Benefits payments can be used to help cover the cost of certain bills including services charges, fuel, rent, or water bills.
THIRD PARTY DEDUCTION SCHEME: The facilities allow your benefit payments to help pay your bills or rent.
They are sometimes referred to as Fuel Direct benefits to assist those who are having difficulties.
You should apply by contacting the Jobcentre Plus office (or your pension centre if you are receiving Pension Credit).
They will then inform the person or company you owe money to, and let them know you will be starting third party deductions from benefit. They will help you set up the scheme and explain how and when the bill payments will be made.
Information that you will need includes;
Benefits which may be used include;
Deductions are made each time your benefits are paid. £3.65 is deducted from each benefit to pay off the debt you owe. There is also an extra amount to cover your bills in future. This extra amount is determined by Jobcentre Plus or your pension centre.
They will ask you to agree if the amount will be more than 25% of your benefits (including Child Tax Credits). The deduction can be made without your agreement if it is less than 25% but you will be informed either way.
You cannot use your benefits;
Check to see if you also qualify for;
If you get final demands you should contact the person or company you owe and inform them that you are on third party deductions from benefit. They may request your National Insurance number to verify this.
Third Party Deduction Scheme from Benefit; UK Rules Updated 2017