LWCRA And Debt Management

Indego123

Hi, I got accepted for LWCRA after waiting for over a year. I would just like to know if and when the arrears they owe me get sent to debt management can any debt (ie: Council Tax) be deducted or is it just any debt I owe the DWP. Thank you

janer1967

Hi there and welcome to the community 

It is just dwp or tax debts like tax credits 

I'm not sure about council tax tbh 

Indego123

Hi and thank you for your reply. I am not too worried if they do take it as it would still leave enough for me personally. Was just curious. Thank you

calcotti

janer1967 said: It is just dwp or tax debts like tax credits 

Being picky but a tax credit debt is not a tax debt. Tax Credits have nothing to do with tax (despite the name).

janer1967

Yes very picky but thanks 

MarkM88

Has the council tax debt been passed on to DWP to collect from benefits at the moment?

Years ago I got into some financial hardship and had a debt owing and eventually it got deducted from my benefits.

So I don't know if whether if it has been passed across whether they can just take the full amount owing from a back payment. 

Obviously if the council tax debt is with the council still then no because they have nothing to do with the back payment. 

Indego123

 MarkN88,Yes, the council tax debt got passed on to DWP to collect from my benefits. I phoned the council a while back asking them to take a higher amount as all other debts had been paid off. They said they could not raise the amount as they could only take a certain amount. That's why i was just interested to know if now because i have no other debts on my clam if the council can take the outstanding amount from my LWCRA back payment. Thank you.

janer1967

If it has been passed to dwp like you say then yes they will most likely clear the debt from your arrears payment