Baroness Anderson of Stoke-on-Trent (Lab)

My Lords, I appreciate the points raised by the noble Baroness, Lady Finn, specifically her questions as to why calculations for DDOs are in the Bill in the first place and why the need for this change did not come to light earlier. Referencing calculations is established practice in the context of employers making calculations for deduction from earnings orders, hence the drafting reflected here for direct deduction orders. Continued engagement with the financial sector has covered an array of content related to the Bill. As we have moved to discuss implementation, any issues raised have been considered and, where appropriate, acted on by officials in order to smooth the implementation of the powers. This Government have been engaging extensively with the financial sector. It requested that we remove references to banks calculating amounts to be deducted through a regular DDO. This is because the banks felt that it would create an excessive burden that gave them too much responsibility for making decisions regarding deduction amounts. Utilising the deduction order information notices, the PSFA will already have a fuller understanding than the bank of the liable person’s total financial affairs. Along with its obligation to ensure that deductions are fair and affordable, it is right that the PSFA determines what the deductions will be, and it provides another safeguard. I therefore hope that your Lordships will support these amendments. I commend them to the Committee.