The Diligence against Earnings (Variation) (Scotland) Regulations 2021
Citation and commencement1.
These Regulations may be cited as the Diligence against Earnings (Variation) (Scotland) Regulations 2021 and come into force on 6 April 2022.
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 “17.42”2 substitute “18.63”
, and
(b)
St Andrew’s House,
Edinburgh
SCHEDULE
Net earnings | Deduction* |
|---|---|
Not exceeding £130.73 | Nil |
Exceeding £130.73 but not exceeding £472.54 | £4.00 or 19% of earnings exceeding £130.73, whichever is the greater |
Exceeding £472.54 but not exceeding £710.42 | £64.94 plus 23% of earnings exceeding £472.54 |
Exceeding £710.42 | £119.66 plus 50% of earnings exceeding £710.42 |
Net earnings | Deduction* |
|---|---|
Not exceeding £566.51 | Nil |
Exceeding £566.51 but not exceeding £2,047.65 | £15.00 or 19% of earnings exceeding £566.51, whichever is the greater |
Exceeding £2,047.65 but not exceeding £3,078.47 | £281.42 plus 23% of earnings exceeding £2,047.65 |
Exceeding £3,078.47 | £518.51 plus 50% of earnings exceeding £3,078.47 |
Net earnings | Deduction* |
|---|---|
Not exceeding £18.63 | Nil |
Exceeding £18.63 but not exceeding £67.32 | £0.50 or 19% of earnings exceeding £18.63, whichever is the greater |
Exceeding £67.32 but not exceeding £101.21 | £9.25 plus 23% of earnings exceeding £67.32 |
Exceeding £101.21 | £17.05 plus 50% of earnings exceeding £101.21 |
*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.
These Regulations make changes to certain figures relating to diligence against earnings in Part 3 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 current maintenance arrestment or conjoined arrestment order, from £17.42 to £18.63.
Regulation 2(b) substitutes new Tables A, B and C for those in schedule 2 of the Act which describe the deductions to be made from earnings subject to an earnings arrestment.
The increases have been calculated by reference to the change in earnings since the figures were last updated in 2018.
In accordance with sections 49(8), 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.
The increase to the lower monthly threshold will also raise the minimum balance in debtors’ bank accounts protected from arrestment by section 73F of the Act, introduced by the Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), from £529.90 to £566.51.
A Business and Regulatory Impact Assessment has been prepared and is available online at www.legislation.gov.uk.