This item was published during the term of a previous administration that ended in April 2007
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Money advice services
29/10/2004
Money advice services across Scotland have been
allocated a share of £2 million provided by the Executive
to fund local authorities to help manage the anticipated
demand for the new Debt Arrangement Scheme, due to come
into force later this year.
Communities Minister Malcolm Chisholm said:
"Debts, whether large or small, can cause misery. People
often find themselves overwhelmed, unable to cope or unsure
at how best to tackle their problems.
"But tackling debt early is essential, and this funding
will give local authorities a platform to increase access
to quality money advice services.
"The Debt Arrangement Scheme will help people repay
debts in a managed way, free from the threat of enforcement
action, and provides incentives for debtors and creditors
to reach agreements out of court.
"We are helping to reduce the vulnerability of people on
low incomes to multiple debts. Free, impartial and
confidential money advice gives people confidence to deal
with debt and find a route out of poverty."
The funding will be distributed to local authorities,
weighted according to levels of deprivation and is targeted
towards low income communities, with a minimum of at least
£40,000 to ensure all local authorities can increase their
money advice service.
This is in addition to the £3 million allocated annually
since 2002, which will continue, and takes total funding to
£5 million per annum.
The funding allocations for 2005/06 are (in pounds
sterling):
- Aberdeen City - 52,000
- Aberdeenshire - 45,000
- Angus - 40,000
- Argyll & Bute - 40,000
- Clackmannanshire - 40,000
- Dumfries & Galloway - 43,000
- Dundee City - 62,000
- East Ayrshire - 53,000
- East Dunbartonshire - 40,000
- East Lothian - 40,000
- East Renfrewshire - 40,000
- Edinburgh, City of - 105,000
- Eilean Siar - 60,000
- Falkirk - 51,000
- Fife - 100,000
- Glasgow City - 286,000
- Highland - 58,000
- Inverclyde - 43,000
- Midlothian - 40,000
- Moray - 40,000
- North Ayrshire - 58,000
- North Lanarkshire - 122,000
- Orkney Islands - 60,000
- Perth & Kinross - 40,000
- Renfrewshire - 63,000
- Scottish Borders - 40,000
- Shetland Islands - 60,000
- South Ayrshire - 40,000
- South Lanarkshire - 98,000
- Stirling - 40,000
- West Dunbartonshire - 45,000
- West Lothian - 56,000
- TOTAL - 2,000,000
The Debt Arrangement and Attachment Act 2002 provides
for the implementation of the Debt Arrangement Scheme. It
will assist debtors to set up a managed way of repaying
debt, free from enforcement or sequestration.
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 Executive also contributes to funding the National
Debtline telephone advice service, available at
0808 808 4000.