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

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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Detail

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: