Citizens Advice staff facing redundancies

[Amethyst]

My local CAB office at Sutton in Ashfield have been warned of cuts to their funding which will force redundancies, including the two specialist debt advisers employed there, and I know of another CAB which staff have just been given 90 day notice of redundancies.

This at a time when CAB are talking of expansion, taking on an additional 5000 volunteers, and seem to be set to take over the work of Consumer Direct and Consumer Focus if they are closed in the 'bonfire of the quangos' proposed by the government.

I can;t find any printed news on the latest redundancies at the moment but will keep my eyes open.Stoke are already facing cuts of 88 jobs Stoke-on-Trent CAB is poised to cut staff to cope with funding reductions .

Not good news.

[enaid]

Re: Citizens Advice staff facing redundancies

A real sickener as they were going to be the main stay of Consumer help

[Amethyst]

Re: Citizens Advice staff facing redundancies

Lots of news on the councils cuts affecting the charity advice and help sector massively - local wise CHARITIES helping troubled and disabled children are preparing to make job and service cuts because of doubts over funding from Derbyshire County Council.

[Amethyst]

Re: Citizens Advice staff facing redundancies

Indeed Nelly, didn't know how on earth they were going to cope before these cuts, but with them they have no chance. CAB have approx 27000 workers currently, 6000 of them paid - the rest volunteers. Volunteers are facing cuts to training and redundancy too as the local bureaux can't afford to run the volunteers either.

The government really need to get the funding issues sorted out, council budgets have been cut massively and seems the first thing to go is the funding of the help and advice charities.

[EXC]

Re: Citizens Advice staff facing redundancies

Nottingham too Nottingham Indymedia | Articles | Show | Notts Cuts Watch #12

[enaid]

Re: Citizens Advice staff facing redundancies

That plus services to the most vunerable, I know I daren't take my eye off the ball with our Tillys care package or it will be cut.

[Nibbler]

Re: Citizens Advice staff facing redundancies

This is what I was told by a senior CAB debt caseworker at the end of December.

The vast majority of CAB debt caseworkers (including my colleagues and myself) are waiting to see if Financial Inclusion Fund (FIF) will continue past March 2011.

We are all under redundancy notice and we are to find out by Jan 15th - it's anyone’s guess.

Last month as you might know, it was announced that all legal aid (LSC) funding for debt, welfare benefits and employment is to be withdrawn.

Without FIF and those LSC contracts CAB's up and down the country will close.

[Latch Key Kid]

Re: Citizens Advice staff facing redundancies

Hi

These are indeed uncertain times for the CAB's along with other charitable advice agencies, with the Notts area agencies in particular seemingly about to take a big hit.

Funding from the Local Authorities, County Councils, Financial Inclusion Fund (FIF), Legal Services and other sources are all basically under review with cuts a certainty (it feels similar to one of those scenes in the old batman films where the walls, ceiling and floor are all closing in)

As far as debt advice in the CABs is concerned, if these cuts are as severe as some predict (and the signs are that they may well be) it makes you wonder what the future situation will be with regard to Debt Relief Orders, Mortgage Rescue Scheme, Cashflow and the so called partnership with CCCS even (in other words - who will be doing all these).

We could end up with a mass of people in the never ending system of being referred to nowhere, pretty frightening really and dangerous false economy in my opinion.

On the subject of the FIF funding there still does not appear to be any news one way or the other.

[Nibbler]

Re: Citizens Advice staff facing redundancies

On the subject of the FIF funding there still does not appear to be any news one way or the other.

Great.

If that goes, I really do despair.

[Latch Key Kid]

Re: Citizens Advice staff facing redundancies

Hello Nibbler

Well everyone involved in the FIF projects would have expected to know something by now, however maybe it will be a case of no news is good news who knows?

Personally speaking I think if they were going to 'completely' pull the FIF funding then that would have happened by now (maybe it still will).

There is the subject of the Transition Fund (whatever that is) and other agency involvment such as CFEB in future debt advice provision - even talk of extending deadlines.

Not nice at all for those under notice especially as the debt enquires keep rolling in.

Do agencies keep taking on casework if the advisers are not going to be there after March 31st to complete the work, especially the complex time consuming ones which are generally on the increase.

The fee chargers dont want to know if they cant make any money and often people end up at the free agencies once they have been 'processed' by these companies or if things go wrong.

Worrying times and unchartered waters but important to remember that all is not yet lost such is the nature of fixed term debt advice contracts and projects.

[Nibbler]

Re: Citizens Advice staff facing redundancies

Apparently sent out by CAB (dated 18th Jan 2011) to those funded by the government's Financial Inclusion Fund.

Engaging MPs on the Future of FIF Funding

I know that you are as concerned as we are that we have not yet received any indication from Government concerning the future of the Financial Inclusion Fund (FIF) beyond 31st March 2011.

I am writing to let you know that we are endeavouring to secure an urgent meeting with Mark Hoban, the Economic Secretary to HM Treasury and Edward Davey, the BIS Minister responsible for employment relations, consumer and postal affairs in order to discuss the grave situation facing local debt advice services delivered with support from the Financial Inclusion Fund. We are also briefing the media about this potential large scale withdrawal of essential frontline services.

As you are no doubt aware, the FIF debt advice services were established five years ago, and were deliberately located in areas which are very deprived and to meet the needs of communities that had difficulty accessing debt advice. The vision at the start of the programme was to bring about a ‘step change’ in the availability of face to face debt advice services and the previous government committed to mainstream these services in due course. Every year, the FIF debt advice services have directly helped over 100,000 people a year to resolve their debt problems. Regular audits and evaluations have found very high levels of customer satisfaction, services exceeding clients’ expectations and effectively reaching the intended groups of clients.

Indeed our own statistics tell us that demand for debt advice is certainly not declining and could increase further under certain conditions. In 2009/10 the Citizens Advice Service assisted 580,000 people with 2.4 million debt problems, an increase in problems of 23%, as clients attended appointments with increasingly complex debt problems. In 2010, 1.4 million people have received advice from charities such as National Debtline, Citizens Advice and CCCS – one in every 33 UK adults.

If the FIF debt advice services are forced to close at the end of March, as seems increasingly likely, we are not sure what alternatives sources of help would be suitable for the clients we serve. By definition, the FIF services are used by people with very low incomes and limited means. Their inability to repay substantial amounts towards any consumer credit debts means that private sector debt management services do not see them as a profitable client group to serve. Our research has found that there is very little overlap and duplication between the national telephone advice services and the local FIF services, with clients using the local services; often on referral from other local agencies such as Jobcentres, landlords and councils and having problems or communication needs requiring an element of face to face delivery. We are not therefore sure where the thousands of clients currently helped by the FIF debt advice services will be able to receive equivalent help if the FIF services close.

I am aware that some of you have already begun briefing your MPs and media contacts about the impact of the potential loss of FIF funding on your ability to provide a debt advice service to your clients. Indeed, for many of you, your MP has relied upon being able to refer people to your services, and as such, would need to be informed about any changes in your capacity to help their constituents. Therefore, at this difficult time, I am inviting everyone to step up our efforts in this area. If you haven’t already done so, please join us in raising political awareness of the impact of the potential loss of FIF funding with your local elected representatives and local media.

You may find it helpful to highlight to your MP how the potential loss of FIF funding would impact your delivery of a debt advice service to local people. For example, you may want to share with your MP the following information:

• The number of debt clients you have helped in the past year.
• The typical level of debt held by your clients.
• When you anticipate having to close your FIF service to new clients.
• What other options exist locally for people seeking advice and the anticipated impact on other debt advice services in your area (if any). For example, is it possible that more people experiencing financial difficulties will now be turning to their MP for help?
• The financial impact on your organisation of the potential loss of FIF funding.
• How the loss of FIF funding may impair and impact your ability to provide other services to local people in the future.
• You may also wish to refer to the impact of unmanaged debt on people’s lives.

To help you, I have enclosed two FIF related publications that you may wish to share with your MP or other interested parties. Further copies of these documents are available to download from the FIF pages on CABLink. The two publications are

• “Over-indebtedness on a low income. An investigation into the impact of the Citizens Advice Financial Inclusion Fund face-to-face debt advice programme, 2006–09”, and
• “Face-to-face debt advice – at the heart of local community support services. A survey of users of Financial Inclusion Fund Debt Advice Services.”

Finally, it is clear that the current uncertainty around the future of the FIF programme is having a substantial impact on the ability of FIF participant organisations to deliver a debt advice service. The delayed announcement concerning the future of the FIF programme means that by the end of December, 20 money advisers had already left the Citizens Advice programme and at this stage it is estimated that 75% of the workforce is involved in a formal redundancy process. This is a large scale redundancy programme which affects an overall workforce in excess of 900 paid staff in a variety of roles in voluntary organisations, including a core professional group of 486 trained money advisers. Please be assured that we endeavour to ensure that Government are fully aware of the consequences of their ongoing delay in addressing this matter.

If you write to your MP, please do share with your FIF Project Manager any response that you may receive. I shall keep you informed of any further developments in respect of the future of FIF funding, as soon as it becomes available.

[Amethyst]

Re: Citizens Advice staff facing redundancies

Bloody hell, 75%.

How the hell are they going to go forwards from this, don't recall such huge redundancies mentioned in CABs Annual Plan.

[Amethyst]

Re: Citizens Advice staff facing redundancies

Their inability to repay substantial amounts towards any consumer credit debts means that private sector debt management services do not see them as a profitable client group to serve.

Strange thing to say considering their links with CCCS. I would have thought CAB would be steering people away from private DMC's anyway but I'm probably missing the point.

Just out of interest - Financial Inclusion Fund - WhatDoTheyKnow

[Nibbler]

Re: Citizens Advice staff facing redundancies

And also.......................

Looks like the end......... - MoneySavingExpert.com Forums

Citizens Advice have been awaiting the outcome of the future of the Financial Inclusion Fund (FIF) a major project the funds specialist debt workers (including me) accross the country.

From Hansard yesterday (the official recording of parliamentary questions and answers) is the following.........

Financial Inclusion Fund

Harriett Baldwin: To ask the Chancellor of the Exchequer when he plans to make an announcement on the future of the Financial Inclusion Fund. [34671]

Mr Hoban: The Financial Inclusion Fund will close at the end of March this year. The Government will work closely with industry and other stakeholders to ensure that tackling financial exclusion remains a high priority.

This is loss of 486 specialist debt advisers across the country, the vast majority within Citizens Advice. 90% are Authorised Intermediaries for DRO's. FIF pays for so much of the CAB infastructure that I am certain that many bureaus will be forced to shut down entirely.

Not a good day for the not for profit sector.

DD

[Amethyst]

Re: Citizens Advice staff facing redundancies

In that FOI I posted before

(4) The funding from the Financial Inclusion Fund is due to end in
March 2011 and the Government is now actively considering the most
effective strategy for providing debt advice. Final decisions regarding
further funding for specific debt advice organisations will be taken
once the implications of the spending review have been worked through.
We expect to be in a position to confirm the future of the F2F project
in the New Year.

Think they are leaving it somewhat to the last minute.