Paragraph 6 Amounts of deductionsF1
The Secretary of State may make a direct deduction order only if satisfied on the basis of information received by virtue of paragraphs 3 and 5 that the terms of the order—
will not cause the liable person, any other account holder, or any person within sub-paragraph (2) to suffer hardship in meeting essential living expenses, and
are otherwise fair in all the circumstances.
A person is within this sub-paragraph if—
they live with the liable person, or any other account holder, for some or all of the time, or
they are financially dependent on the liable person or any other account holder.
The total amount of deductions to be made under a regular direct deduction order in relation to any period of 1 month must not exceed 40% of the relevant amount.
For the purposes of sub-paragraph (3), the “relevant amount” is the amount that the Secretary of State reasonably expects to be credited to the account in question in (or in respect of) a typical month during the period for which the order will have effect, having regard to all statements given to the Secretary of State in relation to the account (see paragraphs 3(2) and 15(1)).
The Secretary of State must ensure that the amount to be deducted and paid to the Secretary of State under a direct deduction order does not exceed the recoverable amount to which the order relates.
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)