After setting out the maximum amount a claimant is entitled to, a UC statement will then go on to set out what sums are being taken off of the award.

Example of deductions on a UC statement

In this example statement, money is being taken off for:

• the claimant's take home pay

• other income

Leading to a total deduction of £571.05 from the award.

Types of deductions

After calculating the maximum amount a claimant could be awarded, the Department for Work and Pensions (DWP) will make deductions. The DWP can make deductions for:

• take home pay

• other income

• property, savings and investments

• debts (such as for fuel, rent arrears or overpayments)

• sanctions

• the benefit cap

Find out more about the deductions and what these terms mean in Shelter's guide to deductions from universal credit.

If the claimant is receiving the housing costs element, the DWP can also take off money for:

• under-occupying social housing, often called bedroom tax

• housing costs contributions for other adults living in the property aside from the claimant and their partner

• arrangements where the housing costs element is paid directly to the landlord in a managed payment

Find out more about bedroom tax and housing cost contributions and managed payments to landlords on Shelter Legal.