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
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