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<p>Where Official Error overpayments do occur in a very small number of cases, the
introduction of the 2012 Welfare Reform Act means that all overpayments of Universal
Credit are recoverable.</p><p>Where recovery is made by deduction from Universal Credit,
there is a limit placed on the overall amount that can be deducted which is currently
25% of the Standard Allowance. Moreover, a priority order is applied, which determines
the order in which deductions can be made, with ‘last resort’ deductions, such as
rent or fuel costs, taking precedence.</p><p>Anyone with overpayment deductions who
does experience financial hardship is encouraged to contact the Department’s Debt
Management unit. Where a person cannot afford the proposed rate, a lower amount can
be negotiated.</p>
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