The Money Advice Service, the government-funded financial advisory service paid for by a levy on the industry, is to provide three year grant agreements to fund free debt advice in England and Wales.
Caroline Rookes, chief executive of the Money Advice Service, said: "In the current climate, we recognise the need to provide longer term stability to our debt advice delivery partners.
"I am delighted to announce the Money Advice Service will be offering three year funding agreements to cover the period October 2014 – September 2017. We have invited our six existing lead partners in England and Wales to work with us to set out how they can best deliver debt advice in the years ahead.
"Our partners have excelled in the past 18 months at increasing the amount of debt advice they provide without compromising quality. We look forward to receiving their plans on how they might be able to deliver against our requirements in the period up to 2017.
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"Meanwhile, we're extending the grant agreements with our existing partners by 6 months, ie to cover the period up to 30 Sept 2014."
She was updating interested parties on the funding of free debt advice in England and Wales, a proposal announced some time ago.
In April 2012, following the Government's response to the Consumer Credit and Personal Insolvency Review, the service began coordinating debt advice in the UK. More at: www.moneyadviceservice.org.uk/en/static/debt-advice
The lead debt advice partners in England and Wales are: Citizens Advice, including Citizens Advice Cymru, Capitalise, Community Finance Solutions, Greater Merseyside Money Advice Partnership, Bristol Debt Advice Centre and East Midlands Money Advice.
To fund free debt advice across the UK in 2013/14, the service provides over £30 million. The largest funding agreement is with Citizens Advice - £23m.