One of the themes for this year’s Challenge Poverty Week is better investment in life’s essentials. This is a timely moment to reflect on the important and often life-saving work carried out by the free debt advice sector in Scotland, as well as emphasising why the sector should be recognised and funded as an essential service.

Why free debt advice is essential

Over the last few years, it has become increasingly apparent how situations outside of our control can push us into financial hardship, debt, and even poverty. Losing a job, a relationship breakdown, a period of ill health, or simply costs that continue to rise quicker than wages can all pose risks to our financial and overall wellbeing. Mounting debt can easily move from a period of short-term difficulty into a long-term crisis, through no fault of the person’s own. When this happens, free and impartial debt advice are as essential to society as access to healthcare and education.

Money and debt advisers provide expert knowledge, impartial advice, and important support for people experiencing debt and financial difficulty, and the turmoil that often comes with it. An adviser will assess an individual’s circumstances, negotiate with creditors, apply for legal protections (such as a moratorium) to be put in place if needed, and recommend the best course of action to help their client deal with their debt, whether that is a bankruptcy, debt arrangement scheme, or protected trust deed. Alongside this essential practical support, money advisers offer much-needed reassurance to their clients letting them know that they can regain control of their finances. They also ensure that clients understand their rights, help them to maximise their incomes, and in some cases help to protect their homes.

As some of our members recently told us:

“This sector matters as it helps to alleviate poverty and financial hardship and, in most cases, you feel you are really making a difference to people’s lives.”

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“I have a saying for Money Advisers – that we always find a way. No matter the situation, the problem or the person sitting in front of us, we will always find a way to help.”

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“We help people regain control, reduce stress, and find a way forward. Whether it’s negotiating with creditors, setting up repayment plans, or simply providing a listening ear, our role is to offer practical solutions and reassurance.”

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“What I value most about this sector is its focus on empowerment. We don’t just give advice – we help people understand their options, make informed decisions, and build resilience. It’s a sector that combines technical knowledge with empathy, and that’s what makes it so rewarding.”

Treating debt advice as an essential service could also reduce stigma around debt which research has shown influences someone’s willingness to seek help. Our Dignity First campaign sets out the importance of language and compassionate communication in reducing stigma. It could also encourage earlier uptake of advice, meaning that people facing financial struggles are aware of the free debt advice sector at a much earlier stage when it is seen as just as important as other societal essentials.  

Wider social value

Considering the theme of better investment in life’s essentials also allows us to assess the wider social value of debt advice. Social value refers to broader benefits that services provide beyond their immediate, measurable outputs. A client addressing their debt with the help of a qualified, free to access, and impartial adviser can reduce strain on other essential services.

Health and wellbeing: Well-resourced advice agencies can provide holistic support, alleviating financial stress and reducing demand on mental health services, aligning with Scotland’s mental health strategy. 

Housing: Debt advice can help prevent evictions, homelessness, and housing insecurity which in turn reduces pressure on these services and protects children, families, and communities.

Employment and economic participation: Money and debt advisers help to support individuals to maximise their incomes, helping them to remain in work or re-enter the workforce.

Community resilience: A sustainable workforce strengthens the sector’s ability to deliver services that foster financially secure communities, contributing to inclusive growth and social cohesion. 

Poverty reduction: A larger, more stable debt advice workforce can reach more people, helping them manage debt, access benefits, and maximise income, directly supporting the Tackling Child Poverty Delivery Plan, helping to meet child poverty reduction targets and providing stability for children in the household.

Building financial resilience: Money advice isn’t just about solving today’s problems, it’s about preparing for tomorrow. By teaching financial skills, connecting people to resources, and preventing debt from escalating, these services build long-term resilience. This proactive support is essential for a Scotland where everyone can thrive. 

 

What needs to change

Challenge Poverty Week is a chance to remind ourselves that addressing poverty requires both systemic change and robust support systems such as free and impartial debt advice. Recognising debt advice as an essential service also means funding it as one. As a membership organisation, the top concern our advisers have is the way the sector is funded. Most services operate on rolling yearly contracts, which makes it incredibly difficult to plan ahead and ensure that agencies have the resource to support clients and their families. Free money and debt advice must be funded on a multi-year basis of at least three-year cycles, as well as being made a statutory service to guarantee everyone in Scotland has universal access to free, high-quality, impartial debt advice. Money Advice Scotland will continue to advocate for stronger funding for the essential free money and debt advice sector in Scotland as we look ahead to the Scottish Parliament elections in 2026.