Attachment of Earnings
Attachment of Earnings Order guide 27 February 2015
We are pleased to confirm HM Courts and Tribunal Services are reviewing the AEO guide.
We are aware a number of members have felt some updating and improvements are needed. The CIPP has been tracking down the person responsible for the updating for some time and we have now been approached to assist. Please can you review the PDF guide within the news link below and send any comments, suggestions etc. to policy with AEO guide in the subject title. There is a tight turnaround for the initial work so if you could have your comments to policy by close of play 18 March 2015 please.
Attachment of earnings order guide
In addition to this work we have sought clarification on whether the guide will be placed on GOV.UK as a PDF or something else to ensure it isn’t diluted in anyway and will confirm the intention as soon as we know.
Thank you in advance for your time.
Direct Earnings Attachments change 9 March 2015
The DWP has confirmed a change in regulations (The Social Security (Overpayment and Recovery) Amendment Regulations 2015) that will mean they can issue a Direct Earnings Attachment to deduct at a maximum rate of 40%, rather than the current maximum of 20% in cases where the person has been prosecuted for the offence which gave rise to the benefit overpayment. Although the regulations come into force from 8 April 2015, the DWP will be working with the CIPP and the BCS who represent the payroll software industry on its implementation. Whilst Ministers would like to utilise the new regulations as soon as possible, they do recognise that without updated payroll software this would be difficult for employers to administer and it is likely software will not be ready until April 2016. Once the changes are implemented it is expected the DWP will issue a “stop notice” where a 20% DEA is in place and replace it with a new 40% DEA in appropriate cases, there will be no responsibility on employers to automatically increase the DEA rates. Further information for employers will be available after further consultation has taken place. A DWP official will be attending the next British Computer Society – payroll group meeting on 25 March 2015 to enable payroll software providers the opportunity to discuss the new requirements. The CIPP will also be in attendance at this meeting.
Higher Rate Direct Earnings Attachments (DEAs) 11 August 2015
The Department for Work and Pensions has recently provided a document to the Software Industry outlining the requirements for payroll software changes as a result of Higher Rate Direct Earnings Attachments (DEAs).
Where an overpayment is a result of fraudulent activity the debt should be recovered at a higher rate than those that arose through genuine mistakes by the benefit recipient. The higher rate of DEA will only apply where the person has been successfully prosecuted for the offence which led to the overpayment of benefit. This has resulted in an increase in the maximum rate of deduction from on-going benefit payments as well as a higher rate of deduction under DEA. These changes were introduced in the Social Security (Overpayments and Recovery) Amendment Regulations 2015 [SI 499/2015].
In addition to the increased rates, there were some other minor changes brought in by the regulations which include the ability for an employer to stop deductions when the debt balance is cleared.
CIPP Policy News Journal
25/04/2016, Page 25 of 453
Made with FlippingBook - Online magazine maker