Small businesses and the self-employed struggling with their finances to receive a helping hand through new £4 million funding boost to business debt advice services through the Money and Pensions Service.
The funding will go towards expanding access to expert support to help them get back on track, giving a leg up to an additional 16,000 businesses over the next three years to total 75,000 businesses. Economic Secretary to the Treasury Rachel Blake said: “From the plumber fixing your radiator to your local café, small businesses are the backbone of our economy, and we know they sometimes need a helping hand when times get tough.
“We’re building on the success of our expert debt services to help tens of thousands more get back on their feet.” 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.” 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 funding will go towards meeting that growing demand. The new funding will support the government’s Plan for Small Business - the most comprehensive package of support for SMEs in a generation – that helps small businesses access the tools and support they need to unleash their full potential with boosted access to finance measures and the most significant reforms to late payments in 25 years. 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 government’s Financial Inclusion Strategy.
Launched last November, the Strategy looks to remove barriers to financial participation and to build household financial resilience. Debt advisers play an invaluable role in supporting people to get their finances back on track. This modernisation fund will allow them to spend more time helping their clients, particularly complex cases who may need additional support.
Previous recipients of the funding have delivered a diverse range of projects, from AI pilots and digital referral pathways to upgraded infrastructure and more inclusive service design. For example, Money Advice Plus, a community-based debt advice charity, invested £49,000 in technology, including AI-supported transcription and upgraded equipment. This has significantly increased their capacity, nearly halved the time to first appointments, and enabled advisers to spend more time supporting people in financial difficulty.
