Attachment of Earnings/Benefits
Attachment of Earnings
Where the Council has employment details for a debtor, an Attachment of Earnings Order may be issued requiring the employer to make deductions directly from wages.
The amount deducted is prescribed by law and depends on the individual's earnings.
Both the debtor and employer will receive written confirmation of the deductions to be made.
Each attachment relates to one Liability Order and a maximum of two attachments can operate at any one time.
The amount deducted from salary may differ from any payment arrangement offered by the debtor.
Attachment of Earnings deductions are set by legislation:
Examples (one Liability Order only)
- Take-home pay of £1,600 per month = deduction of £289 per month.
- Take-home pay of £2,100 per month = deduction of £383.40 per month.
Attachment of Earnings Orders will only be cancelled in exceptional circumstances.
By law, employers must comply with an Attachment of Earnings Order and may face prosecution and a fine of up to £2,000 if they fail to do so.
Attachment to Benefits
Deductions can be made from:
- Universal Credit
- Jobseeker's Allowance
- Pension Credit
- Income Support
- Employment and Support Allowance
Where a debtor receives one of these benefits, the Council may ask the Department for Work and Pensions to make deductions and pay them directly to the Council.
Only one Council Tax arrears deduction can be in place at any one time.
This option will generally be used where:
- The Council has benefit details for the debtor; and
- The deductions are likely to clear the debt within the current financial year.
Cases that fall outside these parameters will be reviewed individually.
Attachment to Benefits will only be cancelled in exceptional circumstances.
Hardship
Where a debtor claims that deductions would cause hardship, individual circumstances will be considered.
Evidence will normally be required, including proof that essential living costs such as housing, utilities or food cannot be met.