1. Introducing the Standard Financial Statement

2. 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

3. Key benefits
Client
Remove inconsistency in I&E gathering and potential outcomes based on surplus
Remove stress of repeated budget gathering with advice provider, referral agency, creditor, collections etc
Build in savings
Data sharing across organisations
Potential for easier passing of client data between organisations
Example of one firm collecting in CFS, transferring to StepChange format for hotkey referral and possible additional formats with further referrals / solutions
Smoother and quicker journey reaching outcomes sooner
Creditors
Those receiving statements on needing to review one format and reference a single set of spending guidelines
Wednesday, 12 September 2018

4. Savings category
Non-mandatory. Limited to up-to-10% of monthly budget surplus with a cap of no more than £20
Intended to build savings behaviour and increase resilience to financial shocks
Major creditor / insolvency bodies supportive, recognising the benefits to customers and increased sustainability of any repayments
Acknowledged that many clients don’t have means to save, but valuable to build discussion into debt advice process
User guide makes clear to advisers to consider priority debts before savings
Wednesday, 12 September 2018

5. Launch and transition 1 March 2017
Multiple advice providers begin using SFS
Creditors fully prepared to receive
Insolvency Service Eng&Wal
March 17 – March 18
Period to allow remaining advice providers to transition to SFS
SFS will be in use alongside other statements
AiB March 18
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
Wednesday, 12 September 2018

6. Launch and transition
Spending Guidelines being finalised, following July release of ONS data on living standards survey
Supported by the Insolvency Service and Accountant in Bankruptcy for use in formal solutions - transition arrangements being established
SFS user guidance and licensing at final drafting stage and will be made available on the SFS website once complete
Licensing will be added to the SFS website early in 2017
Wednesday, 12 September 2018

7. Questions & contact us
Contact for SFS
Download the 2014 consultation paper
Download the consultation response
Visit the SFS website
Find out more about our debt work
Download the latest publications relating to our debt work
Wednesday, 12 September 2018