If you get pension credit, income support, income-based jobseeker’s allowance or income-related employment and support allowance
Deductions can be made from your benefit if:1Sch 9 para 6(1) SS(C&P) Regs •your arrears for gas or electricity are greater than £90.50 (in 2024/25); and
•you continue to need a fuel supply; and
•it is in your best interests, or those of your family, for direct payments to be made.
Deductions are normally refused if:
•the above do not apply; or
•your supplier does not agree to you paying this way; or
•you have a prepayment meter which has been reset to collect arrears. (If your prepayment meter is for current consumption only, however, you could still have any arrears paid by Fuel Direct.)
Deductions can be made to cover arrears, or just to cover weekly costs after the debt has been cleared, or both.2Sch 9 para 6(4) SS(C&P) Regs •For arrears.
◦The maximum statutory deduction that can be made for electricity or gas is £4.55 for each fuel debt in 2024/25.
◦There is a maximum combined deduction of £9.10 for gas and electricity arrears.3Sch 9 paras 1(1) and 6(2) SS(C&P) Regs
•For ongoing energy charges.
◦Your supplier gives the DWP an estimate of your weekly consumption. This is usually calculated by looking at your consumption over the past year. If the amounts suggested seem high, ask for an explanation – errors are not uncommon. Check that your supplier is relying on real meter readings in reaching its estimates.
◦The final decision on the amounts deducted rests with the DWP decision maker, who is not bound to accept the supplier’s estimates.4Sch 9 para 6(4) SS(C&P) Regs ◦The maximum deduction that can usually be made is 25 per cent of your PC ‘minimum guarantee’ or IS, JSA or ESA ‘applicable amount’. If you get child tax credit (CTC), this calculation is 25 per cent of the total of your CTC, child benefit and PC minimum guarantee or IS/JSA/ESA applicable amount combined (before housing costs are included). This includes the combined amount of the deductions for arrears and current consumption.5Sch 9 para 8 SS(C&P) Regs
Other debts can also be paid by direct deductions from benefit, and payment of these may be in competition with payments for fuel. The number of deductions for arrears is limited to a maximum of three and a priority order applies. If you have both gas and electricity arrears, the DWP decides which debt takes priority.