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<p>There are no circumstances in which the repayment of an advance can be taken in
excess of 40% of a claimant’s Universal Credit standard allowance.*</p><p> </p><p>From
October 2019, we will reduce the maximum rate at which deductions can be made from
a Universal Credit award from 40% to 30% of the standard allowance. This will ensure
that those on Universal Credit are supported to repay debts in a more sustainable
and manageable way. From October 2021, we will also increase the period over which
advances will be recovered, from 12 to 16 months.</p><p> </p><p>* The addition of
a subsequent deduction such as for rent, gas or electricity arrears may take the overall
level of deductions to over 40% in a small number of cases. In these circumstances
the advance repayments do not themselves take the claimant over the threshold, rather
the additional deductions are made to protect claimant welfare by preventing disconnection
or eviction.</p>
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