Finance and Public Administration Committee
Funding advice as a measure of preventative spend
Letter from Director of Impact, Citizens Advice Scotland, to the Convener of 9 September 2021
Dear Convener
Thank you for the opportunity to give evidence to the Committee around Scotland's public finances in 2022-23 and the impact of COVID-19.
As part of my evidence you asked me what the adequate level of funding for advice services as a preventative measure would potentially be.
As you may be aware, the Citizens Advice network in Scotland is made up of 59 individual CABs who are independent charities with their own funding arrangements with local authorities. While some CABs do receive a reasonable amount of funding to provide a core service, others do not.
Looking at CAB funding across the country we would estimate that adequate funding would work out to £5.18 per head of population, this is not withstanding demographic challenges in particular areas, such as, population density and SIMD characteristics.
Extrapolated across Scotland this would mean the network currently sees a funding shortfall of around £16million. In addition to this three local authority areas do not have a physical CAB presence the area, and we would estimate set up costs for these to be in the region of £1-2million.
It is worth reiterating once again the value of investing advice. Our most recent figures, taken during the pandemic and considering all the challenges for advice in that period, shows a £14 return for every £1 invested in core advice. This is client financial gains to the community through CABs unlocking things like employment entitlements, social security payments, cheaper utility bills and debt advice.
Beyond that, external analysis of advice reveals the network is worth up to £245 million to Scottish society in preventative measures. Simply put, if someone gets advice from a CAB and no longer has to choose between heating their home and buying food, the associated health costs that have been avoided are ultimately saved by the taxpayer.
We’d be happy to discuss these figures further. We are keen to play our role in ensuring a fair recovery and an economy where everyone can contribute as consumers and citizens.
Thank you again for inviting CAS to give evidence to the Committee.
Regards,
Polly Tolley
Director of Impact
Citizens Advice Scotland