Changes to earnings arrestment deductions & protected minimum balance

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.

A review was carried out in 2018 and as a result, the deduction tables will be amended with effect from 6 April 2019 The Diligence against Earnings (Variation) (Scotland) Regulations 2018.

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 £494.01 to £529.90.

Further information will be posted about the changes to diligence against earnings before they come into force on 6 April 2019.