By Alan McIntosh
SECTION 30 of the Scotland Act 1998 is a law that is frequently in the news, most recently in relation to the holding of another independence referendum. It is the power in the Scotland Act that allows the UK Government to give powers to the Scottish Parliament to legislate in an area that is normally reserved to Westminster.
However, could a Section 30 order help with the energy crisis and the debts that many Scots are expected to accrue?
Currently in the UK there two debt respite schemes for those who are experiencing financial hardship and which people can use to obtain protection from their creditors whilst they are seeking advice. In England and Wales, this scheme is known as Breathing Space, and in Scotland it is known as a Statutory Moratorium.
The benefits of a Statutory Moratorium in Scotland are they can be registered by individuals to secure protection from their creditors. They are free to apply for and can be registered online. They then protect you from formal debt recovery procedures, such as wage or bank account arrestments, for six months, whilst you seek advice and assistance to address your debts.
Unfortunately, in Scotland, Statutory Moratoriums provide you with little to no protection from energy companies, so they can still apply for a warrant to disconnect your energy supply or install a prepayment meter, which they can then use to recover any arrears you owe. This is unlike the benefits of the UK Breathing Space scheme, which does provide protections against this type of debt recovery.
The problem is most of Scotland’s debt laws are devolved and, therefore, must be legislated on by the Scottish Parliament. However, as energy debt is largely a reserved matter, the Scottish Parliament cannot make laws that would stop warrants of entry being applied for. So, someone’s energy supply can be disconnected, or a prepayment meter can be installed and then used to recover arrears even when a Statutory Moratorium is in force.
However, Scotland’s political leaders could come together to request from the UK Government a Section 30 order devolving a limited number of powers relating to the recovery of energy debt. This would then allow the Scottish Government to legislate to bolster the level of protections that Statutory Moratoriums can provide Scottish consumers, to a level like those available to others in the UK.
There is no reason why Section 30 orders should always be controversial or only relate to controversial constitutional issues. When there is a case that such an order would allow for good government, then they should be granted. There is clearly a case where the primary issue being legislated on is devolved, but some additional powers are required to ensure that the primary issue can be legislated on effectively, that a Section 30 order should be granted and supported by all Scotland’s MSPs. In the case of energy debt, this is certainly the case and would ensure Scottish consumers receive parity with consumers in England and Wales.
Alan McIntosh is the Managing Director of Advice Talks Ltd
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