Small businesses and sole traders facing financial pressures are set to benefit from expanded debt advice services following a £4 million funding boost from the Money and Pensions Service.
The government has announced an additional £4 million of funding over the next three years to strengthen debt advice services for small businesses, sole traders and the self-employed.
The funding, provided through the Money and Pensions Service (MaPS), is expected to help an additional 16,000 small businesses access specialist debt advice, taking the total number supported to 75,000 over the period.
The investment builds on the existing £3 million annual funding provided by MaPS since 2024 for the Business Debtline service, delivered by the Money Advice Trust.
Business Debtline was established to support business owners whose personal and business finances often overlap. Since receiving the initial funding, the service has supported around 50,000 people, with more than 90% of clients seeing their debts reduced or stabilised.
The government said the additional funding would help meet growing demand for specialist debt advice among small business owners.
Rachel Blake, economic secretary to the Treasury, says: “From the plumber fixing your radiator to your local café, small businesses are the backbone of our economy, and we know they sometimes need a helping hand when times get tough.
“We’re building on the success of our expert debt services to help tens of thousands more get back on their feet.”
Oliver Morley, chief executive of the Money and Pensions Service, says: “When financial pressures mount, knowing where to turn can make all the difference.
“This vital funding will help more small business owners and sole traders get trusted advice when they need it, so they can regain control of their finances and plan for the future.”
Steve Vaid, chief executive of the Money Advice Trust, adds: “The Financial Inclusion Strategy has highlighted the need, and our long-term ambition, to deliver more debt advice for small business owners.
“This enhanced funding further strengthens the partnership between the Money and Pensions Service and Money Advice Trust and will help Business Debtline offer additional support to over 16,000 small business owners, sole traders and the self-employed – a group that often struggles to find tailored help.”
MODERNISATION FUNDING
Alongside the business debt advice funding, the government has announced a further £2 million to modernise debt advice services.
The funding is in addition to the £4.8 million already committed through the government’s Financial Inclusion Strategy, launched in November last year.
The strategy aims to improve financial resilience and remove barriers to financial participation.
The latest investment is intended to help debt advice organisations improve efficiency and allow advisers to spend more time supporting clients, particularly those with complex needs.
Previous projects supported by the fund have included artificial intelligence pilots, digital referral systems, infrastructure upgrades and initiatives designed to improve accessibility.
One recipient, community-based debt advice charity Money Advice Plus, used £49,000 of funding to invest in technology including AI-supported transcription tools and upgraded equipment. The organisation said the improvements had increased capacity, reduced waiting times for first appointments by almost half and enabled advisers to spend more time supporting people experiencing financial difficulties.
The government said the funding package also supports its wider Plan for Small Business, which includes measures to improve access to finance and reforms aimed at tackling late payments.
