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Regulation 26 Establishing whether deductions would cause hardship in meeting essential living expenses

Original text. Later amendments are not shown.

(1)

This regulation applies where the Secretary of State is considering whether the terms of the direct deduction order, if made or varied, would cause a person to suffer hardship in meeting essential living expenses for the purposes of paragraph 6(1)(a) of Schedule 3ZA (amounts of deductions).

(2)

The Secretary of State must have regard to the following essential living expenses—

(a)

accommodation,

(b)

food,

(c)

hygiene and personal care,

(d)

heating,

(e)

water supply, and

(f)

council tax.

(3)

In establishing whether a deduction would cause a person to suffer hardship in meeting the essential living expenses in paragraph (2), the Secretary of State must consider any—

(a)

information provided by a bank in response to an account information notice,

(b)

evidence provided by an account holder in making representations in accordance with regulation 10,

(c)

evidence provided by an account holder in an application for a review of a direct deduction order in accordance with regulation 11, and

(d)

evidence provided by an account holder in an application for a direct deduction order to be varied in accordance with regulation 12.

(4)

Where the Secretary of State considers in accordance with paragraph (3) there is reason to believe an account holder typically meets, or is likely to meet, one or more of the essential living expenses listed in paragraph (2), the Secretary of State must have regard to—

(a)

the amount the account holder pays (or is likely to pay) towards meeting that essential living expense, and

(b)

the amount the Secretary of State expects an ordinary person in the account holder’s circumstances would reasonably incur in meeting that essential living expense, if less than the amount identified in sub-paragraph (a).

(5)

Where the Secretary of State does not consider, in accordance with paragraph (3), there is reason to believe an account holder typically meets, or is likely to meet, an essential living expense under paragraph (2), the Secretary of State must—

(a)

have regard to the amount the Secretary of State expects an ordinary person in the account holder’s circumstances to reasonably incur in order to meet the essential living expense, or

(b)

presume the account holder is not responsible for incurring the essential living expense, where it is reasonable to do so.