Deductions from Income Support / JSA /Pension Credit/ Employment and Support Allowance / Universal Credit

General & legislative background

Where a liability order has been obtained and a debtor receives Income Support / JSA /Pensuion Credit or Employment & Support Allowance - a Council may apply to the Secretary of State for deductions to be made to secure payment.

Deductions can be made from JSA (Income Based) and JSA (Contributions based) and Pension Credit (either Savings Credit or Guarantee Credit)

Employment and Support Allowance can only be deducted from 27th October 2008 and deductions can be made from both ESA (Income Related) and ESA (Contribution Based)

Deductions are requested for the whole amount outstanding including costs incurred in obtaining the Liability Order.

The application must contain the following particulars;

Name and Address of debtor
Name and Address of Billing Authority
Name and place of Court, which made Liability Order
Date on which Liability Order was made
Amount specified in Liability Order
Total sum to be deducted from Income Support

All requests must be served on an appropriate Social Security Office.

On receipt of the application the request is passed on an Adjudication Officer who determines whether there is sufficient entitlement to IS. / JSA /PC / ESA to enable any deduction to be made.

If there sufficient IS JSA PC or ESA then 5% of personal allowance is deducted.

Priority however is given to Housing costs, Service charges, Fuel charges, Water charges, etc.

Community Charge has equal priority to Council Tax.

Only 2 deductions can be made at any one time, which can lead to severe restrictions on the use of such powers.

DWP will inform both debtor and the Council of the decision within 14 days of the request and the debtor also informed of his right of appeal (to the DWP (IS/JSA Appeal Tribunal).

Deductions will only be made if;

Debtor is entitled to I.S./ JSA / PC /ESA throughout the benefit week
No deductions are being made in respect of another application
No payments are being made for Community Charge arrears

Deductions will cease if;

There is no longer sufficient entitlement to IS / JSA /PC /ESA to make a deduction
The Billing Authority withdraws its application, or
The debt has been discharged

Applications will be dealt with in date order and one at a time.

Payments are made to Council at intervals of not greater than 13 weeks. Normally payments are received on a monthly basis.

If the amount has been paid the Council must notify the DWP within 21 days of the payment being received.

DWP shall notify the debtor in writing of total sums deducted;

On receipt of a written request for such information, or
On the termination of deductions made under any application

The debtor has the right to appeal to a DWP Tribunal within 3 months beginning with the date when the notice was given to the debtor.

Further appeals can be made to the Social Security Commissioners and then if necessary to the Court of Appeal.

An application for deductions from income support, jobseeker’s allowance, pension credit or employment and support allowance may not be made in respect of a person against whom a liability order has been made while steps by way of attachments, distress, commitment, insolvency or charging (i.e. the steps provided for by Part VI of the Administration and Enforcement Regulations) are being taken against him for the recovery of an amount equal to any outstanding sum which is or forms part of the amount in respect of which the liability order was made.