Guidance

Eligible Loan Deduction Scheme

Guidance for lenders on applying to the Department for Work and Pensions (DWP) to recover loans from benefits paid to claimants.

• From: Department for Work and Pensions
• Published: 20 September 2013
• Last updated: 13 February 2025
  Show all updates

  1. 13 February 2025

     Published updated versions of the specimen memorandum of understanding between DWP and lenders and the Eligible Loan Deduction Scheme referral form.

  2. 2 September 2022

     Updated PDF and RTF version forms: Application to join the Eligible Loan Deduction Scheme, Specimen memorandum of understanding between DWP and lenders and Eligible Loan Deduction Scheme referral form and added an email address for ELDS requests in 'How to notify DWP of any changes for the Eligible Loan Deduction Scheme'.

  3. 7 July 2020

     Updated guidance because deductions from benefits through the Eligible Loan Deduction Scheme that were temporarily stopped because of coronavirus, are starting again.

  4. 7 April 2020

     Deductions from benefits through the Eligible Loan Deduction Scheme have been paused because of coronavirus (COVID-19).

  5. 20 September 2013

     First published.

Documents

Eligible Loan Deduction Scheme

HTML

Application to join the Eligible Loan Deduction Scheme

PDF, 148 KB, 4 pages

This file may not be suitable for users of assistive technology.

Request an accessible format

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email accessible.formats@dwp.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Application to join the Eligible Loan Deduction Scheme

ODT, 49.8 KB

This file is in an OpenDocument format

This file may not be suitable for users of assistive technology.

Request an accessible format

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email accessible.formats@dwp.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Evidence required for the Eligible Loan Deduction Scheme

HTML

Specimen memorandum of understanding between DWP and lenders

PDF, 514 KB, 9 pages

This file may not be suitable for users of assistive technology.

Request an accessible format

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email accessible.formats@dwp.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Specimen memorandum of understanding between DWP and lenders

ODT, 72.1 KB

This file is in an OpenDocument format

This file may not be suitable for users of assistive technology.

Request an accessible format

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email accessible.formats@dwp.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Eligible Loan Deduction Scheme referral form

PDF, 127 KB, 1 page

This file may not be suitable for users of assistive technology.

Request an accessible format

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email accessible.formats@dwp.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Eligible Loan Deduction Scheme referral form

ODT, 53 KB

This file is in an OpenDocument format

This file may not be suitable for users of assistive technology.

Request an accessible format

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email accessible.formats@dwp.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

How to notify DWP of any changes for the Eligible Loan Deduction Scheme

HTML

Details

The Eligible Loan Deduction Scheme supports the expansion of affordable credit to people on low incomes by allowing DWP to recover loans from benefits.

This guidance explains how the scheme works and how lenders can apply to join the scheme.