Protected trust deeds: consultation on proposals for legislation changes

Annex A: Statistics

Debt, contributions and equity in trust deeds

Table 1: Number of PTDs by total debt due to creditors and time to repay debt, 2014-15 to 2017-18¹

Total debt due to creditors (£)
Time to repay total debt due (years)	£5,000 to less than £6,000	£6,000 to less than £7,000	£7,000 to less than £8,000	£8,000 to less than £9,000	£9,000 to less than £10,000	£10,000 or more	All debts
4 to less than 5	431	488	249	91	45	188	1,492
5 to less than 6	241	533	649	489	274	551	2,737
6 to less than 7	13	137	365	393	490	1,235	2,633
7 to less than 8	1	16	71	213	253	1,768	2,322
8 to less than 9	0	0	6	36	115	1,898	2,055
9 to less than 10	1	0	0	6	13	1,703	1,723
10 years or more	0	4	4	3	10	7,485	7,506
No Contribution	0	0	0	0	0	83	83
All	687	1,178	1,344	1,231	1,200	14,911	20,551

¹ PTDs granted on or after 28 November 2013 with protected date between 1 April 2014 and 31 March 2018 (20,551 PTDs).

Table 2: total funds paid to creditors in discharged cases compared to total payments made into the PTDs

Year	Cases Discharged	Total Receipts	Average Cost	Total Paid to Creditors	% of Funds Collected Paid to Creditors
2007/8	6250	£64,011,514	£5,315	£30,793,083	48%
2008/9	6166	£61,046,569	£5,182	£29,093,476	48%
2009/10	6970	£62,301,468	£5,366	£24,900,048	40%
2010/11	7387	£64,147,144	£4,958	£27,525,846	43%
2012/12	5428	£48,292,445	£5,214	£19,989,058	41%
2012/13	5332	£46,514,428	£5,159	£19,004,709	41%
2013/14	6787	£68,602,008	£6,392	£25,219,523	37%
2014/15	6939	£71,105,626	£6,268	£27,610,906	39%
2015/16	7298	£76,430,000	£6,594	£28,310,000	37%
2016/17	8096	£83,887,000	£6,735	£29,364,000	35%
2017/18	7163	£65,287,000	£5,998	£22,323,000	34%

Table 3: Equity and whether PTD is balance sheet solvent, 2014-15 to 2017-18¹

	Balance sheet solvent
Equity (£)	No	Yes	All
Zero equity	16,677		16,677
£1 to less than £20,000	2,423	157	2,580
£20,000 to less than £30,000	263	254	517
£30,000 to less than £40,000	87	184	271
£40,000 to less than £50,000	21	129	150
£50,000 to less than £60,000	15	93	108
£60,000 to less than £70,000	5	77	82
£70,000 to less than £80,000	0	42	42
£80,000 to less than £90,000	0	30	30
£90,000 to less than £100,000	2	22	24
£100,000 or more	3	67	70
Total	19,496	1,055	20,551

¹ PTDs granted on or after 28 November 2013 with protected date between 1 April 2014 and 31 March 2018 (20,551 PTDs).

Table 4 analysis of realisation in Trust Deeds since 2014

				£ million
Protected year	Total contribution	Total moveable asset realisation	Total heritable asset realisation	Gross realisation
	a	b	c	d = a + b + c
2014/15	33.8	0.5	2.7	37.0
2015/16	34.9	0.4	2.4	37.7
2016/17	40.6	0.2	2.7	43.5
2017/18	47.4	0.4	3.2	50.9
All years	156.7	1.5	10.9	169.1

* the information under column c is taken from the heritable asset field which has been used by trustees for a number of different pieces of information such as nominal payments relinquishing interest in property or an amount equivalent to one or two extra years of contributions. It will not always mean money coming direct form sale of equity.

Outlays
Background

Category one and category two disbursements are shown in the outlays field of Form 3 (reporting the initial fee and estimated costs) and Form 4 (reporting costs actually incurred at a later date) for each PTD. Statistics presented below are shown for trust deeds granted on or after 28 November 2013. Data is not available for cases granted before that date, as it was the 2013 regulations which, along with introducing the fixed fee, separated outlays from that fixed fee. Note that in the Form 4 outlays (including statutory fees) are combined with third party fees whereas in the Form 3, outlays are separate from third party fees. To allow for a comparison to be made between Form 3 and Form 4, outlays (including statutory fees) and third party fees from Form 3 have been combined.

Number of cases

We have Form 3 and Form 4 data for 15,364 cases where the trust deed was granted on or after 28 November 2013 and protected between 1 April 2014 and 31 March 2018. The chart below shows that for 42% we have one year worth of information to compare Form 3 and Form 4 outlays fees.

Chart 1: Percentage of PTDs with 1, 2, 3 or 4 years of Form 4 with which to compare with Form 3, 2014-15 to 2017-18

Change in final expected outlay fees between Form 3 and Form 4 over the life of the PTD

Chart 2 below compares the estimated outlay and third party fees from the Form 3 with the final expected outlay and third party fees from each annual Form 4 PTD return. This will show the change in expected fees for the life of the PTD from the Form 3 estimate and the Form 4 annual return.

For cases with one year of Form 4 information (Form 4: 1 Year) expected fees for all cases have increased from £9.0 million, as estimated in the Form 3, to £9.5 million in the first year of the PTD, an increase of 5.4%. For cases with two years of Form 4 information, there the increase after the first year grows to 17%. In the second year, expected outlay and third party fees increase again when compared with the estimated costs from the From 3, an increase of 30%.

A similar pattern can be seen for cases with three and four years of Form 4 information where outlay fees show an overall increase in each year of the PTD. The lower absolute amounts reflect the fact that there are fewer cases with three or four years of Form 4 information.

Chart 2: Change in final expected outlay and third party fees between Form 3 (estimate) and each year of PTD (Form 4)

Overall change in outlay fees between Form 3 and latest Form 4

For all cases we can compare the outlays on Form 3 with the final expected outlays on Form 4. Where there is more than one Form 4, the latest one has been used. We see in Chart 3 below that total fees for all cases on Form 3 was £20.0 million and the final expected on Form 4 was £24.9 million, an increase of 25%. Overall, 72% of cases saw an increase in their outlays between Form 3 and their latest Form 4. The average of expected outlays per case for Form 3 was £1,300; at the Form 4 stage the average had increased to £1,600.

The chart also shows the change in fees for cases where third party fees are recorded as £0 on the Form 3. If third party fees are recorded as zero on the Form 3, they still could arise as the case progresses and there is no guarantee that they remain at zero. Looking at these cases is more likely to focus on the change in outlay costs, given that outlay and third party fees are recorded together on the Form 4. Of course, any change shown for these cases could be down to the introduction of third party fees as the case progresses and then recorded on the Form 4.

For cases where third party fees were recorded as zero on Form 3 (9,569 cases) fees increased from £11.2 million to £13.4 million, a 20% increase and similar to the increase for all PTDs.

Chart 3: Change in total outlay and third party fees from Form 3 and latest Form 4 for all PTDs and PTDs where third party fees were recorded as 0 on Form 3