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<p>Before accepting a Universal Credit Advance the number of monthly repayment instalments
is agreed with a claimant, up to a maximum of 12. For a variety of reasons, instalments
may not occur consecutively, so claimants do not incur a penalty if it takes them
more than 12 calendar months.</p><p> </p><p>The Department has taken a number of steps
to ensure that advances meet the needs of claimants and that recovery arrangements
are personalised and reasonable. From October 2019 we are reducing the maximum rate
of deductions to 30 per cent and from October 2021 we are increasing the maximum recovery
period for advances from 12 to 16 months.</p>
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