Using benefit arrears to recover debt
Where a client is due benefit arrears; these arrears can be used to repay current debt. The client must agree to this, unless the deduction from the arrears is for a regular offset, or the debt and arrears are for the same period, for example a backdated review for a period in the past.
Consider the client's full circumstances to avoid creating hardship.
Exceptions
Transferring between benefits
Transferring a client between benefits from a date in the past creates a debt of the previous benefit and arrears of the new benefit. In this situation the arrears must be used to offset the new debt created. There is no need to consult with the client in this situation.
Arrears and debt for the same period
When you are reviewing a client's benefit for a period in the past, and both arrears and debts are established for the same period, the debt can be recovered in full from the arrears. In this situation there is no requirement to contact the client as the debt is considered to be administrative action.
