Business debt advice services through the Money and Pensions Service are to get a £4 million funding boost.
The funding will go towards expanding access to expert support for small businesses and the self-employed. An additional 16,000 businesses are expected to be supported over the next three years, bringing the total to 75,000 businesses.
This builds on the £3 million a year put forward by the Money and Pensions Service from 2024 for the Business Debtline service, designed to provide support at the point where personal and business finances often cross over.
Business Debtline has since been able to support around 50,000 people, with more than 90% of clients seeing their debts reduce or stabilise, and demand has continued to grow for its services. The new funding will go towards meeting that growing demand.
Money and Pensions Service CEO Oliver Morley said:
“When financial pressures mount, knowing where to turn can make all the difference.
“This vital funding will help more small business owners and sole traders get trusted advice when they need it, so they can regain control of their finances and plan for the future.”
Money Advice Trust CEO Steve Vaid said:
“The Financial Inclusion Strategy has highlighted the need, and our long-term ambition, to deliver more debt advice for small business owners.
“This enhanced funding further strengthens the partnership between the Money and Pensions Service and Money Advice Trust and will help Business Debtline offer additional support to over 16,000 small business owners, sole traders and the self-employed – a group that often struggles to find tailored help.”
Alongside support for small businesses, a further £2 million of funding will go towards modernising debt advice on top of the £4.8 million already invested as part of the UK Government's Financial Inclusion Strategy. Launched last November, the Strategy looks to remove barriers to financial participation and to build household financial resilience.
