The Department\u2019s deductions policy strikes a fair balance between a claimant\u2019s 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\u2019s standard allowance down from 40% to better achieve these objectives.<\/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>
Deduction reason<\/p><\/td> | Value of Deductions (£)<\/p><\/td><\/tr> |
UC advance repayments<\/p><\/td> | 50,252,000<\/p><\/td><\/tr> |
Tax Credit overpayments<\/p><\/td> | 14,295,000<\/p><\/td><\/tr> |
DWP overpayments<\/p><\/td> | 8,042,000<\/p><\/td><\/tr> |
Social fund loans<\/p><\/td> | 5,466,000<\/p><\/td><\/tr> |
Arrears of rent and/or service charges<\/p><\/td> | 5,001,000<\/p><\/td><\/tr> |
Fines<\/p><\/td> | 4,931,000<\/p><\/td><\/tr> |
HB overpayments<\/p><\/td> | 1,771,000<\/p><\/td><\/tr> |
Arrears of Community Charge or Council Tax<\/p><\/td> | 1,285,000<\/p><\/td><\/tr> |
UC Recoverable Hardship payments<\/p><\/td> | 843,000<\/p><\/td><\/tr> |
DWP Fraud overpayments<\/p><\/td> | 742,000<\/p><\/td><\/tr> |
Fuel and Water Ongoing consumption<\/p><\/td> | 615,000<\/p><\/td><\/tr> |
Child maintenance<\/p><\/td> | 527,000<\/p><\/td><\/tr> |
Arrears of water charges<\/p><\/td> | 273,000<\/p><\/td><\/tr> |
HB and DWP Civil Penalties<\/p><\/td> | 121,000<\/p><\/td><\/tr> |
HB Fraud overpayments<\/p><\/td> | 113,000<\/p><\/td><\/tr> |
HB and DWP Administrative Penalties<\/p><\/td> | 76,000<\/p><\/td><\/tr> |
Arrears of fuel (electric and gas)<\/p><\/td> | 67,000<\/p><\/td><\/tr> |
Arrears of Eligible loans<\/p><\/td> | 51,000<\/p><\/td><\/tr> |
Arrears of Integration loans<\/p><\/td> | 44,000<\/p><\/td><\/tr> |
Tax Credit Fraud overpayments<\/p><\/td> | 1,000<\/p><\/td><\/tr> |
Mortgage interest<\/p><\/td> | less than 500<\/p><\/td><\/tr><\/tbody><\/table> <\/p> <\/p> Notes:<\/strong><\/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> 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> 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> 4. Figures are provisional and are subject to retrospective change as later data becomes available.<\/p>"}
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