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Crisis Loan deductions from Income Support.... Is there a limit?


xemmax
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Im a single parent (1 child) currently recieving income support. I have been having deductions taken for council tax arrears, £3.40 per week but have now had another letter saying they are going to start deducting for an old crisis loan aswell to a total of £20.25 per week from my income support. I have already phoned and explained that really i cant manage to have this much taken from my benefit every week especially with winter and the rising costs etc etc. I have been told that i should hear back in a few weeks. What im wondering is if theres a limit to how much they can deduct from your benefit as i dont see how they can expect anyone to survive losing this much money a week :(

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Hi xemmax,

 

From past research of benefit deductions, I only recall there being limits to the deduction amounts for things like fines and council tax, not social fund repayments.

Also, I don't ever recall seeing anything related to an overall cap on deductions from a single benefit. Seems odd :???:

Maybe one of the more knowledgeable peeps can shed some light??

 

Extract from DWP website: http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/sb16-a-guide-to-the-social/crisis-loans/#loancl

 

"If the benefits or entitlements you get are not enough for deductions to be made to repay the Crisis Loan, or if you are not getting any form of benefit or entitlement, then repayment may be made by cash, cheque or postal order.

 

Even if you are not getting any form of benefit or entitlement, you will still be expected to pay back the loan at the same rate which you agreed when the loan was taken out."

 

My interpretation of that is 'you have to pay it back at the agreed rate whatever your circumstances' which seems a bit harsh.

 

Just my little contrib, I'm sure the cleverer people will be along shortly with some advice for you.

 

Good luck with it!

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The maximum they take for Social Fund repayments is 12% of your weekly benefit.

 

If you have other deductions from your benefit, high priority debt or are in hardship, they will consider lowering the repayment rate. The minimum is 5% of your weekly benefit.

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My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

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I had no idea that the 12% mentioned was the actual maximum they could take. I think DWP could make that a bit clearer.

 

Thanks ErikaPNP that info will be really useful for a friend I am helping with a similar situation.

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They are not set by law, but they are the standard rates which are applied nationally. Obviously this will not include any cases of Social Fund Fraud.

My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

Please do not seek, offer or produce advice on a consumer issue via private message; it is against

forum rules to advise via private message, therefore pm's requesting private advice will not receive a response.

(exceptions for prior authorisation)

 

 

 

 

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Thanks for all your replies... So basically the most they should be taking is 12% which is £8.10? Im still waiting to hear back from them after asking for the amount to be reduced but at least i know i have something to argue with now if they refuse. Really how they expect anyone to lose £20.25 per week and manage i do not know!

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