Scottish Water can make payment to customers as a result of asset failures that have triggered Service Standard payments or claims made and settled via Scottish Water’s Public Liability Insurance.

Scottish Water supplies water and waste water services to over 5 million customers across Scotland via 60,000 miles of pipes and thousands of assets. If there is an asset failure (such as flooding caused by a burst water pipe) which has affected customers and Scottish Water is liable, these claims are fully assessed and settled via Public Liability Insurance. Scottish Water also operates under an agreed Service Standards framework to also protect customers’ interests and pay where there is a service failure.

Scottish Water’s Service Standards can be viewed at: https://www.scottishwater.co.uk/contact-us/our-promise-to-you/our-services-your-rights/our-service-standards

The payments listed below are for Public Liability cases over the last 4 years.

Public Liability Compensation Payments to Customers by Scottish Water

The Student Loans Company (SLC) estimate that, at the end of 2017-18, there was an estimated outstanding student loan balance of
‎ £4,984.5 million. Of this, they estimate that:

(a) Information on the proportion of the total outstanding balance that is due to the repayment threshold is not publically available or held centrally by the Scottish Government. A request can be made directly to the SLC for this information.

(b) £10.6 million (0.2%) is due to default by the recipient.

Source: SLC (2018) Student loans debt and repayment, https://www.slc.co.uk/official-statistics/student-loans-debt-and-repayment/scotland.aspx ).

The National Bereavement Care Pathway for Pregnancy and Baby Loss is in the early stages of development in Scotland. The project approach will be developed over the next two years. Scottish Government has provided funding of £94,000 to the Stillbirth and Neonatal Death Charity (Sands) to lead the work with other baby loss charities, bereaved parents, health care professionals and Royal Colleges. It is expected that the pathways will provide a toolkit of practical guidance and training tools for all healthcare professionals working with bereaved parents in order to ensure they receive the best possible care.

The Scottish Government estimates that 22.4% of student loans drawn down in 2018-19, and 30.2% of the total historic loan book, will not be repaid.

These estimates have increased from 13.5% and 20.1% respectively in 2017-18, please see the answer to question S5W-20801 on 31 January 2019, primarily as a result of the increased student loans repayment threshold. ‎

All answers to written parliamentary questions are available on the Parliament's website, the search facility for which can be found at http://www.parliament.scot/parliamentarybusiness/28877.aspx .

The reclassification decision affects the UK National Accounts, a statistical publication which is prepared under the European System of Accounts (ESA 10). The Scottish Government annual accounts are prepared under the International Financial Reporting Standards (IFRS), and as such recognise the likelihood that a proportion of student loans will not be repaid. No change to the Scottish Government accounting treatment is required as a result of the reclassification decision.

The following table shows the cash value of student loans that are estimated to be unpaid and written-off in the next 5, 10 and 15 years for both the previous and latest student loan repayment thresholds.

(A) Cash value of unpaid student loans

The value of the student loan book disclosed in the Scottish Government accounts reflects the likelihood that a proportion of student loans will not be repaid (the accounts show the ‘fair value’).

Student loans drawn down in the current year are adjusted to reflect expected write-offs and the interest rate subsidy. Those charges were 13.5% (£84.3m) and 11.1% respectively at 31 March 2017 (£66.2m).

Scottish Government also annually reviews the value of the historic loan book to assess the likely value of loans which will not be recovered. At 31 March 2017, the estimated loan write-off was 20.1% of the gross value of historic loans and the interest rate subsidy was 9.8%. The fair value of the loan book is then adjusted as necessary. In 2017-18, the fair value of the loan book was adjusted by £30.1m.

Under the Water Services etc. (Scotland) Act 2005 Scottish Ministers were duty bound to appoint the first chief executive of the Commission. Subsequent appointments to the post of chief executive and the ongoing remit relevant to the functions of the Commission are for the Commission to determine.

The Board has been in place since the Water Industry Commission was established in 2005. The current membership is available at https://www.watercommission.co.uk/view_who_is_who.aspx .

There is no set term of office for the Chief Executive of the Water Industry Commission for Scotland.