Update on the treatment of DEAs during the outbreak of coronavirus
02 July 2020
Due to the impact that coronavirus, or COVID-19, has had on almost every aspect of our daily lives, the Department of Work and Pensions (DWP) announced that it would be writing to employers to instruct them to temporarily stop benefit debt repayments, and that no Direct Earnings Attachment (DEA) deductions should be taken from employee pay in April, May or June 2020.
Member feedback has highlighted the fact that the letters received from DWP actually advised employers to cancel deductions, and not to temporarily suspend them.
The CIPP has approached the DWP to ask whether the suspension to DEAs will be extended beyond June 2020, and what employers need to do to prepare. The advice given was that employers will be contacted by letter if any DEA deductions are to resume.
This is due to the fact that many people may have lost their jobs due to the effects of coronavirus, or may just be living under completely different circumstances. It may be that people opt to pay directly to DWP and not have the funds deducted through payroll. In light of this fact, and how significantly things may have changed, the DWP will be contacting individuals directly and then will be sending letters to employers should there be the requirement for a DEA to be added to an employee’s payroll record.
The key point is that employers and payroll professionals should not recommence DEA deductions for staff until they receive a letter instructing them to do so. Current guidance is due to be updated shortly to reflect this information, and the CIPP will publish via News Online once this happens.
The information in this article is accurate at the time of publication. For all the latest information, news and resources on how the COVID-19 pandemic is affecting payroll professions, visit our Coronavirus hub.