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Third party deductions from UC

Surrey Adviser
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Benefits and debt adviser - Esher CAB, Surrey

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Total Posts: 222

Joined: 17 June 2010

Client is single, lives alone, under 25 so Standard Allowance £251.  He has third party deductions totalling £101 so has to live on £150 p mth. which, of course, results in him getting into more debt by things such as not paying for utilities.  Deductions are £50 for rent arrears, £38 for Mag. Court fine & £13 for CT debt.

I understand the amount of the deductions is fixed by DWP, not by the third party.  Is there any way in which DWP might be persuaded to reduce the amounts please, or are they set in stone in regulations etc?

Elliot Kent
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Shelter

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Joined: 14 July 2014

C tax - recovery rate is fixed at 5%.

Rent arrears - recovery rate is between 10% and 20% - they are taking 20%.

Magistrates court fines - recovery rate is (for <25s) 5%-40% - they are taking 15%.

So yes, there is some room to negotiate which would generally be done by contacting debt management.