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Potential funding models and delivery approaches for allocating debt levy funding

The ‘Final Overview Report on Potential Funding Models and Delivery Approaches’ which could be used to allocate the levy funding devolved to the Scottish Government for debt advice has been published.

The report which is based on desktop research and extensive stakeholder engagement, identified, assessed and discussed eight potential funding models.

There was only one funding model that had almost unanimous support and that was a ‘Grants Programme managed by an independent organisation’. As well as having cross sector support, it is a proven and effective model.

It is suggested that to support continual improvement a grant programme funded in this way continues and includes a small amount that supports activities related to ‘change and innovation’.

Throughout Scotland organisations across all sectors provide access to debt and money advice services. Funding for services is often short term, insecure and geographically inconsistent. This contributes to some of the tensions that were expressed in the course of the engagement process, and have made identifying an acceptable funding model to distribute the debt levy funding challenging.

To try to ensure more consistent access to debt and money advice services and to have a more settled and stable approach to funding, the report suggests that work continue on developing an ‘Advice Services Partnership Framework’ between the Scottish and Local Government which may offer a longer- term funding model.

The initial findings from the desk top research along with a limited engagement exercise, which formed the foundation of this work can be found in the report Evaluating potential funding models and delivery approaches which could be used to allocate the levy funding devolved to the Scottish Government for debt advice.

Following extensive engagement the findings from second phase of engagement on potential funding models and delivery approaches which could be used to allocate the levy funding devolved to the Scottish Government for debt advice  were produced. The report outlines the wide range of views expressed and sets out the next steps in the consideration and evaluation of potential funding models.

Further reports on potential models that it was agreed should be considered in greater detail and which are summarised in the overview report are as follows:

In addition a limited evaluation was carried out of a

Next steps in identifying potential approaches for distributing the devolved debt levy funding
Karen Carrick - Evaluation Manager