The Diligence against Earnings (Variation) (Scotland) Regulations 2012

Made15th November 2012

Laid before the Scottish Parliament19th November 2012

Coming into force6th April 2013

The Scottish Ministers make the following Regulations in exercise of the powers conferred by sections 49(7)(a), 53(3) and 63(6) of the Debtors (Scotland) Act 19871 and all other powers enabling them to do so.

Citation and commencement1

These Regulations may be cited as the Diligence against Earnings (Variation) (Scotland) Regulations 2012 and come into force on 6th April 2013.

Rate of deductions in diligence against earnings2

In the Debtors (Scotland) Act 1987—

a

in sections 53(2)(b) (deductions to be made under current maintenance arrestments) and 63(4)(b) (deductions to be made under conjoined arrestment orders), for “13.64”2 substitute “15.12”; and

b

for Tables A, B and C of Schedule 23 (deductions to be made under earnings arrestments), substitute respectively Tables A, B and C in the Schedule to these Regulations.

FERGUS EWINGAuthorised to sign by the Scottish MinistersSt Andrew’s House,Edinburgh15th November 2012

SCHEDULE

Regulation 2(b)

TABLE A: DEDUCTIONS FROM WEEKLY EARNINGS

Net earnings	Deduction (*)
Not exceeding £106.17	Nil
Exceeding £106.17 but not exceeding £383.74	£4 or 19% of earnings exceeding £106.17, whichever is the greater
Exceeding £383.74 but not exceeding £576.92	£52.74 plus 23% of earnings exceeding £383.74
Exceeding £576.92	£97.17 plus 50% of earnings exceeding £576.92
(*) When applying a percentage the calculation should be done to two decimal places of a penny and the result rounded to the nearest whole penny, with an exact half penny being rounded down.

TABLE B: DEDUCTIONS FROM MONTHLY EARNINGS

Net earnings	Deduction (*)
Not exceeding £460.06	Nil
Exceeding £460.06 but not exceeding £1,662.88	£15.00 or 19% of earnings exceeding £460.06, whichever is the greater
Exceeding £1,662.88 but not exceeding £2,500.00	£228.54 plus 23% of earnings exceeding £1,662.88
Exceeding £2,500.00	£421.07 plus 50% of earnings exceeding £2,500.00
(*) When applying a percentage the calculation should be done to two decimal places of a penny and the result rounded to the nearest whole penny, with an exact half penny being rounded down.

TABLE C: DEDUCTIONS FROM DAILY EARNINGS

Net earnings	Deduction (*)
Not exceeding £15.12	Nil
Exceeding £15.12 but not exceeding £54.68	£0.50 or 19% of earnings exceeding £15.12, whichever is the greater
Exceeding £54.68 but not exceeding £82.19	£7.52 plus 23% of earnings exceeding £54.68
Exceeding £82.19	£13.84 plus 50% of earnings exceeding £82.19
(*) When applying a percentage the calculation should be done to two decimal places of a penny and the result rounded to the nearest whole penny, with an exact half penny being rounded down.

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make changes to certain figures relating to diligence against earnings in Part III of the Debtors (Scotland) Act 1987 (“the Act”).

Regulation 2(a) increases the figure in sections 53(2)(b) and 63(4)(b) of the Act, used to determine the sum to be deducted from earnings subject to a current maintenance arrestment or conjoined arrestment order, from £13.64 to £15.12.

Regulation 2(b) substitutes new Tables A, B and C for those in Schedule 2 to the Act which describe the deductions to be made from earnings subject to an earnings arrestment.

The previous figures last amended in 2009 by the Diligence against Earnings (Variation) (No. 2) (Scotland) Regulations 2009 were calculated on the basis of median earnings in the Office for National Statistics’ 2009 Annual Survey of Hours and Earnings. However, as inflation has surpassed wage increases these new figures account for inflation rather than income increases.

In accordance with sections 53(4) and (5), 63(7) and (8) and 69(1) and (2) of the Act, these Regulations do not apply to existing diligences until the Regulations are intimated to employers, unless employers choose to apply them. If they do not choose to do so the figures substituted by previous regulations will continue to apply until intimation takes place.

A regulatory impact assessment was prepared in respect of the Regulations, copies of which can be obtained from the Accountant in Bankruptcy, 1 Pennyburn Road, Kilwinning.