Direct Earnings Suspension (DEA) Continues

Changes to DEA deductions because of coronavirus (COVID-19)

The Department for Work and Pensions (DWP) has confirmed (7th July 2020) that benefit debt repayments continue to be temporarily stopped because of #coronavirus. Employers should continue to not make any DEA deductions from employees’ pay.

The DWP indicate that they will write to the employer with details of when to restart making deductions.

Prior announcements had suspended DEA deduction for the months of April, May and June only with recommencement from 1st July 2020.

Opinion

Employers need to take care of activity in the operation of DEA. Lower and higher rate DEA are applied by DWP to recover overpayments of benefits. Local authorities also operate Lowe rate (only) DEA for the recovery of housing benefit overpayments.

The original DWP press release indicated that local authorities would suspend housing benefit reclaims.

Some pay solutions may have applied automatic suspension of DEA, this suspension would have ended on 30th June 2020. Employers may need to now stop any DWP relating DEA order and reapply when in receipt of a written instruction.

PAYadvice.UK 7/7/2020

One thought on “Direct Earnings Suspension (DEA) Continues

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s