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<p>The Department encourages all Universal Credit claimants to actively consider how
best to manage their personal budget, with additional advice and support available
from work coaches and case managers. When an advance payment is appropriate, claimants
decide what percentage of their expected monthly award to apply for and over what
period to repay it, up to a maximum of 12 monthly instalments.</p><p>Claimants have
the ability to make the decision for themselves on the time period for repayment.
Most claimants (around 85%) choose to repay their advance over a 12-month period,
with others repaying in a shorter timeframe.</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><p>Claimants can view their Universal
Credit statement online to see how their award is calculated and a breakdown of what
deductions are being made.</p><p>We are committed to keeping all Universal Credit
services and processes, under review and will make improvements where necessary.</p>
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