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It is anticipated that the number of individuals who use the scheme will be relatively low, so we anticipate that the additional demand that will be placed on the sector will be minimal, at least initially. Of course, we will want to carefully monitor the number of individuals who use the scheme and continue to have close engagement with the sector to ensure that, if capacity issues that relate specifically to the introduction of the mental health moratorium are identified, we are in a position to understand and respond to those challenges.

As we have previously stated, when the consensus is that the pressures of the cost of living crisis have abated, we will reconsider the position. However, given the challenges that we currently face—it is very much a live issue that is causing significant distress to many households—there are no immediate plans to change from the current provision of six months.

I want to ensure that I provide clarity here. I understand the exceptional pressure that the money advice sector is currently under, which, in many respects, is a consequence of the cost of living crisis. I pay tribute to those who work in the money advice sector, commend them for the invaluable work that they do and recognise the significant toll that it can have on their wellbeing and mental health, which I know has been reflected in evidence to the committee. It is not the kind of job that allows people to just go home at night and switch off. The work that they do stays with them, and I commend all those who do that invaluable work.

As Richard Dennis touched on, we recognise that there is a strong desire across the sector to be involved in the mental health moratorium, but we also recognise—given the numbers involved and the more specialist nature of that particular case load—that there might be a case for taking a different approach. That is why we have flagged that specific issue in the consultation and posed a question on it. The responses that we get to the consultation, any reflections that the committee has in its stage 1 report, and our further engagement with the sector will help us to land on a position where we can command the broadest consensus.

We are all focused on ensuring that the best service possible is provided for those individuals who require it. I know that money advisers are also focused on that, which is why we are open to the process of engagement. We recognise the sector’s desire to engage, but we appreciate that there may be other means of delivering that support.

Would you like to add anything, Richard?

I do not think that there has been any specific discussion, although Richard Dennis might correct me on that. I am aware that the committee has raised the issue and I would be happy to reflect further on that and to raise it directly with the UK Government as the legislation progresses through Parliament.

I will ask Richard Dennis to come in with the detail on that.

I would be happy to have further conversations about that. I would be keen to get a sense of the committee’s view in the light of the views that others might express. We are having to take account of the impact that varying provision would have on employers. With regards to uprating, there is the question whether that is an exceptional one-off event, or whether the committee takes the view that there should be an underlying rationale for a more predictable rhythm of uplifts to reflect other circumstances, such as prevailing economic conditions. We need to recognise that, as well-intentioned as any such decision would be, it also creates administrative and compliance burdens for others, which we would want to take into account.

I recognise the issue. If arrestments are taking place that are inhibiting people from paying their council tax, that creates an additional problem. I know that witnesses have raised that issue. I am happy to have further engagement about that, recognising that we have the means to address that through existing powers and secondary legislation.

As the committee has heard in evidence at previous meetings, there is a recognition that the number of people who are likely to make use of the mental health moratorium is relatively small.

The rationale on alignment with existing statutory provisions, including those under the Mental Health (Care and Treatment) (Scotland) Act 2003, comes from wanting to ensure clarity and being able to start small but then, through the opportunity of learning, further review and reflection, potentially expanding or amending the criteria. That approach, which is afforded to us by using regulations, has been welcomed by and has had a positive reception from those in the debt advice community. I would not want to say that the process will necessarily continue like that ad infinitum. However, as a starting point, having the new provisions that we will introduce aligning with the existing statutory provisions provides clarity on eligibility.

The consultation closes on 22 January 2024. It is unlikely that we will be able to complete the independent analysis process ahead of being able to share the draft regulations. We would certainly endeavour to do that and it might be possible. We would be able to provide a summary of the consultation responses, which will help to inform the draft regulations.

Of course, engagement with the committee will further inform what we propose as final regulations. I am open to further public consultation on the draft regulations, beyond simply sharing them with the committee, to explore those matters in further detail. We have set out a series of proposals that reflect the recommendations of the expert working group and we are seeking further views on that through the public consultation that we launched earlier this month.

We are not going to artificially compress the timescale because that would prevent us from taking a fully considered view about what regulations are to be laid before the Parliament. We are trying to ensure that the committee has as early sight as possible of the draft regulations and we hope that the analysis will be completed, published and available to inform the committee’s deliberations. However, preliminary analysis of the responses to the consultation will inform the draft regulations that we introduce.

My concern is to ensure that what up to this point has been a highly collaborative process, informed by expert opinion, continues as we work towards the preparation of the regulations, informed by the consultation on the draft regulations that we bring before the committee, with the potential for further public consultation, and by input from the committee. From that cumulative process, we will be able to lay before the Parliament for approval a final set of regulations that can command the widest support and reflect all the engagement that will have been undertaken.