Deductions from benefit: how creditors can apply
Guidance for new creditors, for example, utility suppliers and landlords, on how to apply for deductions from a claimant's ESA, JSA, Income Support and Pension Credit.
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In certain circumstances, when a claimant is struggling to manage their money and can no longer pay household bills, DWP can deduct money from their benefit and pay it to a creditor or supplier to clear a debt. The deductions are called ‘third party deductions’. This guidance explains how to apply for deductions from:
- Employment and Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
- Pension Credit
Deductions can only be made if there’s no other way to clear the debts without putting the welfare of the customer or their family at risk.
Universal Credit claimants
There is separate guidance to request deductions from Universal Credit to clear a debt for:
- gas, electric or water charges, mortgage interest arrears or owner-occupier service charge arrears
- rent arrears
More information about deductions from benefit
Read more about how the deductions from benefit scheme works and how to report changes.
Last updated 3 November 2023 + show all updates
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Updated 'A guide for energy suppliers ('Fuel Direct')' and 'A guide for landlords – rent arrears and service charges'
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Amended Section 12, Legal basis section of 'A guide for local authorities – arrears of Council Tax'.
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Updated 'A guide for water suppliers' to refer to the legal gateway Schedule 9 of the Social Security (Claims and Payment) Regulations 1987 and the Social Security (Council Tax) Deductions from Income Support 1993.
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'A guide for water suppliers' has been updated. Chapter 12 has new information stating that Water Companies must keep records of their own processing activities and a summary of the rights of data subjects under UKGDPR when with public task is used as a legal basis.
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Updated 'A guide for local authorities – arrears of Council Tax', sections 8 and 9 and added sections 12 to 15.
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Updated the Application form for third party deductions for rent and service charges (ESA, JSA, Income Support and Pension Credit) form.
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Updated the guide for energy supplier 'Fuel Direct'. From 1 April 2023 the request to start a new ongoing consumption deduction should be made by the supplier after they have obtained consent from the claimant.
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Updated the guide for energy suppliers ('Fuel Direct') to clarify that for Universal Credit claimants the creditor or their billing agent must apply for deductions to pay for arrears. Also clarified that deductions for arrears must be in place before deductions for current consumption can start.
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Updated the guide for water suppliers - added new sections and information about data sharing rules.
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Updated the guide for energy suppliers ('Fuel Direct'). For one year from 1 April 2022 energy suppliers can no longer request new deductions or increased payments from a claimant’s benefit to pay for ongoing fuel consumption.
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Updated 'Application form for third party deductions for rent and service charges' to show that it should only be used for claims from Employment and Support Allowance, Jobseeker's Allowance, Income Support and Pension Credit.
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Updated email address for online Council Tax deduction requests in section 7 of 'A guide for local authorities – arrears of Council Tax'.
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Published new guidance to clarify how to apply for deductions.
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First published.