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8. Fuel Direct
The Fuel Direct scheme allows an amount to be deducted from your benefit entitlement and paid directly to your energy supplier to cover your ongoing energy costs and/or your energy arrears. Fuel Direct is also known as part of the DWP ‘third party deduction system’.
To be on the Fuel Direct scheme you must be in debt for mains gas or mains electricity and get universal credit (UC), pension credit (PC), income support (IS), income-based jobseeker’s allowance (JSA) or income-related employment and support allowance (ESA). Deductions can be made from contribution-based JSA or contributory ESA if you have an ‘underlying entitlement’ to the means-tested version of the benefit – ie, where, if you were not receiving the contribution-based type of benefit, you would instead be getting the means-tested type at the same rate.1Sch 9 para 1(2) and (3) SS(C&P) Regs
Note: the DWP can only make Fuel Direct payments for ongoing energy costs when your energy supplier applies for them and you consent to the deductions being made.2Sch 9 para 6(2)-(3A), SS(C&P) Regs; Sch 6 para 8(4)-(4A) UC,PIP,JSA&ESA(C&P) Regs; regs 2 and 3 The Social Security Benefits (Claims and Payments) (Amendment) Regulations 2023 No.232 However, it can make Fuel Direct payments for energy arrears with or without your consent.
 
1     Sch 9 para 1(2) and (3) SS(C&P) Regs »
2     Sch 9 para 6(2)-(3A), SS(C&P) Regs; Sch 6 para 8(4)-(4A) UC,PIP,JSA&ESA(C&P) Regs; regs 2 and 3 The Social Security Benefits (Claims and Payments) (Amendment) Regulations 2023 No.232 »