Skip to main content
Shelter Logo
England

Debt matters round up January 2025

The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.

News and legal updates

This month's legal round up includes updated DRO guidance on tobacco and alcohol, MaPS workshops for debt advisers, and a new report on inappropriate IVAs.

Tobacco and alcohol DRO guidance - updated wording

Since the December 2024 ebulletin, the DRO Team has updated their tobacco and alcohol guidance:

The financial statement on the DRO application should be completed using the Standard Financial Statement for consistency.

Alcohol and tobacco items are allowable expenditure within the Standard Financial Statement guidelines.

Alcohol and tobacco items are allowed so that a realistic picture of the spending is provided.

Exceeding spending guidelines

The Standard Financial Statement contains “spending guidelines”, these can highlight areas where the individual’s expenses exceed those considered normal.

High expenditure amounts on alcohol and tobacco may lead to spending guidelines being exceeded.

If the spending guidelines are exceeded and the client believes there are exceptional circumstances as to why this should be allowable, an individual may wish for a note to be recorded on the application to explain this. An approved intermediary must also email the DRO preorder inbox on submission with details.

We will review these on a case-by-case basis.

Money and Pensions Service workshops for debt advisers

The Money and Pensions Service (MaPS) is looking for debt advisers to complete a survey to take part in independent research. The idea behind this is to explore and develop new ideas for debt advice services. MaPS is due to hold two workshops:

  • 10am – 12pm Tuesday 11th February

  • 10am – 12pm Tuesday 25th February

Advisers also receive £50 for each workshop they attend according to MaPS.

MaPS survey

New report on inappropriate IVAs

Citizens Advice has published a new report that provides up-to-date evidence on the impact of inappropriate IVAs. The findings are based on a survey of more than 1,000 people who are currently in an IVA or have been in an IVA in the last five years (terminated or complete).

Back to Square One: How poor debt advice is pulling people into inappropriate IVAs

Inquiry on the work of the County Court

The Justice Committee has launched an inquiry into the the work of the County Court amid persistent concerns over capacity and resources. The committee is inviting submissions on a wide range of issues including the effect of delays on litigants in person, accessibility for people with disabilities, the use of technology and the level of court fees.

The closing date for submissions is 13 February 2025.

Justice Committee enquiry

Case law

Find debt case law summaries by topic on Shelter Legal.

Seculink v Forbes

The court can determine if a debt is a qualifying debt in a breathing space.

Seculink Ltd v Forbes [2024] EWHC 3339 (Ch)