Tribunals, Courts and Enforcement Bill [HL]

House of Commons

Session 2006 - 07
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Tribunals, Courts and Enforcement Bill [HL]

Tribunals, Courts and Enforcement Bill [HL]
Schedule 15 — Attachment of earnings orders: deductions at fixed rates
Part 1 — Main amendments
251

Schedule 15
Section 86

Attachment of earnings orders: deductions at fixed rates
Part 1
Main amendments
Introduction
5
1
This Schedule amends the Attachment of Earnings Act 1971 (c. 32).
Amendment of section 6: Effect and contents of order
2     (1)
For section 6(1)(a) (instruction to employer to make deductions from
debtor’s earnings) substitute—
“(a)
to make periodical deductions from the debtor’s earnings, as
10
specified in the order; and”.
      (2)
After section 6(1) insert—
“(1A)
If a county court makes an attachment of earnings order to secure
payment of a judgment debt, the order must specify that periodical
deductions are to be made in accordance with the fixed deductions
15
scheme.
(1B)
If a court (whether a county court or another court) makes any other
attachment of earnings order, the order must specify that periodical
deductions are to be made in accordance with Part 1 of Schedule 3.”
      (3)
In section 6(5) (order to specify normal deduction and protected earnings
20
rates), for “the order” substitute “a Schedule 3 deductions order”.
Insertion of new section 6A
3
After section 6 insert—
“6A
The fixed deductions scheme
(1)
In this Act “fixed deductions scheme” means any scheme that the
25
Lord Chancellor makes which specifies the rates and frequencies at
which deductions are to be made under attachment of earnings
orders so as to secure the repayment of judgment debts.
(2)
The Lord Chancellor is to make the fixed deductions scheme by
regulations.
30
(3)
The power to make regulations under subsection (2) is exercisable by
statutory instrument.
(4)
The Lord Chancellor may not make a statutory instrument
containing the first regulations under subsection (2) unless a draft of
the instrument has been laid before, and approved by resolution of,
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each House of Parliament.
(5)
A statutory instrument containing any subsequent regulations under
subsection (2) is subject to annulment in pursuance of a resolution of
either House of Parliament.”

Tribunals, Courts and Enforcement Bill [HL]
Schedule 15 — Attachment of earnings orders: deductions at fixed rates
Part 1 — Main amendments
252

Amendment of section 9: Variation, lapse and discharge of orders
4
After section 9(1) (power of court to vary order) insert—
“(1A)
Subsection (1) is subject to Schedule 3A (which deals with the
variation of certain attachment of earnings orders by changing the
basis of deductions).”
5
Insertion of new section 9A
5
After section 9 insert—
“9A
Suspension of fixed deductions orders
(1)
A county court must make an order suspending a fixed deductions
order if the court is satisfied of either or both of the following—
10
(a)
that the fixed deductions order requires periodical
deductions to be made at a rate which is not appropriate;
(b)
that the fixed deductions order requires periodical
deductions to be made at times which are not appropriate.
(2)
The county court is to make the suspension order on the following
15
terms—
(a)
if the condition in subsection (1)(a) is met: on terms
specifying the rate at which the debtor must make
repayments (whether higher or lower than the rate at which
the order requires the deductions to be made);
20
(b)
if the condition in subsection (1)(b) is met: on terms
specifying the times at which the debtor must make
repayments;
(c)
if either or both conditions are met: on any additional terms
that the court thinks appropriate.
25
(3)
If the employer is given notice of the suspension order, the employer
must cease to make the deductions required by the fixed deductions
order; but the employer is under no liability for non-compliance
before seven days have elapsed since service of the notice.
(4)
A county court—
30
(a)
must revoke the suspension order if any of the terms of the
suspension order are broken;
(b)
may revoke the suspension order in any other circumstances
if the court thinks that it is appropriate to do so.
(5)
Rules of court may make provision as to the circumstances in which
35
a county court may of its own motion—
(a)
make a suspension order; or
(b)
revoke a suspension order.
(6)
The suspension of a fixed deductions order under this section does
not prevent the order from being treated as remaining in force
40
subject to the provisions of this section.
(7)
This section is without prejudice to any other powers of a court to
suspend attachment of earnings orders or to revoke the suspension
of such orders.

Tribunals, Courts and Enforcement Bill [HL]
Schedule 15 — Attachment of earnings orders: deductions at fixed rates
Part 1 — Main amendments
253

(8)
In this section, in relation to a fixed deductions order, “repayments”
means repayments of the judgment debt to which the order relates.”
Amendment of section 25: General interpretation
6
In section 25(1) (meaning of particular words and phrases) insert the
following entries at the appropriate place—
5
““fixed deductions order” means an attachment of earnings
order under which periodical deductions are to be made in
accordance with the fixed deductions scheme;”;
““fixed deductions scheme” has the meaning given by section
6A(1);”;
10
““Schedule 3 deductions order” means an attachment of
earnings order under which periodical deductions are to be
made in accordance with Part 1 of Schedule 3;”;
““suspension order” means an order under section 9A
suspending a fixed deductions order;”.
15
Insertion of new Schedule 3A
7
After Schedule 3 insert—
“Schedule 3A
Changing the basis of deductions
Part 1
20
Changing to the fixed deductions scheme
Introduction
1
This Part of this Schedule deals with the variation of a certain kind
of attachment of earnings order — referred to as a Schedule 3
judgment debt order — by changing the basis of deductions.
25
2
A Schedule 3 judgment debt order is a Schedule 3 deductions
order made by a county court to secure payment of a judgment
debt.
3
References to variation of a Schedule 3 judgment debt order by
changing the basis of deductions are references to the variation of
30
the order so that it specifies that periodical deductions are to be
made in accordance with the fixed deductions scheme.
Variation at discretion of court
4     (1)
A county court may vary a Schedule 3 judgment debt order by
changing the basis of deductions.
35
      (2)
The county court may make the variation—
(a)
in consequence of an application made to the court, or
(b)
of its own motion.
      (3)
The variation takes effect on the date that it is made.

Tribunals, Courts and Enforcement Bill [HL]
Schedule 15 — Attachment of earnings orders: deductions at fixed rates
Part 1 — Main amendments
254

Variation by court upon redirection
5     (1)
A county court must vary a Schedule 3 judgment debt order by
changing the basis of deductions if—
(a)
the order lapses, and
(b)
the county court directs the order to a person in accordance
5
with section 9(4).
      (2)
The variation must be made at the same time as the county court
directs the order in accordance with section 9(4).
      (3)
The variation takes effect on the date that it is made.
Automatic variation on changeover date
10
6     (1)
On the changeover date, all Schedule 3 judgment debt orders are
to be treated as if a county court had varied them by changing the
basis of deductions.
      (2)
The variation takes effect on the changeover date.
      (3)
The changeover date is the date which the Lord Chancellor
15
specifies for the purposes of this paragraph.
      (4)
The Lord Chancellor is to specify the changeover date in an order
made by statutory instrument.
      (5)
A statutory instrument containing an order under sub-paragraph
(4) is subject to annulment in pursuance of a resolution of either
20
House of Parliament.
Notice of variation still required
7
Section 9(2) (service by court of notice of variation) applies to the
variation of an order under this Part of this Schedule (including
variation in accordance with paragraph 6) as it applies to any other
25
variation of an attachment of earnings order.
Part 2
Changing from the fixed deductions scheme
Introduction
8
This Part of this Schedule deals with the variation of fixed
30
deductions orders by changing the basis of deductions.
9
References to variation of a fixed deductions order by changing
the basis of deductions are references to the variation of the order
so that it specifies that periodical deductions are to be made in
accordance with Part 1 of Schedule 3.
35
General prohibition on changing from the fixed deductions basis
10
A court may not vary a fixed deductions order by changing the
basis of deductions unless the variation is in accordance with this
Part of this Schedule.

Tribunals, Courts and Enforcement Bill [HL]
Schedule 15 — Attachment of earnings orders: deductions at fixed rates
Part 2 — Consequential amendments
255

Fixed deductions order directed to secure payments under an administration order
11    (1)
A county court must vary a fixed deductions order by changing
the basis of deductions if, under section 5, the county court directs
the order to take effect as an order to secure payments required by
an administration order.
5
      (2)
The variation must be made at the same time as the county court
gives that direction under section 5.
      (3)
The variation takes effect on the date that it is made.
      (4)
Section 9(2) (service by court of notice of variation) applies to the
variation of an order under this paragraph as it applies to any
10
other variation of an attachment of earnings order.”
Part 2
Consequential amendments
Amendment of section 5: Securing payments under administration order
8
In section 5(3) (power of county court to direct existing attachment of
15
earnings order to secure administration order), for the words in brackets
substitute “(with the variation required by paragraph 11 of Schedule 3A and
such other variations, if any, as the court thinks appropriate)”.
Amendment of section 14: Power of court to obtain information
9
In section 14(1) (power of court to order debtor and employer to provide
20
specified information), for “an attachment of earnings order” substitute “a
Schedule 3 deductions order”.
10
After section 14(1) insert—
“(1A)
Where in any proceedings a county court has power to make a fixed
deductions order, the court may order the debtor to give to the court,
25
within a specified period, a statement signed by him of—
(a)
the name and address of any person by whom earnings are
paid to him; and
(b)
specified particulars for enabling the debtor to be identified
by any employer of his.”
30
11
In section 14(2) (powers of court after attachment of earnings order has been
made), for the words from “Where” to “in force—” substitute “At any time
when a Schedule 3 deductions order is in force, the court or the fines officer,
as the case may be, may—”.
12
After section 14(2) insert—
35
“(2A)
At any time when a fixed deductions order is in force, the court
may—
(a)
make such an order as is described in subsection (1A) above;
and
(b)
order the debtor to attend before it on a day and at a time
40
specified in the order to give the information described in
subsection (1A) above.”

Tribunals, Courts and Enforcement Bill [HL]
Schedule 15 — Attachment of earnings orders: deductions at fixed rates
Part 2 — Consequential amendments
256

13
In section 14(4) (rules of court about notice of application for attachment or
earnings order), for the words from “give” to “the application.” substitute “,
within such period and in such manner as may be prescribed, give the court
a statement in accordance with subsection (4A) or (4B).”.
14
After section 14(4) insert—
5
“(4A)
In a case where the attachment of earnings order would, if made, be
a Schedule 3 deductions order, the debtor must give a statement in
writing of—
(a)
the matters specified in subsection (1)(a) above, and
(b)
any other prescribed matters which are, or may be, relevant
10
under section 6 of this Act to the determination of the normal
deduction rate and the protected earnings rate to specified in
any attachment of earnings order made on the application.
(4B)
In a case where the attachment of earnings order would, if made, be
a fixed deductions order, the debtor must give a statement in writing
15
of the matters specified in subsection (1A) above.”
15
In section 14(5) (certain statements in proceedings for making or varying etc
attachment of earnings orders deemed to be evidence of facts stated), after
“subsection (1)(a) or (b)” insert “or (1A)”.
Amendment of section 15: Obligation of debtor and employer to notify changes
20
16    (1)
Section 15(1) is amended as follows.
      (2)
In paragraph (b) (obligation to notify of court of earnings under new
employment) at the beginning insert “if the order is a Schedule 3 deductions
order,”.
      (3)
In paragraph (c) (obligation of employer to notify court of debtor’s new
25
employment and earnings) for “and include” insert “and, if the order is a
Schedule 3 deductions order, include”.
Amendment of section 17: Consolidated attachment orders
17    (1)
Section 17(3) (rules of court made in connection with consolidated
attachment orders) is amended as follows.
30
      (2)
In paragraph (b) (rules relating to powers of court to which order etc
transferred), after “vary” insert “, suspend”.
      (3)
In paragraph (e) (rules modifying or excluding statutory provisions), after
“provisions of this Act” insert “, the fixed deductions scheme”.
18
After section 17(3) insert—
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“(4)
Section 6(1A) applies to a consolidated attachment order which a
county court makes to secure the payment of two or more judgment
debts even if, immediately before the order is made, one or more of
those debts is secured by a Schedule 3 deductions order.”
Amendment of section 23: Enforcement provisions
40
19
Section 23 is amended as follows.

Tribunals, Courts and Enforcement Bill [HL]
Schedule 16 — Administration orders: consequential amendments
257

20
In subsection (1) (failure of debtor to attend hearing)—
(a)
for the words from “notice of an application” to “such an order”
substitute “relevant notice,”;
(b)
for “for any hearing of the application” substitute “in the notice for
any hearing,”.
5
21
After subsection (1) insert—
“(1ZA)
In subsection (1) “relevant notice” means any of the following—
(a)
notice of an application to a county court to make, vary or
suspend an attachment of earnings order;
(b)
notice that a county court is, of its own motion, to consider
10
making, varying or suspending an attachment of earnings
order.”
22
In subsection (2)(c) and (f) (offences related to attachment of earnings
orders)—
(a)
after “section 14(1)” insert “or (1A)”.
15
(b)
after “attachment of earnings order” insert “or suspension order”.
Schedule 16
Section 101

Administration orders: consequential amendments
Attachment of Earnings Act 1971 (c. 32)
1     (1)
Section 4 of the Attachment of Earnings Act 1971 (extension of power to
20
make administration order) is amended as follows.
      (2)
For subsections (2) and (2A) substitute—
“(2)
The court may make an administration order in respect of the
debtor’s estate if, after receipt of the list referred to in subsection
(1)(b) above, the court is satisfied that the conditions in sections
25
112B(2) to (7) of the County Courts Act 1984 (conditions to power to
make administration orders) are met in relation to the debtor.”
      (3)
In subsection (4) for “section 112” substitute “section 112J”.
Magistrates’ Courts Act 1980 (c. 43)
2     (1)
Schedule 6A to the Magistrates’ Courts Act 1980 (fines that may be altered
30
under section 143 of the 1980 Act) is amended as follows.
      (2)
Insert the following entry at the appropriate place in the entries relating to
the County Courts Act 1984 (c. 28)—

“Section 112N(1) (administration

£250”

orders: failure to provide information)

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