A third party deduction is an amount that is deducted from a person's benefit payment in order to pay off charges, costs, or debts owed to another participant. A person may decide to apportion his or her benefits in this way to budget for the household or to clear an existing bill.
Third party deductions can be issued to registered persons, employers, service suppliers, product providers, information providers, utilities, or representatives. Third party deductions can be used to pay off fuel costs, housing costs, council tax arrears, or water and sewerage charges. For example, a person can allocate part of their benefit payment toward an electricity bill. Third party deductions can also be used to pay off unpaid fines, compensation orders, or child support orders.
Third party deduction recipients are automatically added as case participants on a case.
When a third party deduction ends, the system alerts the user to this effect.