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Tags: Deductions

Deductions from Universal Credit (UC)

VOICES UC deductions
By Julie Holdcroft, Stoke North and Staffordshire Citizens Advice Bureau   Money can be taken from your UC when there’s no other way for you to repay debts for things like rent, gas, electricity, water and council tax.  Your UC can be further reduced if you owe money for things such as an Advance Payment, Sanctions, or a Benefit overpayment. Many people with multiple and complex needs find that they are having the maximum amount deducted from their UC.  Freedom of Information data shows that over 60% of UC claimants are having their benefit cut to pay off debts and loans, including Advance Payments and, 25% of UC claimants are in problem debt compounded by excessive deductions from their benefit, according to the debt charity StepChange. In October 2019, the overall maximum percentage rate for all debts and deductions that can be taken from a UC payment was reduced from 40% to 30% of the claimant’s UC standard allowance. However there are two exceptions to this rule: Last Resort Deductions (arrears of housing and fuel), and ongoing monthly costs for utilities (gas, electricity and water) where there are also arrears being taken for them. A maximum of 3 deductions can be made at one time.   Financial Hardship If… Continue Reading

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