How direct earnings attachment works
Before implementing a DEA, the DWP, HMRC or local authority contacts the client who owes them money to get them to agree a repayment arrangement. If the client ignores letters or if they cannot agree on a repayment, a DEA is implemented. A letter is sent to the client advising them that a DEA is being applied for.
A letter is also sent to the client’s employer asking them to begin deductions from the client’s salary. A DEA has effect from the next payday which falls on or after 22 days following the day it is given or sent. The 22 days allow the employer time to set up the DEA.
The payment should be sent to DWP Debt Management or local authority at the latest, by the 19th of the month following the first deduction from the client’s pay.1Reg 22 SS(OR) Regs Payment due dates examples
DEA deducted on 30 September must reach creditor by 19 October.
DEA deducted on 1 October must reach creditor by 19 November.
Example
A DEA notice to the employer is issued on 2 May.
If employee is monthly paid – paid on the last working day of the month. The employer must implement the DEA from the first payday on or after 24 May. The first payment should therefore be taken from the wage paid on 31 May and must be received by the creditor (DWP, HMRC or local authority) by 19 June at the latest.
If employee is weekly paid – Friday payday. The employer must implement the DEA from the first payday on or after 24 May. The first payment should therefore be taken from the wage paid on the Friday following this date and must be received by the creditor (DWP, HMRC or local authority) by 19 June at the latest.
An employer can also deduct an administration fee of £1 (maximum) for a DEA from their employee.2Reg 20(9) SS(OR) Regs If the employer ignores the DEA or fails to operate the DEA correctly, it can be fined up to £1,000. The client will still owe the overpayment.3Reg 30 SS(OR) Regs