2. Direct earnings attachments
The DWP is responsible for recovering money owed to the state as a result of debt arising under the Social Security Administration Act 1992.
The Welfare Reform Act 2012, which became law in March 2012, allows DWP Debt Management to ask an employer, to make deductions directly from their employees’ earnings. This is done by asking them to operate a direct earnings attachment (DEA).
The legislation covering DEAs is found in the Social Security (Overpayment and Recovery) Regulations 2013 No.384, which came into force on 8 April 2013. DWP Debt Management began to use DEAs from this date, as part of a revised process to recover money owed to DWP.
Local authorities can use the same regulations as DWP Debt Management to implement a DEA, as can HMRC if there is an overpayment in tax credits, HMRC have passed the collection of these debts to DWP.