WADA responds to MaPS commissioning update

We have achieved a temporary reprieve, but we will need to keep the pressure on in 2022.

Our campaign to #savedebtadvice is clearly having an impact.  Following MaPS’ commissioning update on 17th December it looks like we have secured a temporary reprieve for debt advisers working under this funding.

However, severe damage has already been done to services and their capacity to meet demand.  Many advisers have left their jobs because of MaPS’ proposed cuts to community-based provision, and those remaining are becoming overwhelmed.

Even after MaPS had been warned of the dangers of their approach, they ignored debt advisers and ploughed onwards.   MaPS’ strategy was fundamentally flawed from the start.  It is now in a state of collapse.

But MaPS’ decision to scrap the procurement process for the regional lots, and to consult about the future of community-based services is not enough. 

Unless MaPS immediately commits to full funding of those services moving forwards, it is only the cause of more uncertainty and could still lead to drastic cuts.

MaPS have not clarified what funding is on offer either for the next three months or on a longer-term basis.  Many services have been winding down provision, and it is not going to be possible to bring these back with the promise of three months of funding and a future consultation.

A longer-term settlement is urgently needed.  But if MaPS are allowed to proceed with the procurement of the national and DRO hub lots, most of the money will have been spent before any new consultation concerning community-based services gets underway. 

The national and DRO hub procurement needs to be stopped immediately.

The lots which MaPS are intending to proceed with comprise most of the funding for debt advice:

The funding allocation for the regional lots (lot 2) was just £16.7m (excluding VAT) out of a total budget for debt advice of £77m. That £16.7 million is only around half of what has previously been spent on community-based services, which were providing advice through an appropriate blend of channels, mainly determined by client need.

Unless the procurement of the national and DRO lots is suspended, then it is impossible to revisit these funding allocations.  It is difficult to understand why procurement for only one of the four lots has been scrapped. For example, an expansion of funding for national phone and digital services will inevitably increase demand for community-based services, but there simply will not be capacity to receive these. 

To address this MaPS must stop the procurement of the national and DRO hub lots and consult properly with respect to appropriate funding allocations at all levels.  Fundamentally that consultation also needs to revisit MaPS decision to depart from blended approaches to delivery and create several national ‘silos’. 

The impact of the changes has not been properly researched.

MaPS have a statutory duty to provide debt advice to people in vulnerable circumstances but have so far failed to publish an Equalities and Vulnerability Impact Assessment for any part of this process.

It is attempting to avoid scrutiny of its funding allocations, and of its decision to continue with the procurement of the national and DRO hub lots.  The entire process must be re-evaluated, with the results determining a new full commissioning strategy.  That can only be taken forwards with the active engagement of debt advisers and wider stakeholders, such as local authorities.

The quality issue

There is still no indication of what will replace the discredited DAPA regime nor any proposals as to how MaPS will engage debt advisers to help shape its replacement.  Even though DAPA is to be scrapped at the end of March, front-line advisers continue to report that there has been no wind down of its processes.  It is now a clear obstacle to delivering effective advice and should be scrapped with immediate effect.

What we want

We now call on MaPS to halt the entire procurement process, including in respect of the national and DRO hub lots.  A full and proper consultation regarding the future of debt advice and its commissioning processes must now take place.  This must be able to influence funding allocations between national and regional lots for it to have any real meaning.

We believe that a minimum of 18 months is needed to consult on and redesign services effectively.  This consultation would need to address DAPA’s replacement also.  There must be no cuts to community-based services in this time.

No confidence in the leadership of MaPS

We have no confidence in the current leadership of MaPS to conduct such a consultation properly.  We therefore call on the Department for Work and Pensions and HM Treasury to replace both the Chief Executive and the Chair of the current Board and to expand the Board to include people with experience of delivering free and effective community-based debt advice services.

What next?

WADA will be continuing to campaign on this issue in 2022.

We are currently in discussion with legal counsel concerning a possible judicial review of MaPs’ decision to continue with the procurement of national and DRO hubs. In the meantime, we wish all our supporters a good seasonal break.