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<p /> <p>Third Party Deduction is a long standing scheme of last resort where all
other means of budgeting have been exhausted. Where the Secretary of State decides
that it is in the claimant’s best interests to order repayment of the arrears he can
do so. The scheme was introduced in the 1970’s to protect the vulnerable and their
family, whilst not adding to their financial burden.</p><p> </p><p>Fuel Direct is
set in legislation at 5% of their Personal Allowance, which is a fixed deduction of
£3.70 for each element of fuel debt. This is considered to be the most appropriate
level of repayment in order to clear the fuel debt arrears and to prevent enforcement
action.</p><p> </p><p>Each year the amount of Third Party Deduction is re-assessed
as part of The Social Security Up-rating Order.</p><p> </p><p>Once the arrears have
been paid a person will usually be taken off the Fuel Direct scheme. In exceptional
circumstances a person may be allowed to remain on the Fuel Direct scheme to help
ensure that they don’t get into debt again.</p><p> </p><p>However Fuel Direct is not
intended as a budgeting aid and the Governments main objective is to help people into
employment, whilst encouraging them to be responsible for their own financial affairs,
whether they are on benefit or not.</p>
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