Derek Mitchell

In a speech to a conference on the cost-of-living crisis, organised by the Glasgow Advice and Information Network (GAIN), Mr Mitchell outlined the value of CAB advice in helping people through the crisis, but also said that the charity faced constant challenges around funding.

Short-term funding arrangements, he said, made it difficult for local CABs to plan ahead and put at risk their ability to retain staff. He called for a more sustainable funding model for advice charities in the future.

Mr Mitchell said: “Stop and start contracts for staff create uncertainty at the end of each financial period: redundancy notices often have to be issued and staff leave, or services have to allocate staff to other projects and services with confirmed funding.

“These are tough jobs, so when there is insecurity around the future of them, because a funder can’t guarantee money beyond a certain date and people end up working without contracts, it’s morally unacceptable.

“We shouldn’t have people advising the public on employment rights when they themselves don’t know if they will have a job in a few months because funders don’t offer certainty. That is unacceptable, regardless of who the funder is.”

He continued: “My hope is in the years to come we can move beyond the short term, insecure funding arrangements that many agencies are at the mercy of, and governments at all levels see advice services as being the essential service they are, empowering people, unlocking wealth, protecting rights in communities all across the country.”

Mr Mitchell’s comments follow a report from the Scottish Energy Insights and Coordination Group (SEIC) that warned about insecurity of funding in the sector.

The report warned that “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.”

The group also noted that “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.”

Scotland’s Citizens Advice network 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. One in six people who sought advice from the network saw a financial gain, the average value of which was over £4,200.

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.