Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024: equality impact assessment

Key Findings

Age

12. AiB statistics show that the majority of people who apply for PTDs are of working age. The Joseph Rowntree Foundation UK Poverty Report 2023 highlighted more than half of people in poverty in the UK were working-age adults. If this is the case, then people of working age are more likely to seek out a debt solution. Making improvement to such solutions can be seen to have a positive impact on people within this age bracket and anyone who accesses the solution.

13. Allowing an individual early discharge from their PTD in extenuating circumstances will allow them to be discharged at an earlier date, than is currently allowed, where it can be shown that they can no longer make a contribution through no fault of their own. This will be a positive impact on those individuals.

14. The removal of protected status of a PTD where it was found that there was an error in the process that led to a trust deed gaining protected status will mean that the debtor is no longer under the protection of the legislation and creditors would be able to take action to recover debts owed.

15. Although this could have a negative effect on the individual the limited time in which this process can take place will mitigate the risks here. It also does not prevent the individual from applying for their trust deed to be protected again nor does it prevent the individual applying for another statutory debt solution.

16. As the person can reapply for protected status again, we expect any negative impact to be minimal and temporary. The individual will not be in a worse position than they were prior to entering a PTD.

17. While the initial entry into a PTD may impact differently on individuals, the debt relief procedure is open to all irrespective of particular protected characteristics, to assist those struggling with debt. The proposed changes will impact only on those who have already entered a PTD and will apply equally to debtors, irrespective of particular protected characteristics such as age.

Disability

18. According to data collected by the Office for National Statistics between 15 December 2021 and 3 January 2022, statistics suggest that in December 2021, as a result of COVID-19, 74% of disabled people reported that their cost of living had increased in the last month, compared to 64% of non-disabled people.

19. The introduction of the provision to allow an individual early discharge from their PTD in extenuating circumstances (allowing them to be discharged at an earlier date where it can be shown that they can no longer make a contribution through no fault of their own) could assist individuals who have entered into a PTD and are experiencing terminal illness or disability which means they can no longer work or can no longer work to the capacity they previously could. The changes do not directly or indirectly discriminate based on disability – they work towards advancing equality of opportunity.

20. This option was not available before. It is therefore assessed that these measures could have a positive impact on people with this protected characteristic.

Sex

21. The full EQIA does not identify any impact on people because of their sex.

Pregnancy and Maternity

22. The full EQIA does not identify any impact on people because of pregnancy and maternity.

Gender Reassignment

23. The full EQIA does not identify any impact on people proposing to undergo, undergoing, or who have undergone a process for the purpose of reassigning their gender.

Sexual Orientation

24. The full EQIA does not identify any impact on people because of their sexual orientation.

Race

25. The full EQIA does not identify any impact on people on the grounds of their race.

Religion or Belief

26. The full EQIA does not identify any impact on people because of their religion or belief.