DWP announces new changes for people paying energy bills through benefits starts this month
04.04.2023 - 14:09
/ dailyrecord.co.uk
The Department for Work and Pensions (DWP) has announced that energy suppliers can resume requesting new deductions or increases to existing deductions for Fuel Direct ongoing consumption payments, but must have the claimant’s consent first. For new requests, suppliers must also get a claimant’s consent before the request can be sent to the DWP.
However, DWP said in exceptional circumstances, when an energy supplier has exhausted all methods to contact a claimant, who has an existing arrangement, they can notify DWP. DWP will attempt to contact the claimant and advise them to contact the energy supplier.
If you owe money such as a court fine, rent, Council Tax or energy payments, money might be taken directly out of your benefits payments to pay the debt. This is sometimes called ‘third party deductions’ or, for gas and electricity payments, Fuel Direct.
The benefits that can be used are:
Organisations you owe money to can ask for deductions to be made from your benefits to pay the debt. The office that pays your benefit will only agree to do this if the organisation has tried other ways of getting the money from you.
You will be told how much will be deducted by letter or in your Universal Credit journal.
A fixed amount is deducted from your benefits until you’ve paid off the debt you owe. Money can be deducted to pay off up to three debts at once.
Deduction rates:
DWP said that if you want to pay more than the fixed rate towards your debts, you must arrange this with the organisation you owe money to.
While paying off debt to your gas, electricity or water supplier, you can have extra money deducted from your benefits to pay your ongoing bills.
Contact your supplier to set up deductions for your ongoing bills. They will