Deductions from Wages & Benefits

A High Court judge has ruled that the DWP's policy of allowing utility firms to take money directly out of people's benefits is illegal. It follows a court case in which a Midlands woman successfully argued that water and energy firms should not be able to claw back cash from people's social security payouts without proper checks being carried out. Find out more here

 

Benefit claimant wins High Court challenge over DWP policy approach to “Third Party Deductions” - Find out more here

Challenge your employer or the DWP with a Notice.

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Always send your Notices signed for orange postal sticker and keep the receipt your Notice has now been legally served and you can prove postage where they are unable to.

 

Creating your own notices from various sources rather than relying solely on a template is important for several reasons:

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Uniqueness & Personalization – Pre-made templates are widely circulated, meaning authorities may have already seen and countered them. A customized notice demonstrates independent thought and a deeper understanding of the issue.

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Legal & Factual Accuracy – Laws and circumstances can vary. Adapting different sources allows you to refine the content, ensuring it applies specifically to your situation and remains legally sound.

 

Stronger Argumentation – Using multiple sources helps you understand the reasoning behind different notices, enabling you to craft a more compelling and defensible argument.

 

Prepares You for Responses – Authorities may challenge your notice. If you understand and have tailored it yourself, you’ll be better prepared to respond effectively.

Here are some examples and information to help you create your own Unique Notices.

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A huge Thank you to the authors.

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Council Tax - Notice of Unlawful Deduction from Wages - Here

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Attachment of Earnings - Here

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Formal Notice – Challenge to Council Tax Attachment of Earnings - Here

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Notice of Unlawful Deduction from Wages - Here

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Notice to DWP - Here

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DWP BREACHES - DEDUCTIONS UNLAWFUL

1. Civil Procedure Rules (CPR) – Pre-Action Protocols
Failure to follow the appropriate pre-action procedures may constitute a breach of:

• CPR Part 1 – Overriding Objective:
◦ The DWP has a duty to deal with cases fairly and justly, including ensuring proper communication and compliance with legal obligations. Their failure to provide a valid court order or justification for deductions may breach this fundamental rule.

• Pre-Action Protocol for Judicial Review:
◦ The DWP, as a public authority, is required to follow the correct administrative procedures, provide adequate notice of decisions, and allow claimants an opportunity to challenge deductions before implementation. Their failure to provide clear and lawful justification for deductions breaches procedural fairness.

• Pre-Action Protocol for Debt Claims:
◦ If the DWP asserts a right to recover alleged overpayments, they must follow the debt claims protocol, which includes providing:
▪ A clear breakdown of the debt.
▪ Evidence supporting the claim (e.g., court order).
▪ An opportunity for the claimant to respond.
◦ Failure to provide such details may breach procedural requirements.

2. Social Security Regulations Breached

• Social Security Administration Act 1992 (Section 187 – Inalienability of Benefits):
◦ Unlawful deductions breach the statutory protection of benefits, which should not be assigned or charged without legal authority.

• The Universal Credit Regulations 2013 & The Social Security (Claims and Payments) Regulations 1987:
◦ These regulations outline the lawful deductions that can be made from benefits, with proper notification and opportunity for appeal. Failure to follow these rules constitutes a procedural breach.

3. Human Rights and Public Law Procedural Breaches
• Human Rights Act 1998, Section 6(1):
◦ The DWP’s failure to act lawfully, fairly, and transparently in making deductions without consent or legal justification is a breach of public law obligations.
◦ The failure to provide adequate information and opportunity for challenge also violates Article 6 of the European Convention on Human Rights (ECHR) – the right to a fair trial, which includes procedural fairness in administrative decisions.

• Failure to Conduct a Fair Process (Common Law Duty of Procedural Fairness):
◦ Public bodies, including the DWP, have a legal duty to act fairly, provide explanations, and allow individuals an opportunity to be heard before making adverse decisions.

4. Data Protection Law Breaches
• UK General Data Protection Regulation (UK GDPR):
◦ Article 5 (Principles): Failure to process personal financial data lawfully, fairly, and transparently.
◦ Article 15: The right to access personal data and know how it is being processed.
◦ Article 17: The right to rectification or erasure of unlawfully processed data.

• Data Protection Act 2018:
◦ Sections related to the lawful processing of personal data and the duty to ensure data accuracy before making decisions based on that data.

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