DWP ‘pausing’ third party deductions from universal credit payments until 10 May 2020

However, communication to stakeholders says that direct payments in respect of ongoing rent will continue

The DWP has said it is 'pausing' third party deductions from universal credit payments until 10 May 2020.

In an email to stakeholders today, the DWP advises - 

'We have received an unprecedented number of new benefit claims and have streamlined our operations to make sure people get the support they need during this time. As part of this, we have temporarily paused third-party deductions from UC – these will recommence on 10 May. 

We are in the process of explaining the changes to claimants via their online journal and to third parties, including housing providers who collect arrears via this method.

Third party payments that have been suspended include: Rent arrears, Service Charge arrears and Council Tax arrears. Direct payments for rent will continue and are not affected by this temporary pause.'

NB - in a written answer on 27 April 2020, Employment Minister Mims Davies said in respect of third party deductions - 

'Deductions are already capped at 30 per cent to not overburden the claimant. Should we suspend deductions there is a risk that some claimants will be unable to pay their outstanding arrears from third parties, potentially resulting in eviction or a loss of services.'

Ms Davies' written answer is available from parliament.uk