Policy News Journal - 2015-16

Table B: Deductions from Monthly Earnings Net Earnings

Deduction

Not exceeding £494.01

Nil

Exceeding £494.01 but not exceeding £1,785.61 Exceeding £1,785.61 but not exceeding £2,684.51

£15.00 or 19% of earnings exceeding £494.01, whichever is the greater

£245.40 plus 23% of earnings exceeding £1,785.61

Exceeding £2,684.51

£452.15 plus 50% of earnings exceeding £2,684.51

Table C: Deductions from Daily Earnings Net Earnings

Deduction

Not exceeding £16.24

Nil

Exceeding £16.24 but not exceeding £58.70 Exceeding £58.70 but not exceeding £88.26

£0.50 or 19% of earnings exceeding £16.24, whichever is the greater

£8.07 plus 23% of earnings exceeding £58.70

Exceeding £88.26

£14.87 plus 50% of earnings exceeding £88.26

This change also alters the protected minimum balance in bank arrestments. The protected minimum balance sets out a minimum amount which is protected from arrestment and provides important protection for those who may have their bank account arrested. The protected minimum balance will increase from £460.06 to £494.01.

Direct Earnings Attachments: employer guidance 4 April 2016

The Department for Work and Pensions (DWP) has published guidance for employers and software developers on how a DWP Debt Management Direct Earnings Attachment (DEA) should be operated.

Two sets of guidance have been published:

 Direct Earnings Attachment – A Guide for Employers - This guide explains what an employer needs to do if DWP Debt Management asks them to implement a Direct Earnings Attachment (DEA).

 A More Detailed Guide has also been developed to complement the publication Direct Earnings Attachment – A Guide for Employers . It is intended to provide employers and payroll software developers with more detail and worked examples on how a DWP Debt Management DEA should be operated.

Find out more about DEAs in the guide Make benefit debt deductions from an employee’s pay .

CIPP related News

 Higher Rate Direct Earnings Attachments (DEAs) - 10 August 2015

CIPP Policy News Journal

25/04/2016, Page 27 of 453

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