Citizens Advice not only provides advice through its network of CABs, but it also works to influence decision-makers to secure policy changes. This ensures that the issues facing clients, and the wider public are being addressed in a bid to protect them from happening in the future.

The issues we influence on are all incredibly important but there can occasionally be a matter that really sticks in yer craw. Take the arrestment of benefit income in bank accounts for example. This happens frequently, yet the practice is against the law.

When a person is in debt, a creditor can utilise a form of debt recovery called a bank arrestment. This is when that person’s bank account is frozen and if the debt is not settled within a set time period, and provided there are funds remaining above a Protected Minimum Balance threshold, then the bank releases these funds to the creditor. According to Scots law, this is a perfectly legal method of recovering monies owed and used mostly by local authorities, and specifically in relation to council tax debt.

For those on the receiving end of a bank arrestment there is often benefit income in their bank account, some may have solely benefits income while others have a mix of earnings and benefits. The problem is that while UK law protects benefit income from being taken by creditors, it gets taken anyway. When dealing with arrestment orders, banks point to it being too onerous and challenging to work out what income is deemed earnings and what is deemed benefits, while also referring to a legal view that benefit income loses its protected status when it lands in a bank account.

This situation is neither fair nor acceptable. Too many people are still financially struggling from the ill-wind of the pandemic and cost of living crisis, and we know from our own data that increasing number of clients experiencing debt are also in receipt of social security.

Citizens Advice Scotland believes that a solution can and must be found to prevent the arrestment of benefit payments. Banks surely have the ability in this digital and AI age to figure out what is and what isn’t benefit income, while local authorities have the insight to know when someone is on benefits and therefore should not be subject to a bank arrestment.

This should not be hard, especially for those whose income is solely benefit. We recognise that the issue of separating mixed earnings and benefit income is more challenging, but with the right technology and the correct mindset, a solution can be found.

Thankfully, the Scottish Government agreed with the view of the money advice sector that this practice needed closer examination and a clear resolution. So, during the passing of the recent Bankruptcy & Diligence (Scotland) Act, the government promised to consult with various stakeholders, with a view to agreeing a way forward.

During this consultation and in other talks with the government, we will do everything we can to make sure there is proper protection of benefits income from bank arrestments so we bring fairness, not to mention legality, back into this form of debt recovery.