Third Party Deductions

In particular we are having issues with third party deductions for rent arrears and real difficulty in getting these lowered from the standard 20% of personal allowance. DWP have been unable to offer any clear guidance. When we contact the service centre we are sometimes advised that such requests must come from the landlord as they have requested the deduction and other occasions we have been advised the request must come from the claimant as they need to demonstrate financial hardship. We have taken to writing to UC to evidence financial hardship and including a letter from the landlord to confirm that they are agreeable but the whole process is taking a long time during which claimants are left without enough income to live on.
Has anyone else had a more positive experience or are these issues common with UC?

If it helps at all, this is some guidance we received in response to a FOI request about what should happen if a claimant asks for a reduced deduction rate:

https://www.whatdotheyknow.com/request/241160/response/605312/attach/3/UC Info Note 325 14 Request for financial Hardship Decision for rent arrears.pdf

Glenys

I’m just dealing with first case of this. Thanks for posting the DWP guidance to staff Glenys. I have emailed DWP a financial statement clearly showing the tenants hardship. They have replied to direct the client to the UC Helpline. I’m going to ring on her behalf next week. In terms of the categories of hardship, home is at risk and illness or disability apply.

It is clear that the landlord’s opinion should play no part in the decision making process, and that the decision for DWP is whether the client is in hardship and whether a reduction to 10 per cent is in their best interests.

The further problem, of course, is that for many clients even 10 per cent for rent arrears would leave them in hardship, especially in combination with other deductions, compared to the 5 per cent previously deducted and common in court judgements for arrears.

Yes I agree Sarah - and when training I always point out that if a deduction comes in at 10% it’s likely that this is because they are at 40% total deductions .
TPDs are a blunt instrument to be wielded with extreme caution!
Many housing staff we speak to say they are more effective as a negotiating tool with tenants- ie what the landlord might be forced to do if the current (lower) agreement isn’t kept to.