Social Fund Deduction

quailpower

Got a letter today off the DWP saying they are going to start taking deductions from my Maternity Allowance for the Social Fund Payment I had back in 2006!

I had totally forgotten about this (was a crisis loan for £80). I'm really quite upset, I know I owe the money, so I know I need to pay it back - but if they had contacted me and asked for it back any time in the last 5 years I could have paid it without blinking!
Now my sole income is Maternity Allowance, and they want £12 PER WEEK! There is no way I can afford £12 per week, Im on a debt management plan.

Question is what do I do? Ill happily pay back the money but all my other priority debts are only getting £5 per month! But it is an automatic deduction so they've already started taking it

rogerblack

You can ask them to reconsider the amount of the deduction.
For small debts - as I understand it, the theory - which is probably right - is that it may take more money to find people and get them to pay, than to simply deduct from payment in any form once it starts.

You've had a free loan for 5 years.
You could have remembered at any time, and paid it back.

quailpower

rogerblack wrote: »

You've had a free loan for 5 years.
You could have remembered at any time, and paid it back.

I know it's my fault for forgetting about it, thanks for rubbing it in

Dunroamin

I'm afraid that, as you didn't pay voluntarily when you were on a high income, they're taking it back from benefits while they have a chance. Having said that, you may well be able to negotiate lower payments over a longer period.

katkin2000

your lucky they are taking 10.00 per week for a social fund loan i had 17 yes 17 years ago

jacques_chirac

katkin2000 wrote: »

your lucky they are taking 10.00 per week for a social fund loan i had 17 yes 17 years ago

Is there a reason why you have not voluntarily paid it back before now?

midnight_express

It's a pity they don't charge wonga rates of interest.

paddedjohn

jacques_chirac wrote: »

Is there a reason why you have not voluntarily paid it back before now?

Yes, they the OP thought they had got away with it.;)

cattie

You can try to negotiate a lower repayment rate with DWP but they will want to know all details of your income & expenditure before making a decision whether to allow a lower figure or not.

mcjordi

cattie wrote: »

You can try to negotiate a lower repayment rate with DWP but they will want to know all details of your income & expenditure before making a decision whether to allow a lower figure or not.

and by the time they look at the figures youve paid it all back anyway

Naf

It'll take less than 2 months to clear. I'd just take it on the chin,. tighten my belt for 7 weeks & get it over & paid. I doubt they'll accept much less; and by the time you've tried to negotiate it, as mcjordi points out, it'll be practically paid anyway.