Insights ¦ The Money and Pensions Service Funded Debt Advice Impact Report 2023-24

Key Take Aways

1. MaPS-funded debt advice services have supported 623,466 clients in England during 2023/24, with a resultant additional income for clients estimated at £48 million.
2. Over two-thirds of people accessing these services are in a deficit budget, with vulnerable groups such as those with long-term health issues, disabilities, or mental health conditions being over-represented.
3. The debt advice sector demonstrates high client satisfaction, with 88% of users satisfied and 87% likely to recommend the services.
4. Tailored, holistic approaches underpin the services, addressing broader vulnerabilities including mental health, housing, and access barriers through collaboration with community organisations.
5. Innovative digital tools and online pathways are expanding access, with 64% of digital journeys occurring outside standard working hours and 13% between 10pm and 3am.
6. The growth in Debt Relief Orders (DROs) — a 32% increase in applications via dedicated hubs — signifies improved accessibility for debt resolution.
7. The Mental Health Crisis Breathing Space pilot supported 1,217 individuals, enabling early intervention amid mental health crises linked to debt.
8. The Debt Advice Modernisation Fund facilitated operational overhaul of community advice agencies, introducing new case management tools and technology infrastructure.
9. Strategic embedding of advice services in trusted community settings, including prisons and employment hubs, enhances reach among vulnerable and hard-to-reach populations.
10. The Money Adviser Network streamlines referral pathways from sectors like healthcare and social services, making debt advice more proactive and accessible.
11. Data limitations due to the complex and non-linear advice journey are recognised, though ongoing optimisation aims to improve data robustness and insights.
12. The sector’s focus on accessibility, inclusion, and service innovation aligns with regulatory standards and drive towards greater financial resilience for vulnerable individuals.

Key Statistics

• 623,466 clients served across all services from 1 April 2023 to 31 March 2024.
• Clients identified as gaining £48 million in extra income from debt advice support.
• 66% of people receiving MaPS-funded advice are in deficit budgets.
• 49% of clients disclose at least one additional vulnerability, such as mental health or physical health issues.
• 185,438 visits made via the Debt Advice Locator Tool.
• 121,650 individual clients served by community-based services, with 86% satisfied with their experience.
• 456,438 individual clients engaged with nationally accessible services, with 88% satisfaction.
• 94% of users of Debt Relief Order hubs satisfied with their experience.
• 1,217 individuals supported through Mental Health Crisis Breathing Space pilot.
• Over 21,900 DRO applications submitted, covering debts worth £345 million.
• 64% of debt advice digital journeys were outside standard hours; 13% between 10pm and 3am.
• 20,714 clients served by Business Debtline, with 94% satisfaction.

Key Discussion Points

• The transformative impact of MaPS-funded debt advice, notably enabling clients to identify millions in additional income.
• High over-representation of vulnerable groups needing debt advice, underscoring the importance of tailored, accessible support.
• The sector’s holistic and relational approach enhances engagement, especially among those experiencing emotional and mental health challenges.
• The significance of technological innovation and digital pathways in expanding timely, flexible access to debt advice services.
• The rising uptake of Debt Relief Orders as a statutory solution for those in severe financial hardship.
• The critical role of dedicated hubs and community locations in addressing access barriers for marginalised populations.
• The benefits of integrated services, ranging from debt advice to mental health support, in fostering sustained financial resilience.
• The strategic importance of modernisation initiatives, including data, case management, and digital platforms for operational efficiency.
• The value of multi-sector referral pathways and embedded advice in familiar environments like prisons, hospitals, and employment centres.
• The necessity for ongoing data collection improvements to better understand complex debt advice journeys and outcomes.
• The sector’s ongoing commitment to inclusivity, informed by regulatory frameworks and evolving service standards.
• The wider societal implications of accessible, empathetic debt advice in reducing financial and mental health disparities.

Document Description

This article offers a comprehensive overview of the impact of MaPS-funded debt advice services in England during 2023/24. It details the reach, client outcomes, innovation initiatives, and strategic modernisation efforts aimed at enhancing accessibility, efficiency, and client resilience. Highlighting real-world case studies, the article illustrates how tailored, community-embedded, and digital-first approaches are transforming debt support for vulnerable populations, fostering financial stability and wellbeing across diverse communities.