This item was published during the term of a previous administration that ended in April 2007
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Funding for money advice
26/01/2004
New services to help people deal with debt will start
from April.
An extra £4 million will fund the free and confidential
money advice services.
Deputy Communities Minister Mary Mulligan announced the
Executive funding today as she launched South Ayrshire
Council's 'Sinking in a Sea of Debt Campaign'.
New services will target a number of vulnerable
groups, such as minority ethnic communities and lone
parents, to help them deal with debt and other financial
difficulties.
The money will be also be used to support the
implementation of the Debt Arrangement Scheme, which comes
into force later this year.
Mary Mulligan said: "Debt causes misery and distress.
People often find themselves overwhelmed, unable to cope or
unsure at how best to tackle their problems.
"Debt is a huge problem at this time of year, as credit
and store card bills arrive after Christmas. Tackling debt
problems early is key to keeping financially afloat.
Encouraging people to seek help when they feel they are at
risk of sinking into debt is just as important as when they
are actually in debt."
The new funding will see £2 million pounds allocated to
support a number of projects targeting specific groups.
Evidence has shown that some people do not or cannot access
money advice for reasons such as language or cultural
sensitivities, accessibility and availability.
The new projects start in April and will run for two
years.
- A JobCentre Plus 'Pathways to Work' pilot in
Renfrew, Inverclyde and Argyll & Bute, will receive
cash for targeted money advice to help people manage
their money as they move into employment
- Another project will target those who are the
victims of loansharks. The DTI announced a crackdown on
loansharks in Scotland in December, to be run by
Glasgow Trading Standards. Work will be undertaken to
provide advice and support to those who have fallen
foul of illegal moneylenders.
- A project for minority ethnic communities will be
set up in Glasgow. This will involve Glasgow City
Council and representatives of minority ethnic groups,
working together to improve access to money
advice.
- A project run by One Parent Families Scotland and
One Plus for lone parents will provide money advice for
those who have to run a household on one income
- City of Edinburgh Council will develop advice
services for young people.
- The Action Group will work to tailor money advice
services to meet the needs of those with Learning
Disabilities
- Scottish Association for Mental Health will address
the specific issues which concern those with mental
health problems.
Ms Mulligan continued: "I am very aware that some groups
in society are more at risk. I met with people who work in
money advice services across Scotland to hear their views.
They told me of their concerns that work was needed to
target those who are harder to reach, and I look forward to
seeing the results of these projects.
"The Executive is also providing further funding of two
million pounds, to support the money advice sector to meet
demand arising from the forthcoming introduction of the
Debt Arrangement Scheme. The scheme helps people repay
debts in a managed way, free from the threat of enforcement
or sequestration, and provides incentives for debtors and
creditors to reach negotiated settlements out of
court."
The Executive is already providing £3 million per annum
to increase the provision of money advice services in
Scotland. This has resulted in 120 additional money
advisers across Scotland.
The Executive also funds MATRICS, a central services
organisation run in partnership by Money Advice Scotland
and Citizens Advice Scotland, to increase the quantity and
quality of money advice in Scotland.
The £4 million will be allocated as £1 million in
2004/05 and £3 million in 2005/06: £1 million in each of
2004/05 and 2005/06 will fund the projects for vulnerable
groups, and £2 million in 2005/06 will be used to meet
demand arising from the Debt Arrangement Scheme.
The aim of the projects is to research how people access
and use money advice and understand further how to provide
targeted money advice for those who need it most.
The Executive also contributes to funding the National
Debtline telephone advice service. The public can access
free, impartial money advice by calling 0808 808 4000.