Annual Report and Accounts 2024-25

Performance summary - Operational delivery

In 2024-25 the number of personal insolvencies in Scotland was 7,412, an 8.3% decrease from the previous year. This was unexpected and appears to be part of a new normal, having shown little fluctuation in personal insolvency numbers since the Covid-19 pandemic. Indeed, numbers post-pandemic have remained markedly lower than pre-pandemic. We have continued engaging with our stakeholders throughout the year to better understand these trends.

5,293 debt payment programmes were approved under the Debt Arrangement Scheme (DAS), a very small increase of 0.3% from the previous year. DAS is not an insolvency process and allows clients to repay their full debt over an agreed period.

In 2024-25 alone, a record 2,145 people successfully completed their payment programmes. Over £48 million was repaid to creditors from all live debt payment programmes under DAS compared to £41 million the previous year.

Dividends from bankruptcy repaid a further £7.8 million while £20.8 million was paid out to creditors through dividends from protected trust deeds.

Performance summary – Finance

Total Agency resource expenditure for the year was £10.6 million, with fees and charges covering £9.2 million of these costs, and the remaining £1.4 million provided by the Scottish Government. Capital spend for the year was £0.7 million.

Performance summary - Policy development

The Bankruptcy and Diligence (Scotland) Act 2024, which includes the Mental Health Moratorium provisions, was approved by Scottish Parliament in June 2024. A consultation on draft regulations was carried out from 9 December 2024 to 17 March 2025.

The next steps are analysis of the consultation and further engagement with stakeholders.  

The 2024 Act includes a “super-affirmative” process, which requires Ministers to submit a revised draft of regulations to the Economy and Fair Work Committee of the Scottish Parliament, and have regard to any representations on them, before formerly laying the regulations to bring a Mental Health Moratorium into force.