In September 2019, the then Minister for Business, Fair Work and Skills, Jamie Hepburn announced a wide-ranging review of Scotland’s statutory debt solutions.
This process is now underway and three expert working groups have been established to consider a range of issues and bring forward recommendations for Ministerial consideration during the next Parliamentary session.
This review process and the working group deliberations will also draw on a wide range of statistics. Accountant in Bankruptcy (AiB) has therefore prepared and published this ad-hoc statistics release today (Wednesday 10 November). This release includes analysis of the full administration and petition cases concluded by the contribution repayment period of three years (for cases awarded prior to April 2015) and of four years (for cases awarded since April 2015).
The purpose of this ad-hoc statistics release is to assist all working groups in order to prepare a detailed assessment on any recommendations and the wider impact on all statutory debt solutions.
Unless stated otherwise, this release is not part of the regular Scottish Statutory Debt Solutions Statistics releases.
These statistics are used internally by AiB and the Scottish Government, and during stakeholder engagement to inform policy development. The Code of Practice for Statistics says that statistics producers must provide free and equal access to regular and ad-hoc official statistics. Therefore, AiB is bringing forward this ad-hoc statistics release.
The main findings for this ad-hoc statistics release are as follows:
- There were 13,648 full administration and petition cases concluded in between 2017-18 and 2020-21, and the average (mean) dividend paid to creditors for all cases including those with zero dividends was 10.5 pence in the £.
- A bankruptcy case that was awarded since April 2015 may subject to a repayment contribution period of four years if the debtor was assessed to pay a contribution by the Common Financial Tool. For cases awarded prior to April 2015, the length of the repayment contribution period was three years.
- 7,236 (53%) cases were awarded prior to April 2015 and the average dividend paid to creditors was 13.2 pence in the £. The rest (6,412, 47%) were awarded since April 2015 and the average dividend paid to creditors was 7.4 pence in the £.
- For all cases that were assessed to pay a contribution at the beginning, the average divided paid to creditors for cases awarded prior to April 2015 and since April 2015, respectively, was 7.1 and 9.0 pence in the £. It should be noted that dividends are also affected by the realised value of assets, which in turn, may be affected by economic conditions.
For any enquiries in related to this ad-hoc statistics release, please contact Ken O’Neill: firstname.lastname@example.org.
For any general enquires in relation to the Stage 2 of the general review, please contact email@example.com.