Essential expenditure section amended following Ofgem energy price cap announcement

The Accountant in Bankruptcy (AiB) amended section 6.8 of its Notes for Guidance on the Common Financial Tool on 27 August 2024, following an Ofgem announcement on the energy price cap¹. The update log records the change as: "Following Ofgem announcement on energy price cap, an amendment has been made to essential expenditure section 6.8"¹.

Section 6.8 sets the level of spending on gas and electricity that a debtor can claim without providing supporting evidence. The most recent figure given in the guidance is £130 per month from July 2024, following a change to evidence requirements recorded on 28 May 2024¹. Earlier entries show the figure was £140 per month combined as of 23 February 2024¹. The guidance also records an amendment on 31 December 2023 "to reflect the energy price cap set to an annual level of £1,928 as of 1 January 2024"¹.

The threshold at which AiB requires sight of supporting evidence has moved repeatedly. An entry dated 10 December 2024 states that AiB "will only require sight of supporting evidence/estimates if it has been determined that the spend will exceed £143 per month", rising to £145 per month from 1 January to 31 March 2025¹. Later updates record £143 from 1 October 2025, £143 from 1 April 2026, and £155.00 per month from 1 July to 30 September 2026¹. A 2 September 2026 update refers to "supporting evidence figures and move to Ofgem calculations for future changes"¹.

The Common Financial Tool guidance covers bankruptcy, the Debt Arrangement Scheme and protected trust deeds in Scotland¹. Appendix A lists income sources from which a contribution can be taken, including earnings, private pension, annuities, grants, trusts, rents, maintenance or child support paid to the debtor, boarders or lodgers, non-dependant contribution, bursary and foster care professional fees excluding the foster care allowance¹. The guidance states this "is not an exhaustive list" and that in some cases the terms of an agreement or award may indicate a contribution cannot be taken, which it says is relevant to annuities, grants and trusts only¹.

Appendix A also lists non-deductible state benefits and payments from which a contribution cannot be taken, including Universal Credit, Child Benefit, Personal Independence Payment, Disability Living Allowance, Carer's Allowance, Housing Benefit, State Pension Credit and the Scottish Child Payment¹. The Care Leaver Payment was added to Annex A as a payment except from contribution under an entry dated 31 March 2026¹. The guidance notes the list "is not exhaustive, and benefits and benefit titles and sources will change"¹.

Why it matters for households

The figures affect people in Scotland who are subject to the Common Financial Tool when applying for bankruptcy, a protected trust deed or the Debt Arrangement Scheme, and who must set out essential expenditure as part of that process. The amount they can put down for gas and electricity without producing evidence is capped at the level in section 6.8, most recently recorded as £130 per month from July 2024¹. Spending above the evidence threshold requires supporting evidence or estimates¹.

The thresholds have changed several times, with entries recording £143, £145, £146, £154, £155.00 and £137 at different dates between December 2024 and September 2026¹. The guidance does not explain the reasoning behind each figure beyond the reference to the Ofgem energy price cap announcement and the move to Ofgem calculations for future changes¹.

What happens next

The guidance's update log records a change to section 6.8 dated 2 September 2026 covering supporting evidence figures and a move to Ofgem calculations for future changes¹. No further steps are set out in the material available.