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Priority Orders based on percentage deductions

In cases such as Council Tax, Community Charge or Income Support Deduction Notices wherethe priority order is based on percentage deductions

• No Student and or Postgraduate Loan deductions are to be made until the Attachment of Earnings Order (AEO) or Deduction of Earnings Order (DEO) has been fully paid off

»Ê¹ÚÌåÓýapp date of the order can be ignored.

»Ê¹ÚÌåÓýapp protected earnings level will not be relevant in this scenario.

Priority Orders based on specified amounts

• If there is no specified level of protected earnings

»Ê¹ÚÌåÓýapp Priority Order should be applied against the borrower’s attachable earnings before the Student and or Postgraduate Loan deductions are made, although both can be deducted during the same pay period.

»Ê¹ÚÌåÓýapp employer should

• Apply the priority orders to the employee’s attachable earnings in the normal way
• Calculate the Student and or Postgraduate Loan deductions by reference to the Student and Postgraduate Loan Deduction tables

• If there is a specified level of protected earnings

»Ê¹ÚÌåÓýapp Priority Order should be applied against the borrower’s attachable earnings before the Student and or Postgraduate Loan deductions are made, although both can be deducted during the same pay period.

»Ê¹ÚÌåÓýapp combined deductions of Court Orders and Student and or Postgraduate Loan deductions must not reduce the available income below the level of protected earnings. This has the affect that in certain cases, on a particular pay day

• No Student and or Postgraduate Loan deductions can be made because the Court Order deductions reduce the attachable earnings to, or below, the level of protected earnings

Or

• Student and or Postgraduate Loan deductions must be restricted because they exceed the balance between the net attachable earnings, (after the deduction of Court Orders) and the protected level of earnings

A working sheet is provided to help calculate the correct deductions in this type of case.

Non - priority Orders

Student and or Postgraduate Loan deductions should be deducted before non � priority Court Orders.

»Ê¹ÚÌåÓýapp date of the order can be ignored.

»Ê¹ÚÌåÓýapp protected level of earnings will not be relevant in this scenario.

»Ê¹ÚÌåÓýapp employer should, therefore

• Use the Student and Postgraduate Loan Deduction Tables in the normal way