Potential funding models
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 was published in March 2023.
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 tensions expressed in the engagement process and has 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 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.
For previous reports leading up to this one, see the section on Funding models in Evaluation publications.