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<p>The Department’s deductions policy strikes a fair balance between a claimant’s
need to meet their obligations and their ability to ensure they can meet their day-to-day
needs. From October 2019, Universal Credit deductions have been reduced to 30% of
a claimant’s standard allowance down from 40% to better achieve these objectives.</p><p>
</p><p>In the latest period for which figures are available (August 2019), £1.3 billion
of Universal Credit was paid, of which £94 million (7%) was deducted. The table below
provides a breakdown of the deductions by reason.</p><p> </p><p> </p><table><tbody><tr><td><p>Deduction
reason</p></td><td><p>Value of Deductions (£)</p></td></tr><tr><td><p>UC advance repayments</p></td><td><p>50,252,000</p></td></tr><tr><td><p>Tax
Credit overpayments</p></td><td><p>14,295,000</p></td></tr><tr><td><p>DWP overpayments</p></td><td><p>8,042,000</p></td></tr><tr><td><p>Social
fund loans</p></td><td><p>5,466,000</p></td></tr><tr><td><p>Arrears of rent and/or
service charges</p></td><td><p>5,001,000</p></td></tr><tr><td><p>Fines</p></td><td><p>4,931,000</p></td></tr><tr><td><p>HB
overpayments</p></td><td><p>1,771,000</p></td></tr><tr><td><p>Arrears of Community
Charge or Council Tax</p></td><td><p>1,285,000</p></td></tr><tr><td><p>UC Recoverable
Hardship payments</p></td><td><p>843,000</p></td></tr><tr><td><p>DWP Fraud overpayments</p></td><td><p>742,000</p></td></tr><tr><td><p>Fuel
and Water Ongoing consumption</p></td><td><p>615,000</p></td></tr><tr><td><p>Child
maintenance</p></td><td><p>527,000</p></td></tr><tr><td><p>Arrears of water charges</p></td><td><p>273,000</p></td></tr><tr><td><p>HB
and DWP Civil Penalties</p></td><td><p>121,000</p></td></tr><tr><td><p>HB Fraud overpayments</p></td><td><p>113,000</p></td></tr><tr><td><p>HB
and DWP Administrative Penalties</p></td><td><p>76,000</p></td></tr><tr><td><p>Arrears
of fuel (electric and gas)</p></td><td><p>67,000</p></td></tr><tr><td><p>Arrears of
Eligible loans</p></td><td><p>51,000</p></td></tr><tr><td><p>Arrears of Integration
loans</p></td><td><p>44,000</p></td></tr><tr><td><p>Tax Credit Fraud overpayments</p></td><td><p>1,000</p></td></tr><tr><td><p>Mortgage
interest</p></td><td><p>less than 500</p></td></tr></tbody></table><p> </p><p> </p><p><strong>Notes:</strong></p><p>1.
Values of deductions in the table are rounded to the nearest thousand. The total value
of all deductions and the amount of universal credit paid is rounded to the nearest
£1,000,000.</p><p>2. Deductions include 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. Amount of Universal Credit paid reflects
the amount of money paid to claimants and their landlords as part of their award,
including the amount which they would have been entitled to had it not been deducted.
It does not include other payments such as advances and hardship payments.</p><p>4.
Figures are provisional and are subject to retrospective change as later data becomes
available.</p>
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