Emergency Covid-19 laws lodged to help cut risk of bankruptcy
Hundreds of National Trust for Scotland jobs under threat
Emergency laws aimed at saving Scots from falling into bankruptcy as a result of Coronavirus have been lodged at Holyrood.
Thousands of Scots have been left in financial limbo as workplaces around the country have closed and delays persist in accessing Universal Credit and the government’semploymentretention Scheme which covers 80 per cent of the wages of workers
The Coronavirus (Scotland) (No.2) Bill will raise to £10,000 the minimum debt level that an individual must owe before a creditor can make them bankrupt. Other elements of the legislation include a proposed additional £19.2 million investment in Carer’s Allowance Supplement, the introduction of notice to leave periods for students in purposebuilt student accommodation and halls of residence, and additional protections for those facing bankruptcy.
Scotland’s constitution secretary Michael Russell said: “The bill will help many people facing bankruptcy, adding to emergency measures which the Scottish Parliament has already approved.
“It will also provide Scottish ministers with the power to introduce reductions in nondomestic rates payable during 2020-21, and a wide range of changes necessary to support public services to continue to operate as they were intended during what are exceptional circumstances.
“Throughout this crisis we have tried to achieve consensus and will continue to work on a cross-party basis to enable the government to take the steps necessary to help Scotland get through these extraordinary times.”
The bill will also raise the upper threshold for the availability of the minimal asset process (MAP) to £25,000. This means more people who find themselves in debt will be able to avoid a costly and lengthy bankruptcy process.
Previous coronavirus emergency legislation passed last month at Holyrood gave people six months protection from their creditors while they think through their options, as many find themselves pushed into “unsustainable debt” by the pandemic.
The bill will face a fast-track scrutiny process by MSPS this week and be passed in its final form next week at Holyrood.
Changes in areas including non-domestic rates relief, proceeds of crime and the wider operation of Scotland’s criminal justice system are also included in the legislation.
It will also see “notice to leave” periods introduced for students tied into existing contracts or those looking to enter into contracts for the next academic year in halls of residence and purpose-built student accommodation.
People under contract in halls of residence will be able to give seven days’ notice to cancel their agreement, according to the proposals being introduced at Holyrood this week.
Those who enter into a contract in the life of the bill will also be given the power to give 28 days’ notice. It will mean students unable to take up their offers of student accommodation in the next academic year due to coronavirus will not be held liable.
National Union of Students (NUS) Scotland president Liam Mccabe welcomed the bill, describing it as a “victory for students”.
He added: “Since before the lockdown students have been paying for student accommodation they moved out of. NUS Scotland’s message to accommodation providers is clear: provide refunds to the students you have been exploiting, finally giving them the peace of mind you have been denying them.
“NUS Scotland has long called for the Scottish Government to instigate a comprehensive review of the student accommodation sector. The conduct of some accommodation providers during this crisis makes that review all the more urgent.”
More than 420 staff at the National Trust for Scotland (NTS) are at risk of redundancy as the charity faces a £28 million loss due to the coronavirus pandemic.
The conservation charity has launched a “radical” series of emergency actions designed to ensure its survival and to protect the “birthright of generations yet to come”.
As well as placing 429 staff in its permanent workforce at risk of redundancy, it will approach grant-giving bodies and the Scottish Government for financial support and seek to sell non-heritage land and property.
The trust, which cares for places such as Culloden, Culzean Castle and Hill House in Helensburgh, said its income has been virtually eradicated during what is
Lucinda Cameron