The Diligence against Earnings (Variation) (Scotland) Regulations 2015

16 December 2015

A review of the Diligence against Earnings Regulations was conducted earlier this year. This resulted in The Diligence against Earnings (Variation) (Scotland) Regulations 2015 being laid in Parliament at the beginning of November 2015. The Parliamentary process is now complete and these new Regulations will come into force on 6 April 2016.

The Debtor Scotland Act 1987, Schedule 2, sets out the amount that can be deducted from a debtor’s wages in an earnings arrestment. An earnings arrestment is when a debtor’s employer receives an instruction to deduct an amount from an employee’s wages and pays it direct to their creditors. Ministers gave an undertaking to review the tables every three years.

The deduction tables will be amended (reproduced below) with effect from 6 April 2016.

 

Table A: Deductions from Weekly Earnings

Net Earnings

Deduction

Not exceeding £113.68

Nil

Exceeding £113.68 but not exceeding £410.90

£4 or 19% of earnings exceeding £113.68, whichever is the greater

Exceeding £410.90 but not exceeding £617.82

£56.47 plus 23% of earnings exceeding £410.90

Exceeding £617.82

£104.06 plus 50% of earnings exceeding £617.82

 

Table B: Deductions from Monthly Earnings

Net Earnings

Deduction

Not exceeding £494.01

Nil

Exceeding £494.01 but not exceeding £1,785.61

£15.00 or 19% of earnings exceeding £494.01, whichever is the greater

Exceeding £1,785.61 but not exceeding £2,684.51

£245.40 plus 23% of earnings exceeding £1,785.61

Exceeding £2,684.51

£452.15 plus 50% of earnings exceeding £2,684.51

 

Table C: Deductions from Daily Earnings

Net Earnings

Deduction

Not exceeding £16.24

Nil

Exceeding £16.24 but not exceeding £58.70

£0.50 or 19% of earnings exceeding £16.24, whichever is the greater

Exceeding £58.70 but not exceeding £88.26

£8.07 plus 23% of earnings exceeding £58.70

Exceeding £88.26

£14.87 plus 50% of earnings exceeding £88.26

This change also alters the protected minimum balance in bank arrestments. The protected minimum balance sets out a minimum amount which is protected from arrestment and provides important protection for those who may have their bank account arrested. The protected minimum balance will increase from £460.06 to £494.01.