If you start to claim benefits and are already in a debt payment programme that includes a debt which could be deducted directly from your benefit, you could find that the Department for Work and Pensions starts to
make direct deductions for this debt.
If granted, a wage withholding order
requires direct deductions from the ex-spouse's wages to pay the amounts owed for child support and alimony.
For example,
direct deductions from your benefit can be made for council tax arrears, fines, a short term advance, a budgeting loan, a budgeting advance and benefit overpayments.
In April 2015, the FASB issued ASU No. 2015 - 03, Interest — Imputation of Interest, accounting standards update under which the debt issuance costs related to a recognized debt liability will be required to be presented in the balance sheet as
a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.