Attachment of Earnings & Benefits

An Attachment of Earnings Order (AEO) is a way of collecting money that you owe through deductions from your wages.

If a court makes an Attachment of Earnings Order against you, your employer is instructed to deduct an agreed amount from your wages and send it to the court or enforcement service.

You do not normally make the payments directly to the creditor once the order is in place.

The amount deducted depends on your circumstances, including:

• Your earnings
• Your protected earnings level
• Whether you are paid weekly or monthly
• Your outstanding debt
• Any other deductions already being made from your wages

The amount should leave you with a protected amount of income to live on.

If your circumstances have changed and the deductions are causing financial difficulty, you may be able to ask the court to review the order.

Some debts can also be recovered by deductions from certain benefits.

This is sometimes referred to as a deduction from benefits rather than an Attachment of Earnings Order.

Depending on the type of debt and benefit you receive, deductions may be made directly from your benefit payment.

The rules can vary depending on:

• The type of debt
• The benefit you receive
• The amount of benefit you receive
• Whether you have other deductions

Sometimes, yes. However, an Attachment of Earnings Order does not automatically stop simply because you ask your employer or creditor to stop it.

The appropriate option depends on why the order was made and your current circumstances. You may be able to ask the court to:

Do not simply ignore the deductions.

Start by working out your current monthly household budget. Include:

• Wages or benefits
• Rent or mortgage
• Council Tax
• Gas and electricity
• Water
• Food
• Travel
• Childcare
• Insurance
• Essential household costs
• Other debt repayments

Keep evidence of your income and essential expenditure.

You may then be able to provide this information to the court when asking for the deductions to be reviewed.

If you have lost your employment, tell the relevant court or enforcement service as soon as possible.

An Attachment of Earnings Order normally relies on deductions being made from employment income. If you are no longer employed, the circumstances of the order may need to be reviewed.

If you subsequently start another job, the order may potentially be applied to your new employment depending on the circumstances.

Changing jobs does not necessarily make the debt or court order disappear.

If an Attachment of Earnings Order is transferred to a new employer, deductions may continue.

You should not assume that changing employment will stop the order.

Generally, an employer who receives a valid Attachment of Earnings Order must comply with it.

Your employer is normally required to make the deductions specified by the order and send the money to the appropriate authority.

If you believe the deductions are incorrect, the issue should normally be raised with the relevant court or authority rather than simply asking your employer to stop making them.

If your financial circumstances have changed significantly, you may be able to apply for the order to be reconsidered.

You may need to provide information such as:

• Your income
• Your partner's contribution to household income
• Your rent or mortgage
• Council Tax
• Utility bills
• Food costs
• Travel costs
• Childcare costs
• Details of dependants
• Other essential expenditure
• Other debts and deductions

The court will consider the information provided before deciding what action, if any, should be taken.

If money is being deducted directly from your benefits, the procedure can be different from an Attachment of Earnings Order.

You should check:

• 1Which benefit the deduction is being taken from
• 2Who is taking the deduction
• 3What debt the deduction relates to
• 4How much is being deducted
• 5Whether the deduction is causing financial hardship

If you believe the deduction is incorrect or you cannot afford it, contact the organisation responsible for the deduction and ask what options are available.

Ignoring an Attachment of Earnings Order will not normally make it disappear.

If you are struggling financially, taking action early may give you more options.

Keep copies of:

• Court letters
• Attachment of Earnings Orders
• Wage slips
• Benefit statements
• Bank statements
• Household bills
• Correspondence with the court or enforcement service

These documents can be useful when explaining your circumstances.

If you have received an Attachment of Earnings Order or deductions are being taken from your wages or benefits, you should first establish:

• What is the debt?
• Who issued the order?
• How much is being deducted?
• How much do you currently earn or receive in benefits?
• Can you afford the deductions after paying your essential living costs?

Your options will depend on the type of debt, the order that has been made and your individual circumstances.