Free DMP providers
StepChange is the largest free DMP provider in the UK — they run around half of all DMPs. Setup and running is entirely free; funding comes from creditor contributions (participating creditors pay a small percentage of what they receive).
PayPlan is another major free provider, funded on the same model. Citizens Advice and Christians Against Poverty also offer DMP services for free.
For most people, one of these free providers is the right choice. There is no service quality difference to justify paying for a commercial DMP.
Commercial (fee-charging) DMPs
Fee-charging DMP providers exist and are FCA-regulated. Their charges vary but typically take 15-25% of your monthly payment as their fee.
On a £200/month DMP, a 20% fee means £40 goes to the provider each month and £160 goes to creditors. Over a 10-year DMP, that is £4,800 to the provider — money that could have cleared additional debt if the DMP was run free.
Fee-charging providers must disclose their charges clearly under FCA rules. If you do not understand exactly what you are paying, you should not sign.
When commercial might be appropriate
Occasionally commercial DMP providers offer specialist services (particularly for cases involving both consumer and business debts) that go beyond what charities provide. But for standard consumer debt DMPs, free providers are usually just as effective.
If you are already with a commercial DMP provider and it is working, you can switch to a free provider at any time. The transition is straightforward and your creditors will not object.