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

Recommendations and Conclusion

27. The provisions contained in these Regulations will help ensure this statutory debt solution is fit for purpose and provides the necessary support and protection to those who need to access debt relief through this solution.

28. Research suggests that people of working age are more likely to apply for a PTD however, 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 those individuals, irrespective of particular protected characteristics such as age.

29. The introduction of an early discharge in extenuating circumstances could impact a specific group of debtors who have entered into a PTD, being those who have a terminal illness or disability which affects their capacity to work. This will be a positive impact and will allow them to be discharged early from their PTD where they can no longer make a contribution through no fault of their own.

30. 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.

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

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

33. No equality issues were raised during the Equality Impact Assessment exercise. There were no direct or indirect barriers found as a result of the proposed changes being introduced. The changes introduced are primarily associated with placing stakeholder recommendations to improve the operations and delivery of PTDs into legislation and allowing further protections for those seeking debt relief through PTDs.