Notes for Guidance - Common Financial Tool

11.1 Debtors will be allowed to have expenditure of up to 10% of the surplus income calculated, allocated as a contingency allowance, or saving provision. A maximum contingency allowance of £20 per month is permissible for each assessment.

11.2 For example, a CFT assessment which results in surplus income of £100, with no contingency provision, can be recalculated with up to £10 included in the other expenditure category, resulting in a revised surplus of £90.

11.3 Money advisers/trustees should consider including the contingency allowance in every case, as it is in all parties’ interest that the debtor has funds available to meet the cost of unexpected future liabilities.

11.4 Any breach of the relevant trigger figure arising from the inclusion of this contingency element will be considered acceptable unless any of the other expenditure is deemed unreasonable.