Supreme Court rules deductions unlawful during BR and DRO's

[ErikaPNP]

Applies to England and Wales only

 

This is big news, news which we have awaited since March 2010. The Supreme court have finally ruled on the case of Secretary of State for Work and Pensions v Payne and Another

 

Since the ruling of R v Secretary of State for Social Security, Ex p Taylor and Chapman [1997], the DWP have been allowed to make deductions from benefit during a period of insolvency to recoup overpayments and Social Fund Loans.

 

In March of 2010, the legality of deductions during a moratorium period of a Debt Relief order was challenged and then began the battle. Cut to the chase - DWP have lost each and every court battle on it. The Supreme Court have dismissed their appeal and not only have the ruled that deductions during the moratorium period of a DRO are unlawful - they have also ruled that the judgment in Taylor and Chapman was wrongly decided. This also means that deductions can no longer be taken from benefit in the 12 month period between the commencement of a bankruptcy order and being discharged from bankruptcy.

 

In a nut shell: DWP can no longer make deductions to your benefits for overpayments or social fund loans which are included in a DRO or a bankruptcy order.

Link to the judgment here

 

DWP have released a bulletin on it also. View here

[sadone]

Excellent news. Well done the supreme court. I hope this helps a lot more people out.

 

Thanks for bringing it to our attention.

[lee100]

Great news.

 

This means I can go for my DRO now!

 

Thanks.