Legislation – Public Authorities (Fraud, Error and Recovery) Act 2025

“Schedule 3ZARecovery of amounts from bank accounts etc

Section 80C

Part 1deductions from accounts

Direct deduction orders

1

(1)

Where an amount is recoverable from a liable person who holds an account with a bank, the Secretary of State may make an order (a “direct deduction order”) in respect of that account.

(2)

A direct deduction order must be given to the bank with which the account is held.

(3)

A direct deduction order may be—

(a)

a regular direct deduction order;

(b)

a lump sum direct deduction order.

(4)

A regular direct deduction order is an order requiring the bank—

(a)

to make regular deductions from the liable person’s account, and

(b)

to pay the amounts deducted to the Secretary of State.

(5)

A lump sum direct deduction order is an order requiring the bank—

(a)

to deduct from the liable person’s account an amount specified in the order, and

(b)

to pay that amount to the Secretary of State.

(6)

The Secretary of State may give a regular direct deduction order and a lump sum direct deduction order in respect of the same account.

(7)

The Secretary of State must give a copy of a direct deduction order to—

(a)

the liable person, and

(b)

in the case of a joint account, each of the other account holders.

(8)

Paragraphs 3 to 5 set out steps that the Secretary of State must take before making a direct deduction order.

Accounts which may be subject to a direct deduction order

2

(1)

The Secretary of State may make a direct deduction order in respect of any account which—

(a)

is held by a liable person, and

(b)

contains an amount in which the Secretary of State considers the liable person has a beneficial interest.

(2)

The Secretary of State may make a direct deduction order in respect of a joint account only if the liable person does not hold a sole account in respect of which a direct deduction order may be made which would be likely to result in the recovery of the recoverable amount within a reasonable period of time.

(3)

But sub-paragraph (2) does not apply if all the holders of a joint account are liable persons in relation to the same recoverable amount.

Requirement for banks to provide information

3

(1)

Before the Secretary of State makes a direct deduction order in respect of a liable person’s account, the Secretary of State must obtain and consider bank statements for the account covering a period of at least 3 months.

(2)

To obtain the statements, the Secretary of State must give the bank with which the Secretary of State believes the liable person holds the account a notice (an “account information notice”) requiring the bank to give the Secretary of State statements for the account covering—

(a)

the 3 months immediately before the notice is given, or

(b)

such longer period, ending immediately before the notice is given, as may be specified in the notice.

(3)

An account information notice must—

(a)

contain the name of the liable person, and

(b)

identify the account (for example, by number and sort code).

(4)

The Secretary of State may give an account information notice relating to an account only for the purpose of determining whether to make a direct deduction order in respect of the account.

(5)

At any time, for the purposes of determining whether to make a direct deduction order in relation to a liable person, the Secretary of State may give a notice (a “general information notice”) to a bank requiring the bank to—

(a)

identify every account that the liable person holds with the bank,

(b)

for each identified account, give the Secretary of State the following information—

(i)

a description of the type of account,

(ii)

identifiers for the account,

(iii)

if the account is a sole account, the balance of the account at the date that it is identified, and

(iv)

if the account is a joint account, the name of each other account holder, and

(c)

give the Secretary of State—

(i)

the correspondence address that the bank holds for the liable person, and

(ii)

in the case of a joint account, the correspondence address that the bank holds for each other account holder.

(6)

The Secretary of State may give—

(a)

more than one account information notice, or general information notice, in relation to the same recoverable amount;

(b)

more than one account information notice in respect of the same account.

(7)

A notice under this paragraph must—

(a)

set out how and when the bank must comply with the notice, and

(b)

explain that the bank may be liable to a penalty under paragraph 20 if it fails to do so without reasonable excuse.

(8)

The bank must comply with a notice given under this paragraph.

(9)

Subject to sub-paragraph (10), a bank that is given an account information notice, or a general information notice, must not notify any of the following people that the notice has been given—

(a)

the liable person;

(b)

any other holder of the account in respect of which an account information notice is given;

(c)

any other holder of an account identified in accordance with a general information notice.

(10)

The prohibition in sub-paragraph (9) ceases to apply—

(a)

at the end of the period of 3 months beginning with the day on which the account information notice or general information notice is given to the bank, or

(b)

if earlier, when the bank is given a notice under paragraph 5(1).

(11)

Information given to the Secretary of State in response to a notice under this paragraph may be used by the Secretary of State for purposes connected with the Secretary of State’s functions under this Part of this Act, but not for any other purpose.

Joint accounts

4

(1)

Before making a direct deduction order in respect of a joint account, the Secretary of State must make an assessment of the liable person’s beneficial interest in the amounts which are or may be in the account from time to time.

(2)

The Secretary of State must presume that the liable person’s beneficial interest entitles them to the following share in any amounts which are or may be in the account from time to time—

$\frac{1}{N}$

where “N” is the number of account holders.

(3)

But the presumption does not apply where the Secretary of State has reason to believe that the liable person’s beneficial interest is different from the presumed share.

(4)

In making an assessment under sub-paragraph (1), the Secretary of State must have regard to—

(a)

the bank statements obtained for the account under paragraph 3, and

(b)

any responses to a notice under paragraph 5.

Further requirements before making a direct deduction order

5

(1)

Before making a direct deduction order, the Secretary of State must give the bank where the account in question is held, the liable person, and, in the case of a joint account, each of the other account holders, a notice—

(a)

identifying the account that would be subject to the proposed order,

(b)

stating the amount that would be recoverable under the proposed order,

(c)

setting out the terms of the proposed order,

(d)

if the account is a joint account, setting out the Secretary of State’s duty to make an assessment as to the liable person’s beneficial interest and the presumption that applies (see paragraph 4), and

(e)

identifying, for the benefit of the liable person, the recoverable amount to which the order relates.

(2)

The notice must invite the liable person and, in the case of a joint account, each other account holder—

(a)

to make representations about the terms of the proposed order, and

(b)

in the case of a joint account, to make representations about the liable person’s beneficial interest in amounts in the account.

(3)

The notice must set out the means by which, and the period within which, representations may be made.

(4)

The period must be a period of at least 1 month beginning with the day after the day on which the notice is given.

(5)

The Secretary of State must—

(a)

consider representations made in accordance with the notice, and

(b)

in light of any representations —

(i)

in the case of a joint account, make the assessment required under paragraph 4(1), and

(ii)

in any case, decide whether, and in what terms, to make a direct deduction order in respect of the account.

(6)

A notice under sub-paragraph (1) may be given to the bank before it is given to the other persons to whom it is required to be given under that sub-paragraph (and for the effect of giving the notice to the bank see paragraph 11 (restrictions on accounts)).

(7)

Where a notice is given to the bank in reliance on sub-paragraph (6), the notice must be given to the other persons as soon as reasonably practicable after being given to the bank.

(8)

If, following the giving of a notice under this paragraph, the Secretary of State decides not to make a direct deduction order, the Secretary of State must, as soon as reasonably practicable, notify every person given a notice under sub-paragraph (1) of the decision.

Amounts of deductions

6

(1)

The Secretary of State may make a direct deduction order only if satisfied on the basis of information received by virtue of paragraphs 3 and 5 that the terms of the order—

(a)

will not cause the liable person, any other account holder, or any person within sub-paragraph (2) to suffer hardship in meeting essential living expenses, and

(b)

are otherwise fair in all the circumstances.

(2)

A person is within this sub-paragraph if—

(a)

they live with the liable person, or any other account holder, for some or all of the time, or

(b)

they are financially dependent on the liable person or any other account holder.

(3)

The total amount of deductions to be made under a regular direct deduction order in relation to any period of 1 month must not exceed 40% of the relevant amount.

(4)

For the purposes of sub-paragraph (3), the “relevant amount” is the amount that the Secretary of State reasonably expects to be credited to the account in question in (or in respect of) a typical month during the period for which the order will have effect, having regard to all statements given to the Secretary of State in relation to the account (see paragraphs 3(2) and 15(1)).

(5)

The Secretary of State must ensure that the amount to be deducted and paid to the Secretary of State under a direct deduction order does not exceed the recoverable amount to which the order relates.

Content and effect of direct deduction orders

7

(1)

A regular direct deduction order must specify—

(a)

the amounts to be deducted (see paragraph 6),

(b)

when those amounts are to be deducted and paid to the Secretary of State, and

(c)

the penalties that may be imposed for a failure to comply (see paragraph 20).

(2)

A regular direct deduction order may specify different amounts to be deducted at different times.

(3)

A lump sum direct deduction order must specify—

(a)

the amount to be deducted,

(b)

when the amount is to be deducted and paid to the Secretary of State, and

(c)

the penalties that may be imposed for a failure to comply (see paragraph 20).

(4)

A direct deduction order may not require an amount to be deducted from a person’s account before the end of the period of 1 month beginning with the day after the day on which the Secretary of State complies with paragraph 1(7).

(5)

A bank must comply with a direct deduction order.

Bank’s administrative costs

8

(1)

A direct deduction order may include provision for the bank to deduct from the liable person’s account an amount specified in, or calculated in accordance with, the order, for the purposes of meeting costs reasonably incurred by the bank in complying with the order.

(2)

A bank may deduct the costs to which they are entitled under a direct deduction order immediately prior to making the deduction which is to be paid to the Secretary of State under the order.

(3)

In complying with paragraph 6(1) and (3) in relation to a direct deduction order the Secretary of State must take account of any deductions to be made under the order by virtue of sub-paragraph (1).

Insufficient funds

9

(1)

Where the amount in an account is lower than the amount to be deducted in accordance with a lump sum direct deduction order at the time that the bank is (apart from this sub-paragraph) required to make the deduction—

(a)

no deduction is to be made, and

(b)

the bank must notify the Secretary of State as soon as possible.

(2)

Where the amount in an account is lower than the amount to be deducted in accordance with a regular direct deduction order at the time that the bank is (apart from this sub-paragraph) required to make the deduction—

(a)

the order is to be read as requiring the deduction and payment to the Secretary of State to take place on the same day the following week, and

(b)

if, on that day, the amount in the account is lower than the amount to be deducted in accordance with the order—

(i)

no deduction is to be made, and

(ii)

the bank must notify the Secretary of State as soon as possible.

(3)

References in this paragraph to the amount to be deducted in accordance with a direct deduction order include any amounts to be deducted in respect of a bank’s costs by virtue of provision under paragraph 8(1).

Non-working days

10

(1)

If (apart from this paragraph) a bank would be required to make a deduction and payment under a direct deduction order on a day that is not a working day, the obligation to make the deduction and payment applies in relation to the next working day after that day.

(2)

In this paragraph, “working day” means any day other than—

(a)

Saturday or Sunday, or

(b)

a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.

Restrictions on accounts

11

(1)

Where a notice under paragraph 5 (a “pre-deduction notice”) relating to a proposed lump sum direct deduction order, or a lump sum direct deduction order under paragraph 1, is given to a bank in relation to a liable person’s account, the bank must—

(a)

secure that no transaction takes place (except for any deduction under the order) which would result in the amount in the account falling below the specified amount, or, if the amount in the account is already below that amount, falling any further, or

(b)

take the action set out in sub-paragraph (2).

(2)

The action is to—

(a)

transfer the specified amount, or the amount in the account if that is less than the specified amount, from the account into a different account (a “hold account”) created by the bank for the sole purpose of holding that transferred amount, and

(b)

secure that no transaction takes place (except for any deduction under the order) which would result in the amount in the hold account falling below the amount transferred.

(3)

Where a bank takes the action set out in sub-paragraph (2) in relation to a lump sum direct deduction order, the order is to be read as if it required the deduction to be made from the hold account.

(4)

A bank must ensure that taking the action set out in sub-paragraph (2) does not cause any disadvantage to the liable person, and in the case of a joint account, any other account holder, that the liable person, and any other account holder, would not have experienced if the bank had instead acted in accordance with sub-paragraph (1)(a).

(5)

The requirements in sub-paragraph (1) cease to apply when—

(a)

in relation to a pre-deduction notice, a notice is given to the bank under paragraph 5(8) (notice of decision not to make a direct deduction order) or a direct deduction order is given to the bank under paragraph 1;

(b)

in relation to a direct deduction order—

(i)

all the deductions under the order have been made, or

(ii)

the order is revoked.

(6)

In this paragraph, “specified” means specified in a pre-deduction notice or direct deduction order.

Applications to vary

12

(1)

Any holder of an account to which a direct deduction order applies may apply to the Secretary of State to vary the order.

(2)

The Secretary of State must give any other holders of the account an opportunity to make representations in relation to the application.

(3)

The Secretary of State must notify the applicant and any other account holders of the Secretary of State’s decision on the application.

Variation

13

(1)

The Secretary of State may vary a direct deduction order (whether after an application by an account holder or otherwise).

(2)

The provisions in this paragraph apply in relation to any variation of a direct deduction order, including one that results from a review under paragraph 18.

(3)

Where the Secretary of State proposes to vary a direct deduction order other than under sub-paragraph (7), the Secretary of State must give—

(a)

the liable person, and

(b)

in the case of a joint account, each of the other account holders,

an opportunity to make representations about the proposed variation.

(4)

The Secretary of State may comply with sub-paragraph (3) at the same time as complying with paragraph 12(2).

(5)

A variation to a direct deduction order takes effect when the Secretary of State gives the varied order to the bank or, if later, in accordance with the terms of the order as varied.

(6)

The Secretary of State must give a copy of the varied order to the liable person and, in the case of a joint account holder, each other account holder.

(7)

The Secretary of State may vary a direct deduction order so that the order applies to another account held by the liable person (including an account administered by a different bank) only if—

(a)

the variation is requested by the liable person, and

(b)

if the other account is a joint account, each of the other account holders consents.

(8)

Where a direct deduction order is varied under sub-paragraph (7)—

(a)

if the order is varied so that it applies to an account administered by another bank—

(i)

the reference in sub-paragraph (5) to “the bank” is to the bank which administers that account, and

(ii)

the Secretary of State must notify the bank given the original order of the effect of the variation, and

(b)

if the order is varied so that it applies to a joint account—

(i)

the requirement in sub-paragraph (6) is to give a copy of the order to each other holder of that joint account, and

(ii)

if the original order applied to a joint account, the Secretary of State must notify each other holder of that joint account of the effect of the variation.

(9)

The steps set out in paragraphs 3 to 5 do not apply to a decision to vary a direct deduction order.

Revocation of direct deduction order

14

(1)

The Secretary of State may revoke a direct deduction order.

(2)

The Secretary of State must revoke a direct deduction order as soon as reasonably practicable after becoming aware that—

(a)

the recoverable amount has been recovered, or

(b)

the liable person to whom the order relates has died.

(3)

Where the Secretary of State revokes a direct deduction order, the Secretary of State must give a notice of the revocation to—

(a)

the bank to which the order was given,

(b)

the liable person (apart from in a case within sub-paragraph (2)(b)), and

(c)

in the case of a joint account, each of the other account holders.

Further information notices

15

(1)

For the purposes of determining whether to revoke or vary a direct deduction order, the Secretary of State may give a bank a notice (a “further information notice”) requiring the bank—

(a)

to give the Secretary of State statements for an account held by the liable person covering—

(i)

the 3 months immediately before the notice was given, or

(ii)

such longer period, ending immediately before the notice was given, as may be specified in the notice;

(b)

to take the steps set out in paragraphs (a) to (c) of paragraph 3(5).

(2)

Sub-paragraphs (6) to (8) and (11) of paragraph 3 apply in relation to a further information notice as they apply in relation to a notice under that paragraph.

(3)

Before giving a further information notice to a bank requiring statements to be given in respect of a joint account, the Secretary of State must notify each account holder other than the liable person—

(a)

that the notice will be given, and

(b)

of the effect of the notice.

(4)

A further information notice may be given to the bank before, at the same time as or after the Secretary of State complies with paragraph 13(3).

Suspension of direct deduction orders

16

(1)

The Secretary of State may suspend and re-start the requirement to make deductions and payments under a regular direct deduction order at any time by notifying the bank to which the order was given.

(2)

The Secretary of State must notify the liable person and, in the case of a joint account, each other account holder, if the requirement is suspended or re-started under this paragraph.

(3)

Where the requirement is suspended for a continuous period of 2 years the regular direct deduction order in question is to be treated as having been revoked at the end of that period.

(4)

Where a regular direct deduction order is treated as having been revoked by virtue of sub-paragraph (3), the Secretary of State must give notice to that effect to—

(a)

the bank to which the order was given,

(b)

the liable person, and

(c)

in the case of a joint account, each of the other account holders.

(5)

Sub-paragraph (3) does not prevent the Secretary of State making a further regular direct deduction order in respect of the same liable person and account.

Cessation on death of liable person

17

A bank ceases to be subject to a direct deduction order on becoming aware of the liable person’s death.

Reviews

18

(1)

This paragraph applies where the Secretary of State—

(a)

makes a direct deduction order,

(b)

varies a direct deduction order, or

(c)

decides not to vary a direct deduction order in response to an application under paragraph 12.

(2)

Any of the following persons (“relevant persons”) may apply to the Secretary of State for a review of the decision to make, to vary or not to vary the order—

(a)

the liable person to whom the order relates, and

(b)

in the case of a joint account, any other account holder.

(3)

An application under sub-paragraph (2) must be made before the end of the period of 1 month beginning with the day after the day on which the applicant was—

(a)

given a copy of the order or the order as varied, or

(b)

notified of the decision not to vary the order.

(4)

An application for a review under this paragraph may not be made on, or include, any ground relating to the existence or amount of a recoverable amount (unless the amount is said to be incorrectly stated in the order).

(5)

On a review, the Secretary of State may—

(a)

uphold the decision,

(b)

vary the order, or

(c)

revoke the order.

(6)

After a review has been carried out, the Secretary of State must notify the applicant and other relevant persons of the outcome of the review.

(7)

See paragraph 13 for provisions about varying a direct deduction order.

Appeals

19

(1)

A relevant person may appeal to the First-tier Tribunal against—

(a)

the making of a direct deduction order,

(b)

the variation of a direct deduction order, or

(c)

a refusal to vary a direct deduction order after a request by a relevant person.

(2)

A relevant person may not appeal under sub-paragraph (1) in relation to a matter within paragraph (a), (b) or (c) of that sub-paragraph unless they—

(a)

made representations in accordance with paragraph 5, 12 or 13 (or, in relation to a variation of a direct deduction order, requested the variation), or

(b)

sought a review under paragraph 18,

in relation to the matter.

(3)

Sub-paragraph (2) does not apply where a direct deduction order is varied on a review under paragraph 18.

(4)

An appeal under sub-paragraph (1) may not be brought after the end of—

(a)

the period of 1 month beginning with the day after the day on which the appellant was—

(i)

given a copy of the direct deduction order, or the varied direct deduction order, in a case within sub-paragraph (1)(a) or (b), or

(ii)

notified under paragraph 12(3) or, where a review was sought, paragraph 18(6), in a case within sub-paragraph (1)(c), or

(b)

such longer period (if any) as the Tribunal considers reasonable in all the circumstances.

(5)

An appeal under sub-paragraph (1) may not be made on, or include, any ground relating to the existence or amount of a recoverable amount (unless the amount is said to be incorrectly stated in the order).

(6)

Where a relevant person appeals under this paragraph in relation to a direct deduction order, the First-tier Tribunal may suspend the requirement on the bank to which the order has been given to give effect to the order for some or all of the time until the appeal (including any onward appeal) is withdrawn, abandoned or finally determined.

(7)

On an appeal under sub-paragraph (1), the First-tier Tribunal may—

(a)

amend the direct deduction order;

(b)

revoke the direct deduction order;

(c)

dismiss the appeal.

(8)

In this paragraph, “relevant person” has the meaning that it has in paragraph 18.

Part 2Penalties

Penalties for failure to comply

20

(1)

If the Secretary of State has reasonable grounds to believe that a bank—

(a)

has failed to comply with a requirement imposed by or under this Schedule, and

(b)

has no reasonable excuse for the failure,

the Secretary of State may impose on the bank a penalty of £500.

(2)

The Secretary of State may not impose a penalty before giving the bank an opportunity to make representations about their compliance.

(3)

The Secretary of State imposes a penalty by giving the bank a notice of the penalty (a “penalty notice”).

(4)

A penalty notice must state—

(a)

the amount of the penalty,

(b)

the period within which it must be paid, and

(c)

the bank’s right to appeal against the penalty.

(5)

The Secretary of State may vary or revoke a penalty notice by giving a notice to that effect to the bank.

Recovery of penalties

21

(1)

In England and Wales, a penalty imposed under this Part of this Schedule is recoverable—

(a)

if the county court so orders, as if it were payable under an order of that court;

(b)

if the High Court so orders, as if it were payable under an order of that court.

(2)

In Scotland, a penalty imposed under this Part of this Schedule may be enforced in the same manner as an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.

Appeal against a penalty notice

22

(1)

A bank on which a penalty is imposed under paragraph 20 may appeal to the First-tier Tribunal against the imposition of the penalty.

(2)

An appeal under sub-paragraph (1) may not be brought after the end of—

(a)

the period of 1 month beginning with the date on which the penalty notice in relation to the penalty being appealed was given, or

(b)

such longer period (if any) as the Tribunal considers reasonable in all the circumstances.

(3)

On an appeal under sub-paragraph (1) the Tribunal may confirm or quash the decision to impose the penalty.

(4)

If an appeal is brought under sub-paragraph (1), the penalty which is the subject of the appeal is not payable until the appeal (including any onward appeal) is determined or withdrawn.

Part 3General

Deputies

23

(1)

This paragraph applies where a person (a “deputy”) acts on behalf of an account holder (including a liable person) in relation to their account by virtue of—

(a)

a power of attorney, or

(b)

an appointment by, or an order of, a court.

(2)

The following provisions apply in relation to the deputy of the account holder as they apply in relation to the account holder—

(a)

paragraph 1(7);

(b)

paragraph 3(9);

(c)

paragraph 5;

(d)

paragraph 11(1);

(e)

paragraph 12;

(f)

paragraph 13(3), (6) and (8)(b);

(g)

paragraph 14(3);

(h)

paragraph 15(3);

(i)

paragraph 16(2) or (4);

(j)

paragraph 18;

(k)

paragraph 19.

(3)

Paragraph 13(7)(a) and (b) applies in relation to the deputy of the account holder instead of the account holder.

(4)

Sub-paragraph (5) applies where—

(a)

a bank is given—

(i)

an account information notice or a general information notice under paragraph 3,

(ii)

a notice under paragraph 5,

(iii)

a further information notice under paragraph 15, or

(iv)

a direct deduction order, and

(b)

a deputy acts on behalf of an account holder of an account to which the notice or order relates.

(5)

The bank must give the Secretary of State the name and correspondence address that it holds for that deputy (unless the bank has already provided that information).

Interpretation

24

(1)

In this Schedule—

“bank” means a person who is authorised—

(a)

to accept deposits, or

(b)

to issue electronic money;

“direct deduction order” means a regular direct deduction order or a lump sum direct deduction order;

“joint account” means an account held by more than one person;

“lump sum direct deduction order” has the meaning given by paragraph 1(5);

“regular direct deduction order” has the meaning given by paragraph 1(4);

“sole account” means an account held by one person.

(2)

For the purposes of paragraph (a) in the definition of “bank” in sub-paragraph (1)—

(a)

the reference to accepting deposits is to carrying on the regulated activity of accepting deposits for the purposes of the Financial Services and Markets Act 2000 (see section 22 of that Act and article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544)), and

(b)

a person is authorised to accept deposits if they are an authorised person or an exempt person in relation to the carrying on of that activity for the purposes of the Financial Services and Markets Act 2000.

(3)

For the purposes of paragraph (b) in the definition of “bank” in sub-paragraph (1), a person is authorised to issue electronic money if—

(a)

the person is an electronic money institution, and

(b)

the person is authorised or registered under Part 2 of the Electronic Money Regulations 2011 (S.I. 2011/99) in relation to carrying on the activity of issuing electronic money.

(4)

In sub-paragraph (3), “electronic money” and “electronic money institution” have the meanings given by regulation 2(1) of those Regulations (and references to the issue of electronic money are to be construed in accordance with those Regulations).

(5)

In this Schedule, references to an amount in an account are to an amount standing to the credit of the account.

(6)

In this Schedule, references to a person holding an account include references to—

(a)

a person holding an account jointly with one or more other persons,

(b)

a person being a signatory, or one of the signatories, to an account, and

(c)

an account being, in any other way, in the person’s name,

and “holder” is to be read accordingly.

Regulations

25

(1)

Regulations may make further provision about direct deduction orders.

(2)

Regulations under this paragraph may, among other things, make provision—

(a)

about how notices and orders are to be given by the Secretary of State under this Schedule;

(b)

about how notices and information are to be given to the Secretary of State under this Schedule;

(c)

about the calculation of amounts to be deducted, including—

(i)

about establishing whether deductions would cause a person to suffer hardship in meeting essential living expenses, and

(ii)

about amounts which are, or are not, to be taken into account in calculating the amounts credited to an account for the purposes of paragraph 6(3);

(d)

setting a maximum percentage that is less than 40% for the purposes of paragraph 6(3) in some or all cases;

(e)

amending the amount for the time being specified in paragraph 20(1) to reflect a change in the value of money;

(f)

about the duties of banks in relation to direct deduction orders, including before a direct deduction order is made;

(g)

about costs which a bank may recover by virtue of paragraph 8 or from the Secretary of State;

(h)

about the interaction between direct deduction orders under this Schedule and similar orders under any other enactment.

(3)

Regulations under this paragraph may, among other things, apply this Schedule, as it applies to banks, to other types of person who provide financial products or services (including products or services that operate by reference to cryptoassets or any similar product or service).

(4)

In sub-paragraph (3), “cryptoasset” has the meaning given in section 84A of the Proceeds of Crime Act 2002.

(5)

Before making relevant regulations in reliance on sub-paragraph (2)(a), (b), (f) or (g), the Secretary of State must consult—

(a)

persons who appear to the Secretary of State to represent the interests of banks, and

(b)

such other persons (if any) as the Secretary of State considers appropriate.

(6)

Before making relevant regulations in reliance on sub-paragraph (3), the Secretary of State must consult—

(a)

persons who appear to the Secretary of State to represent the interests of persons to whom provisions about direct deduction orders would be applied by the regulations, and

(b)

such other persons (if any) as the Secretary of State considers appropriate.

(7)

In this paragraph, “relevant regulations” means—

(a)

the first regulations made in reliance on the provisions in question, and

(b)

any subsequent regulations made in reliance on those provisions which—

(i)

impose new duties on banks, or

(ii)

make changes to existing duties or provisions which, in the opinion of the Secretary of State, are more than minor.”