The Diligence against Earnings (Variation) (Scotland) Regulations 2018

12 November 2018

 The Diligence against Earnings (Variation) (Scotland) Regulations 2018 have been laid before Parliament and changes to the rate of deductions are due to come into force from 6 April 2019.

A review of the Diligence against Earnings Regulations was conducted earlier this year by the Accountancy in Bankruptcy (AiB). This has resulted in The Diligence against Earnings (Variation) (Scotland) Regulations 2018 being laid in Parliament.

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 directly 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 2019.

 

Table A: Deductions from Weekly Earnings

Net Earnings

Deduction*

Not exceeding £122.28

Nil

Exceeding £122.28 but not exceeding £442.00

£4.00 or 19% of earnings exceeding £122.28, whichever is the greater

Exceeding £442.00 but not exceeding £664.50

£60.75 plus 23% of earnings exceeding £442.00

Exceeding £664.50

£111.92 plus 50% of earnings exceeding £664.50

 

Table B: Deductions from Monthly Earnings

Net Earnings

Deduction*

Not exceeding £529.90

Nil

Exceeding £529.90 but not exceeding £1,915.32

£15.00 or 19% of earnings exceeding £529.90, whichever is the greater

Exceeding £1,915.32 but not exceeding £2,879.52

£263.23 plus 23% of earnings exceeding £1,915.32

Exceeding £2,879.52

£485.00 plus 50% of earnings exceeding £2,879.52

 

Table C: Deductions from Daily Earnings

Net Earnings

Deduction*

Not exceeding £17.42

Nil

Exceeding £17.42 but not exceeding £62.97

£0.50 or 19% of earnings exceeding £17.42, whichever is the greater

Exceeding £62.97 but not exceeding £94.67

£8.65 plus 23% of earnings exceeding £62.97

Exceeding £94.67

£15.95 plus 50% of earnings exceeding £94.67

*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.

 

The regulations also alter 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 £494.01 to £529.90.