Current Issues in Money Advice CMA Annual Conference 4 November 2011 David Hawkes National Money Advice Co-ordinator

Content Changing context Challenges Questions for debate

“It’s the economy, stupid” Repossessions and insolvencies currently down but... A stagnant economy Unemployment 2.51 million Rising inflation – CPI currently 4.5% 6.2 million households financially vulnerable 17% increase in homeless people over the last year Growing demand for money advice – likely to peak in 2015

“A week is a long time in politics” Comprehensive Spending Review cuts in public services resulting in cuts to advice centres Debt ruled out of scope for Legal Aid Money Advice Service and the future of the F2F project Major changes to financial regulation by 2015 Welfare reforms - Universal Credit, changes to Housing Benefit & Council Tax Benefit

“There is no such thing as society” Unemployment particularly affecting year olds (20%) and over 50s Shortage of affordable housing Ageing population Issues affecting specific vulnerable groups, e.g. NEETs, clients with mental health problems Access to affordable credit

“I do not fear computers. I fear the lack of them.” “I do not fear computers. I fear the lack of them.” Increased use of IT Converging technologies Online government – DirectGov, DROs, reform of debtor petition Digital divide exacerbating financial/social exclusion Case management & statistical recording systems

“It’s not easy being green” “It’s not easy being green” Rising cost of fuel & growing fuel poverty Impact of climate change 6.8 million households (26%) in debt to fuel suppliers - 2 million on debt repayment plans 1,000 new prepayment meters every day 1 million customers on social tariffs Fewer disconnections – but how many self- disconnections? Poor energy ratings: pre-1919 properties, terraces, private rented

Challenges 1.Increasing demand but reduced capacity – ‘more for less’ 2.Even greater need to find sustainable funding 3.New pressures on the role of the adviser 4.Increasing complexity of the legal framework 5.Crisis intervention versus preventative work 6.Tackling fuel poverty 7.Contracting and commissioning culture – ‘one size fits all’?

Standardisation 1.What do standardisation and consistency in money advice mean? Are they a good thing? 2.What do they mean for the role of the money adviser? 3.Does the debt landscape need simplifying? Is it true that the old model of money advice isn’t going to work anymore? 4.Is a consistent approach to triage the solution?

Delivery channels 1.Should more emphasis be placed on telephone advice and the internet as delivery channels for money advice? What are the pros and cons of this? 2.Is face to face advice only going to be available to clients with complex cases and high support needs in future? 3.Are volunteers the future of money advice?

Financial capability and money guidance 1.Are these going to be the only game in town? Is this a good thing? 2.Is this emphasis on personal responsibility letting the credit industry and Government off the hook? 3.Are money advice and financial capability separate activities? 4.Does a more holistic and joined-up approach to money advice and money guidance make sense? Will it work in practice?

Questions for debate 1.How can we best meet the growing demand for free money advice? 2.How can we ensure the sustainability of the free money advice sector? 3.Is it time to re-think the role of the money adviser? 4.How do we stop client caseloads crowding out campaigning and social policy work? 5. Is technology the master or servant of money advice?

Contact details David Hawkes National Money Advice Co-ordinator Telephone Mobile