Standard Financial Statement Craig Simmons Money Advice Service

What is the SFS? A single format financial statement for use by advice agencies and creditors which is replacing the other existing formats in use A single set of common fixed and flexible expenditure categories One set of spending guidelines (or trigger figures) A savings category to build financial resilience Developed in collaboration with major advice providers, creditors, trade bodies and others 7 Scottish Local Authorities Broader use – Local Authorities, Central Govn.

SFS / CFS comparison Wednesday, 12 September 2018

Testing Mixed results We tested 80 CFS cases and 1500+ households using the ONS survey Governance members such as PayPlan, AiB, CAP, StepChange have undertaken further testing. Some limits on testing SFS with archive CFS cases Those live not currently reporting an issue Looking to pull together fuller data for Autumn for annual review of methodology and guidelines. Our policy – the guideline is precisely that…a guideline Breaches spending guidelines on 20 SFS v 17 CFS cases 8 housekeeping breaches v 4 in CFS Average difference between housekeeping allowances CFS £27 more generous (consider moving clothing & toiletries out) 11 Personal v 1 in CFS – this will be shared between comms and leisure and those which have ticked over by a few pounds This will be offset by inaccuracies in transferring cases StepChange found 97.5% of couples (additional adult) unaffected, 95% of whole book unaffected Wednesday, 12 September 2018

Who created the SFS? Wednesday, 12 September 2018

Launch and transition 1 March 2017 Multiple advice providers using SFS PayPlan, AdvicePro users and DEMSA members Insolvency Service Eng&Wal Creditors prepared to receive IVA Protocol March 17 – March 18 Transition period CitA Sept (Eng&Wal) MAT / StepChange Dec 17 / Jan 18 AiB consultation with Apr 2018 earliest adoption Local authority & central government From April 18 Expected date of all advice provs using SFS Switch off of other statements (CFS / SC) Large number of creditors build into collections Approx. 520 members signed up 37 Insolvency Practitioners 37 commercial credit providers signed up, including Barclays, HSBC, Santander, RBS, TSB, Atom, Tesco, Nationwide 146 AdviceUK members 65 CSA members 49 DCAs 46 local authorities 14 software providers Wednesday, 12 September 2018

Application and resources Users must sign up to the Code of Conduct on registering. Strongly recommended to review training or user guide. Touch on restrictions for Scottish advisers using SFS, nothing to stop sign up. SFS format not drastically different to existing statements and guidance quite light touch / basics. Intention is not to overstep the remit of the SFS, which in some cases is simply how to fill out the form and leave some room for flexibility in the specifics of advice giving across orgs. SFS.Support@ MoneyAdviceService.org.uk www.sfs.moneyadviceservice.org.uk Wednesday, 12 September 2018

Key discussion points Is the principle of SFS welcome? What is an appropriate spending guideline level? What should be the approach for exceeded guidelines (re evidence)? How can we best support implementation if SFS is accepted for Common Financial Tool. Wednesday, 12 September 2018

Questions & contact us Contact email for SFS sfs.support@MoneyAdviceService.org.uk Download the 2014 consultation paper https://www.moneyadviceservice.org.uk/sfs-consultation Download the consultation response https://www.moneyadviceservice.org.uk/sfs-consultation-response Visit the SFS website https://sfs.moneyadviceservice.org.uk/ Find out more about our debt work https://www.moneyadviceservice.org.uk/our-debt-work Download the latest publications relating to our debt work https://www.moneyadviceservice.org.uk/debt-publications Wednesday, 12 September 2018