Scheme for mental health debt moratorium opens to views

How the proposed mental health moratorium for people struggling with both mental health and debt issues would work, is the subject of a new consultation from the Scottish Government.

The detail of the scheme has been formed from recommendations of a working group set up to consider the moratorium in practice, along with responses to the Holyrood committee considering the bill that introduces the scheme, and other stakeholder engagement. In the introduction, minister Tom Arthur MSP says the consultation "sets out a way forward on the detailed implementation of the scheme from the starting point that a scheme itself is accepted as the right approach".

Although the Bankruptcy and Diligence (Scotland) Bill includes the power to introduce a moratorium, the detail of the process will be left to secondary legislation.

Ministers are minded to accept the working group’s advice on the principles of eligibility criteria. To be eligible for a mental health moratorium, an individual must be receiving treatment, with an element of compulsion, under one of a number of listed provisions from the Mental Health (Care and Treatment) (Scotland) Act 2003 and the Criminal Procedure (Scotland) Act 1995, or similar. But it is also proposed that the individual must have capacity to consent to the application, including through an attorney or guardian.

They accept that this means eligibility "will at least initially be very limited". This is said to have the advantages that the scheme can start small, and be seen to be on a sound footing before possible expansion; that there is a clear line between those who are and are not eligible, bringing clarity for advisers and others concerned with operating the scheme; and that every individual falling within the criteria will then have a support team of mental health professionals around them – the mental health officer is likely to be the first to become aware of the possible connection between the individual’s financial circumstances and their mental health.

There will not however be a minimum debt level. Ministers propose "a simple statement from the mental health professional to confirm that debt problems are impacting negatively on the client’s mental health, together with a commitment from a debt adviser to provide support in due course". This is thought preferable to a statement from a debt adviser, as it might not be appropriate for that adviser to spend the necessary time with the individual at that point.

Further questions concern the subsequent process and the roles of the respective advisers and professionals involved. 

Find the consultation here. The deadline for responses is 22 January 2024.