Deductions From Benefits
People on benefits are expected to meet their household expenses from their income just like everyone else. But in some cases money can be taken from benefits to make an essential payment or to repay a debt.
Such deductions are intended for a minority of benefit claimants who have got arrears of essential household costs and haven’t budgeted for their debts. They are only used when there’s no other way to clear the debts without putting the welfare of claimant or their family at risk.
Deduction From Benefits, sometimes referred to as an Attachment of Benefits can be used to take money from certain benefits:
- Job Seekers Allowance (JSA)
- Income Support (IS)
- Employment Support Allowance (ESA)
- Pension Credit Guaranteed Credit (PCGC)
- Universal Credit
Types of payments and debts that can be included in the scheme include:
- Rent Arrears
- Council Tax arrears
- Gas and Electricity arrears (known as the Fuel Direct Scheme scheme)
- Water bill payment and arrears (known as the Water Direct Scheme scheme)
- Fines
Fuel Direct scheme
Fuel direct is designed to help those struggling to manage their finances to the extent they can’t pay home fuel costs.
If you’ve gas and/or electricity arrears and are struggling to afford the catch up repayments with your supplier, you might be able to repay through the Fuel Direct Scheme.
This is an alternative to and possibly more convenient than a prepayment meter. Speak to your supplier for more information.
Water Direct scheme
The Water Direct scheme to allow those with arrears to pay a fixed amount towards their charges and arrears from their benefits. This may help many budgeting and managing bills. Speak to your supplier for more information.
The Consumer Council for Water have more information about the Water Direct scheme.