DWP warning to all Universal Credit claimants over cuts if they owe debts

The amount of your Universal Credit standard allowance that can be deducted for debts is 25 per cent - this is being reduced to 15 per cent from April 2025
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Universal Credit payments can be cut if claimants owe debts or they fall behind on their bills or rent. Currently, the standard allowance the Department for Work and Pensions (DWP) can deduct from Universal Credit for debts is 25 per cent.

This is going to reduce to 15 per cent by this April, the Mirror has reported. Debts that can be recovered through Universal Credit include council tax, rent arrears, energy and water bills, service charges, child maintenance and court fines.

It has been said that only three third-party deductions can be taken at any one time. Also, if you owe the DWP, Universal Credit can also be used to repay benefit overpayments.

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New sanction rates for April 2025 have been confirmed by the DWP and the list is as follows:

Overall maximum deduction rate at 15% of Universal Credit standard allowance (previously 25%)

  • Single under 25: decreasing from £77.92 to £47.55

  • Single 25 or over: decreasing from £98.36 to £60.02

  • Joint claimants both under 25: decreasing from £122.31 to £74.63

  • Joint claimants, one or both 25 or over: decreasing from £154.40 to £94.22

Minimum deductions for rent and service charges at 10% of Universal Credit standard allowance

  • Single under 25: increasing from £31.17 to £31.70

  • Single 25 or over: increasing from £39.35 to £40.01

  • Joint claimants both under 25: increasing from £48.92 to £49.76

  • Joint claimants, one or both 25 or over: increasing from £61.76 to £62.81

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Maximum deductions for rent and service charges at 15% of Universal Credit standard allowance (previously 20%)

  • Single under 25: decreasing from £62.34 to £47.55

  • Single 25 or over: decreasing from £78.69 to £60.02

  • Joint claimants both under 25: decreasing from £97.85 to £74.63

  • Joint claimants, one or both 25 or over: decreasing from £123.52 to £94.22

Third-party deductions at 5% of Universal Credit standard allowance (excludes deductions for rent and service charges)

  • Single under 25: increasing from £15.58 to £15.85

  • Single 25 or over: increasing from £19.67 to £20.01

  • Joint claimants both under 25: increasing from £24.46 to £24.88

  • Joint claimants, one or both 25 or over: increasing from £30.88 to £31.41