Government backtrack as CAB receives £27M ~ Debt Managements and Consolidation

An expected 900 jobs and all-important specialist debt advice has been saved as the government makes a commitment to the continuation of the Financial Inclusion Fund (FIF) for another year.

Thanks to the £27 million cash injection, the Citizens Advice Bureau (CAB) and other independent advice agencies will be able to continue operating to provide financial advice at a time when debt is a serious national issue. All over the country, bureaux celebrated the win, which follows intense lobbying for reconsideration on the part of the government. Secretary of state for business, Vince Cable, said: "It's vitally important that everyone has access to free debt advice, and I am pleased to announce that the Department for Business will provide the £27 million necessary to maintain the programme of face-to-face debt advice."Although the exact share which will be received by the CAB is yet to be defined, it is said to be sufficient to maintain existing staff levels and the current structure of the programme. Staff, who had been handed redundancy notices in the wake of the proposed withdrawal of funding for the FIF, described as a ‘devastating blow’, celebrated the reprieve and the prospect of being able to continue working closely with clients face-to-face in the field of debt management. In the face of VAT increases, job losses and the soaring cost of living, the Government voiced that it wanted people to be able to get advice early and stop the vicious cycle of spiralling debts. This latest cash injection will help to protect free debt services for a little longer, however if stability and the best customer service is to be established in the long run, a union between the private and the state sectors will need to be established. Beverley Budsworth, MD of the business debt advisor, said: “The injection will provide CAB and a range of free debt advice charities covered by the Financial Inclusion Fund “FIF” funding for a further year. “I think this is a good thing, however, according the National Audit Office, who reviewed the progress achieved by the FIF, the services supplied by free debt advisors were helpful but patchy and returned £1 to creditors for every pound of costs. The private sector return on average around £4 to every £1 of costs. I would like to see greater working between the charitable sector and the private sector over the next 12 months so that we can streamline services and look to maximise efficiencies.”
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