Up to 500 debt advisers are to be recruited as part of a £45m drive to help people who are struggling with severe debt problems. The money, which comes from the Treasury's Financial Exclusion Fund, will be used as part of a two-year programme to help tens of thousands of people with debts in some of the most deprived areas of England and Wales.

Bids from 14 projects have been chosen by the Department of Trade and Industry out of dozens of applications to share the money.

The DTI said the majority of the winners were new partnerships between groups such as Citizens Advice Bureaux, the AdviceUK network and other independent advisers.It said the successful bids targeted specific geographical areas or social groups where there was a problem with financial exclusion.

It added that while debt advice was currently available through telephone helplines and the internet, many people preferred face-to-face advice, which was ofteore difficult for them to access.

Trade and Industry Secretary Alan Johnson said: 'This £45m boost to provide more free face-to-face debt advice is vital to help ensure more people with severe debts have access to the right advice when they need it. For the vast majority of people, their level of debt is manageable. But for some, debts become overwhelming. We hear far too many stories about some of the most vulnerable people falling prey to loan sharks who exploit their fears.

'Or sometimes, people simply make the wrong decision about how best to manage their money problems and then spiral even further into debt because they don't know who to talk to. This is something we are committed to tackling as part of the Government's strategy on over-indebtedness.'

David Harker, chief executive of Citizens Advice, said: 'Citizens Advice Bureaux have seen a huge increase in the number of people seeking debt advice in recent years, and last year we dealt with 1.25m debt problems. We are absolutely thrilled by this news, which represents a real vote of confidence in the debt advice already done by the CAB network, and means that a new generation of debt advisers will be able to help tens of thousands more people overcome serious debt problems.'

Steve Johnson, chief executive of AdviceUK, said: 'Advice UK has been closely involved with the development of the DTI Financial Inclusion Fund since its inception. AdviceUK members are predominantly based in the most economically and socially deprived communities in the UK and much of their day-to-day work involves helping people who have debt problems.

'This money from the Financial Inclusion Fund will allow our members to significantly increase their capacity to deliver advice and information to people experiencing debt problems in these deprived communities."

Copyright © 2005 First Mortgage Trust