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3.5.1 Resources (Inputs)

ANARAK identifies that the level of funding for a comprehensive debt information, advice and representation service across Scotland would be in the region of £7.4 million, representing an annual cost per capita of £1.50 and an annual cost per household of £3.72.

From the survey, housing related debt advice features in almost nine tenths (87%) of all debt advice work. Using the assumptions within the ANARAK model this would translate as a figure required for housing related debt advice work approaching £6.4 million per annum across the whole of Scotland. It may be reasonable to assume that the ANARAK figure under counts the actual resource implications of meeting need in Scotland, in particular because of the additional time and costs of providing services in rural and island areas and the generally higher salary costs in urban areas.

The Service Mapping exercise identifies the annual level of resources currently available for all areas of debt advice work as just under £3.9 million. We suggest that this figure is unreliable due to:

• Around 20% of agencies providing a housing related debt advice service may not be included in this survey

• Around two-thirds of agencies did not provide details of financial resources devoted to housing related debt advice work question because they did not have figures available (particularly here this was one small part of a wider service).

• A number of agencies that did provide figures on financial resources reported the budget for the entire agency, even where debt advice was only a small part of the service32_.

Further analysis of the data provided in the surveys on outputs would indicate under provision. On this basis of the ANARAK assumptions and the survey returns there is a shortfall in resources for this service of approaching £3.5million (47%). We would caution that the real figure may be considerably higher or lower than this estimate. However, in the detailed locality studies all respondents highlighted under-provision of housing related debt advice which would suggest that the level of financial resources available for housing related debt work is inadequate.

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For example, one local authority provided the budget for the entire Department (£300,000) where debt advice was a minority activity.

Further consideration of any shortfalls will need to be undertaken by individual local authorities who are likely to have a better understanding of the resources committed to this activity in their locality.

3.5.2 Activity (Outputs)

In spite of the under-provision of services indicated by a comparison between ANARAK and survey responses there is an apparent match in the anticipated service and the number of people seen (ANARAK predicts around 200,000 people and survey respondents report a more than 200,000 interventions). However, we anticipate that the interventions include agencies reporting clients with multiple debts (e.g. a combination of rent and council tax arrears). If this is correct and we assume that each individual has at least two debts the number of individuals seen may reduced by half. This is supported by the Money Advice Scotland survey (more than two thirds of their respondents reported clients with more than one creditor). This would also be consistent with the reported under-provision by agencies in the locality studies.

Because of the time taken to prepare for court cases the statistics provided by respondents for representation are likely to be the most accurate. These indicate total court representation of 3,490 cases, excluding 617 cases for council tax, utility and consumer debt cases. Even allowing for under-reporting arising from non-responses by an estimated 20% of provider agencies this indicates a substantial under-provision of services when compared to the Court figures. Figures for actual cases heard were not available, but possession orders were granted in almost 6,000 cases in 1999.

3.5.3 Profile of Work

The vast majority of provision focuses on provider’s local areas (more than 50% of those providing information, advice or case-work services). This should ensure that provision is culturally sensitive and accessible as well as alert to emergent local issues, particularly relating to local authority policies and procedures relating to housing, and indeed, local economic circumstances.

The providers survey suggests that the majority of providers (52%) are voluntary organisations. However, local authorities are significant providers approaching one fifth of the all those providing services. Commercial organisations, including private practice solicitors account for a similar amount to the statutory sector.

If one interprets private and voluntary sector provision as ‘independent’ provision, then the ‘independent’ sector provides more than 3 times the level of information and advice than does the statutory sector. This may be significant in terms of housing advice as local authorities are often significant creditors (rent and Council Tax arrears).

Local authorities are the most active funders of information and advice provision, although a variety of other funding sources have been identified including other public bodies and charitable trusts.

It is likely that the decision of local authorities to fund such provision, is strategic. However, issues are raised about the ability of recipient agencies to undertake case work and advocacy on behalf of their clients when the difficulty relates to the local authority e.g. in relation to council tax and rent arrears etc. This potential conflict for independent, but local authority funded, agencies could also inhibit their ability to engage in social policy work.

The majority of responses (53%) reported their target population as “all the general public”. Around one fifth of services provided their services for “customers only” (e.g. tenants) and a similar proportion targeted their services at particular communities (such as services for older people).

We note that respondents reported significantly more activity in advice giving (Type II33_{) than in} information and sign-posting (Type I). This is not the model of service anticipated in ANARAK where the proportion of cases that may be dealt with by a Type I intervention is estimated to be significantly higher. This discrepancy may purely relate to the criteria used by agencies to define their own activity. However, it may reflect an ‘over reaction’ to clients, providing advice and casework interventions, when a more ‘information/signposting’ based intervention is appropriate. Alternatively, the relative absence of Type I interventions at an early stage may mean that more resource intensive interventions are required. Similarly, we note that the very low level of respondents reporting that they provide education or training to the public on debt issues may increase the requirement for advice interventions.

This perception appears to be re-enforced in responses to questions about where and how services are offered; the vast majority being provided ‘face to face within agencies’ own premises. It is perhaps worthy of note that face-to-face in people’s homes, whilst only at 13%, was identified as the next most usual method to deliver information and advice. We noted that there is very little use of electronic media (including the telephone) particularly in relation to information and signposting. This is an area of concern, particularly with regard to rural services where, not only may physical access to services by more problematic, but the locality studies indicate that debt (and therefore the need for anonymity in service use) remains highly stigmatised.

Fewer than one in five agencies had any external accreditation of their services, although four- fifths of information and advice providers were members of a network organisation. This reaffirms major findings from Money Advice Scotland’s recent report that raised particular concerns in this area.

Considering the volume of activity by both type of advice and type of housing debt, we have made two assumptions that a) the proportions of levels of advice for each area of work reflects reported types of advice; and b) that the proportion indicated about types of housing related debt is absolute.

On the basis of these assumptions, we note that the majority of need relates to addressing problems with rent arrears (138,314 cases), with the third most common set of problems relating to Council Tax (49,823). This could raise issues concerning the need for provider agencies to

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work at a policy or strategic level locally to re-define how local authorities apply ‘their rules’ regarding rent arrears and council tax.

Mortgage related debt is the second biggest difficulty (126,098) with utility debt, the third largest presenting difficulty (35,862). The CML figures for the UK for 2000 indicate the total number of households in arrears of more than 156,140. Assuming that arrears in Scotland were proportionate this would indicate a figure for Scotland of fewer than 20,000 households in arrears. Service provision (excluding education work) indicates around 100,000 cases in the past year. This may indicate that the more extensive education work in this area encourages individuals to seek advice on debt. (Total education activity is reported at 24,286 cases, with 85% of this undertaken around mortgage arrears).