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<p>The Government recognises the importance of safeguarding the welfare of claimants
who have incurred debt. Universal Credit already has procedures and regulations in
place to protect claimants from excessive deductions. The maximum rate of deductions
cannot normally exceed 40 per cent of the Universal Credit standard allowance, and
from October 2019 this will be reduced to 30 per cent.</p><p> </p><p>However, last
resort deductions can be applied to protect vulnerable claimants from eviction and/or
having their fuel supply (gas/electricity) cut off, by providing a last resort repayment
method for arrears of these essential services. In these circumstances, when it’s
considered to be in the best interests of the claimant and their family, deductions
may be taken above the 40 per cent limit.</p><p> </p><p>If a claimant is in financial
difficulty as a result of the level of deductions being made they can contact the
Department to request that a reduction in deductions be considered.</p><p> </p><p>Of
eligible* claims to Universal Credit Full Service due a payment in December 2018:</p><p>•
0.8% (10,000 claims) had a deduction above 40 per cent of their standard allowance.</p><p>
</p><p>Notes</p><p>1. *Eligible claimants are claimants that have satisfied all the
requirements of claiming Universal Credit; they have provided the necessary evidence,
signed their claimant commitment and are eligible and have received their first payment.</p><p>2.
Deductions include Universal Credit advance repayments, third party deductions and
all other deductions, but exclude sanctions and fraud penalties which are reductions
of benefit rather than deductions.</p><p>3. Figures rounded to nearest 1,000.</p><p>4.
Claim numbers may not match official statistics caseloads due to small methodological
differences.</p>
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