Annual Report and Accounts 2023-24

Performance summary - Operational delivery

In 2023-24 the number of personal insolvencies in Scotland was 8,085, a 1% increase from the previous year. We had forecast a greater increase as individuals faced fluctuating food and energy costs – but in the event, numbers remain below pre-pandemic levels. We have continued engaging with our stakeholders throughout the year to better understand trends in the insolvency market.

5,278 debt payment programmes were approved under the Debt Arrangement Scheme (DAS), an increase of 6.7% from the previous year. DAS is not an insolvency process and allows clients to repay their full debt over an agreed period.

In 2023-24 alone, 1,824 people successfully completed their payment programmes. Over £41 million repaid to creditors from all live debt payment programmes under DAS.

Dividends from bankruptcy repaid a further £7.4 million while £24.5 million was paid out to creditors through dividends from protected trust deeds.

Performance summary – Finance

Total Agency resource expenditure for the year was £10.2 million, with fees and charges covering £9.0 million of these costs, and the remaining £1.2 million provided by the Scottish Government. Capital spend for the year was £0.7 million.

Performance summary - Policy development

A new Bankruptcy and Diligence Bill including taking powers to introduce a mental health moratorium was introduced to Parliament in late April 2023. This was followed by a number of sets of regulations taking forward proposals from the previous year’s stakeholder working groups.

The Bill was considered by the Economy and Fair Work Committee of the Scottish Parliament, and evidence from stakeholders was heard between September and October 2023. The Minister and the Accountant gave evidence to the Committee in November 2023. The Committee’s Report on the Bill was published on 23 January 2024.

An independent review of statutory debt solutions in Scotland commenced in March 2024. The review is chaired by Yvonne MacDermid, formerly Head of Money Advice Scotland. AiB are providing secretariat support to the review.