Deducting fines from tax credits can they?

David160

A friend of mine is on income support (she does not have a job or any other income or capital) and has 3 young (under 5) children. She receives tax credits for her children, but they are making deductions, and she is only receiving about £66 a week, in total, including her own income support. I think that they are making deductions but she does not understand them.

What are they allowed to deduct from child tax credits and her income support, for example court fines, crisis loans, arrears of utilities, tax credit overpayments etc.? Is there a maximum amount per week that they are allowed to deduct?

harveybobbles

£5.00 per week is the maximum for Court fines.

Page 3 and 4 here:

http://www.dwp.gov.uk/docs/benefitrates2012.pdf

MissMoneypenny

David160 wrote: »

A friend of mine is on income support (she does not have a job or any other income or capital) and has 3 young (under 5) children. She receives tax credits for her children, but they are making deductions, and she is only receiving about £66 a week, in total, including her own income support. I think that they are making deductions but she does not understand them.

What are they allowed to deduct from child tax credits and her income support, for example court fines, crisis loans, arrears of utilities, tax credit overpayments etc.? Is there a maximum amount per week that they are allowed to deduct?

Are you sure she it telling you the truth? The cash benefits for her children alone must come to over £200 per week, before you even count the income support and all the other freebies she is given i.e. free housing; greatly reduced council tax, free nusery/school dinners (depending on the age of the children). Plus she can keep all the children father/s maintenence payments, without it reducing any of her welfare payments.

If you put her circumstances into this benefits calculator, you will get an idea of how much she is being given.
http://www.turn2us.entitledto.co.uk/entitlementcalculator.aspx?ref=

Caz3121

David160 wrote: »

She receives tax credits for her children, but they are making deductions, and she is only receiving about £66 a week, in total, including her own income support.

something does not sound right there

She would be getting £71 per week IS and £168 per week child tax credits

David160

I have run a benefits check using this website and she should get about £285 a week, including child tax credits, child benefit, income support. The children's father does not earn enough to pay any maintenance. She has been to CAB and they say it is correct. I agree something is wrong. I suspect, in particular, that overpayments of child tax credits can be deducted from child tax credits but I suspect that the maximum deduction is more than £5 a week. I think that the maximum deduction from income support is about £40 a week.

Do you know what they can deduct?

whiffyleaks

The amount she says she receives is incorrect. And they can deduct the money owed because she owes it and must pay. Yes, there are limits, as detailed above.

DomRavioli

Hiya,

If there is a court order, then they can use direct deductions to take amounts for almost anything.

If she is in social housing, they can have what is known as WAD - water arrears deductions, which can cover both the arrears as well as the weekly payments (can be around £20.00 a week).

Also if she has signed agreements, these might be able to be taken at source (before any remaining amount of benefit is paid).

With regard to CTC overpayments, they can take them back at quite large rates.

paddedjohn

Even if the kids dad was unemployed he would still have to pay a token £5 per week and since he is working it may be a little more.