Energy suppliers can now request new or increases to existing deductions on DWP benefits from this month
13.04.2023 - 10:51
/ dailyrecord.co.uk
The Department for Work and Pensions (DWP) has announced that energy suppliers can resume requesting new deductions or increases to existing deductions for Fuel Direct ongoing consumption payments, however, they must have the claimant’s consent before any changes can be made. For new requests, suppliers must also get a claimant’s consent before the request can be sent to the DWP.
It is important to be aware that in exceptional circumstances, when an energy supplier has exhausted all methods to contact a claimant, who has an existing arrangement, they can notify DWP. The Department will then attempt to get in touch with the claimant and advise them to contact their energy supplier to discuss the matter.
If you owe money such as a court fine, rent, Council Tax or energy payments, money might be taken directly out of your benefits payments to pay the debt. This is sometimes called ‘third party deductions’ or, for gas and electricity payments, Fuel Direct.
Benefits that can be used for deductions:
Organisations you owe money to can ask for deductions to be made from your benefits to pay the debt. The office that pays your benefit will only agree to do this if the organisation has tried other ways of getting the money from you.
You will be told how much will be deducted by letter or in your Universal Credit journal.
A fixed amount is deducted from your benefits until you’ve paid off the debt you owe. Money can be deducted to pay off up to three debts at once.
Deduction rates:
DWP said that if you want to pay more than the fixed rate towards your debts, you must arrange this with the organisation you owe money to.
While paying off debt to your gas, electricity or water supplier, you can have extra money deducted from your