My two picks of last week’s news are the MaPS U-turn in Update on Debt Advice Commissioning. and the Panorma program Buy Now, Pay Later: The New Debt Crisis?
I will probably do one more round up before the end of the year, but not sure when!
Update on Debt Advice Commissioning MaPS: MAPS is halting the regional debt advice contracts but going ahead with the national business and DRO contracts. “Having evaluated what was offered through the submissions for Lot 2 (regional), we had concerns that the services being offered would not adequately meet the needs of people in vulnerable circumstances at the scale we had hoped to achieve, or provide value for money.”
My comment – So that is good news. How good depends on what happens next, how they fund local services over the next year to stop them from disintegrating, which is already happening. And how much money there will be for local debt advice on a longer term basis.
Sadly it’s too late for us. This week 2 of our 4 advisors have handed notices in and 1 reduced hours to do another job. It’s a mess and could have been easily avoided.
— Sarah Walker (@sew69) December 17, 2021
Recommissioning debt advice services: meeting the needs of people with mental health problems MMPHI: “We are also calling on MaPS to publish an impact assessment of the proposed changes and an assessment of anticipated need for each communication channel, as well as adding a minimum quota for face-to-face advice in the contracts.”
The Cost of Christmas CSJ: A third say that they are going to borrow money to pay for the costs of the season, rising to 41 per cent of 18-34 year olds.
High cost credit:
- Amigo announces details of proposed second Scheme. My article on it: Amigo proposes a new Scheme – but is it fairer?
- We are closing Provident Personal Credit Provident: any balances owed to provident for Provident and Satsuma loans are being written off. This does not affect loans sold to debt collectors.
My comment – great! And customers can still claim in the Provident Scheme – they may get some cash back and their credit records cleared.
- Morses Club investor update RNS: My translation – Morses has abandoned the proposed change its company structure to be similar to Provident’s – I have no idea why the FCA would ever have agreed to this.
- Bank of England base rate jumps to 0.25% – what the rise means for you MSE – article has a round up of tracker and SVR mortgage rate changes announces so far.
- Under-40s find the Lifetime Isa has shortlived benefits FT (paywall): In London some first time buyers have to spend more than the £459k LISA limit – but if they withdraw their LISA savings, the penalties are greater than the bonuses that have been added.
- Cladding: Welsh government to buy some crisis-hit flats BBC: the scheme could include people who have failed to sell their house on the open market because the sale would put them into negative equity, people in mortgage arrears and those whose flats have become overcrowded.
Buy Now, Pay Later: The New Debt Crisis? BBC iPlayer: Panorama investigates the Buy Now Pay Later market’s close relationship with retailers.
Benefits & other news
- UK inflation jumps to 10-year high as petrol prices soar Guardian: Increase to 5.1% in November puts further pressure on Bank of England to raise interest rates
- ‘It’s a simple choice, heat or eat’ Mail: Over 7 million older people are worried about the cost of heating this winter as energy bills surge, Age UK warns
News round-ups are published every Sunday.
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