UK boosts funding for small business debt advice services, aiming to support thousands more firms and sole traders as demand rises and financial pressures persist, reports Asian Lite News Desk
Treasury has announced a £4 million funding boost aimed at strengthening debt advice services for small businesses, as ministers move to support struggling firms amid ongoing financial pressures.
The funding, to be delivered through the Money and Pensions Service, is expected to help an additional 16,000 small businesses and sole traders access expert financial guidance over the next three years. The move will expand the reach of existing services, taking total support to around 75,000 businesses.
The initiative builds on the success of the Business Debtline, operated by the Money Advice Trust, which provides tailored advice at the intersection of personal and business finances. Since 2024, the service has supported around 50,000 users, with more than 90 per cent seeing their debts reduced or stabilised.
Economic Secretary to the Treasury Rachel Blake said small businesses remain central to the UK economy but often require support during periods of financial strain. She noted that the government was building on existing services to ensure more firms could recover and grow.
Officials said demand for debt advice has continued to rise, particularly among sole traders and the self-employed, who often face limited access to tailored financial support. The new funding aims to address this gap by expanding access to expert guidance and early intervention.
In addition to the £4 million package, a further £2 million has been allocated this year to modernise debt advice services. This comes on top of £4.8 million already committed under the government’s Financial Inclusion Strategy, which seeks to improve financial resilience and remove barriers to accessing support.
Modernisation efforts include investment in digital tools, artificial intelligence pilots, and improved referral systems, allowing advisers to handle more complex cases and reduce waiting times. Previous projects funded under the programme have demonstrated tangible improvements, including faster appointment times and increased advisory capacity.
The funding forms part of the government’s wider Plan for Small Business, which ministers describe as the most comprehensive support package for small and medium-sized enterprises in a generation. The plan also includes reforms aimed at tackling late payments and improving access to finance.
Oliver Morley, Chief Executive of the Money and Pensions Service, said timely access to trusted advice can be critical when financial pressures mount, enabling business owners to regain control and plan for the future.
Steve Vaid, Chief Executive of the Money Advice Trust, said the funding would strengthen long-term efforts to expand debt advice provision for small business owners, a group that often struggles to find appropriate support.
Industry representatives also welcomed the move. Vicks Rodwell, Managing Director of IPSE, said self-employed workers often face unique challenges when finances become strained and that the additional funding would help more individuals access vital support.
The Treasury said debt advisers play a critical role in helping individuals and businesses navigate financial difficulties, adding that the enhanced funding would allow more time to be dedicated to complex cases and vulnerable clients.
