Armed Forces Act 2006

356 Avoidance of assignment of or charge on pay and pensions etc

(1) Each of the following shall be void—

(a) every assignment (or, in Scotland, assignation) of any relevant pay or pension;

(b) every charge on any relevant pay or pension;

(c) every agreement to assign or charge any relevant pay or pension.

(2) In this section “relevant pay or pension” means any pay, pension, benefit, bounty, grant or allowance payable to any person in respect of his or any other person’s service in Her Majesty’s forces.

(3) No order may be made by a court the effect of which would be—

(a) to prevent any person from receiving any relevant pay or pension; and

(b) to direct payment of it to another person.

(4) Nothing in this section—

(a) applies to the making or variation of attachment of earnings orders or of earnings arrestments; or

(b) prejudices any enactment or subordinate legislation providing for the payment of any sum to—

(i) a bankrupt’s trustee in bankruptcy, or

(ii) a permanent trustee in a sequestration under the Bankruptcy (Scotland) Act 1985 (c. 66),

for distribution among creditors.

(5) In this section—

(a) “enactment” includes any provision of an Act of the Scottish Parliament or Northern Ireland legislation;

(b) the reference to subordinate legislation includes an instrument made under such an Act or under Northern Ireland legislation.