Deductions from carers allowance

1111

Hi
I'm just looking for abit of advise, the Dwp are taking £20 per week from my esa for social fund loans from a few years ago for my self and my partner.
We have now had a letter from carers allowance to say their going to deduct money we owe from his carers allowance each week.
Can they do this? They are already taking quite a bit of mine each week for both our loans?
I know we have to pay it back and that's not the problem it the fact they are taking so much from us each week and taking from both the benefits.
It doesn't state on the letter what the money is for, I'm just guessing its a social fund loan as we don't owe anything else to them.
Thanks in advance

[Deleted User]

if you think its too much each week then talk to them see if it can be reduced?

MsCasey

Ring them and ask how many loans you have outstanding and how much they are for. They will also tell you the date of each payment.

AsknAnswer2

No, they can't. The Social Fund can only deduct from one benefit at a time and only for one social fund loan at a time. It may be that they are unaware that you and your partner are actually partners. If you and your partner have separate social fund records on their system they could be deducting your separate loans from your separate benefits. If it's a joint record then it's impossible for deductions to be taken for both of your loans at the same time or to take from separate benefits.

Firstly, you need to establish what the deductions are for. It can be for a variety of other than social fund loans for example: CSA, fines, Council Tax arrears, overpayments, third party deductions to a utility supplier for arrears.

Contact the benefit department and ask. If they confirm that it is indeed for social fund loans, contact the social fund and explain that you and your partner are having deductions made from your separate benefits for your separate loans. Ask if you have a partner registered on your social fund record and if you have not then that's where the problem lies and they'd need to stop recovery for one of you and join up your records.

If the deductions are not all for social fund loans, you can still ask for the rate of deduction which is for the social fund loan to be reduced. They are only likely to reduce this if it means that your debt will still be paid within 104 weeks and/or if you have other higher priority debts to pay.

The maximum that they can take for social fund deductions at a time is 20% of your total benefit per week (this includes CA, ESA and any tax credits you get). If you are having deductions made for other things, the allowable percentage rises to 30%.

benniebert

AsknAnswer2 wrote: »

The maximum that they can take for social fund deductions at a time is 20% of your total benefit per week (this includes CA, ESA and any tax credits you get). If you are having deductions made for other things, the allowable percentage rises to 30%.

I always thought that when you borrow money, be it from a bank or the DWP you are supposed to pay it back in line with the agreement which was signed when you applied for it?


Beats me how some can complain about having to repay the DWP when they borrowed the money in the first place.
I doubt that if I had a mortgage and told the bank to forget the agreed monthly repayment - I'm only prepared to pay a much smaller figure - that they would say why not it's not as though we need the money back.


With any overpayment owing to the DWP I thought that they started at 30% and you had to argue the figure down and only if the DWP would agree to it?

AsknAnswer2

You thought wrong on both counts, but I understand your reasoning. In this case it isn't about what the OP is prepared to pay but what they can realistically afford to repay.

A social fund loan is not an overpayment.

benniebert

AsknAnswer2 wrote: »

You thought wrong on both counts, but I understand your reasoning. In this case it isn't about what the OP is prepared to pay but what they can realistically afford to repay.

A social fund loan is not an overpayment.

Well follow that through to say a mortgage/bank loan. Say the agreed repayments should be £1000 a month, but the homeowner can only afford £100 a month. Are you suggesting that it is reasonable to expect a bank to accept only 10% of the agreed monthly amount?


Methinks that repossession (mortgage) County Court summons (loan) will be winging its way to the homeowner.


So why should a similar debt be treated any different just because it is the DWP?


At the end of the day it is taxpayers money that should have been repaid by now - why should they have to wait when banks and such like don't?


And presumably 'knocking' the DWP loan won't appear on a credit file?

Blackpool_Saver

Oh please ! get off your high horse

benniebert

Blackpool_Saver wrote: »

Oh please ! get off your high horse

Don't you like the point that I have made? You are happy that it is acceptable to 'knock' the taxpayers for unpaid loans?

NYM

I think you miss the point entirely.

Just step away from your keyboard for a while and...think.

lighting_up_the_chalice

Mortgage lenders are very prepared to make all sorts of concessionary arrangement to see customers through a sticky patch. Reduced payments, longer terms, reduced interest, interest "holidays", etc etc etc. Taking back the property is very much the last resort.

It's the same story with unsecured loans.