Guidance

How the deductions from benefit scheme works: guidance for creditors or suppliers

Guidance for current creditors or suppliers, for example, utility suppliers and landlords, on how the deductions from benefit scheme works.

Documents

Third Party Payments enquiry form (Word)

Third Party Payments enquiry form (ODT)

Form to change the name or address of a creditor or supplier (ODS)

Form to change the bank details of a creditor or supplier (ODS)

Form to change customer reference numbers (Excel)

Form to change customer reference numbers (ODS)

Details

In certain circumstances, DWP can deduct money from a claimant’s benefit and pay it to a creditor or supplier to clear a debt for:

  • Council Tax
  • fuel costs
  • rent and service charges
  • water charges

The payments are called ‘third party payments’. This guidance is for creditors and suppliers receiving a third party payment. It explains how the scheme works for deductions from:

  • Employment and Support Allowance
  • Income Support
  • Jobseeker’s Allowance
  • Pension Credit
  • Universal Credit

How to apply

Employment and Support Allowance, Income Support, Jobseeker’s Allowance, Pension Credit

Find out how to apply for deductions from Employment and Support Allowance, Income Support, Jobseeker’s Allowance and Pension Credit to clear a debt.

Universal Credit

Find out how to apply for deductions from Universal Credit to clear a debt for:

Updates to this page

Published 1 November 2011
Last updated 24 July 2024 + show all updates
  1. Published updated Excel and open document versions of form ePRS03 to change customer reference numbers. The update is a change to the email address to send details of any money received incorrectly.

  2. Updated form to change the name or address of a creditor or supplier - eprs01 (XLX and ODS).

  3. In Employment and Support Allowance, Jobseeker’s Allowance, Income Support and Pension Credit: Third party payments creditor and supplier handbook, updated Pensions Service closing time to 6pm.

  4. Updated Pension Service opening times in 'Employment and Support Allowance, Jobseeker’s Allowance, Income Support and Pension Credit: Third party payments creditor and supplier handbook'

  5. Updated the "Universal Credit: Third party payments creditor and supplier handbook". Added information to the following sections 'Housing cost payments - responsibilities', 'Changing creditor/supplier details' and 'Change of bank forms (only for payments made through the Third Party Payment scheme every 28 days)'.

  6. Updated the Pensions Service telephone opening times in the 'Employment and Support Allowance, Jobseeker’s Allowance, Income Support and Pension Credit: Third party payments creditor and supplier handbook' to Monday to Friday 10am to 3pm.

  7. Updated the 'Third Party Payments enquiry form' (Word and ODT formats). The new version is labelled - version 1.4 and dated 4/11/2022.

  8. Updated the 'Third Party Payments enquiry form' (both Word and ODT formats). The new version is labelled version 1.3 and dated 28/04/2022.

  9. Added information to the following sections: 'Types of arrears recovered from benefit' (updated the bullet point about Housing Rent Arrears), 'Housing cost (APA) payments' (updated the section and the bullet point about allocating all payments to the correct customer account), 'Private landlord payment queries' (added information about the way pay rent arrears are paid to Private Landlords), and 'Other creditor and supplier payment queries' (updated the section and the bullet point about Private Landlords).

  10. Updated introductory chapter of 'Universal Credit: Third party payments creditor and supplier handbook'.

  11. Updated the 'form to change the name or address of a creditor or supplier' and the 'form to change the bank details of a creditor or supplier'.

  12. Updated the 'Third Party Payments enquiry form' with the new turnaround target of 5 working days.

  13. Updated the email address for local authorities receiving electronic schedules through Transfer Your File to request a duplicate schedule.

  14. Updated the 'Useful contacts' section of the 'Universal Credit: Third party payments creditor and supplier handbook' to clarify when to contact Universal Credit and when to contact Third Party Payments.

  15. Updated the Third Party Payment (TPP) enquiry form.

  16. Added form to use when contacting Third Party Payments.

  17. You now need to contact the Third Party Payments call centre by phone. You can no longer email them at [email protected].

  18. DWP is able to accept new requests again for creditors and suppliers to receive payment schedules electronically.

  19. Creditors and suppliers can now contact Third Party Payments telephone again.

  20. Updated the guides to explain the Third Party Payment phone line has temporarily closed because of coronavirus (COVID-19). Creditors and suppliers should email enquiries instead.

  21. Updated guidance to explain that DWP cannot accept new requests for electronic payment schedules at the moment because of coronavirus (COVID-19).

  22. Updated the forms to change the name and address of a creditor or supplier and to change the bank details of a creditor or supplier to make it clearer which parts of the form creditors and suppliers need to complete.

  23. Updated the paragraph on electronic payment schedules in the guidance 'Universal Credit: Third party payments creditor and supplier handbook'.

  24. Published separate guides: one for Universal Credit and one for Employment and support Allowance, Income Support and Jobseeker's Allowance.

  25. Amended how the Third Party Payments scheme works: a handbook for creditors or suppliers and forms ePRS01 and 2. We've added change of name to the form as well as change of address. And where the forms should be sent to, from Payment Resolution Service to Payment Services.

  26. Published latest version of the Third Party Payments creditor/supplier handbook with revised contact centre information throughout. (June 2018).

  27. Added revised deductions from benefit scheme form – 'Form to amend customer reference numbers'. Removed some test data (ePRS03).

  28. Published revised Form to amend customer reference numbers – fields increased to include more characters (ePRS03).

  29. Added revised deductions from benefit scheme form – 'Form to amend customer reference numbers' (ePRS03).

  30. Revised deductions from benefit scheme form – 'Form to amend customer reference numbers' (ePRS03).

  31. Published latest version of the Third Party Payments creditor/supplier handbook with revised contact and payment schedule information and general updates throughout.

  32. Revised deductions from benefit scheme form to amend customer reference numbers - ref: ePRS03.

  33. Published latest version of the Third Party Payments creditor/supplier handbook with revised opening hours of helpline.

  34. Replaced ePRS02 third party creditor supplier change of bank detail form with revised version.

  35. Published latest version of the Third Party Payments creditor/supplier handbook to include contact details for Universal Credit.

  36. Replaced "How the Third Party Payments scheme works: a handbook for creditors or suppliers" with a revised version that includes guidance for Universal Credit.

  37. Published new form for creditors or suppliers to notify DWP of a change to a customer's reference number.

  38. Published updated guidance and added forms for creditors or suppliers to notify DWP of a change of address or a change of bank details.

  39. Guide updated for new procedures for amending creditors' records and changing a customer's reference number and new contact details.

  40. First published.

Sign up for emails or print this page