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Introducing the Standard Financial Statement

Introducing the Standard Financial Statement (SFS), a single format financial statement designed for use by advice agencies and creditors. It replaces existing formats, offering common expenditure categories, spending guidelines, and a savings category. Developed in collaboration with major advice providers, creditors, trade bodies, and others, the SFS removes inconsistency, reduces stress, enables data sharing, and facilitates smoother and quicker outcomes. Major creditor and insolvency bodies support its use.

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Introducing the Standard Financial Statement

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  1. Introducing the Standard Financial Statement

  2. What is the SFS? • A single format financial statement for use by advice agencies and creditors which is replacing the other existing formats in use • A single set of common fixed and flexible expenditure categories • One set of spending guidelines (or trigger figures) • A savings category to build financial resilience • Developed in collaboration with major advice providers, creditors, trade bodies and others

  3. Key benefits • Client • Remove inconsistency in I&E gathering and potential outcomes based on surplus • Remove stress of repeated budget gathering with advice provider, referral agency, creditor, collections etc • Build in savings • Data sharing across organisations • Potential for easier passing of client data between organisations • Example of one firm collecting in CFS, transferring to StepChange format for hotkey referral and possible additional formats with further referrals / solutions • Smoother and quicker journey reaching outcomes sooner • Creditors • Those receiving statements on needing to review one format and reference a single set of spending guidelines

  4. Savings category Non-mandatory. Limited to up-to-10% of monthly budget surplus with a cap of no more than £20 Intended to build savings behaviour and increase resilience to financial shocks Major creditor / insolvency bodies supportive, recognising the benefits to customers and increased sustainability of any repayments Acknowledged that many clients don’t have means to save, but valuable to build discussion into debt advice process User guide makes clear to advisers to consider priority debts before savings

  5. Launch and transition

  6. Launch and transition Spending Guidelines being finalised, following July release of ONS data on living standards survey Supported by the Insolvency Service and Accountant in Bankruptcy for use in formal solutions - transition arrangements being established SFS user guidance and licensing at final drafting stage and will be made available on the SFS website once complete Licensing will be added to the SFS website early in 2017

  7. Questions & contact us Contact email for SFSsfs.support@MoneyAdviceService.org.uk Download the 2014 consultation paperhttps://www.moneyadviceservice.org.uk/sfs-consultation Download the consultation responsehttps://www.moneyadviceservice.org.uk/sfs-consultation-response Visit the SFS websitehttps://sfs.moneyadviceservice.org.uk/ Find out more about our debt workhttps://www.moneyadviceservice.org.uk/our-debt-work Download the latest publications relating to our debt workhttps://www.moneyadviceservice.org.uk/debt-publications

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