DRO's & social fund loans

cd36uk

I have just completed my year of a DRO and it has become apparent that the deductions being made from my JSA were for a debt for a budgeting loan which was included in my DRO, and not for what I thought the deductions were for, hence why I didn't query it.

At the time of the DRO the intermediary said the issue of DWP loans and DROs was being thrashed out.
I know from speaking to someone at the SF dept of DWP that a record of my DRO is there but they still went ahead and made the deductions anyway.

Is there anything I can do about this and does anyone know what the final decision was on this issue of DWP debts and DROs?

FavDaughter1

hi, i don't know anything about this,sorry. i'd say pop into your CAB & talk to them.

if i understand you right you're not working so that should entitle you(unless rules have changed) to legal aid,a lot of solicitors give the first half hour free of charge so you could ring& speak to a solicitor.

sorry i'm not much help.

debt_doctor

Hi,
The issue of DROs and social fund loans and benefit overpayments has been clarified. All deductions for such debts must stop IMMEDIATELY a DRO has been approved. It is now unlawful for the DWP to continue to deduct from benefit.

In BR deductions are still allowed to continue whilst undischarged.

DD

fermi

cd36uk wrote: »

At the time of the DRO the intermediary said the issue of DWP loans and DROs was being thrashed out.

It was, through the High/Supreme Court with DWP wanting to appeal.

I don't know what the current position is now though. Or how it might effect the payments as they were obviously made while the situation was 'fluid'.

I've asked someone who should know what the current state of play is though.

Also, I suppose the obvious thing to do is ask your intermediary what the position now is.

EDIT: DD has replied.

fermi

debt_doctor wrote: »

Hi,
The issue of DROs and social fund loans and benefit overpayments has been clarified. All deductions for such debts must stop IMMEDIATELY a DRO has been approved. It is now unlawful for the DWP to continue to deduct from benefit.

But what about these past ones?

They must have started deduction from this time last year?

Was that lawful then?

Do they have to be refunded in whole or in part?

At one point DWP were stating that anything that was paid would not be refunded?

cd36uk

Thanks for the replies.
I called my intermediary today and explained the situation, he confirmed that the DWP should not have taken those payments.
He said he will have to query it with the insolvency service as although my DRO year is over (just) if I am due a refund they may want to know about it, even though it will not be over the £300 allowed (?this bit confused me, as if it is under £300 what does it matter?)

My main question to the intermediary was am I entitled to a refund?, but I don't seem to have got a straightforward answer to that one.

In a nutshell, my debt to the DWP included in the DRO was £170 give or take a few pence, and they ended up taking the whole amount in dribs and drabs over the course of the year of the DRO.
Which I only didnt query because I believed the deductions to be for a subsequent loan not included in the DRO and therefore had to be repaid.