3 April 2020
We have received several calls into our Advisory team in relation to Direct Earning Attachment Orders (DEAs) issued by the Department of Work and Pension (DWP). Members have advised that they have been contacted by DWP and have been told to suspend all DEAs processed via their payroll that have been issued by them. Upon investigation, DWP have, in fact, issued a statement on their debt management telephone line, advising that all debt management collection in relation to over payments of benefits, tax credits and social funds have been suspended for a temporary period. They will not be issuing any new collection notices nor collecting any debt during this time. Employers who process DEAs for DWP via their payroll are advised to suspend all DEA collections, and to not set up new orders that may have recently been received. You are not required to speak to an advisor or gain authorisation to action this.
Official guidance will be published very soon, however, if you would like to hear the notice given, you can call 0800 916 0614, selecting option 1 for employers.
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DWP confirms the recovery of benefit overpayments has been suspended temporarily 7 April 2020 As previously reported by the CIPP’s News Online, the Department for Work and Pensions (DWP) has now issued a press release confirming that the recovery of benefit overpayments has been paused for a period of three months. This is in response to the coronavirus crisis. This means that many claimants will see an increase to the amount that they receive in benefits that they are receiving during the outbreak and will also allow the department to shift large numbers of staff to front line roles. This will allow them to focus on ensuring that they can provide money to those who need support as there have been a significant increase in claims over the last two weeks. It has been confirmed that 10,000 current staff will be moved to front line roles and the department has confirmed that it is recruiting more. Deductions relating to the recovery of Universal Credit, and legacy benefit overpayments, Social Fund loans and Tax Credit debts will temporarily be paused. Most of these deductions will be automatically suspended, but if repayments are made via standing order, bank giro credit or online banking, then the relevant bank should be contacted, and the arrangement cancelled.
The recovery of advances by deduction from Universal Credit payments will continue.
Some other key points include:
• The recovery of Advances by deduction from Universal Credit payments will continue • Local Authorities will suspend referral of Housing Benefit overpayments • The transfer of Tax Credit debt from HMRC has already been suspended • Debt recovery activity will be stopped as soon as possible. This includes all benefit-related overpayments, Social Fund loans and Tax Credit debts. Many activities will cease immediately but others may take longer to implement • For citizens who are not on benefits, private sector debt collection agencies have been directed to stop their activity for Debt Management customers • Voluntary debt repayments and recovery by Direct Earnings Attachments are also being suspended
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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