Introduction
Mansfield District Council is responsible for recovering money owed to it in respect of debts arising under the Social Security Administration Act 1992.
From April 2013, Local Authorities have been given the power to recover overpaid Housing Benefit by deductions from earnings without the need to apply for a court order. This is done by using a Direct Earnings Attachments (or DEA). Local Authorities were given this power by The Social Security (Overpayments and Recovery) Regulations 2013. The full regulations can be found on this website – legislation.gov.uk
Why is the Council using a DEA?
DEAs give us the opportunity to recover overpaid benefits from debtors who are employed if they either refuse to repay, are unable to agree an acceptable repayment plan or who have defaulted on a voluntary repayment arrangement.
Do employers have to implement a DEA for the Council?
Yes, you have a legal obligation to do so unless you are a new business (which starts between 8 April 2013 and 31 March 2014), or a micro business (having fewer than 10 employees). In such cases you are not obliged to operate a DEA, although you may do so if this is agreed with your employee.
If you fail to comply with your duties, you could be subject, on conviction, to a fine of up to £1000.