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 ESA, JSA, Income Support and Pension Credit.
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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 (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
- 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
More information about deductions from benefit
Read more about how the deductions from benefit scheme works and how to report changes.
Last updated
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Updated the guide for water suppliers - added new sections and information about data sharing rules.
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Updated the guide for energy suppliers ('Fuel Direct'). For one year from 1 April 2022 energy suppliers can no longer request new deductions or increased payments from a claimant’s benefit to pay for ongoing fuel consumption.
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Updated 'Application form for third party deductions for rent and service charges' to show that it should only be used for claims from Employment and Support Allowance, Jobseeker's Allowance, Income Support and Pension Credit.
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Updated email address for online Council Tax deduction requests in section 7 of 'A guide for local authorities – arrears of Council Tax'.
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Published new guidance to clarify how to apply for deductions.
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First published.