Deductions from benefit: how creditors can apply
Guidance for new creditors, for example, utility suppliers and landlords, on how to apply for deductions from a claimant's benefit.
This file is in an OpenDocument format
In certain circumstances, when a claimant is struggling to manage their money and can no longer pay household bills, DWP can deduct money from their benefit and pay it to a creditor or supplier to clear a debt. The deductions are called ‘third party deductions’. This guidance explains how to apply for deductions from:
- Employment and Support Allowance
- Income Support
- Jobseeker’s Allowance
- Pension Credit
Deductions can only be made if there’s no other way to clear the debts without putting the welfare of the customer or their family at risk.
Universal Credit claimants
There is separate guidance to request deductions from Universal Credit to clear a debt for:
- gas, electric or water charges, mortgage interest arrears or owner–occupier service charge arrears
- rent arrears