Mike Dailly: Are earnings arrestments only perpetuating the cycle of debt?

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'Because of the cost-of-living crisis, the Scottish Government has been under pressure to increase the protected sum from debt advisers and advice charities.' - mikedailly

The most common charge in Glasgow is for band B properties where council tax will rise from £1481 per year to £1556. That includes a water charge of £180 and sewerage charge of £209, which the council collects for Scottish Water.

When a wage arrestment is executed against your employer, there’s a protected minimum amount of everyone’s wage that’s protected from arrestment. These amounts are normally updated every three years. Because of the cost-of-living crisis, the Scottish Government has been under pressure to increase the protected sum from debt advisers and advice charities.

However, the Scottish Government has resisted calls to dramatically increase the minimum protected sum for earnings arrestments. New regulations have been laid before the Scottish Parliament that propose increasing the amount of wages that are protected from £566.51 a month to £655.83. However, Alan McIntosh of the website advicescotland.com, has criticised this decision. He said: “What this suggests is the average wage arrestment recovers approximately £785 a year or £65 a month. These are the type of households that need greater protection, as they’re least likely to have been able to cope in recent months with hikes in fuel prices and other increases in the cost of living.

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