LWCRA And Debt Management

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Indego123
Indego123 Online Community Member Posts: 16 Listener
edited July 2021 in Universal Credit (UC)
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 :smile:

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  • janer1967
    janer1967 Online Community Member Posts: 21,922 Championing
    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
    Indego123 Online Community Member Posts: 16 Listener
    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 :smile:
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited July 2021
    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
    janer1967 Online Community Member Posts: 21,922 Championing
    Yes very picky but thanks 
  • MarkM88
    MarkM88 Online Community Member Posts: 3,119 Connected
    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
    Indego123 Online Community Member Posts: 16 Listener
     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
    janer1967 Online Community Member Posts: 21,922 Championing
    If it has been passed to dwp like you say then yes they will most likely clear the debt from your arrears payment 

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