Regulation 27 Maximum deductions (regular direct deduction orders)

(1)

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—

(a)

40% of the relevant amount^f1 where paragraph (2) applies, or

(b)

20% of the relevant amount in any other case.

(2)

This paragraph applies where, in relation to any part of the recoverable amount, the liable person has—

(a)

been convicted of an offence whether under statute or otherwise,

(b)

made an admission after caution of deception or fraud for the purpose of obtaining benefit under the Social Security Administration Act 1992^f2 or a tax credit under the Tax Credits Act 2002^f3, or

(c)

agreed to pay a penalty under section 115A of the Social Security Administration Act 1992^f4 (penalty as an alternative to prosecution) and the agreement has not been withdrawn.

(3)

In this regulation—

“admission after caution” means—
1. (a)
  
  in England and Wales, an admission after a caution has been administered in accordance with a Code issued under the Police and Criminal Evidence Act 1984^f5, and
2. (b)
  
  in Scotland, an admission after a caution has been administered, such admission being duly witnessed by two persons.

Annotations

Footnotes

f1: See paragraph 6(4) of Schedule 3ZA (amount of deductions) for the definition of “relevant amount”.
f2: 1992 c. 5.
f3: 2002 c. 21. Part 1 has been repealed by Part 1 of Schedule 14 to the Welfare Reform Act 2012 (c. 5), subject to saving provisions in S.I. 2019/167.
f4: Section 115A was inserted by section 15 of the Social Security Administration (Fraud) Act 1997 (c. 47) and was amended by section 14 of the Social Security Fraud Act 2001 (c. 11); sections 105, 113, 114 and 115 of, and Part 1 of Schedule 14 to, the Welfare Reform Act 2012 (c. 5); art. 2 of the S.I. 2015/202; and sections 102(2) to (6) of the Public Authorities (Fraud, Error and Recovery) Act 2025 (c. 28).
f5: 1984 c. 60.