Guidance

How the deductions from benefit scheme works: guidance for creditors or suppliers

Guidance for current creditors or suppliers, for example, utility suppliers and landlords, on how the deductions from benefit scheme works.

Documents

How the Third Party Payments scheme works: a handbook for creditors or suppliers

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Form to amend address of a creditor or supplier

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Form to amend bank details of a creditor or supplier

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Form to amend customer reference numbers

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Details

In certain circumstances, DWP can deduct money from a claimant’s benefit and pay it to a creditor or supplier to clear a debt for:

  • council tax
  • fuel costs
  • rent and service charges
  • water charges

The payments are called ‘third party payments’. This guidance is for creditors and suppliers receiving a third party payment. It explains how the scheme works for deductions from:

  • Employment and Support Allowance
  • Income Support
  • Jobseeker’s Allowance
  • Pension Credit

How to apply

Find out how to apply for deductions from benefit to clear a debt.

Universal Credit claimants

There is separate guidance about deductions from Universal Credit to clear a debt for:

Published 1 November 2011
Last updated 12 April 2018 + show all updates
  1. Revised deductions from benefit scheme form – 'Form to amend customer reference numbers' (ePRS03).
  2. Published latest version of the Third Party Payments creditor/supplier handbook with revised contact and payment schedule information and general updates throughout.
  3. Revised deductions from benefit scheme form to amend customer reference numbers - ref: ePRS03.
  4. Published latest version of the Third Party Payments creditor/supplier handbook with revised opening hours of helpline.
  5. Replaced ePRS02 third party creditor supplier change of bank detail form with revised version.
  6. Published latest version of the Third Party Payments creditor/supplier handbook to include contact details for Universal Credit.
  7. Replaced "How the Third Party Payments scheme works: a handbook for creditors or suppliers" with a revised version that includes guidance for Universal Credit.
  8. Published new form for creditors or suppliers to notify DWP of a change to a customer's reference number.
  9. Published updated guidance and added forms for creditors or suppliers to notify DWP of a change of address or a change of bank details.
  10. Guide updated for new procedures for amending creditors' records and changing a customer's reference number and new contact details.
  11. First published.