Debt Arrangement Scheme: Returning Funds to the Free Advice Sector

Closed 20 Aug 2019

Opened 28 May 2019

Feedback updated 18 Mar 2022

We asked

Between 28 May 2019 and 20 August 2019, the Scottish Government consulted on how funds generated from Accountant in Bankruptcy (AiB’s) proposed payments distribution (PD) service in the Debt Arrangement Scheme (DAS) may be returned to public sector advice organisations.   This was a result of responses to the previous consultation   "Building a better Debt Arrangement Scheme" indicating their support of the proposal for AiB to offer a PD service to enhance the resilience of process, and confirmation from AiB that it would only seek to cover costs in the process and reinvest any excess funds to free to client advice sector.  In total 19 responses were received.

You said

The responses to the consultation did not indicate a clear consensus.  Option 1, where residual funds generated by AiB’s payments distribution would be allocated to the originating advice organisation, and Option 5, which suggested these funds would be remitted to the Scottish Government to help fund general money advice provision, were the most favoured options.      

We did

In light of the lack of clear consensus, it was decided that the best approach to adopt was to allow organisations to choose between options 1 and 5. This approach allows individual organisations who wish the funds generated by their DAS caseloads to be returned directly to them, to choose this option. Those who do not wish to adopt this approach can elect to have the funds generated from their cases to be remitted to the Scottish Government to augment the funding of money advice in Scotland across the public sector and third sector.

Results updated 12 Sep 2019

These are the responses received to the recent Debt Arrangement Scheme: Returning Funds to the Free Advice Sector consultation.

A full summary and consultation response will be published in due course.



Published responses

View submitted responses where consent has been given to publish the response.


Accountant in Bankruptcy's (AiB's) 2018 'Building a better Debt Arrangement Scheme' consultation contained proposals to improve the Debt Arrangement Scheme (DAS). The changes include proposals that all debt payment programmes under the scheme will pay the same flat rate fee, and that AiB should be able to be a payment distributor (PD).

It is proposed that where AiB is nominated as PD, it will charge the statutory administration fee for this function but will only seek to recover its costs. Any excess funds will be re-invested in the free money advice sector.

Opinion is sought on which of the options detailed in this consultation would work best and why.

Why your views matter

We welcome comments from anyone in the wider DAS stakeholder community who wish to respond to this consultation and AiB will take forward detailed discussions on the options detailed in this paper with those most likely to be affected directly.

Read the consultation paper.


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