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New report urges more investment in advice

31st May 2023 

A new report has urged further investment in the advice sector, as Citizens Advice Scotland (CAS) warns that failing to invest properly in advice will hurt the poorest and hold back economic growth in the years ahead. 

The report of the Scottish Energy Insights and Coordination Group (SEIC) from statutory body Consumer Scotland recommends further investment in the energy advice sector.

The SEIC was convened by Consumer Scotland following the former First Minister’s energy summit in August 2022, held to support consumers and businesses facing rising energy prices.

Citizens Advice Scotland (CAS) is the national membership body for Scotland’s Citizens Advice network, which comprises of 59 CABs and the Extra Help Unit, a team of specialist energy case workers based in Glasgow dealing with vulnerable consumers on a referral basis. The network is the largest provider of free advice in Scotland.

Last year the CAB network helped more than 174,500 people with advice, unlocking £132 million in the process.

CAB cases are often complex, with people seeking help with multiple issues from the network’s wraparound service. Last year in one in five occasions people have needed food insecurity advice having needed further help having sought advice with utilities. In one in ten occasions they have needed crisis grant support from the Scottish Welfare Fund.

CAS Chief Executive Derek Mitchell said:

“This report is a timely and urgent intervention, which we dearly hope policymakers listen to.

“There is a real risk that failing to invest properly in advice, particularly the wraparound advice CABs give, will hurt the poorest and hold our economy back.

“CABs across Scotland are facing record demand for advice often with complex cases. Energy bill increases didn’t happen in a vacuum – they happened alongside and indeed drove record inflation and interest rates, leading to higher prices in the shops.

“Time and time again people are coming into CABs with an energy issue and ultimately need a food bank referral or crisis support. There is a clear and direct line between high energy bills and empty kitchen cupboards.

“Our worry is we see headlines about the price cap or inflation falling and policymakers may think this crisis is on its way to being over – it’s not. People, particularly the poorest, will be feeling the impact of this for years to come.

“There is a vicious cycle to this crisis – people’s incomes don’t match their bills so they fall into debt, which in turn reduces their income and increases their monthly outgoing. It’s a trap people can’t escape.

“Well funded advice can make a massive difference. The network helped over 174,500 people one to one last year, and a further 2.5 million people used our online advice pages.

“The results are staggering. CABs unlocked £132 million for people last year through things like social security payments, employment entitlements and debt reductions. One in six people who seek advice see a financial gain, the average value of which is over £4,200.

“That money is transformative when you are having to choose between heating the house of feeding your kids.

“The capability of our advisers is second to none – however our capacity to help could be so much greater with better, longer term, more secure funding.”

ENDS

NOTES TO EDITORS

The SEIC brought together representatives of frontline advice bodies supporting energy consumers in Scotland. Its focus was to understand the impact on consumers of sharply rising energy costs and report on ways to mitigate those impacts.

The report is here: https://consumer.scot/media/dadob4pi/scottish-energy-insights-coordination-group-final-report-may-2023.pdf

Consumer Scotland’s news release is here: https://consumer.scot/news/frontline-advice-groups-urge-more-support-for-energy-consumers/

From the report:

Investment in the energy advice sector is needed to ensure delivery of Scottish Government aims

1.13. SEIC members unanimously recognise the impacts on both individual advisers and organisations as a result of dealing with greater numbers of consumers in circumstances for which solutions are increasingly challenging. Job satisfaction and motivation for advisers has fallen at the same time, as these depend on delivering long term solutions for clients meaningfully, especially those for whom mentoring support is needed. However, demand means that adviser time is currently spent on short term fixes for immediate problems.

1.14. Larger advice organisations can and are already taking action to help support their staff. However, the group considers that Scottish Government support is needed to make similar support available for those in smaller organisations, and would welcome discussion on how to achieve this.

1.15. In addition, many advice agencies and advisers themselves operate on short term contracts, with associated short term bidding, recruitment and reporting all taking time away from service delivery for clients. As with energy efficiency, action on the part of the Scottish Government to improve security of support across multiple financial years is necessary to ensure the energy advice sector can deliver the Scottish Government’s agreed long term policy aims in relation to both fuel poverty and climate change.

Impacts on Advice Services and Individual Advisers

3.19. For larger organisations, it has been possible to respond to these challenges, at least to some extent, by increasing their staff complement, re-allocating staff employed on other areas, or a combination of both. Support from the Scottish Government to increase the adviser staff resource available has been critical in this, and that support is both recognised and welcomed.

3.20. However, increasing capacity sufficiently is not generally an option open to smaller organisations, or to advisers working alone or in small groups in other settings such as Housing Associations. The patterns of financial support for advice services also detract from delivery for the majority of providers:

• Funding is typically offered within single financial years; even if funding is renewed, short term contracts make it challenging to offer long term contracts to advisers. This in turn leads to staff turnover, particularly in smaller organisations

• The fragmented and compartmentalised nature of support also means that both applying for funds, setting up new services, recruitment and reporting to multiple funders takes staff away from serving clients

3.21. All members agreed that individual advisers were facing increased levels of pressure, and discussed this in some detail. The group identified three interlocking problems faced by advisers as individuals:

•         Pay is generally low given the pressures involved in the job, especially as these have

increased in line with decline in clients’ circumstances

• Progression opportunities are often limited in smaller organisations

• Precarity is a concern for many; advisers themselves may be on short term contracts and

worried about their own energy bills

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3.26 It is, however, critical also to highlight the importance of addressing issues caused by short term contracts among the energy advice community. Some members gave examples

of staff who had left the sector, not necessarily for higher paying positions, but certainly for jobs with greater security of contract.

Investment in the energy advice sector is needed to ensure delivery of Scottish Government aims

5.26 Demand for advice services has – not surprisingly – increased greatly. SEIC Group members have characterised the nature of the help needed as both wider and deeper than before prices rose.

5.27 In response, SEIC group members consider that a strong, interlinked and well functioning advice sector is essential to support all aspects of the consumer journeys, from crisis support to take up of technologies needed to deliver net zero. Advisers can and do successfully support energy consumers with all aspects of their journeys including:

 • Resolution of retail complaints

• Income maximisation, including eligibility advice on benefits

• Advice on complex time of use tariffs and smart meters

• Questions on insulation for hard to heat homes

• The operation of new, low carbon renewable energy heating and power systems

5.28 Advice agencies also highlight the need for wrap-around services for some consumers in greatest need; for these groups, the need is for mentoring for as long as needed, in addition to but going beyond short term advice on specific topics.

5.29 In practice, however, organisations primarily set up to deliver long term energy efficiency and income maximisation programmes have been pulled increasingly into dealing with crisis support on retail issues, such as metering and debt repayment plans. Members identify consequent stresses on advisers as a growing concern, because of dealing with a greater volume of challenging issues.

5.33 The Scottish Government also has direct influence over the funding of the energy advice sector, and there is strong evidence that short term funding is detracting from service delivery.