What to do about universal credit (UC) deductions for debt
The Department for Work and Pensions (DWP) can take money from your universal credit (UC) each month for:
benefit or tax credit overpayments
advances and loans from the DWP
rent and service charge arrears
council tax, energy or water debts
child maintenance
You can ask for smaller deductions from your UC if you're finding it hard to manage.
How much can be taken off for debts?
This depends on your age and if you claim as a single person or a couple.
Amounts in this table are rounded to the nearest pound.
Table: Maximum UC debt deductions from April 2023
Highest monthly deductions for debts | |
---|---|
Single person under 25 | £73 |
Single person aged 25 or over | £92 |
Couple - both under 25 | £115 |
Couple - either of you aged 25 or over | £145 |
The DWP can only take more than this to help stop an eviction or disconnection of your gas or electricity.
You might also have deductions if other adults live with you and are expected to help you pay rent. These are a different type of deduction called housing costs contributions.
Benefit or tax credit overpayments
If the DWP think you have been overpaid benefits or tax credits they will write to you.
The letter should tell you:
how much will be taken each month
when deductions will start and end
Call DWP debt management on 0800 916 0647 if you cannot afford the deductions.
You can sometimes pay the benefits or tax credits back over a longer time. This means the deductions will be smaller each month.
StepChange has more advice on benefit or tax credit overpayments.
UC advances
You have 2 years to pay back a UC advance.
Ask the DWP to:
pause repayments for up to 3 months if you cannot afford food or important bills
extend the repayment time up to 2 years if you're paying the advance back over less time
Write a message like this in your UC journal:
I had a UC advance at the start of my claim.
I am finding it hard to manage with the deductions from my monthly payment.
Please could you pause the deductions for 3 months. I cannot afford food or to pay my bills at the moment.
Please could you also extend the time I have to repay the advance to 2 years.
You could also call the universal credit helpline on 0800 328 5644
Budgeting advances
You usually have 1 year to pay back a budgeting advance.
If you cannot afford food or important bills because of deductions you can ask the DWP to:
pause repayments for up to 3 months
extend the repayment time up to 18 months
Write a message like this in your UC journal:
I have UC deductions for a budgeting advance.
I cannot afford food or to pay my bills at the moment.
I am finding it hard to manage with the deductions from my monthly payment.
Please could you pause the deductions for 3 months and extend the time I have to repay the advance to 18 months.
You could also call the universal credit helpline on 0800 328 5644
Rent and service charge arrears
Your landlord can ask for deductions if you owe at least 2 months' rent or service charges.
This table shows the minimum and maximum amounts that can be taken to pay off these arrears. Amounts are rounded to the nearest pound.
Table: Monthly deductions for rent arrears from April 2023
Lowest | Highest | |
---|---|---|
Single person under 25 | £29 | £58 |
Single person aged 25 or over | £37 | £74 |
Couple - both under 25 | £46 |