SCHEDULE 9DEDUCTIONS FROM BENEFIT AND DIRECT PAYMENT TO THIRD PARTIES

Regulation 35

Interpretation1

C1F431

In this Schedule–

  • F30“the Community Charges Regulations” means the Community Charges (Deductions from Income Support (No.2) Regulations 1990;

  • “the Community Charges (Scotland) Regulations” means the Community Charges (Deductions from Income Support) (Scotland) Regulations 1989;

  • F48“contribution-based jobseeker’s allowance” F183(except where used in sub-paragraph (2)(b)) means any contribution-based jobseeker’s allowance which does not fall within the definition of “specified benefit”;

  • F139“contributory employment and support allowance” F184(except where used in sub-paragraph (3)(b)) means any contributory employment and support allowance which does not fall within the definition of “specified benefit”

  • “the Council Tax Regulations” means the Council Tax (Deductions from Income Support) Regulations 1993;

  • “family” in the case of a claimant who is not a member of a family means that claimant F79and for the purposes of state pension credit “a family” comprises the claimant, his partner, any additional partner to whom section 12(1)(c) of the 2002 Act applies and any person who has not attained the age of 19, is treated as a child for the purposes of section 142 of the Contributions and Benefits Act and lives with the claimant or the claimant’s partner;

  • F31“the Fines Regulations” means the Fines (Deductions from Income Support) Regulations 1992.

  • F8“5 per cent. of the personal allowance for a single claimant aged not less than 25” means where the percentage is not a multiple of 5 pence the sum obtained by rounding that 5 per cent. to the next higher such multiple;

  • F9F107“hostel” means a building—

    1. a

      in which there is provided for persons generally, or for a class of persons, accommodation, otherwise than in separate and self-contained premises, and either board or facilities of a kind set out in paragraph 4A(1)(d) below adequate to the needs of those persons and—

    2. b

      which is—

      1. i

        managed by or owned by a housing association registered with F171the Regulator of Social Housing or the Welsh Ministers;

      2. ii

        F161managed or owned by a registered social landlord which is registered in accordance with F189Part 2 of the Housing (Scotland) Act 2010;

      3. iii

        operated other than on a commercial basis and in respect of which funds are provided wholly or in part by a government department or a local authority; or

      4. iv

        managed by a voluntary organisation or charity and provides care, support or supervision with a view to assisting those persons to be rehabilitated or resettled within the community, and

    3. c

      which is not—

      1. i

        a care home;

      2. ii

        an independent hospital; or

      3. iii

        an establishment run by the Abbeyfield Society including all bodies corporate or incorporated which are affiliated to that Society, and

    4. d

      in sub-paragraph (b)(iv) above, “voluntary organisation” shall mean a body the activities of which are carried out otherwise than for profit, but shall not include any public or local authority;

  • F10“housing authority” means a local authority, a new town corporation, F162... or the Development Board for Rural Wales;

  • F110“the Housing Benefit Regulations” mean the Housing Benefit Regulations 2006;

  • F110“the Housing Benefit (State Pension Credit) Regulations” mean the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006;

  • F44“housing costs” means any housing costs met under—

    1. a

      Schedule 3 to the Income Support Regulations but—

      1. i

        excludes costs under paragraph 17(1)(f) of that Schedule (tents and tent sites); and

      2. ii

        includes costs under paragraphs 17(1)(a) (ground rent F98...) and 17(1)(c) (rentcharges) of that Schedule but only when they are paid with costs under paragraph 17(1)(b) of that Schedule (service charges); or

    2. b

      Schedule 2 to the Jobseeker’s Allowance Regulations but—

      1. i

        excludes costs under paragraph 16(1)(f) of that Schedule (tents and tent sites); and

      2. ii

        includes costs under paragraphs 16(1)(a) (ground rent F98... ) and 16(1)(c) (rentcharges) of that Schedule but only when they are paid with costs under paragraph 16(1)(b) of that Schedule (service charges);

    3. c

      F80Schedule II to the State Pension Credit Regulations but—

      1. i

        excludes costs under paragraph 13(1)(f) of that Schedule (tents and sites); and

      2. ii

        includes costs under paragraphs 13(1)(a) (ground rent F98... ) and 13(1)(c) (rent charges) of that Schedule but only when they are paid with costs under paragraph 13(1)(b) of that Schedule (service charges);F140or

    4. d

      F140Schedule 6 to the Employment and Support Allowance Regulations but—

      1. i

        excludes costs under paragraph 18(1)(f) of that Schedule (tents and tent sites); and

      2. ii

        includes costs under paragraph 18(1)(a) (ground rent) and 18(1)(c) (rent charges) of that Schedule but only where they are paid with costs under paragraph 18(1)(b) of that Schedule (service charges);

  • F99...

  • “the Income Support Regulations” means the Income Support (General) Regulations 1987 M1;

  • F128“integration loan which is recoverable by deductions” means an integration loan which is made under the Integration Loans for Refugees and Others Regulations 2007 and which is recoverable from the recipient by deductions from a specified benefit under regulation 9 of those Regulations

  • “miscellaneous accommodation costs” has the meaning assigned by paragraph 4(1);

  • F215“moratorium debt” has the same meaning as in regulation 6 of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020;

  • F204...

  • “personal allowance for a single claimant aged not less than 25 years” means the amount specified F81in connection with income support and state pension credit in F11paragraph 1(1)(e) of column 2 of Schedule 2 to the Income Support Regulations F46or, F82in connection with jobseeker’s allowance, paragraph 1(1)(e) of Schedule 1 to the Jobseeker’s Allowance RegulationsF141or, in connection with employment and support allowance, paragraph 1(1)(b) of Schedule 4 to the Employment and Support Allowance Regulations;

  • F2...

  • “rent” has the meaning assigned to it in the Housing Benefit Regulations and, for the purposes of this Schedule–

    1. a

      includes any water charges which are paid with or as part of the rent;

    2. b

      where in a particular case a claimant's rent includes elements which would not otherwise fall to be treated as rent, references to rent shall include those elements; and

    3. c

      references to “rent” include references to part only of the rent; and

  • “F40specified benefit” means—

    1. a

      F100income support or, where in respect of any period it is paid together with any incapacity benefit or severe disablement allowance—

      1. i

        in a combined payment;

      2. ii

        in part to the beneficiary and in part to another person in accordance with regulation 34; or

      3. iii

        by means of two or more instruments of payment,

      income support and incapacity benefit or severe disablement allowance if the income support alone is insufficient for the purposes of this Schedule;

    2. b

      F76F201...F45and

    3. c

      subject to sub-paragraph (2), jobseeker’s allowance;

    4. d

      F83F101state pension credit or, where in respect of any period it is paid together with any retirement pensionF201, state pension under Part 1 of the Pensions Act 2014, incapacity benefit or severe disablement allowance—

      1. i

        in a combined payment;

      2. ii

        in part to the beneficiary and in part to another person in accordance with regulation 34; or

      3. iii

        by means of two or more instruments of payment,

      state pension credit and retirement pensionF201, state pension under Part 1 of the Pensions Act 2014, incapacity benefit or severe disablement allowance if the state pension credit alone is insufficient for the purposes of this Schedule;

    5. e

      F142subject to sub-paragraph (3), employment and support allowance;

    F181...

  • F187“water charges” means—

    1. a

      as respects England and Wales, any water and sewerage charges under Chapter 1 of Part 5 of the Water Industry Act 1991;

    2. b

      as respects Scotland, any water and sewerage charges established by Scottish Water under a charges scheme made under section 29A of the Water Industry (Scotland) Act 2002;

  • F12“water undertaker” means a company which has been appointed under section 11(1) of the Water Act 1989 to be the water or sewerage undertaker for any area in England and Wales F188or in respect of any area in Scotland, Scottish Water.

F472

For the purposes of the definition of “specified benefit” in sub-paragraph (1), “jobseeker’s allowance” means—

a

income-based jobseeker’s allowance; and

F185b

contribution-based jobseeker’s allowance where—

i

both income-based jobseeker’s allowance and contribution-based jobseeker’s allowance are in payment and the income-based jobseeker’s allowance alone is insufficient for the purposes of this Schedule; or

ii

if there was no entitlement to contribution-based jobseeker’s allowance, there would be entitlement to income-based jobseeker’s allowance at the same rate.

F1433

For the purposes of the definition of “specified benefit” in sub-paragraph (1) “employment and support allowance” means—

a

income-related employment and support allowance; and

F186b

contributory employment and support allowance where—

i

both income-related employment and support allowance and contributory employment and support allowance are in payment and the income-related employment and support allowance alone is insufficient for the purposes of this Schedule; or

ii

if there was no entitlement to a contributory employment and support allowance, there would be entitlement to income-related employment and support allowance at the same rate.

General2

1

The specified benefit may be paid direct to a third party in accordance with the following provisions of this Schedule in discharge of a liability of the beneficiary or his partner to that third party in respect of–

a

housing costs;

b

miscellaneous accommodation costs;

F13bb

hostel payments;

c

service charges for fuel, and rent not falling within head (a) above;

d

fuel costs; F32...

e

water charges F33; and

F34f

payments in place of payments of child support maintenance under section 43(1) of the Child Support Act 1991 and regulation 28 of the Child Support (Maintenance Assessments and Special Cases) Regulations 1992.

2

No payment to a third party may be made under this Schedule unless the amount of the beneficiary's award of the specified benefit is not less than the total of the amount otherwise authorised to be so paid under this Schedule plus 10 pence.

3

A payment to be made to a third party under this Schedule shall be made, at such intervals as the Secretary of State may direct, on behalf of and in discharge (in whole or in part) of the obligation of the beneficiary or, as the case may be, of his partner, in respect of which the payment is made.

Housing costs3

1

Subject to F22sub-paragraphs (4) to (6) and paragraph 8, where a beneficiary who has been awarded the specified benefit or his partner is in debt for any item of housing costs which continues to be applicable to the beneficiary in the determination of his applicable amount F84or appropriate minimum guarantee, the F57Secretary of State may, if in F72his opinion it would be in the interests of the family to do so, determine that the amount of the award of the specified benefit (“the amount deductible”) calculated in accordance with the following sub-paragraphs shall be paid in accordance with sub-paragraph 2(3).

2

F23Subject to sub-paragraphs (2A) and (3), the amount deductible shall be such weekly aggregate of the following as is appropriate:–

a

in respect of any debt to which sub-paragraph (1) applies, or where the debt owed is in respect of an amount which includes more than one item of housing costs, a weekly amount equal to 5 per cent. of the personal allowance for a single claimant aged not less than 25 F1... for such period as it is necessary to discharge that debt, so however that in aggregate the weekly amount calculated under this sub-paragraph shall not exceed 3 times that 5 per cent.;

b

for each such debt–

F205i

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ii

F206for any housing item , the actual weekly cost necessary in respect of continuing needs for the relevant items,

and the F58Secretary of State may direct that, when the debt is discharged F216or is a moratorium debt, the amount determined under sub-paragraph (b) shall be the amount deductible.

F242A

Where a payment falls to be made to a third party in accordance with this Schedule, and—

a

more than one item of housing costs falls to be taken into account in determining the beneficiary’s applicable amount F85or appropriate minimum guarantee; and

b

in accordance with F207...F39paragraph 18 of Schedule 3 to the Income Support RegulationsF49or, as the case may be, F207... paragraph 17 of Schedule 2 to the Jobseeker’s Allowance RegulationsF86or F208... paragraph 14 of Schedule II to the State Pension Credit RegulationsF144or F209... paragraph 19 of Schedule 6 to the Employment and Support Allowance Regulations an amount is not allowed or a deduction falls to be made from the amount to be met by way of housing costs,

then in calculating the amount deductible, the weekly aggregate ascertained in accordance with sub-paragraph (2) shall be reduced by an amount determined by applying the formula—

where—

A

housing costs;

B

the item of housing costs which falls to be paid to a third party under this Schedule;

C

the sum which is not allowed or falls to be deducted in accordance with F207F39... paragraph 18 of Schedule 3 to the Income Support RegulationsF49or, as the case may be, paragraph 4(8) or (11) or paragraph 17 of Schedule 2 to the Jobseeker’s Allowance RegulationsF86or paragraph 5(9) or (12) or paragraph 14 of Schedule II to the State Pension Credit RegulationsF145or paragraph 6(10) or (13) or paragraph 19 of Schedule 6 to the Employment and Support Allowance Regulations.

3

Where the aggregate amount calculated under sub-paragraph (2) is such that paragraph 2(2) would operate to prevent any payment under this paragraph being made that aggregate amount shall be adjusted so that 10 pence of the award is payable to the beneficiary.

F2114

Sub-paragraph (1) shall not apply to any debt which is for any item of housing costs and is less than half the annual amount due to be paid by the beneficiary or his partner in respect of that item, unless, in the opinion of the Secretary of State it is in the overriding interests of the family that paragraph (1) should apply.

F2105

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2106

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miscellaneous accommodation costs4

1

F35Where an award of income supportF90, jobseeker’s allowanceF146, state pension credit or employment and support allowance—

a

F91in the case of income support is made to a person F108residing in a care home, an Abbeyfield Home or an independent hospital as defined in regulation F752(1) of the Income Support Regulations F50or, F92in the case of jobseeker’s allowance regulation 1(3) of the Jobseeker’s Allowance RegulationsF147or in the case of employment and support allowance, regulation 2(1) of the Employment and Support Allowance Regulations, or

F198b

in the case of income support, jobseeker’s allowance or employment and support allowance, is made to person who is in accommodation provided under section 3(1) of, and Part 2 of the Schedule to, the Polish Resettlement Act 1947 (provision by the Secretary of State of accommodation in camps); or

F198c

in the case of state pension credit, is made to a person residing in—

i

a care home as defined in regulation 1(2) of the State Pension Credit Regulations;

ii

an independent hospital as defined in regulation 1(2) of those Regulations;

iii

an establishment run by the Abbeyfield Society (including all bodies corporate or incorporate which are affiliated to the Society); or

iv

accommodation provided under section 3(1) of, and Part 2 of the Schedule to, the Polish Resettlement Act 1947 where the person requires personal care,

(F93or to a person who is only temporarily absent from such accommodation) the F59Secretary of State may determine that an amount of the specified benefit shall be paid direct to the person or body to whom the charges in respect of that accommodation are payable F94hereafter in this paragraph referred to as “miscellaneous accommodation costs, but, F95except in a case where accommodation is provided under section 3(1) of, and Part II of the Schedule to, the Polish Resettlement Act 1947 or where the accommodation is F3run by a voluntary organisation either for purposes similar to the purposes for which resettlement units are provided or which provides facilities for alcoholics or drug addicts, only if the F59Secretary of State is satisfied that the beneficiary has failed to budget for the charges and that it is in the interests of the family.

F962

Subject to sub-paragraphs (3) and (3A), the amount of any payment of income support, jobseeker’s allowanceF148, state pension credit or employment and support allowance to a third party determined under sub-paragraph (1) shall be—

a

in a case where the beneficiary is not in accommodation as specified in F199sub-paragraph (1)(c)(ii),

F109i

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F109ii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

an amount equal to the award of income support, jobseeker’s allowanceF149, guarantee credit or employment and support allowance payable to the claimant but excluding an amount, if any, which when added to any other income of the beneficiary as determined in accordance with regulation 28 of the Income Support Regulations, regulation 93 of the Jobseeker’s Allowance RegulationsF150, regulation 90 of the Employment and Support Allowance Regulations or regulation 17 of the State Pension Credit Regulations will equal the amount prescribed in respect of personal expenses in sub-paragraph (2A); and

b

in any other case, the amount of the award of income support, jobseeker’s allowanceF151, guarantee credit or employment and support allowance, excluding the amount allowed by sub-paragraph (2A) in respect of personal expenses.

F962A

The amount in respect of personal expenses where a beneficiary is in accommodation referred to in paragraphs 4(1)(a)F200, (b) or (c) shall be—

a

for a single person the sum of F219£27.00;

b

for a couple where both members of the couple are in such accommodation, F219£27.00 for each member;

c

for a member of a polygamous marriage where more than one member is in such accommodation, F219£27.00 for each member in such accommodation.

F963

This sub-paragraph shall apply where an award is made of—

a

income support calculated in accordance with Part VII of the Income Support Regulations (calculation of income support for part-weeks); or

b

jobseeker’s allowance calculated in accordance with Part XI of the Jobseeker’s Allowance Regulations (part-weeks); F152...

c

state pension credit for a period of less than a week calculated under regulation 13A of the State Pension Credit Regulations (part-weeks), or a part week payment of state pension credit calculated otherwise;F153or

F153d

employment and support allowance for a period of less than a week calculated in accordance with Part 14 of the Employment and Support Allowance Regulations (periods of less than a week).

F963A

Where sub-paragraph (3) applies then the amount of any payment to a third party determined under sub-paragraph (1) shall be an amount calculated in accordance with sub-paragraph (2)(a) or (b) as appropriate except that in respect of—

a

the income of the beneficiary, if any; and

b

the amount allowed for personal expenses by sub-paragraph (2A) above,

the amount shall be the amount used in the calculation under the provisions listed in sub-paragraph (3)(a), (b) or (c), divided by 7 and multiplied by the number of days in the part-week and no payment shall be made to a third party where the Secretary of State certifies it would be impracticable to do so in that particular case.

F44

Where the amount calculated under sub-paragraphs F97(2) or (3A) is such that paragraph 2(2) would operate to prevent any payment under this paragraph being made the amount shall be adjusted so that 10 pence of the award is payable to the beneficiary.

F6Hostel payments4A

1

This paragraph applies to a beneficiary if—

a

F167the beneficiary has been awarded specified benefit; and

F168b

either the beneficiary or the beneficiary’s partner—

i

is resident in a hostel and has claimed housing benefit in the form of a rent rebate or rent allowance; or

ii

is resident in approved premises under section 13 of the Offender Management Act 2007; and

F169c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

the charge for F170the hostel or approved premises, as the case may be, includes a payment, whether direct or indirect, for one or more of the following services—

i

water;

ii

a service charge for fuel;

iii

meals;

iv

laundry;

v

cleaning (other than communal areas).

2

Subject to sub-paragraph (3) below, where a beneficiary F25... has been awarded specified benefit the F60Secretary of State may determine that an amount of specified benefit shall be paid to the person or body to whom the charges referred to in sub-paragraph (1)(d) above are or would be payable.

3

The amount of any payment to a third party under this paragraph shall be either—

a

the aggregate of the amounts determined by a housing authority in accordance with the provisions specified in sub-paragraph (4); or

b

if no amount has been determined under paragraph (a) of this subparagraph, an amount which the F61Secretary of State estimates to be the amount which is likely to be so determined.

F1114

The provisions referred to in sub-paragraph (3)(a) above are F164regulation 12B(5) of, and paragraphs 1(a)(ii) and (iv), 2, 3, 4 and either 6(1)(b) or 6(2) or 6(3) or 6(4) of Schedule 1 to, the Housing Benefit Regulations or, as the case may be, the Housing Benefit (State Pension Credit) Regulations.

F1125

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

F154Where—

a

an award of income support is calculated in accordance with regulation 73(1) of the Income Support Regulations (calculation of income support for part-weeks); F155...

b

an award of jobseeker’s allowance is calculated in accordance with regulation 150(1) of the Jobseeker’s Allowance Regulations (amount of a jobseeker’s allowance payable), F156or

F156c

an award of employment and support allowance is calculated in accordance with regulation 165 of the Employment and Support Allowance Regulations (entitlement of less than a week etc.),

the amount of any payment of income support or, as the case may be, jobseeker’s allowance F157or employment and support allowance payable to a third party determined under sub-paragraph (2) above shall be an amount calculated in accordance with sub-paragraph (3)(a) or (b) above divided by 7 and multiplied by the number of days in the part-week, and no payment shall be made to a third party under this sub-paragraph where the Secretary of State certifies that it would be impracticable to do so in that particular case.

Service charges for fuel, and rent not falling within paragraph 2(1)(a)5

1

Subject to paragraph 8, this paragraph applies to a beneficiary if–

a

he has been awarded the specified benefit; and

b

he or his partner is entitled to housing benefit in the form of a rent rebate or rent allowance F172or is resident in approved premises under section 13 of the Offender Management Act 2007; and

c

F133unless sub-paragraph (1A) applies, he or his partner has arrears of rent which equal or exceed four times the full weekly rent payable and–

i

there are arrears of rent in respect of at least 8 weeks and the landlord has requested the Secretary of State to make payments in accordance with this paragraph; or

ii

there are arrears of rent in respect of less than 8 weeks and in the opinion of the F62Secretary of State it is in the overriding interests of the family that payments shall be made in accordance with this paragraph.

F1341A

This sub-paragraph applies where the rent includes charges for services included under paragraph 4A(1)(d) and the arrears for these services exceed £100.00.

F1731B

For the purposes of sub-paragraphs (1) and (1A), references to “rent” include charges incurred in respect of accommodation in approved premises under section 13 of the Offender Management Act 2007.

F1822

For the purposes of sub-paragraph (1) arrears of rent do not include any amount which falls to be deducted under regulation 74 of the Housing Benefit Regulations (non-dependant deductions) or, as the case may be, regulation 55 of the Housing Benefit (State Pension Credit) Regulations (non-dependant deductions) when assessing a person’s housing benefit.

3

F174TheF63Secretary of State shall determine that a weekly amount of the specified benefit awarded to the beneficiary shall be paid to his or his partner's landlord if–

a

he or his partner is entitled to housing benefit and in calculating that benefit a deduction is made under F113F165regulation 12B(2) of the Housing Benefit Regulations or, as the case may be, the Housing Benefit (State Pension Credit) Regulations in respect of either or both of water charges or service charges for fuel; and

b

the amount of the beneficiary's award is not less than the amount of the deduction,

and the amount to be so paid shall be equal to the amount of the deduction.

F1154

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F515

A determination under this paragraph shall not be made without the consent of the beneficiary if the aggregate amount calculated in accordance with sub-paragraphs (3) and (6) exceeds F116a sum calculated in accordance with paragraph 8(4);

F117F775A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

In a case to which sub-paragraph (1) F135or (1A) applies the F64Secretary of State may determine that a weekly amount of the specified benefit awarded to that beneficiary equal to 5 per cent. of the personal allowance for a single claimant aged not less than 25 F14... shall be paid to his landlordF175, or the person or body to whom charges are payable in respect of the residence of the beneficiary or the beneficiary's partner in approved premises under section 13 of the Offender Management Act 2007, until the debt is discharged.

F267

Immediately after the discharge of any arrears of rent to which sub-paragraph (1) F136or (1A) applies and in respect of which a determination has been made under sub-paragraph (6) the F65Secretary of State may, if satisfied that it would be in the interests of the family to do so, direct that an amount, equal to the amount by which the eligible rent is to be reduced by virtue of F114F166regulation 12B(2) of the Housing Benefit Regulations or, as the case may be, the Housing Benefit (State Pension Credit) Regulations in respect of charges for water or service charges for fuel or both, shall be deductible.

Fuel costs6

1

F87Subject to sub-paragraphs (6) and (6A) and paragraph 8, where a beneficiary who has been awarded the specified benefit or his partner is in debt for any F191fuel item to an amount not less than the rate of personal allowance for a single claimant aged not less than 25 and continues to require F192the fuel in respect of which the debt arose (“the relevant fuel”), the F66Secretary of State, if in its opinion it would be in the interests of the family to do so, may determine that the amount of the award of the specified benefit (“the amount deductible”) calculated in accordance with the following paragraphs shall be paid to the person or body to whom payment is due in accordance with paragraph 2(3).

2

The amount deductible shall, in respect of any fuel item, be such weekly aggregate of the following as is appropriate:–

F15a

in respect of each debt to which sub-paragraph (1) applies (“the original debt”), a weekly amount equal to 5 per cent. of the personal allowance for a single claimant aged not less than 25 for such period as is necessary to discharge the original debt, but the aggregate of the amounts, calculated under this paragraph shall not exceed twice 5 per cent. of the personal allowance for a single claimant aged not less than 25;

b

except where current consumption is paid for by other means (for example pre-payment meter), an amount equal to the estimated average weekly cost necessary to meet the continuing needs for F193the relevant fuel, varied, when appropriate, in accordance with sub-paragraph (4)(a)F194, plus such weekly amount as is required to meet any payments required to be made under a green deal plan within the meaning of section 1 of the Energy Act 2011 (“the 2011 Act).

F163

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

Where an amount is being paid direct to a person or body on behalf of the beneficiary or his partner in accordance with a determination under sub-paragraph (1) and F73a decision which embodies that determination falls to be superseded–

a

where since the date of that determination the average weekly cost estimated for the purpose of sub-paragraph (2)(b) has either exceeded or has proved insufficient to meet the actual cost of continuing consumption so that in respect of the continuing needs for F195the relevant fuel the beneficiary or his partner is in credit or, as the case may be, a further debt has accrued, the F66Secretary of State may determine that the weekly amount calculated under that paragraph shall, for a period of 26 weeks F27or such longer period as may be reasonable in the circumstances of the case, be adjusted so as to take account of that credit or further debt;

b

where an original debt in respect of any fuel item has been discharged F217or is a moratorium debt the F66Secretary of State may determine that the amount deductible in respect of that fuel item shall be the amount determined under sub-paragraph (2)(b).

F175

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F526

Subject to paragraph 8, a determination under this paragraph shall not be made without the consent of the beneficiary if the aggregate amount calculated in accordance with sub-paragraph (2) exceeds F118a sum calculated in accordance with paragraph 8(4);

F119F786A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F187

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1968

In this paragraph, “fuel item” means—

a

any charge for mains gas, including for the reconnection of mains gas; and

b

any charge for mains electricity, including any charge for the disconnection or reconnection of mains electricity and including any payments required to be made under a green deal plan within the meaning of section 1 of the 2011 Act.

Water chargesF77

1

This paragraph does not apply where water charges are paid with rent; and in this paragraph “original debt” means the debt to which sub-paragraph (2) applies, F38including any disconnection or reconnection charges and any other costs (including legal costs) arising out of that debt.

2

Where a beneficiary or his partner is liable, whether directly or indirectly, for water charges and is in debt for those charges, the F67Secretary of State may determine, subject to paragraph 8, that a weekly amount of the specified benefit shall be paid either to a water undertaker to whom that debt is owed, or to the person or body authorised to collect water charges for that undertaker, F28but only if F74the Secretary of State is satisfied that the beneficiary or his partner has failed to budget for those charges, and that it would be in the interests of the family to make the determination.

3

Where water charges are determined by means of a water meter, the weekly amount to be paid under sub-paragraph (2) shall be the aggregate of—

a

in respect of the original debt, an amount equal to 5 per cent. of the personal allowance for a single claimant aged not less than 25 years; and

b

the amount which the F68Secretary of State estimates to be the average weekly cost necessary to meet the continuing need for water consumption.

4

Where the sum estimated in accordance with sub-paragraph (3)(b) proves to be greater or less than the average weekly cost necessary to meet the continuing need for water consumption so that a beneficiary or his partner accrues a credit, or as the case may be a further debt, the F69Secretary of State may determine that the sum so estimated shall be adjusted for a period of 26 weeks F29or such longer period as may be reasonable in the circumstances of the case to take account of that credit or further debt.

5

Where water charges are determined other than by means of a water meter the weekly amount to be paid under sub-paragraph (2) shall be the aggregate of—

a

the amount referred to in sub-paragraph (3)(a); and

b

an amount equal to the weekly cost necessary to meet the continuing need for water consumption.

6

When the original debt in respect of water charges is discharged F218or is a moratorium debt, the F70Secretary of State may direct that the amount deductible shall be—

a

where water charges are determined by means of a water meter, the amount determined under sub-paragraph (3)(b) taking into account any adjustment that may have been made in accordance with sub-paragraph (4); and

b

in any other case, the amount determined under sub-paragraph (5)(b).

7

Where the beneficiary or his partner is in debt to two water undertakers—

a

only one weekly amount under sub-paragraph (3)(a) or (5)(a) shall be deducted; and

b

a deduction in respect of an original debt for sewerage shall only be made after the whole debt in respect of an original debt for water has been paid; and

c

deductions in respect of continuing charges for both water and for sewerage may be made at the same time.

8

F53Subject to paragraph 8 (maximum amount of payments to third parties), a determination under this paragraph shall not be made without the consent of the beneficiary if the aggregate amount calculated in accordance with sub-paragraphs (3), (4), (5) and (6) exceeds F120a sum calculated in accordance with sub-paragraph 8(4);

F121F889

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payments in place of payments of child support maintenanceF2137A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Arrears of child support maintenanceF2147B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F126Eligible loans7C

1

In this paragraph—

  • “borrower” means a person who has, either solely or jointly, entered into a loan agreement with an eligible lender in respect of an eligible loan and who is, for the time being, entitled to an eligible benefit;

  • “eligible lender” means—

    1. a

      a body registered under section 1 of the Industrial and Provident Societies Act 1965 (societies which may be registered);

    2. b

      a credit union within the meaning of section 1 of the Credit Unions Act 1979 (registration under the Industrial and Provident Societies Act 1965);

    3. c

      a charitable institution within the meaning of section 58(1) of the Charities Act 1992 (interpretation of Part II);

    4. d

      a body entered on the Scottish Charity Register under section 3 of the Charities and Trustee Investment (Scotland) Act 2005 (Scottish Charities Register),

    5. e

      F137a community interest company within the meaning of Part 2 of the Companies (Audit, Investigations and Community Enterprise) Act 2004,

    which, except for a credit union, is licensed under the Consumer Credit Act 1974 and which may be determined by the Secretary of State as an appropriate body to which payments on behalf of the borrower may be made in respect of loans made by that body;

  • “eligible loan” means a loan made by a lender, who is at that time an eligible lender, to a borrower except a loan—

    1. a

      which is secured by a charge or pledge;

    2. b

      which is for the purpose of business or self-employment; or

    3. c

      which was made by means of a credit card;

  • “loan agreement” means an agreement between the eligible lender and the borrower in respect of an eligible loan.

2

In this paragraph “eligible benefit” means—

a

carer’s allowance;

b

the following contributory benefits—

i

incapacity benefit;

ii

retirement pension; F202...

F203iii

state pension under Part 1 of the Pensions Act 2014; or

c

the following benefits—

i

income support;

ii

jobseeker’s allowance;

iii

state pension credit.

F158iv

employment and support allowance.

3

Where the conditions set out in sub-paragraph (4) are met the Secretary of State may deduct a sum from an eligible benefit to which the borrower is entitled equal to 5 per cent. of the personal allowance for a F138single claimant aged not less than 25 and pay that sum to the eligible lender towards discharge of the sum owing under the loan agreement at the date of the application.

4

The conditions referred to in sub-paragraph (3) are—

a

the borrower has failed to make payments as agreed with the eligible lender for a period of 13 weeks before the date of the application and has not resumed making payments;

b

the borrower has given his written permission to the eligible lender to provide to the Secretary of State personal data within the meaning of section 1 of the Data Protection Act 1998 (basic interpretive provisions);

c

the eligible lender has agreed that no interest or other charge will be added to the amount owed at the date of the application;

d

no sum is being deducted under this paragraph;

e

no sum is being deducted from the borrower’s eligible benefit under section 71(8) of the 1992 Act (overpayments-general) at the date of the application; and

f

no sum is being deducted from the borrower’s eligible benefit under section 78 of the 1992 Act (recovery of social fund awards) at the date of the application.

5

The Secretary of State shall notify the borrower and the eligible lender in writing of a decision to make a deduction under this paragraph.

6

The Secretary of State may make deductions under this paragraph only if the borrower is entitled to an eligible benefit throughout any benefit week.

F1976A

The Secretary of State shall not make deductions from a benefit mentioned in sub-paragraph (2) where the borrower is in receipt of any benefit within the meaning of “eligible benefit” in paragraph 11(8) (eligible loans) of Schedule 6 (deductions from benefit and direct payment to third parties) to the 2013 Regulations unless the amount of benefit mentioned in that definition is insufficient to meet the deduction.

7

The Secretary of State shall not make deductions from a benefit mentioned in sub-paragraph (2)(a) where the borrower is in receipt of another eligible benefit unless that benefit is one mentioned in sub-paragraph (2)(b) and is insufficient to enable the deduction to be made or is a benefit mentioned in sub-paragraph (2)(c) and the amount is insufficient to meet the deduction plus 10 pence.

8

The Secretary of State shall not make deductions from a benefit mentioned in sub-paragraph (2)(b) where the borrower is in receipt of a benefit mentioned in sub-paragraph (2)(c) unless the amount of that benefit is insufficient to meet the deduction plus 10 pence.

9

The Secretary of State shall cease making deductions from an eligible benefit F177under this paragraph if—

a

there is no longer sufficient entitlement to an eligible benefit to enable him to make the deduction;

b

entitlement to all eligible benefits has ceased;

c

a sum is deducted from the borrower’s eligible benefit under section 71(8) of the 1992 Act;

d

an eligible lender notifies the Secretary of State that he no longer wishes to accept payments by deductions;

e

the borrower’s liability to make payment in respect of the eligible loan has ceased;

f

the lender has ceased to be an eligible lender; or

g

the borrower no longer resides in Great Britain.

10

The sums deducted from an eligible benefit by the Secretary of State under this paragraph shall be paid to the eligible lender.

11

The Secretary of State shall notify the borrower in writing of the total of sums deducted by him under any application—

a

on receipt of a written request for such information from the borrower; or

b

on the termination of deductions.

12

Where a deduction is made under this paragraph from a specified benefit, paragraph 8 (maximum amount of payment to third parties) is to have effect as if—

a

in sub-paragraph (1) for “and 7A” there were substituted “, 7A and 7C”; and

b

in sub-paragraph (2) for “and 7” there were substituted “, 7 and 7C”.

F127Integration loans7D

Subject to paragraphs 2(2), 8 and 9, where a person has an integration loan which is recoverable by deductions, any weekly amount payable shall be equal to 5 per cent. of the personal allowance of a single claimant aged not less than 25 years, including where the loan is a joint loan.

F176Tax credits overpayment debts and self-assessment debts7E

1

In this paragraph—

  • “self-assessment debt” means any debt which—

    1. a

      has arisen from submission of a self-assessment to Her Majesty’s Revenue and Customs under section 9 of the Taxes Management Act 1970 (returns to include self-assessment); and

    2. b

      is recoverable under Part 6 of that Act;

  • “tax credits overpayment debt” means any debt which is recoverable under section 29 of the Tax Credits Act 2002 (recovery of overpayments).

2

Where the conditions set out in sub-paragraph (3) are met, the Secretary of State may deduct from a specified benefit to which the beneficiary is entitled a sum which is up to a maximum of 3 times 5 per cent of the personal allowance for a single claimant aged not less than 25 and pay that sum to Her Majesty’s Revenue and Customs towards discharge of any outstanding tax credits overpayment debt or self-assessment debt owed by the beneficiary to Her Majesty’s Revenue and Customs.

3

The conditions mentioned in sub-paragraph (2) are—

a

that the beneficiary has given written consent to Her Majesty’s Revenue and Customs for deductions to be made from a specified benefit towards discharge of any outstanding tax credits overpayment debt or self-assessment debt owed by the beneficiary to Her Majesty’s Revenue and Customs; and

b

no sum is being deducted under this paragraph.

4

The Secretary of State shall cease making deductions from a specified benefit under this paragraph if—

a

there is no longer sufficient entitlement to a specified benefit to enable deductions to be made;

b

entitlement to all specified benefits has ceased;

c

the beneficiary withdraws consent for the Secretary of State to make deductions from a specified benefit; or

d

the beneficiary is no longer liable to repay any tax credits overpayment debt or self-assessment debt.

5

The Secretary of State shall notify the beneficiary in writing of the total sums deducted under this paragraph—

a

on receipt of a written request for such information from the beneficiary; or

b

on the termination of deductions.

6

Where a deduction is made under this paragraph from a specified benefit, paragraph 8 (maximum amount of payment to third parties) is to have effect as if—

a

in sub-paragraph (1) for “and 7A” there were substituted “, 7A and 7E”; and

b

in sub-paragraph (2) for “and 7D” there were substituted “, 7D and 7E”.

Maximum amount of payments to third partiesC28

1

The maximum aggregate amount payable under F41paragraphs 3(2)(a), 5(6), 6(2)(a) F19, 7(3)(a) F36, 7(5)(a) and 7AF54...F103, andF102regulation 5 of the Council Tax Regulations and regulation 4 of the Fines RegulationsF129, and in respect of an integration loan which is recoverable by deductions shall not exceed an amount equal to 3 times 5 per cent. of the personal allowance for a single claimant aged not less than 25 years.

2

The maximum F5aggregate amount payable under F20paragraphs 3(2)(a), 5, 6F130,7 and 7D shall not without the consent of the beneficiary, exceed F122a sum calculated in accordance with sub-paragraph (4);

F123F892A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F55F423

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1244

The sum referred to in sub-paragraph (2) is—

a

where the claimant or partner does not receive child tax credit, 25 per cent of—

i

in the case of income support, the applicable amount for the family as is awarded under sub-paragraphs (a) to (d) of regulation 17(1) (applicable amounts) or sub-paragraphs (a) to (e) of regulation 18(1) (polygamous marriages) of the Income Support Regulations;

ii

in the case of jobseeker’s allowance, the applicable amount for the family as is awarded under paragraphs (a) to (e) of regulation 83 (applicable amounts) or sub-paragraphs (a) to (f) of regulation 84(1) (polygamous marriages) of the Jobseeker’s Allowance Regulations; F159...

iii

in the case of state pension credit, the appropriate minimum guarantee less any housing costs under Schedule 2 to the State Pension Credit Regulations 2002 which may be applicable in the particular case; or

F160F180iv

in the case of an employment and support allowance, the applicable amount for the family as is awarded under paragraph (1)(a) and (b) of regulation 67 (prescribed amounts) or paragraph (1)(a) to (c) of regulation 68 (polygamous marriages) of the Employment and Support Allowance Regulations; or

b

where the claimant or his partner receives child tax credit, 25 per cent of the sum of—

i

the amount mentioned in F190sub-paragraphs (a)(i) to (iv), which applies to the claimant;

ii

the amount of child benefit awarded to him or his partner by the Board under Part 2 of the Tax Credits Act 2002; and

iii

the amount of child tax credit awarded to him or his partner by the Board under section 8 of that Act.

Priority as between certain debts9

F371

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F371A

Where in any one week—

a

more than one of paragraphs 3 to F1787A, 7C or 7E are applicable to the beneficiary; or

b

one or more of those paragraphs are applicable to the beneficiary and one or more of the following provisions, namely, Schedule 9A, regulation 2 of the Community Charges Regulations, F104regulation 3 of the Community Charges Regulations, regulation 3 of the Community Charges (Scotland) Regulations, regulation 4 of the Fines RegulationsF131, regulation 5 of the Council Tax Regulations and regulation 9 of the Integration Loans for Refugees and Others Regulations 2007 also applies; and

c

the amount of the specified benefit which may be made to third parties is insufficient to meet the whole of the liabilities for which provision is made;

the order of priorities specified in sub-paragraph (1)(B) shall apply.

1B

The order of priorities which shall apply in sub-paragraph (1)(A) is—

F56za

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a

any liability mentioned in paragraph 3 (housing costs)F163, paragraph 4 (miscellaneous accommodation costs) or paragraph 4A (hostel payments);

b

any liability mentioned in paragraph 5 (service charges for fuel and rent not falling within paragraph 2(1)(a));

c

any liability mentioned in paragraph 6 (fuel costs);

d

any liability mentioned in paragraph 7 (water charges);

e

any liability mentioned in F105regulation 3 of the Community Charges Regulations (deductions from income support etc.), regulation 3 of the Community Charges (Scotland) Regulations (deductions from income support etc.) or any liability mentioned in regulation 5 of the Council Tax Regulations (deductions from debtor’s income support etc.);

f

any liability mentioned in F106regulation 4 of the Fines Regulations (deductions from offender’s income support etc.);

g

any liability mentioned in paragraph 7A (payments in place of payments of child support maintenance).

F132ga

any liability to repay an integration loan which is recoverable by deductions.

F125h

any liability mentioned in paragraph 7C (liability in respect of loans).

F179i

any liability mentioned in paragraph 7E (tax credits overpayment debts and self-assessment debts).

F2122

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

As between liabilities for items of gas or electricity the F71Secretary of State shall give priority to whichever liability it considers it would, having regard to the circumstances and to any requests of the beneficiary, be appropriate to discharge.

F214

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .