SCHEDULE 9DEDUCTIONS FROM BENEFIT AND DIRECT PAYMENT TO THIRD PARTIES

Water chargesF17

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, F4including 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 F6Secretary 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, F2but only if F10the 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 F7Secretary 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 F8Secretary of State may determine that the sum so estimated shall be adjusted for a period of 26 weeks F3or 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 F14or is a moratorium debt, the F9Secretary 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

F5Subject 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 F12a sum calculated in accordance with sub-paragraph 8(4);

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