, and risked undermining trusted local provision.

A central theme is that one size does not fit all. The organisation says debt problems are increasingly complex and often linked to housing, benefits, health, and other crises, so debt advice works best when it is holistic, locally embedded, and connected to wider support services. It argues MaPS should prioritise funding for face-to-face and community delivery, especially in under-served London boroughs, rather than focusing mainly on national phone or remote services.

The response also highlights concerns about insufficient funding and workforce pressures. It says current funding levels are not enough to meet demand, many providers are subsidising contracts from their own reserves, and staff recruitment and retention are becoming critical issues. MaPS is urged to support the sector through full-cost funding, longer-term contracts, inflation adjustments, and sector-led workforce development.

On specialist services such as Breathing Space, DRO hubs and business debt advice, London Citizens Advice supports them in principle but says they must be better integrated with mainstream local provision and should not come at the expense of community-based services. It also raises concerns about commercial providers benefiting from public contracts where there are risks of mis-selling or conflicts of interest.

More broadly, the response says MaPS should act as a collaborative funder and enabler, not a top-down designer of services. It calls for stronger partnership with local authorities, health settings, community organisations and the advice sector itself, using sector-led and co-produced models. Across awareness-raising, innovation, evidence building and influencing work, the response consistently argues that MaPS should keep its core focus on improving the availability, quality and sustainability of frontline debt advice services.