Today (Thursday 27 November) Money Advice Scotland launched its State of the Nation Report; a comprehensive analysis of Scotland’s money and debt advice sector, and findings showing demand for money advice and support has reached unprecedented levels amid the ongoing cost-of-living crisis and rising levels of poverty in the country.

The State of the Nation Report provides clear evidence that sustained, strategic action is required to ensure the sector can continue to meet the needs of people across Scotland.

Based on a national survey of free money advisers, policy forums, and a policy priorities consultation, the report captures the lived experiences of frontline professionals and the systemic challenges facing both advisers and clients.

Key findings include:

• Increasingly demanding workloads, job insecurity and limited career progression resulting in high staff turnover in the sector.
• Insufficient adviser capacity to meet client demand.
• Clients’ needs growing in complexity arising from insufficient income, rising living costs and systemic issues in welfare support.
• Clients facing multiple barriers to engaging with advice services, including mental health challenges, digital exclusion, stigma, and long waiting times.

• Funding levels in the sector not sufficient to meet demand.
• Failures in policy; inadequate benefit levels, rising council tax, lack of mental health protections, and poor regulation of consumer credit.

 

Money Advice Scotland’s Chief Executive, Janine Rennie, said, “The free money advice sector in Scotland is at a critical juncture. Many individuals seeking support are experiencing significant mental health challenges and lack sufficient income to cover essential living costs and face problem debt that feels impossible to overcome.

“Advisers they are under immense pressure, they face rising caseloads, complex client needs, and limited resources. The sector remains constrained by short-term funding arrangements, lower salaries than comparable sectors, and the personal impact of the cost of living on advisers themselves. Burnout and financial strain are increasingly common.

“This report is a call to action. Without urgent and sustained investment, Scotland’s money and debt advice sector risks becoming overwhelmed, just when communities need it most.”

The report outlines a clear roadmap for change, including:

• A review of the money and debt advice workforce, including workforce wellbeing.
• Expanding access through outreach, digital inclusion, and flexible service delivery.
• Enhancing mental health protections and improving creditor engagement.
• Reforming welfare and council tax policy to better support low-income households.

Janine Rennie, continued, “Our goal is to equip stakeholders, including the Scottish Government, creditors, and other policymakers, with a clear understanding of the sector’s current state and the changes needed to strengthen its capacity to serve communities effectively. 

“We are grateful to all the money advisers who took the time to respond to our consultations and engage in our forums, their experiences and reflections have been invaluable in shaping the findings and recommendations of this report.

“We also acknowledge the Scottish Government for their continued funding and support of the money and debt advice sector. This investment is essential to sustaining services and ensuring that people can access help, however, a stronger, more resilient money and debt advice sector is crucial. It is a cornerstone of financial wellbeing, social justice and poverty prevention in Scotland.”

The State of the Nation Report is available here.