An employees guide to Direct Earnings Attachments (DEAs)

On this page
Overview
Protected earnings
Definition of earnings
Administrative costs
Deduction amounts
Your responsibilities
Advice and support

Overview

Reading Borough Council must collect any unpaid amounts owed to us, as required by the Social Security Administration Act 1992. 

We have the authority to recover overpaid Housing Benefit directly from wages without needing a court order. This process is called a Direct Earnings Attachment (DEA). 

This power was granted to local authorities by the Social Security (Overpayments and Recovery) Regulations 2013. 

DEAs let us recover the money you owe. We do this by asking your employer to make deductions from your earnings and to pay those deductions to us. 

It is possible for the council to apply for a DEA when: 

• an invoice remains unpaid 30 days after the date that it was issued 
• if we are unable to reach an agreement on recovery 

Your employer has a legal duty to make the deduction. The amount that can be deducted will depend on the amount of your net earnings each week or month. 

Your employer must inform you in writing of: 

• the amount of the deduction including any administrative costs
• how the deduction was calculated 

Deductions will continue until the debt has been repaid in full. 

Protected earnings

Employee’s pay is protected up to 60%. Deductions must not reduce your pay below this amount for each pay period.

The amount your employer will deduct each time you are paid will depend on how much you earn and the corresponding deduction rate.

Definition of earnings

Which payments count as earnings 

For the purposes of a DEA, these payments are counted as earnings: 

• wages or salary 
• fees 
• bonuses 
• commission 
• occupational pensions (if paid with wages or salary) 
• overtime pay 
• regular compensation payments 
• statutory sick pay 
• occupational pensions if paid with wages or salary 

What payments do not count as earnings 

For the purposes of a DEA, these payments are not counted as earnings: 

• statutory maternity pay 
• statutory adoption pay 
• ordinary statutory paternity pay 
• any pension, benefit, allowance or credit paid by the DWP, a local authority or HMRC 
• a guaranteed minimum pension under the Pensions Scheme Act 1993 
• payments made by a public department of the Government of Northern Ireland or from outside the UK 
• reimbursements for expenses incurred during employment 
• pay or allowances as a member of the HM forces, unless paid by you for reserve forces 
• lump sum redundancy payments 
• pay in lieu of notice 

Net earnings

Deductions will be made from your net earnings. Net earnings are what remains after deducting: 

• income tax 
• class 1 national insurance contributions 
• contributions to a workplace pension including: 
• additional voluntary contributions 
• free standing additional voluntary contributions 
• stakeholder pension contributions

Administrative costs 

Your employer may charge up to £1 per pay period for administrative costs when a DEA deduction is made. This fee can be taken even if it lowers your income below the protected earnings limit. 

Deduction amounts

Daily net earnings	Weekly net earnings	Monthly net earnings	Deduction rate (% of net earnings)
Less than £15	Less than £100	Less than £430	0%
£15 to £22.99	£100 to £159.99	£430 to £689.99	3%
£23 to £31.99	£160 to £219.99	£690 to £949.99	5%
£32 to £38.99	£220 to £269.99	£950 to £1,159.99	7%
£39 to £53.99	£270 to £374.99	£1,160 to £1,614.99	11%
£54 to £74.99	£375 to £519.99	£1,615 to £2,239.99	15%
£75 or more	£520 or more	£2,240 or more	20%

If you are paid every 2 weeks 

If you are paid every two weeks, divide the total net earnings by two and then use the table to check the percentage rate. 

If you are paid every 4 weeks 

If you are paid every four weeks, divide the total net earnings by four and then use the table to check the percentage rate. 

Your responsibilities

You are legally required to notify us in writing within 7 days if: 

• you leave your current employment 
• you become re-employed 

You must include the following information: 

• the name and address of your new employer 
• how much you earn (or are expecting to earn)
• your job title and description of the role
• any staff number, payroll number or similar identifying number 

You can tell us about changes by emailing: benefits@reading.gov.uk 

Advice and support

If you think the deduction is too much, or the amount owed is wrong, send an email to benefits@reading.gov.uk

For independent advice, contact the Citizens Advice Bureau