Scottish debts will be deducted from payroll

Businesses who employ Scottish staff who default on personal debts will have to administer payments from payroll from today.

The Telegraph reports that the Scottish Parliament is introducing voluntary debtor agreements for people struggling to pay off debts on credit or store cards.

This will allow anyone who lives in Scotland – even if they work in England or Wales –- to agree to pay off the debts in instalments direct from their salary. Under the new rules, employers are obliged to comply with the request.

Business groups have warned that most companies will not be ready for the change.

However, a Scottish Executive spokesman told the paper there was an incentive for firms to comply as they would “end up with happier employees”.

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