If your bank account is overdrawn

Your bank can not take any benefits to pay an overdraft.

Banks are not allowed to use Housing Benefit or any other income related benefits to repay an overdraft. The law provides that a customer needs a minimum amount of money to live on. This is called First Right of Appropriation.

If the Bank do use this money towards paying off an overdraft, the customer should be advised to seek legal advice or contact Citizens Advice for further help and claim back any charges.

Even if an account is overdrawn, a customer can choose how any further money paid into the account is used (for example to pay rent) using this 'first right of appropriation'. However, a customer would need to contact their bank with new instructions each time they make a deposit.

Please contact the Benefits Team on benefits@sstaffs.gov.uk if you would like the First Right of Appropriation form to be sent to you, to forward onto your bank.


Get in touch


South Staffs Council

Wolverhampton Road, Codsall

South Staffordshire


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Office Opening Times

If you are unable to find what you need online today please contact us on 01902 696000.

Mon-Tue,Thu-Fri 09:00am - 17:00pm
Wed 10:00am - 17:00pm
Sat-Sun Closed

Face to Face appointments are available but must be pre booked in advance of your visit by calling 01902 696000.