Changes to Protected Minimum Balance in arrestment

As outlined in a previous AiB news release, changes have been made to the Protected Minimum Balance (PMB) of arrested funds and to thresholds in diligence against earnings.

On 6 April 2010, the Diligence against Earnings (Variation) (No 2) (Scotland) Regulations 2009 (the Regulations) came into force.

The Regulations amend the deduction tables set out in Schedule 2 of the Debtors (Scotland) Act 1987 (the 1987 Act), which employers refer to when they are instructed to operate an earnings arrestment. The Regulations also raise the protected daily earnings for current maintenance arrestment to £13.64.

The PMB applies to arrestment executed against a debtor's account in a bank or other financial institution, and protects a set amount of funds from being arrested. The PMB is linked to the lower monthly threshold beneath which no deduction can be made by earnings arrestment (provided by Table B of Schedule 2 to the 1987 Act). Table B is amended by the Regulations, raising the lower monthly threshold to £415.

The PMB is therefore set at £415 from 6 April 2010.