Can Benefit Overpayments be Recovered during a Formal Debt Solution?




How do you know?

Personal Insolvency




Date of Sequestration




Can the DWP recover debts that are included?




Once the insolvency period has commenced, any deductions from benefit

And at paragraph 6.7 in relation to sequestration, it states:



Protected Trust Deeds







The Debt Arrangement Scheme








  1. Whyte

    Please I need your enlightenment on this issue, because this is the second time it is happening to me and I feel it is not right. Though I stand to be corrected.

    I have a Direct Earning Attachment from DWP. The only way I found out about it was seeing it on my pay slip. Up to this moment, I have no clue what the debt is about. I never got any communication whatsoever from DWP to this effect.

    I called my employer to find out. He didn’t know what it is for either, but he said he has to make the deduction or else he will be fined a thousand pounds.

    The money that I was told I owe is less than £200.

    I could have easily made an arrangement to make this payment within a short time without them going to my employer.

    The truth is I didn’t know about this debt until I got my payslip.

    My question is this, is it the right thing for DWP to do the attachment without me even knowing about the debt?

    My employer did not even contact me before deducting the percentage.

    I found this embarrassing, as I could have easily made this payment directly to DWP without any issue if I was informed about it.

    1. Scottish Adviser Post author


      As you will be aware, Direct Earning Attachments are normally for overpaid benefits by the Department of Works and Pensions. However, Local Authorities can also do them for overpaid Housing Benefit.

      The way it should work is you should have been notified by the DWP that they think there had been an overpayment of benefits.

      They then make a decision to that effect.

      If you disagree you can appeal the decision. If you don’t appeal it or you are not successful, the decision stands and they can recover the debt.

      In Scotland they have 20 years to do this, so it can be an old debt.

      They don’t need to notify you they are going to do a DEA before they do it and your employer is correct, he has no option but to execute it.

      What I would suggest is you contact Debt Management at the DWP. They should be able to give you more information about the debt.

      You can get there contact details here.

  2. Rusty


    I am being perused by a private landlord for rent arrears of nearly £3k.

    I am not working and get benefits, they have a sheriff court decree to recover the money.

    Can they take it from my benefits as I cant pay the amount owed?

    1. Scottish Adviser Post author

      Hi Rusty

      Not for private landlord rent arrears, even if they have a Court Order.

      However, they can charge 8% interest and pursue you for it for up to 20 years (although unlikely).

      May be worth speaking to your local Citizen Advice Bureau, as you may have other options, even if you cannot pay just now.

