A leading Welsh charity says it is deeply alarmed at indications that funding for free debt advice services is to be cut.
Shelter Cymru is one of the providers of free debt advice through the Financial Inclusion Fund (FIF), which was set up in 2006 to provide face-to-face advice on a not-for-profit basis.
The service is available to anyone with debt problems, but is particularly targeted towards poorer communities that have difficulty accessing debt advice. Since July 2007, the charity has helped more than 2,200 people in Wales to resolve their debt problems.
The charity says it has not yet received official notification, but on 19 January, in a written response to a Parliamentary Question, the UK Economic Secretary Mark Hoban stated that the Financial Inclusion Fund would close at the end of March this year.
Director of Shelter Cymru John Puzey said: “In 2009-10, Citizens Advice services saw a 23 per cent increase in the number of people seeking help with debt problems. To consider cutting funding for debt advice at a time when demand is increasing would, in our view, be an extremely regressive move.
“Specialist debt advice is also currently threatened by proposed restrictions to Legal Aid, so we are extremely concerned that we will soon be in a situation where people in difficulties will have no access to the advice and support that could prevent their problems escalating to crisis point.
“Providing independent advice on managing debts is a key part of tackling financial exclusion. We urge the Westminster government not to pull the rug out from under advice services’ feet and to maintain this valuable funding.”
