The DWP has published the Government’s response to the August 2007 consultation on amending the employer debt regulations. The Government’s response summarises the concerns raised by respondents to the consultation and the Government’s response to these issues.

In the period since the consultation closed the Government has brought into force legislation to amend the employer debt regulations 2005.

For background on the changes made to the employer debt regulations 2005 please see EPB briefing 167: The employer debt amendment regulations and EPB bulletin 21 April 2008. To request copies of material from our April 2008 client seminar on the employer debt regulations please email Josh Gabriel.

The Government’s response is useful in that it provides an explanation of the reasons for some of the changes made to the employer debt regulations. The Government also refers to its intention to carry out a fundamental re-appraisal of the way the employer debt legislation can affect corporate restructuring. The Government first signalled its intention to carry out a further review of the employer debt legislation in its response to the deregulatory review (see EPB bulletin 10 December 2007).

The Government has said that it will consider, among other things, concerns relating to the uncertainty surrounding the definition of “active member” as part of this review. Freshfields Bruckhaus Deringer was a respondent to the Government’s consultation on amending the employer debt regulations.