Any deduction is made after the award of Universal Credit has been assessed.
How much in total can be deducted depends on whether or not deductions are being made in respect of:
- a Loss of benefit penalty for benefit fraud (fraud penalty)
- a sanction
See Chapter D2 / DWP guidance - here
(includes the note: "Although the legislation allows deductions of up to 40% of the standard allowance, the current policy is to limit deductions to a maximum of 25% of the standard allowance"
Note that from 30th April 2025, the policy is to further limit deductions to a maximum 15% of the standard allowance, though the legislation still allows up to 40%).
Loss of benefit penalty / Sanction in place
Loss of benefit penalties for benefit fraud are taken at an amount equal to 15% of the claimant's Standard Allowance - where one is in place all other deductions (including any conditionality sanction) will be suspended and only 'ongoing liability' and 'last resort deductions' will be allowed.
If a sanction is in place then most other deductions will be suspended.
The only other deductions that can be made from a Universal Credit award which has already been reduced by a sanction worth 15%* or more of the claimant's Standard Allowance are deductions in respect of 'ongoing liability' and 'last resort deductions' .
'Last Resort Deductions' - these are third party deductions in respect of rent arrears (and certain service charge arrears) and fuel costs where the DWP considers it to be in the claimant's best interests.
(Part 4 (4), and schedule 6, UC (Claims and Payments) Regulations)
No Loss of benefit penalty / sanction in place
If no loss of benefit penalty or sanction is being taken then the maximum that can be deducted from a claimant's Universal Credit award in respect of certain debts cannot exceed an amount equal to 15% of their Standard Allowance (couple or single as appropriate).
How much can be taken for each deduction will depend on the type of deduction - many are set at 5% of the claimant's
Standard Allowance - but there are also some that can be taken at 10% or at the maximum 15%.
The possible deduction figures are given in the table below.
Also, unless the claimant consents, third party deductions cannot be made from a claimant’s award of UC in relation to any Monthly Assessment Period for:
- Fuel costs (including arrears and current consumption) and
- Water charges (including arrears and current consumption)
- where the total deduction for that item or any combination of those items exceeds 25% of the claimant's Standard Allowance and any Child Element
For further information about a particular deduction and the level that can be taken please click on one of the links below.
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Standard Allowance
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5%
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10%
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15%
|
|
Single under 25
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£316.98
|
£15.85
|
£31.70
|
£47.55
|
|
Single 25+
|
£400.14
|
£20.01
|
£40.01
|
£60.02
|
|
Couple both under 25
|
£497.55
|
£24.88
|
£49.76
|
£74.63
|
|
Couple both 25+
|
£628.10
|
£31.41
|
£62.81
|
£94.22
|
Causing hardship?
Some deductions can be reduced.
The claimant can contact the DWP Debt Management Team on 0800 916 0647.
Gov.uk information on the Debt Management Team here.