- GOV.UK: “This is sometimes called ‘third party deductions’ or, for gas and electricity payments, Fuel Direct.” Money comes off your benefit and goes straight to your supplier. It is not a grant.1
- “If you receive Universal Credit, 5% will be deducted from your benefit payment for each debt you owe.”1
- “If you receive other benefits, £4.80 a week will be deducted for each debt.” That is the 2026/27 rate.1
- “Money can be deducted to pay off up to 3 debts at once.”1
- Last checked: 28 October 2026.
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Who it is for
It works with Universal Credit, income-related Employment and Support Allowance and Pension Credit.1
GOV.UK: “The office that pays your benefit will only agree to do this if the organisation has tried other ways of getting the money from you.”1
Ongoing bills as well as debt
You can also pay for the energy you use from your benefit. Contact your supplier: “They’ll need your consent to request this for you. You can give consent on the phone.” You can stop deductions for ongoing bills at any time.1
“If you get Universal Credit, deductions for ongoing bills will stop once you’ve repaid your debt.”1
Prepayment meters: DWP's guide for suppliers says “Where an individual pays for their ongoing consumption by use of a pre-payment meter, only deductions for arrears may be taken.”2
Is it right for you?
Deductions mean less money in each benefit payment. Before you agree, ask your supplier about a payment plan, and whether it has a hardship fund.4
Northern Ireland
Northern Ireland has a separate Third Party Payment scheme for some bills, including electricity. nidirect does not give the deduction amounts, so check with your benefit office.3