Claimants of Universal Credit and other benefits may see their payment reduced if they owe energy payments, including for gas and electricity. The DWP has confirmed energy suppliers can continue to put in requests for Fuel Direct deductions, when an energy debt is taken directly out of a person’s claim, or request to increase an existing deduction.
The supplier must have the claimant’s consent to put in the request. But if an energy supplier has not been able to get in touch with an individual who has an existing arrangement, they can then contact the DWP.
The DWP will then try to contact the claimant to encourage them to contact the energy supplier.
Other organisations can also contact the DWP to ask for deductions from a person’s benefits to pay for debts.
This could include for court fines, rent or council tax. The office that pays the benefit will only agree to do this if the organisation has tried to contact the individual.
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The person will be informed how much will be deducted from their payment by letter or in their Universal Credit journal.
Fuel Direct deductions can come from these benefit payments:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit.
If a person owes money but cannot afford the deductions from their benefits, the supplier will be able to advise what help is available for people on low incomes.
They may be able to arrange an alternative way for a person to cover their payments. For example, the British Gas Energy Trust offers grants to help people clear their debts, and there is no need to be a customer to apply.
This support is only available to people who have savings of no more than £1,000, and applicants must have already received advice from a money advice group.
Individuals who apply for a grant must also not have received a grant from the trust within the last two years to get a payment from the group.
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