Reduced maximum rate at which UC deductions can be made
The reduction from 40% to 30% comes in in Oct 2019. When is it applied from? Any payment date from 1/10/19?
That is fairly good news but I cant find any verification of such a ruling. Its hardly surprising when changes are being slipped in through Statutory Instruments.
No I can’t find any details.
This is important, but like you say, I can’t find anything?
The 40% is in Schedule 6 para 4 of the UC (Claims and Payment) Regs - so there will have to be an amending SI for that and I’m pretty certain that’s not happened yet. Until we have that and what date it is in force from we can’t know - the October 2019 announcement was from the 2018 budget but no specific date was set
I rang Yorkshire Water yesterday to arrange UC deductions for water, I expected to hear the usual which would be deductions fixed at on-going liability plus 5% of standard allowance each month. However I was told that as of October 2019 there are no longer a fixed deductions that Water can request from DWP, they request and are then told by the DWP how much it would be, it could be lower or even higher than what was previously expected, obviously tricky and problematic for clients.
Does anyone know anything about this? I didn’t know until I found this thread about the drop from 40% to 30% but am now aware, perhaps there is more to it?
Para 9 of Sch 6 of the Claims and Payments Regs doesn’t appear to have changed, so the rules on water deductions are the same as ever - a 5% deduction for arrears and a deduction to cover the ongoing charges.
I am not aware of any announcement in the 2018 budget or anywhere else which would have changed this. In some cases the 30% maximum will cause third party payments for water charges to end or be reduced because the money will all be used up by higher priority debts. But I haven’t seen any sign of any amendment to Para 4, so it seems the 40% hasn’t changed yet.
I’m hearing loads of claimants say that the max has changed to 30%...obvious that technically that is not true, but is it possible guidance on overall max has changed? Or is this another myth & in fact there are still 40% deductions out there?
Haven’t seen anyone yet saying their 40% deduction has gone down, nor any current clients who have deductions at that rate.
Any other evidence/steps we can take to find out what’s going on?