Attachment of Earnings Guide UK (Creditor Takes Money from Wages)

What Is an Attachment of Earnings Order

An attachment of earnings order is a legal mechanism that allows a creditor to recover money you owe by taking it directly from your wages or salary before you receive it. The creditor must first have obtained a county court judgment (CCJ) against you for the debt. If you do not pay the CCJ as ordered, the creditor can apply to the court for an AEO. The court sends you a N56 form (reply to attachment of earnings application) asking for full details of your income, outgoings, and any dependants. You must complete this form honestly — giving false information is a criminal offence. The court then decides the protected earnings rate (PER) — the minimum amount you need to live on — and the normal deduction rate (NDR) — the amount taken from wages above the PER. Once the order is made, it is sent to your employer, who is legally obliged to make the deductions from your pay each month and send the money to the court. The court then passes the payments to the creditor until the debt (plus court costs) is paid in full. The AEO only applies to employed earnings — it cannot take money from self-employed income, benefits, or pension income (though other deduction orders exist for pensions).

How the Court Decides Deductions (Protected Earnings Rate)

The court's priority when setting an AEO is ensuring you have enough income to live on. It does this by calculating a protected earnings rate (PER) — the minimum amount you need each month for essential living costs (rent/mortgage, food, utilities, travel to work, and child maintenance). The PER is based on the information you provide on form N56. If your monthly net income is at or below the PER, no deductions are made that month. If your income exceeds the PER, the court sets a normal deduction rate (NDR) — the amount deducted from the surplus. The NDR is calculated as: a percentage of the debt (typically 5–20% of the outstanding amount each month) or a fixed amount agreed by the court. The combined deduction must leave you with at least the PER. For example, if your net income is £2,000/month and the PER is £1,500, the NDR might be 25% of the £500 surplus = £125/month deducted. The court can vary the order if your circumstances change (e.g. losing your job, having a baby, or rent increases). You must notify the court immediately of any change. The PER is reviewed periodically. If you intentionally reduce your income to avoid deductions, the court can attribute a notional income to you. The creditor's application fee and the court's administrative costs are added to the debt.

How Deductions Are Taken from Your Wages

Once the court makes the AEO, it sends a copy to your employer along with an attachment order deduction form. Your employer is legally required to: calculate the deduction from your wages based on the court's rates, deduct the amount before paying you, send the deducted amount to the court within 15 days of the end of the deduction period, and provide you with a payslip showing the deduction. The employer can charge an administration fee of £1 per deduction from your wages (or £2 if you are paid fortnightly). The AEO applies to all earnings including: wages, salary, bonuses, commission, overtime, statutory sick pay, statutory maternity/paternity/adoption pay, and holiday pay. It does not apply to expenses, redundancy payments, or certain benefits. Deductions continue every pay period until the debt plus all costs and interest are paid in full. If your employer fails to make deductions, the court can fine them or, in serious cases, hold them in contempt of court. If you work for multiple employers, the court can issue separate AEOs. Your employer must not dismiss you or treat you unfairly because of an AEO — doing so is automatically unfair dismissal and you can claim at an employment tribunal. See our Work Rights guide for more on employment protections.

Applying for an Attachment of Earnings Order

If you are a creditor (or a debtor wanting to arrange affordable payments), the process starts by applying to the county court that issued the judgment. The creditor fills in form N337 (application for attachment of earnings) and pays a court fee (currently £119 for claims over £5,000, or less for smaller claims). The court sends the N56 form to the debtor asking for income and expenditure details. If the debtor fails to return the N56 form within 8 days, the court can: issue a warrant of arrest to bring the debtor before the court, fine the debtor for non-compliance, or make a committal order (sending the debtor to prison for up to 42 days in extreme cases). If the debtor returns the form but disputes the amount or asks for lower deductions, a court hearing may be listed. At the hearing, a judge reviews the debtor's finances and sets the PER and NDR. Both debtor and creditor can attend and make arguments. The judge can also discharge the order if the debtor's income is too low to sustain any deduction. Once made, the AEO lasts until the debt is fully paid — there is no fixed time limit. Creditors can also apply for a variation if they believe the NDR is too low. If you are the debtor and want to avoid court costs, you can propose a voluntary payment arrangement directly with the creditor before the AEO is made.

Objecting to an Attachment of Earnings Order

If you have received an N56 form or an AEO application and want to object, you have several options. Option 1: Complete the N56 form honestly showing your true income and outgoings — if your income is at or below the PER, no deductions will be ordered. Option 2: Apply to vary the order if your circumstances have changed since the order was made — use form N245 (application to vary a judgment) and pay a £50 fee (or claim fee remission if on a low income). Option 3: Request a hearing to argue that the NDR is unaffordable — bring evidence of your expenses, including childcare costs, medical expenses, and travel costs. Option 4: Apply to suspend the order if you can show that making deductions would cause exceptional hardship (for example, you need the money for essential medical treatment or to prevent eviction). Option 5: Challenge the underlying CCJ — you can apply to set aside the judgment if you never received the original claim form or if the judgment was obtained by fraud. If the CCJ is set aside, the AEO falls away. You can also object if: the debt has already been paid, you are not the person named in the order, the AEO was procedurally flawed (e.g. you were not given proper notice), or the deduction rate exceeds what is reasonable. Get advice from Citizens Advice or National Debtline before the hearing.

What Happens If You Change Jobs

If you change jobs while an AEO is in place, you must notify the court immediately in writing — include your old employer's details, new employer's details, start date, and your new salary. The court will send a copy of the AEO to your new employer. Your new employer is legally bound by the order from the date they receive it. In the gap between leaving one job and starting another, no deductions are made (the AEO only applies to earnings from employment). However, the debt continues to accrue interest at the judgment rate (currently 8% per annum). If you become self-employed, unemployed, or retire, the AEO cannot operate because there are no earnings to attach. You should notify the court and apply to have the order discharged or suspended. The creditor may then seek alternative enforcement — see our Bailiffs guide or Charging Orders guide. If you deliberately change jobs to avoid deductions, the court can treat your current earnings as notional income. If you are made redundant, redundancy pay is exempt from AEO deductions — but once you start a new job, deductions resume. Always keep the court updated — failure to notify can result in enforcement costs being added to your debt.

FAQs

Can I be sacked for having an attachment of earnings order?

No. It is automatically unfair dismissal to sack you solely because of an AEO. Your employer is legally required to make the deductions but cannot treat you unfavourably for having the order.

Does an attachment of earnings order affect my credit score?

The underlying CCJ already affects your credit score. The AEO itself does not appear on your credit report, but the CCJ remains for 6 years from the date of judgment unless you pay it in full within 30 days and apply to have it removed.

Can an AEO take money from my benefits or pension?

No. AEOs only apply to employed earnings. Benefits such as Universal Credit, PIP, and pension income are not subject to an AEO. Separate deduction orders exist for pensions (deduction from earnings order for pension income).

What if I cannot afford the deductions?

Apply to the court immediately using form N245 to vary the order. Provide evidence of your income and outgoings. If your income drops below the protected earnings rate, the court should reduce or suspend deductions.

How long does an attachment of earnings order last?

The AEO lasts until the full debt plus fees and interest is repaid. There is no maximum duration. If you still owe money after many years, the order continues. You can apply to vary the NDR if your financial situation changes.