The Programme for Government 2022-23 announced by the First Minister today, included a commitment to help those paying debts through the Debt Arrangement Scheme (DAS), in advance of further legislation on bankruptcy and diligence.

The planned change in the DAS regulations is in relation to 6 month payment break variations, and the intention to extend the eligibility criteria to include those impacted by the ongoing cost crisis. Current plans are for the new regulations to come into force by the end of this calendar year, pending parliamentary approval.

To prevent the potential revocation of Debt Payment Programmes (DPPs) before the new regulations come into force, the DAS Administrator will refuse to revoke DPPs on the grounds of failure to maintain payments, where it can be demonstrated that the cost crisis has impacted surplus income to the extent that DPP commitments cannot be maintained. Where revocation applications are received, money advisers should provide an updated income and expenditure statement using the common financial tool to illustrate their clients’ circumstances, supported by a written explanation detailing how surplus income has been impacted.

This measure will be removed after the amended regulations come into force.