We are consulting on the rates at which we propose to charge our levies for the additional amount of funding for debt advice notified to us by Her Majesty’s Treasury (the Treasury) and the Department for Work and Pensions (DWP) in 2020/21.
Why we are consulting
The DWP has notified us that we must collect an additional £14.2m for the Money and Pensions Service (MaPS) in 2020/21 to provide debt advice in England. This is essential to enable MaPS to respond to the coronavirus (Covid-19) crisis and the expected increase in debt advice, this is to ensure the debt advice sector can maintain its ability to provide advice.
The Treasury has also notified us that we must collect an additional £2.087m for the provision of debt advice in the Devolved Authorities, to maintain capacity in light of the coronavirus crisis within Scotland, Wales and Northern Ireland.
Who this applies to
Fee payers that contribute towards MaPS and Devolved Authorities debt advice.
Background to the CP20/16
In CP20/6, we consulted on the rates at which we propose to charge our levies for MaPS and the Devolved Authorities for 2020/21, and published our final rules on 2 July 2020 in policy statement PS20/7.
The Treasury and DWP have informed us that these additional levies are essential to enable MaPS and Devolved Authorities to respond effectively to the impact of the coronavirus crisis and the increase in the requirement for debt advice services across the UK. We propose to allocate debt advice funding to fee-blocks on the same basis as we did in consultation CP20/6 and in 2019/20.
This consultation has now closed.
We will consider your comments on our proposals and, subject to FCA Board approval in November 2020, we plan to publish feedback in November/December 2020.
Firms will be invoiced from December 2020, on the basis of the additional fees and levies.