AiB recommends adoption of Standard Financial Statement

Following detailed consultation and analysis, AiB is recommending to Scottish Ministers that it introduce the Standard Financial Statement for assessing the income and expenditure of debtors from 1 October 2018.

The Standard Financial Statement has been introduced across the UK as a unified method for assessing a debtor’s income and expenditure. By the end of 2018, it is expected more than 90% of the UK’s debt advice providers and over 1000 organisations in total will be using the Standard Financial Statement. 

Benefits of the SFS include: 

  • A single standard format for gathering income and expenditure, easily recognized by creditors and debtors alike
  • A single set of spending guidelines across multiple organisations
  • Capacity to build provision for savings into monthly spending
  • Greater consistency to the debt advice process for consumer, advisers and creditors
  • Potential for more streamlined sharing of data between organisations assisting an over-indebted individual
  • Principles and best practice guidance for users

AiB has also received positive feedback about the SFS from current users of this system.   

The decision to recommend the adoption of the SFS follows AiB’s detailed consultation on the future of the Common Financial Tool (CFT), which ended in October 2017. 63 responses were received from across the money advice and creditor sectors and a summary of the responses to the consultation can be found here. The consultation report records full details of responses, post-consultation work and analysis and AiB’s proposal to introduce the SFS.   

As a result, AiB will present the proposal that the SFS is introduced in Scotland from 1 October 2018 to Scottish Ministers.