Paragraph 1 Direct deduction ordersF1

(1)

Where an amount is recoverable from a liable person who holds an account with a bank, the Secretary of State may make an order (a “direct deduction order”) in respect of that account.

(2)

A direct deduction order must be given to the bank with which the account is held.

(3)

A direct deduction order may be—

(a)

a regular direct deduction order;

(b)

a lump sum direct deduction order.

(4)

A regular direct deduction order is an order requiring the bank—

(a)

to make regular deductions from the liable person’s account, and

(b)

to pay the amounts deducted to the Secretary of State.

(5)

A lump sum direct deduction order is an order requiring the bank—

(a)

to deduct from the liable person’s account an amount specified in the order, and

(b)

to pay that amount to the Secretary of State.

(6)

The Secretary of State may give a regular direct deduction order and a lump sum direct deduction order in respect of the same account.

(7)

The Secretary of State must give a copy of a direct deduction order to—

(a)

the liable person, and

(b)

in the case of a joint account, each of the other account holders.

(8)

Paragraphs 3 to 5 set out steps that the Secretary of State must take before making a direct deduction order.

Annotations

Textual amendments

F1: Sch. 3ZA inserted (2.12.2025 but only for the purposes of making regulations, 24.6.2026 in so far as not already in force) by Public Authorities (Fraud, Error and Recovery) Act 2025 (c. 28), s. 109(2)(b), Sch. 5 (with s. 105); S.I. 2026/601, reg. 2(1)(g)