Question reference: S4W-29537
- Asked by: Fiona McLeod, MSP for Strathkelvin and Bearsden, Scottish National Party
- Date lodged: 28 January 2016
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Current status: Answered by Fergus Ewing on 11 February 2016
Question
To ask the Scottish Government for what reason a personal pension that merits top-up with pension credit is included as income for the common financial tool in a bankruptcy process.
Answer
The common financial tool was introduced to help achieve consistency and transparency in determining the level of contribution that a debtor might pay in respect of Scottish statutory debt solutions.
Experience has shown that a comprehensive understanding of the household income and expenditure position leads to the most effective outcome and accurate determination of the available contribution. Failure to establish the correct position may lead to contribution levels being too high and unsustainable, or insufficient leading to an unfair outcome for the creditors.
It is absolutely clear in legislation and guidance that no contribution is appropriate where income is derived solely from benefits. And where there is private income any contribution must not include any element of state benefits that are in payment.