Update Scottish Government Support for Advice Services SG carried out internal review of the Advice services that we fund and support. Establish the level and spectrum was a specific challenge What it funds and how

Policy Intent Ministers are clear that changes need to be made going forward to: make better use of existing resources to deliver improved reach, quality and impact – especially for priority groups; ensure that Scottish Government investment supports advice services at a local level. increase pro-active approaches to providing advice to people about their rights and entitlements

A more coherent policy and investment advice services We recognise the importance of independent advice Aware that Local Authorities are the main funders Meet the needs of users Proactive approach to providing funding from a collective policy position

What are the main issues for users Advice services are particularly important for people in poverty Demand for advice services is rising and some of this is unmet Could channel shift increase reach and achieve better VFM The landscape is confusing for service users and is a barrier to achieving the right support Access to services at the right time and in preferred way No surprise that those who need advice are those in poverty and those most vulnerable in society. Again demand is rising no shock but the massive change in welfare benefits has led to a major increase on the need for advice on debt finance and welfare benefits advice. Changes related to social security and consumer policy are among the most significant, but the breadth of advice means that a wide range of policy areas impact on its delivery. There is significant evidence that actions coming out of these legislative changes and commitments have had an impact on both the number and type of people accessing advice services, and the types of issues with which they require support As technology moves forward we need to look at increasing the different ways to offer advice services. Advice in a way that meets the needs of the person that needs it. Another big challenge The landscape is confusing – I think UK and Scot Gov policy changes have had a significant impact on this with single pots of money to support specific policy areas such as UC PIP Evidence that co-location improves the accessibility and can provide a better all round service and we need to test how this could work better in Scotland

What are the main issues for services and funders Growing demand - strain on advice services & increased complexity Funding is project-based Prevention – early intervention : crisis intervention Single issue commissioning adds confusion Quality – inconsistent – quality standards • The growing demand for advice is putting extra strain on advice services - The advice being provided is becoming more time-intensive and complex, putting extra strain on advice services. The second tier support we invest in has been effective in supporting advice service staff with training and the handling of complex cases. • Funding - Many organisations are getting funded from multiple sources (including more than one part of Scottish Government) which creates increased bureaucracy, reduced governance and risks stability. Reductions in funding for money advice at a local level. Co-ordination with other public funds would help to reduce duplication and gaps in service provision, and maximise the impact of public spending. This approach aligns with the Framework for Public Funding of Advice in Scotland • Prevention and early intervention. There are challenges in pursuing a preventative approach when faced with demand for crisis interventions The literature suggests that more must be done to evidence the outcomes and impacts of advice services in order to properly express and promote the added value they achieve in preventing the need for other public services. Variations in performance reporting requirements, make it difficult to collate information to inform improvement, particularly in preventing difficulties that cause people to seek advice. Quality of advice is not consistent - An accreditation process for the welfare, debt and housing National Standards was introduced in 2016. The literature review highlights that some providers need additional support and resource to achieve accreditation. • Single issue – commissioning services to meet single statutory responsibilities and policy commitments causes confusion. From an advice service user perspective, the need for advice can relate to a single issue or can be multi-facet, the advice required might be simple or complex. Difficulties for people identifying a suitable service to engage with to meet their needs.

Delivery Principles Responsive – needs led service delivery Integrated – national and local alignment Professional - high skilled quality services Inclusive - independent and holistic

Plans to change investment Approach Next year is a year of transition and evidence gathering From 2020 we will change the way we fund services Working to move away annual funding At the heart of the change is better services for those most in need Partnership development across the Advice Sector; LAs, NHS, CAS, CAB, IS and other advice service partners Consider a move to regionalised approach funding