What to do about universal credit deductions for debt
How to deal with deductions from your universal credit if you can't afford them.
When you could have deductions
The Department of Work and Pensions (DWP) can deduct money from your universal credit to pay off benefit advances or overpayments, and some other priority debts.
Find out when your universal credit payment can be reduced.
Options for dealing with deductions
Universal credit deductions can make it even harder to budget for the basics.
Your main options could be to:
ask for lower deductions
challenge a decision if you think it's wrong
negotiate a more affordable repayment plan for third party debts
Who to contact about deductions
Different DWP teams deal with certain types of deductions.
Work coach or universal credit helpline
Use your online journal or call the universal credit helpline on 0800 328 5644 to discuss deductions for:
rent arrears or other priority debts
You can ask your work coach or universal credit helpline adviser to reduce deductions for advances and rent arrears if you can't afford them.
You can't ask them to reduce the rate of deductions for energy, water or council tax debts. But you should get the chance to dispute the arrears if you disagree with them.
DWP debt management
Call DWP debt management on 0800 916 0647 to discuss deductions for:
benefit and tax credit overpayments
These deductions were paused temporarily due to coronavirus but restarted from July.
You can ask for lower deductions or a delay to this type of deduction if you're in serious financial hardship.
Asking for lower deductions
You need to show that you can't afford the current deductions.
You'll be asked about your income and outgoings, and if there are any special reasons why the deductions are unaffordable.
Advances
You must usually repay universal credit advances and budgeting advances within a year. Deductions start from your first monthly payment after the advance.
If you can't afford them, you can ask to:
delay repayments of a universal credit advance for up to 3 months
extend the repayment period for a budgeting advance up to 18 months
Rent arrears
If you owe at least 2 months' rent, your current landlord can ask the DWP to make deductions to pay off the debt in instalments.
You should be given the chance to dispute the arrears if you disagree with them.
There are rules about how much can be taken each month for rent arrears.
Ask for a lower deduction if it's above the minimum and you can't afford it.
Monthly deductions for rent arrears, rounded to the nearest pound
| Minimum | Maximum | |
|---|---|---|
| Single claim - aged under 25 | £34 | £69 |
| Single claim - aged 25 or over | £41 | £82 |
| Joint claim - both aged under 25 | £49 | £98 |
| Joint claim - either of you aged 25 or over | £59 | £119 |
How different debts are prioritised
The DWP have a priority order for deductions.
Deductions for advances, rent arrears and other third party debts take priority over the repayment of budgeting loans, hardship payments and benefit overpayments.
You can't have more than 3 deductions made for third party debts.
Maximum monthly deductions
Total deductions shouldn't usually be more than a maximum monthly amount.
The DWP can only deduct more than this as a last resort to help prevent an eviction or disconnection of your gas or electricity.
| From 6 April 2020 the maximum monthly deduction is usually: | |
|---|---|
| Single claim - aged under 25 | £102.82 |
| Single claim - aged 25 or over | £122.97 |
| Joint claim - both aged under 25 | £146.58 |
| Joint claim - either of you aged 25 or over £178.21 | £178.21 |
How to challenge a decision
Ask for an explanation through your online account if you think your deductions have been calculated wrongly.
If you still disagree or don't get a response, you can ask for a formal review of the decision. This is called a mandatory reconsideration.
Find out more about the mandatory consideration process from Citizens Advice.
Negotiating over rent arrears and other debts
Speak to your landlord, council or utility provider directly to try and agree a more affordable repayment plan outside the universal credit system.
If you come to an agreement, they can ask the DWP to cancel the deductions and you can start repaying these debts in line with what has been agreed.
Landlords and other third parties may be reluctant to agree to a different arrangement if they're already getting regular instalments through universal credit deductions.
A debt adviser could help negotiate.
Find out how to deal with rent arrears.
Last updated: 9 July 2020
