Paying Bills with Benefits

You can have some of your bills (including rent, services charges, fuel or water bills) paid directly out of your benefits payments if you are having difficulties. This is called ‘third party deductions’ and sometimes Fuel Direct.

The benefits that can be used are: 

  • Universal Credit 

  • income-based Jobseeker’s Allowance 

  • income-related Employment and Support Allowance 

  • Income Support 

  • Pension Credit 

How to apply 

Contact Jobcentre Plus (or your pension centre if you are on Pension Credit). 

You need: 

  • details of who you owe and how much 

  • your customer reference number (for bills) 

  • your National Insurance number 

They will arrange for some of your benefits to be paid directly each month to the person or company you owe. 

How deductions work 

If you get Universal Credit 

The amount of the deduction depends on what you are paying off. Your Universal Credit will be deducted:

  • 5% for gas, electricity and water 

  • at least 5% but not more than £108.35 per month for fines 

  • between 10% and 20% for rent 

You can use deductions to pay your gas, electricity and water bills at the same time as paying back any debt you owe. This will stop once you have paid back what you owe. 

If you get other benefits 

Deductions are made each time your benefits are paid. £3.70 will be deducted from each benefit to pay off the debt you owe, plus an extra amount to cover your current bill each month. 

The amount is decided by JobCentre Plus or your pension centre but if it is going to be more than 25% of your benefits (including Child Tax Credits), you will be asked to agree to the deduction 

If it is under 25% the deduction can be made without you agreeing to it. You will be told what the deductions are going to be, and if they are going to change. 

When you can not use the scheme

You can not use the scheme to pay: 

  • a debt with a previous landlord or supplier 

  • for more than 3 types of debt (eg gas, water and rent) but in some cases you may be able to use it to pay for more than 3 current bills 

Extra help with fuel bills 

You might also qualify for: 

If you get final demands

You should not get final demands if you are using the deductions scheme. Contact JobCentre Plus (or your pension centre if you’re on Pension Credit) if the person or company you owe sends you final demands by mistake.

For further information on paying bills with benefits see GOV.UK's website.